Wyndham's RCI to Flourish Further - Analyst Blog

By
A A A

In a bid to expand its global coverage, Wyndham Worldwide Corp 's ( WYN ) leading vacation exchange network, RCI, recently declared the inclusion of 35 affiliated resorts to its portfolio during the first quarter of 2013. These properties are located in various popular tourist destinations across the world.

Some of the resorts worth a mention here are Tides Boutique Spa Resort in Samui, Thailand, Dom Pedro Laguna Beach Villas & Golf Resort, Brazil and Royal Sun Resort in Tenerife. All these properties feature restaurants, swimming pool, spa and fitness center and are located by the sea, which make them the perfect choice for leisure travelers.

RCI, a unit of Wyndham's Vacation Exchange and Rentals segment, markets vacation rental properties primarily on behalf of independent owners. RCI offered its clients the privilege to access more than 4,000 vacation properties and resorts located in about 100 countries. During 2012, Wyndham added 120 properties to its vacation exchange network.

This Zacks Rank #3 (Hold) company is a star performer in the vacation exchange and rental business. We believe this fee-for-service model reduces the company's capital requirements, resulting in higher free cash flow, which in turn will be beneficial for the company.

Revenues from the Vacation Exchange and Rentals segment increased 3.6% year over year to $374.0 million, gaining from the introduction of several new initiatives, such as online tour generation, timeshare, online listing center and technology upgrades.

Apart from Wyndham, several other hoteliers such as Marriott Vacations Worldwide Corp. ( VAC ), Starwood Hotels & Resorts Worldwide Inc. ( HOT ) and Hyatt Hotels Corporation ( H ) are also focusing on expanding their vacation exchange and timeshare business in an attempt to go global.



HYATT HOTELS CP (H): Free Stock Analysis Report

STARWOOD HOTELS (HOT): Free Stock Analysis Report

MARRIOT VAC WW (VAC): Free Stock Analysis Report

WYNDHAM WORLDWD (WYN): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: H , HOT , VAC , WYN

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

67%
67%
100%
67%

Most Active by Volume

61,354,178
  • $10.59 ▲ 13.26%
57,732,182
  • $16.27 ▲ 1.12%
51,991,548
  • $103.30 ▲ 0.78%
48,129,834
  • $20.65 ▲ 5.52%
41,623,916
  • $12.63 ▲ 8.13%
34,295,241
  • $76.68 ▲ 2.49%
31,519,079
  • $34.57 ▼ 1.00%
28,847,879
  • $3.64 ▲ 0.28%
As of 9/2/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com