Wyndham Worldwide has completed the previously announced sale of its European vacation rentals business to an affiliate of Platinum Equity, for approximately $1.3 billion.

The industry-leading European vacation rentals business is the largest manager of holiday rentals in Europe, with more than 110,000 units in over 600 destinations across more than 25 countries. 

The business operates more than two dozen local brands, including cottages.com, James Villa Holidays, Landal GreenParks, Novasol and Hoseasons. 

In conjunction with the sale, the European vacation rentals business entered into a 20-year agreement under which it will pay a royalty fee of one per cent of net revenue to Wyndham’s hotel business for the right to use the “by Wyndham Vacation Rentals®” endorser brand. 

“The completion of this transaction is a major milestone toward our becoming two strong, independent public companies leading the way in vacation ownership and hospitality,” said Stephen Holmes, chairman of Wyndham Worldwide.

“We are confident that the European vacation rental brands will continue to succeed with the support of Platinum Equity, and we are proud to continue our partnership with these customer-focused brands, underscored by the Wyndham Vacation Rentals endorsement and participation in our award-winning Wyndham Rewards loyalty program.”

Wyndham Worldwide intends to use the net proceeds from the sale primarily to reduce its existing indebtedness.

Deutsche Bank and Goldman Sachs served as financial advisors, and Kirkland & Ellis International and Dechert served as legal advisors to Wyndham Worldwide.