Topic: How To Invest

Stock Pickers Digest Hotline – Friday, May 5, 2017

Article Excerpt

WYNDHAM WORLDWIDE CORP., $96.07, symbol WYN on New York, is one of the world’s largest hospitality companies, with over 8,100 franchised hotels across 77 countries and under 18 brands. The company also manages vacation resorts, rental properties, luxury clubs and timeshares. It currently has around 112,000 vacation-rental properties in 100 countries. The company’s CEO has confirmed that it is now preparing for a possible spinoff of its vacation ownership business. This include hiring Mike Brown, who was the chief operating officer of Hilton Grand Vacations (symbol HGV on New York) when it was spun off from Hilton Worldwide (symbol HLT on New York) in January 2017. Brown also has experience working for Marriott International on both its hotel and timeshare businesses. Wyndham’s business units have little overlap, except for its highly successful Wyndham Rewards program. The move adds appeal to Wyndham’s shares—in our experience, and in most academic studies of the subject, both the parent and the spinoff generally do better than comparable firms…