The US hospitality giant sells its European business to a private equity firm for $1.3 billion.
US-based hospitality giant Wyndham Worldwide has sold its European business to a private equity firm in a $1.3 billion deal.
AccorHotels and Airbnb had been suggested by experts and the media as potential buyers when news of the company’s plan to sell became public last summer.
But the sale is to American private equity firm Platinum Equity. It includes a 20-year agreement where a 1% royalty will be paid for use of the “by Wyndham Vacation Rentals” tagline.
The European business operates around 25 brands, including Hoseasons, James Villa Holidays, cottages.com, Landal GreenParks and Novasol.
These collectively account for approximately 110,000 properties, and the business generates around $750 million in annual revenues and pre-tax profits of $130 million.
Wyndham claims to be the largest manager of holiday rentals in Europe. The 110,000 units can be found in 600-plus locations and 25 countries.
The company’s plan to sell was made public in August following the planned separation of Wyndham’s hotel business from its vacation ownership and timeshare. The deal is expected to be finalised by June.
Wyndham says there was “strong interest from multiple parties”, adding that it is “pleased to find the right buyer”.
More purchases in this sector are likely, Platinum Equity Partner Louis Samson indicated.
“We are excited to partner with the management team to ensure a seamless transition while preparing our plans to drive additional growth, both organically and through prospective add-on acquisitions,” he said.
Geoff Cowley managing director of Wyndham Vacation Rentals UK, commented that “we are excited to move into Platinum Equity ownership upon the successful completion of the sale. […] We are confident Platinum Equity will provide our business with a positive outlook for growth and will enable us to continue delivering the same exceptional service to our accommodation owners and their guests.”