Wyndham to sell European vacation rental business to Platinum Equity for $1.3B
Wyndham announced that it has entered into a definitive agreement for the sale of its European vacation rental business to Platinum Equity for approximately $1.3B. In conjunction with the sale, the European vacation rental business has entered into a 20-year agreement under which it will pay a royalty fee of 1% of net revenue to Wyndham's hotel business for the right to use the by Wyndham Vacation Rentals endorser brand. The European vacation rentals operations will also participate as a redemption partner in the award-winning Wyndham Rewards loyalty program. Wyndham's industry-leading European vacation rental business is the largest manager of holiday rentals in Europe, with more than 110,000 units in over 600 destinations in more than 25 countries. The business operates more than two dozen local brands, including cottages.com, James Villa Holidays, Landal GreenParks, Novasol and Hoseasons. It generates approximately $750 million in annual revenue and approximately $130 million of EBITDA, including allocated costs. Wyndham Worldwide originally announced its intent to explore strategic alternatives for its European rental brands in August 2017, in conjunction with the Company's announcement of the planned separation of its hotel business from its vacation ownership and timeshare exchange businesses. The transaction is expected to close in the second quarter of 2018, subject to customary closing conditions including works council consultation.