Wyndham Worldwide has announced plans to spin off the company's hotel and timeshare businesses to create two new companies.
The two companies will both retain their affiliations with Wyndham Rewards, and continue to collaborate on inventory sharing and customer cross-sell initiatives. The corporate names of the post-spin public companies have not yet been decided.
The transaction is intended to allow each company to maintain a sharper focus on its core business and growth opportunities. Wyndham expects the transaction to be completed in the first half of 2018.
The companies will have separate boards of directors, with Stephen P. Holmes, chairman and chief executive of Wyndham Worldwide, serving as non-executive chairman on both boards. Geoff Ballotti, current chief executive of Wyndham Hotel Group, will continue to lead the hotel company as president and chief executive, while David Wyshner will become chief financial officer of the hotel company upon spin.
Ballotti said: "We have spent the past three years on a transformation focused on improving the quality and awareness of our hotel brands, moving our legacy hotel and central systems to cloud based technology on an unprecedented scale, and building one of the top-rated hotel loyalty programs in the world. With a proven asset-light, fee-for-service model and attractive opportunities to grow and further diversify our brand portfolio, we are well positioned to drive value for our shareholders."
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