In a bid to expand its global coverage, Wyndham Worldwide Corp’s (WYN - Free Report) 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 - Free Report) , Starwood Hotels & Resorts Worldwide Inc. and Hyatt Hotels Corporation (H - Free Report) are also focusing on expanding their vacation exchange and timeshare business in an attempt to go global.