Wyndham has reported strong second quarter results, with vacation ownership setting records with sales up 21 percent.SECOND QUARTER 2007 HIGHLIGHTS (as compared to second quarter 2006):

  —Revenues increased to over $1.1 billion, up 15%, with strong, organic
    growth across all businesses:  Lodging, Vacation Exchange and Rentals,
    and Vacation Ownership

  —Net income for the second quarter of 2007 increased 28% to $96 million,
    or $0.52 per diluted share, compared to second quarter 2006 net income
    of $75 million, or $0.37 per diluted share

  —Vacation Ownership gross sales and revenues each surged 21%

  —Vacation Ownership tours increased 11% and volume per guest increased
    12%

  —Comparable revenue per available room (RevPAR) increased 5.1% and
    system-wide RevPAR increased 3.7%

  —Hotel pipeline was over 100,000 rooms as of June 30, 2007

  —Average number of vacation exchange members increased 5%

  —Vacation rental transactions increased 5% and average net price per
    vacation rental increased 11%

  —The Board of Directors declared a dividend of $0.04 per share payable
    September 4, 2007 to shareholders of record as of August 13, 2007.

 
“In the one year since our spin-off, we have continued to drive strong results in all three of our businesses,” said Stephen P. Holmes, Wyndham Worldwide chairman and chief executive officer. “Leading the way again this quarter was our Vacation Ownership business, where performance continues to be phenomenal.

We continued to invest in and build momentum behind the Wyndham brand by re-flagging well-known hotels including locations in London and Puerto Rico, launching Wingate by Wyndham, and flying new Wyndham banners over some of our great vacation ownership resorts. Additionally, operating statistics for our Vacation Exchange and Rentals business (Group RCI) showed continued strength in the quarter.”

SECOND QUARTER 2007 OPERATING RESULTS

Revenues for the second quarter of 2007 were $1.1 billion, up 15% over the same period in 2006, reflecting strong organic growth across the businesses.

Net income for the second quarter of 2007 was $96 million or $0.52 diluted earnings per share, compared to $75 million or $0.37 diluted earnings per share for the second quarter of 2006.

Net income for the second quarter of 2007 includes $4 million after-tax of separation and related costs associated with Wyndham Worldwide’s spin-off from Cendant Corporation (now Avis Budget Group) and $11 million of an after-tax net benefit from the resolution of and adjustment to certain legacy items. Excluding these items, Adjusted net income for the second quarter of 2007 was $89 million, or $0.49 diluted earnings per share.

Second quarter of 2006 includes $3 million after-tax of separation and related costs and excludes $16 million after-tax of estimated incremental stand-alone costs (assuming Wyndham Worldwide had been a stand-alone, public company). Assuming these items, Adjusted net income for the second quarter of 2006 was $62 million, or $0.31 diluted earnings per share.

Second quarter of 2006 also includes $32 million ($22 million, after-tax) of expenses related to an accrual for local foreign taxes at our European vacation rental operations.

BUSINESS UNIT RESULTS

Lodging (Wyndham Hotel Group)

Revenues increased 6% to $186 million in the second quarter of 2007 compared with the second quarter of 2006, primarily reflecting RevPAR gains.

Comparable RevPAR increased 5.1% in the second quarter of 2007 and system- wide RevPAR increased 3.7% from the prior year period.

The Wyndham brand comparison was affected by the expected attrition of certain properties. Excluding these properties, the majority of which have left the system, RevPAR for the Wyndham Hotels and Resorts brand was up 9.9%.

Lodging EBITDA grew 11% to $59 million compared to the second quarter of 2006, reflecting strong fundamentals and timing of marketing spend.

As of June 30, 2007, the Company’s hotel system consisted of 541,700 rooms and 6,460 properties with a development pipeline of over 100,000 rooms and approximately 900 hotels, of which 46% were new construction and 25% were international.

Vacation Exchange and Rentals (Group RCI)

Revenues increased 10% to $288 million in the second quarter of 2007 compared with the second quarter of 2006, reflecting continued momentum in both vacation exchange and vacation rentals as well as favorable currency translations.

Vacation exchange revenues were $116 million, a 7% increase compared to the second quarter of 2006. The average number of members increased 5% and annual dues and exchange revenue per member increased 2% from the second quarter of 2006.

Vacation rentals revenues were $136 million, a 17% increase compared to the second quarter of 2006, reflecting a 5% increase in vacation rental transactions and an 11% increase in the average net price per rental. Bookings and arrivals at Novasol and Landal GreenParks were strong as a result of enhanced marketing programs, supporting an expansion strategy to provide consumers with broader inventories and more destinations, as well as improved local economies.

Other ancillary revenues generated primarily from additional products and services provided to affiliates and members were $36 million in the second quarter of 2007, relatively flat to last year.

Second quarter of 2007 EBITDA was $49 million compared to second quarter of 2006 EBITDA of $32 million, which included a $21 million charge related to an accrual for local foreign taxes at our European vacation rental operations and $1 million of separation and related costs. Second quarter 2007 EBITDA included higher cost of sales on increased rentals and incremental expenses in operational infrastructures, including technology and call center costs to support higher volumes, as well as a reduction in results of $6 million related to certain Asia Pacific consulting relationships.

Compared to the second quarter of 2006, currency translations increased revenues by $10 million, principally rental related, and increased expenses by $9 million, resulting in a $1 million lift to EBITDA.

Vacation Ownership (Wyndham Vacation Ownership)

Revenues increased 21% to $629 million in the second quarter of 2007 compared with the second quarter of 2006 reflecting continued success in marketing and sales.

Gross Vacation Ownership Interest sales were $523 million for the second quarter of 2007, up 21% compared to the second quarter of 2006, driven by marketing efforts resulting in an 11% growth in tour flow and a 12% increase in volume per guest from strong performance by our sales force and continued strength in transaction pricing.

Consumer finance revenues increased 26% for the second quarter of 2007 compared to the second quarter of 2006 reflecting continued Vacation Ownership sales growth.

EBITDA for the second quarter of 2007 was $100 million. Excluding separation and related costs of $5 million, Adjusted EBITDA for the second quarter of 2007 was $105 million, increasing 22% from the second quarter of 2006, excluding $2 million from separation and related costs during that period. This EBITDA growth is consistent with the growth in Vacation Ownership sales.

As previously announced, the Company successfully completed a $600 million vacation ownership receivables securitization during the second quarter of 2007.
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