Wyndham Worldwide Corporation yesterday completed the $1.3 billion sale of its European vacation rentals business to an arm of global private equity firm Platinum Equity.
The business operates more than two dozen local brands, including cottages.com, James Villa Holidays, Landal GreenParks, Novasol and Hoseasons.
It is claimed to be the largest manager of holiday rentals in Europe, with more than 110,000 units in over 600 destinations across more than 25 countries.
The European vacation rentals business also 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 business will also participate as a redemption partner in the Wyndham Rewards loyalty scheme.
The net proceeds from the sale, first announced in February, will primarily be used to reduce its existing indebtedness, according to Wyndham Worldwide.
Chairman and chief executive Stephen Holmes said: “The completion of this transaction is a major milestone toward our becoming two strong, independent public companies leading the way in vacation ownership and hospitality.
“We are confident that the European vacation rental brands will continue to succeed with the support of Platinum Equity, and we are proud to continue our partnership with these customer-focused brands, underscored by the Wyndham Vacation Rentals endorsement and participation in our award-winning Wyndham Rewards loyalty programme.”
Los Angeles-based Platinum Equity has $13 billion of assets under management and more than 30 operating companies across a range of sectors.
Partner Louis Samson said at the time the deal was announced: “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 stand alone business.
“We are excited to partner with the management team to ensure a seamless transition while preparing plans to drive additional growth, both organically and through prospective add-on acquisitions.”
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