Leading US multinational hospitality company Wyndham Worldwide has announced that it will be selling its European vacation rentals business to private equity firm Platinum Equity in a deal worth $1.3bn.
As a result, Platinum Equity will become responsible for the management of 110,000 holiday rental units across 600 destinations throughout Europe.
The deal will include a 1% of net revenue royalty fee to be paid to Wyndham annually over the course of the next 20 years for the use of the Wyndham Vacation Rentals brand.
“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,” said Platinum Equity Partner Louis Samson.
“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.”
The move brings to an end speculation surrounding the unit, with Wyndham Worldwide having announced that it intended to “explore strategic alternatives” with the European vacation rentals business in August last year.
“Along with our planned separation and recently announced acquisition of La Quinta’s franchising and management businesses, this is another important step in the evolution of our Company,” said Stephen Holmes, Chairman and Chief Executive Officer of Wyndham Worldwide.
The deal comes shortly after Platinum Equity’s acquisition of Pattonair in Q4 2017.