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Wyndham Worldwide Corporation's (WYN - Analyst Report) operational arm Wyndham Vacation Ownership (WVO) in association with Margaritaville Hospitality Group is on the verge of reconstructing Grand Beach Palace Resort, in St. Thomas, U.S. Virgin Islands. Positioned at the northeast of St. Thomas, the 25-acre resort is strategically located near the beach.

The redeveloped resort, Wyndham St. Thomas will be the first Margaritaville Vacation Club branded property. In order to restore the property, Wyndham has taken a refurbishment initiative, which is scheduled to start this summer. Primarily, the resort’s 290 guest rooms will be converted into 262 condominium units. Subsequently, the resort will undergo a complete renovation within a period of three years.

Wyndham St. Thomas is slated to open for business in 2014. With the completion of the restoration, the resort is likely to generate new employment opportunities in the region. 

However, to tap the growing potential, Marriott International Inc. (MAR - Analyst Report) is also developing its vacation ownership timeshare business in St. Thomas, U.S. Virgin Islands through its Marriot Vacation Club.

Wyndham’s Vacation Ownership segment develops, markets, and sells vacation ownership interests to individual consumers, provides consumer financing in connection with the sale of VOIs, and offers property management services at resorts.

Wyndham derives a substantial chunk of revenues from its vacation ownership or timeshare business, which has solid long-term potential. Revenues from the Vacation Ownership segment at Wyndham rose 12.0% to $590.0 million in the fourth quarter of 2012.

Wyndham carries a Zacks Rank #3 (Hold). Some players in the same industry, which are going to perform well, moving ahead, include Home Inns & Hotels Management Inc. (HMIN - Snapshot Report), and Choice Hotels International Inc. (CHH - Snapshot Report). Home Inns & Hotels Management carries a Zacks Rank #1 (Strong Buy) while Choice Hotels has a Zacks Rank #2 (Buy).

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