====Wyndham Worldwide (WYN) discloses expected dividends for two post-spin-off companies

Wyndham Worldwide Corporation was founded in 1990.
Headquarters: Parsippany, New Jersey.
Sector: Consumer Cyclical
Industry: Lodging
Full Time Employees: 39,200
http://www.wyndhamworldwide.com

 

 After the spinoff: Wyndham Hotels & Resorts (WH), Wyndham Destinations(WYND)

Wyndham Worldwide discloses expected dividends for two post-spin-off companies  

Wyndham Hotels & Resorts, Inc. expects to pay a quarterly cash dividend of $0.25 per share beginning in June 2018, and Wyndham Worldwide Corporation, which will be renamed Wyndham Destinations, Inc., expects to pay a quarterly cash dividend of $0.41 per share beginning in June 2018. The dividends, in aggregate, are consistent with Wyndham Worldwide's current quarterly dividend of $0.66 per share.

• Following the spin-off, Wyndham Hotels & Resorts will trade on the New York Stock Exchange under the symbol "WH," and Wyndham Destinations will continue to trade on the New York Stock Exchange under the new symbol "WYND." Wyndham Hotels & Resorts is expected to begin "regular-way" trading on June 1, 2018.

= La Quinta Holdings (NYSE: LQ) to be acquired by Wyndham Worldwide (WYN) for $1.95 billion

La Quinta Holdings Inc. owns, operates, and franchises select-service hotels.
Sector: Consumer Cyclical
Industry: Resorts & Casinos
Full Time Employees: 6,944
Founded: 1968
Headquartered: Irving, Texas
http://www.lq.com

• The acquisition will help Wyndham to significantly improve its hotel management business and strengthen its brand presence globally. La Quinta has an asset-light, fee-for-service business structure, which consists of nearly 900 managed and franchised hotels. On the flipside, Wyndham operates a portfolio of 20 lodging brands and has approximately 9,000 hotels across 80 countries and six continents.

Irving-based La Quinta announced Thursday a $1.95 billion cash deal with Wyndham (NYSE: WYN), expected to close in the second quarter. Both companies’ boards have already approved the transaction.

Under the agreement, La Quinta stockholders will receive $8.40 per share in cash, an aggregate of roughly $1 billion. Wyndham has agreed to pay down $715 million of La Quinta’s net debt out of cash.

Additionally, New Jersey-based Wyndham will set aside $240 million for taxes expected to be incurred as La Quinta’s corporately-owned assets form a new publicly-traded real estate investment trust to be called CorePoint Lodging.

In return, Wyndham will acquire 900 managed and franchised hotels. This will bring its portfolio to 21 brands and over 9,000 properties in more than 75 countries.

"La Quinta will immediately become one of our flagship brands," Geoff Ballotti, president and CEO of Wyndham Hotel Group, said in a prepared statement. "We expect that La Quinta guests and franchisees will benefit from our intense focus on product quality and our best-in-class technology, digital, loyalty and distribution platforms. This acquisition also significantly expands our hotel management business and provides us with substantial new opportunities to drive increased growth in our business."

Prior to the Wyndham deal, La Quinta’s corporate assets will be spun off into CorePoint, which will be lead by La Quinta’s current president and CEO Keith Cline. The REIT will own 315 hotels and more than 40,000 rooms in the U.S.

=Wyndham Worldwide (WYN) reported earnings on Wed 2 Aug 2017 (a/h)

• Strong Top-Line Momentum
• Increases Full-Year EPS Guidance
• Announces Plan To Become Two Publicly Traded Hospitality Companies

Hospitality group Wyndham Worldwide Corp. plans to separate its hotel and timeshare businesses into two publicly traded companies, according to people familiar with the matter, following other large hotel corporations including Marriott International Inc. and Hilton Worldwide Holdings Inc. that also separated their timeshare businesses in recent years.

The company hasn’t determined the names of the two companies, these people said, and the deal is subject to final approval by Wyndham’s board.

SECOND QUARTER 2017 OPERATING RESULTS
Second quarter revenues were $1.5 billion, up 5% compared with the prior year period. Full reconciliations of GAAP results to non-GAAP measures for all reported periods appear in the tables to this press release.

As of June 30, 2017, the Company's hotel system consisted of over 8,100 properties and approximately 705,700 rooms, a 3.3% net room increase compared with the second quarter of 2016.  The development pipeline increased to nearly 1,230 hotels and over 150,800 rooms, an 18% year-over-year room increase, of which 57% were international and 67% were new construction.