Wyndham Worldwide is set to spin off their global company in sectors in the first half of 2018. Following similar successful spinoffs at Hilton Worldwide Holdings and Starwood Hotels and Resorts in recent years. Wyndham Worldwide; the largest timeshare and vacation rental company worldwide has announced that they will also be splitting their hotel business from their timeshare and vacation rental side of the business.
The timeshare and vacation rental side is still set to be the biggest tImeshare resort company worldwide, not changing from its current status. However, there will be a second public company under the Wyndham umbrella that will dedicate itself solely to hotel trade. Stephen P. Holmes, CEO of Wyndham Worldwide, has confirmed that there will be ongoing relationships between the two, with specific licensing being put in place to ensure members of the tImeshare section of the spin off are still able to enjoy loyalty benefits from points systems.
Holmes has said that he is working to ensure that the loyalty program is set up and initiated before the full spin off takes place so as not to disrupt the seamless process of loyalty that is set up at the moment. Of course, with the businesses all in one group, this is a lot easier to manage than it will be once the spin off has been completed. Therefore, this needs to be planned, in place and working before realising the business split.
One has to wonder why the timeshare and hotel groups are copying the trend to go through a spin off and split a company in two. There are several theories, however the most obvious is for each sector to concentrate on the core concept of each. Timeshare and Hotels have become very different over the last few years. The business models are needing separate strategies and would better managed as separate entities.
Other such spin offs have taken place due to dwindling timeshare sales, but this does not seem to be the reason for Wydhams decision, as its timeshare sales were greater than its hotel trade in the last quarter. Both sides of the business, however, continue to grow at a healthy rate. The CEOs of each company have been decided;
Michael Brown, current CEO of the Vacation Ownership will hold the helm of the timeshare and vacation rental business as president and CEO of the new company, whilst the hotel group manager; will become the CEO and president of the Wynham Hotel group. Leaving Holmes to sit on the board of directors of both companies.
There are exciting times ahead for Wyndham Worldwide, the final details are still to be ironed out for the upcoming spin off, but the plans are well and truly on their way!
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk