Wyndham board approves spin-off of hotel business
Wyndham Worldwide Corporation has announced that its Board of Directors has approved the previously announced spin-off of its wholly-owned subsidiary Wyndham Hotels & Resorts, Inc., the world’s largest hotel franchisor with more than 8,300 affiliated hotels.
The distribution is expected to occur after the market close on 31 May 2018 to Wyndham Worldwide stockholders of record as of 18 May 2018. In conjunction with the spin-off, Wyndham Worldwide Corporation will be renamed Wyndham Destinations, Inc. and will continue to be the world’s largest vacation ownership and exchange company.
Following the spin-off, Wyndham Hotels & Resorts will trade on the New York Stock Exchange under the symbol “WH”, and Wyndham Destinations will continue to trade on the New York Stock Exchange under the new symbol “WYND”. Wyndham Hotels & Resorts is expected to begin “regular-way” trading on 1 June 2018.
In addition, the Board of Directors of Wyndham Hotels & Resorts has approved a share repurchase authorisation of $300 million, while Wyndham Destinations will have approximately $1 billion remaining under its current share repurchase authorisation.
Stephen P. Holmes, chairman and CEO of Wyndham Worldwide, said: “For more than a decade, Wyndham Worldwide has been focused on providing great experiences for millions of guests around the world while delivering value and return on capital for our stockholders.
“Throughout this journey, we have been guided by a fundamental commitment to reliable growth in a disciplined and responsible way.
“We’re confident that as two independent companies, Wyndham Hotels & Resorts and Wyndham Destinations have the right focus and strategic flexibility to unlock significant long-term value for stockholders. Each of the new companies will have significant scale and a leadership position within its industry, strong cash flows, and a rich portfolio of trusted brands.”