Wyndham Worldwide has acquired property vacation management group Shell Vacations and its subsidiaries $102 million in cash
The acquisition also includes $153 million of debt, which is primarily related to consumer loan receivables.
Under the terms of the agreement, WVO assumes property management operations at 19 Shell resort locations in Hawaii, California, Arizona, Nevada, Oregon, Wisconsin, Texas, New Hampshire and Canada.
WVO will now also operate Shell Vacations Club (SVC), a leading points-based reservation and exchange system featuring a wide variety of member benefits and travel options, and assumes management of all SVC marketing, sales and financial services activities.
“This tuck-in acquisition is immediately accretive to earnings and generates meaningful cash flow as well as a healthy rate of return. With strong fee-for-service revenues, this acquisition is consistent with our capital-light strategy,” said Stephen P. Holmes, Chairman and CEO, Wyndham Worldwide.
“With a history that spans more than four decades, Shell Vacations is both a pioneer and a respected leader within the hospitality industry,” stated Franz S. Hanning, President and CEO, Wyndham Vacation Ownership.
“We look forward to building upon Shell’s achievements and continuing the growth of its highly successful vacation club by pursuing the same formula of providing outstanding quality, value and customer care.”
“We’re excited to leverage the significant scale and expertise of WVO,” said Shelly Ginsburg, Chairman and CEO, Shell Vacations.
“We believe our strong commitment to owner and guest satisfaction is complemented by WVO’s demonstrated strength in managing one of the most extensive and diversified timeshare resort portfolios.”
Shell Vacations, founded in 1978, manages 19 North America resorts, including San Francisco’s Suites at Fisherman’s Wharf and Hawaii’s Waikiki Marina Resort. The company has about 115,000 members.