Wyndham Worldwide Corp. announced that it has entered into a definitive agreement for the sale of its European vacation rental business to American private equity firm Platinum Equity for approximately US$1.3 billion. The transaction is expected to close in Q2 2018.
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 Wyndham Vacation Rentals endorser brand.
Wyndham’s European vacation rental business has 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 US$750 million in annual revenue.