Stock Monitor: Hyatt Hotels Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 20, 2018 / Active-Investors.com has just released a free research report on Wyndham Worldwide Corp. (NYSE: WYN). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=WYN as the Company's latest news hit the wire. On February 15, 2018, the Company announced the signing of an agreement with private-equity firm Platinum Equity to divest its European vacation rental business. The deal is valued approximately for $1.3 billion and is expected to close in Q2 2018, subject to getting regulatory approvals and other closing conditions including works council consultation. Register today and get access to over 1,000 Free Research Reports by joining our site below:
www.active-investors.com/registration-sg
Active-Investors.com is currently working on the research report for Hyatt Hotels Corporation (NYSE: H), which also belongs to the Services sector as the Company Wyndham Worldwide. Do not miss out and become a member today for free to access this upcoming report at:
www.active-investors.com/registration-sg/?symbol=H
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Wyndham Worldwide most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/?symbol=WYN
Details of the divestment
The Company's European vacation rental business managed the rentals across Europe for over 110,000 units in 600+ destinations in more than 25 countries. The business managed over two dozen local brands, including cottages.com, James Villa Holidays, Landal GreenParks, Novasol and Hoseasons. The annual revenue from this business is approximately $750 million and earnings before interest, tax, depreciation, and amortization (EBITDA) of approximately $130 million, including allocated costs.
The European Vacation Rental Business concurrently signed an agreement with Wyndham for the right to use the "by Wyndham Vacation Rentals®" endorser brand. As per the terms of the 20-year deal, the European Vacation Rental Business will pay Wyndham's hotel business royalty fee of 1% of net revenues. The deal also includes the participation of the European Vacation Rental Business in Wyndham Rewards® loyalty program.
Wyndham Worldwide expects that the divestment will result in tax obligation of 15% of the transaction value. The Company plans to utilize the funds from the divestment for paying off debts, funding new acquisitions including the acquisition of La Quinta Holdings' hotel franchising and management businesses announced in January 2018 and to meet other general corporate expenses.
Wyndham Worldwide had been looking into strategic options for its European Vacation Rental Business since August 2017, when it had split the Company's business into two separate business units - the hotel business and the vacation ownership and timeshare exchange business. Wyndham Worldwide has confirmed that its planned divestiture of its Wyndham Hotel Group is on tract and is expected to be completed in Q2 2018.
Platinum Equity, a leading global private-equity firm, has been very active in the European merger and acquisition (M&A) scene and the companies in its current portfolio employ over 16,000 people in the region. This is the second major acquisition by the private-equity firm in Europe within last six months. It had completed the acquisition of global aerospace and defense supply chain provider Pattonair in October 2017.
Comments from Management
Sharing his views on the divestiture of the European Vacation Rental Business, Stephen P. Holmes, Chairman and CEO of Wyndham Worldwide, said:
"We conducted a rigorous strategic review process that generated strong interest from multiple parties, and we were pleased to find the right buyer. We are confident that as part of Platinum Equity's portfolio, these businesses will have a bright future and will provide significant opportunities for their associates and business partners."
Louis Samson, Partner, Platinum Equity, added:
"We have worked closely with Wyndham Worldwide to craft a divestiture solution that creates value for all sides and puts the European vacation rental business on a path for long-term success as a standalone business."
About Platinum Equity
Los Angeles, California based-Platinum Equity was founded by Tom Gores in 1995 and is a global M&A&O® (integrates traditional M&A with operational expertise) Firm specialized in mergers, acquisitions, and operations of Companies. The investment Firm has $13 billion of assets under management (AUM) and a portfolio of more than 30 operating companies across the world. Platinum Equity has completed 200+ acquisitions since its founding in 1995 in a broad range of businesses, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications, etc. The investment firm has offices in Boston, Greenwich, New York, London, and Singapore.
About Wyndham Worldwide Corp.
Wyndham Worldwide is one of world's largest hospitality companies and provides a wide range of hospitality products and services through its global portfolio of world-renowned brands. The Company has a collective inventory of nearly 130,000 places to stay in more than 110 countries on six continents including hotels, vacation ownership and unique accommodations including vacation exchange, holiday parks and managed home rentals. The Company also offers a guest loyalty program across its businesses - Wyndham Rewards®.
Stock Performance Snapshot
February 16, 2018 - At Friday's closing bell, Wyndham Worldwide's stock dropped 1.26%, ending the trading session at $121.08.
Volume traded for the day: 611.05 thousand shares.
Stock performance in the last three-month – up 13.71%; previous six-month period – up 25.93%; past twelve-month period – up 41.14%; and year-to-date - up 4.50%
After last Friday's close, Wyndham Worldwide's market cap was at $12.42 billion.
Price to Earnings (P/E) ratio was at 15.16.
The stock has a dividend yield of 1.92%.
The stock is part of the Services sector, categorized under the Lodging industry.
Active-Investors:
Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
A-I has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the ''Author'') and is fact checked and reviewed by a third-party research service company (the ''Reviewer'') represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the ''Sponsor''), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: info@active-investors.com
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active-Investors
