PowerPoint Presentation

Wyndham International: Fostering High-Touch with High TechBy N.Arun(215114009)Kumkum Das (215114010)Jaya srikar shyam (215114011)Anjaneya Bharadwaj (215114012)Srikanth Adepu (215114068)The Wyndham Hotel Corporation was founded in 1981 by Trammel Crow in Dallas.In 1982 first Wyndham hotel was started.By 1985 they had 14 upscale properties in their portfolio.In 1997 Wyndham was acquired by Patriot American Hospitality Inc., a real estate investment trust. This allowed them for aggressive expansion while PAH dealt with real estate ownership and tax.$350 million in 1995 to almost $7 billion in 1999.In 1999, changes in corporate laws weakened PAHs financial situation. This caused it to dropped its REIT status and converted to a C-Corporation named Wyndham International.

TimelineWyndham entered into three year of a significant debt restructuring plan composed of a $1 billion equity investment, as well as a $2.45 billion restructuring of debt.

Under such tight purse strings it is unlikely there will be any surplus funds available for any capital investment, excepting that which is deemed mandatory.

Currently there is $30 million allocated for the ByRequest advertising campaign, however if this is consumed.

Financials show net loss to the business in 2001 of almost $139 million.

Competitive Strategies

PortersModel

Supplier Power: strongBuyer Power: moderateThreat of New Entrants: ModerateDegree of Rivalry: StrongThreat of Substitutes: moderate

Focused on providing a high quality hotel experience with a personal touch.Targeted mainly upscale and luxury travellers.Focused on three brands Wyndham Hotels, Wyndham Luxury Resorts & Summerfield suites.With the creation of the web-based personalized, customized program, they have been able to build up a stable and growing group of loyal customers.Differentiate themselves from other brands and counter commoditization.Business ModelStrengths

Aggressive acquisitions

Pioneer use of IT

First national hotel chain to provide reservations and access to guest-loyalty programs through wireless devices

SWOT AnalysisWeakness

Low brand recognition

Considerably new entrant in the market

Franchising model

System integration of new acquisitions

Hospitality was supposed to high-touch not high-tech

Opportunity

Market segment which was not exclusively looking for loyalty programs

Industry shift towards customized products

Threats

Commoditization of the hotel product or brand erosion

Loyalty programs with huge customer base of existing players

Use of internet by customers for comparison ex: priceline.com

Attentive to business travellers

Women on their way initiative

ByRequest manager

Separate budget for special customer service

Room that performsFax and high speed internet, cordlessErgonomics workspace

ByRequest as Service Entity In house development since 2000Remote assistance to small hotelsGuest loyalty via phonesWomen on their way web initiativeIntegrated ByRequest dataBrowser based system for all ByRequest managersObservations and feedback recordingByRequest as ITHigh value customer base

Quality market share

Although low impact on revenue but better brand recognition fortified by various awards

Benefits of ByRequestLeading Positions in Leisure Industry14 MajorBrands IncludeBusinessSegment% of 2013 Adjusted EBITDAMarket PositionWorldwideHotel Group

#1Hotel franchisorby hotels23%

Exchange & Rentals#1Timeshareexchange and rentalcompany28%

Vacation Ownership#1Timesharedeveloper49%

Majority of Income from Fee-for-Service Businesses15Hotel Franchising FeesVacation Exchange FeesVacation Rentals FeesProperty Management FeesWAAM Fee-for-ServiceFee-for-ServiceBusinesses~ 40%~ 60%OtherAdvantages:Strong cash flowLow capital intensityRecurring revenuesStable earningsRevenuesStrengthsWorlds largest hotel franchisorover 645,400 rooms and over 7,480 hotelsLeader of the economy & midscale segment

Strategic PrioritiesGrow system sizeadd new rooms retain every targeted propertyStrengthen value propositionupgrade and improve technologygenerate more bookings through our own channelsDrive organizational excellenceconsolidate central reservation systemscall center efficiency

16HOTEL GROUPBuilding On Leading Global PositionAdjusted EBITDA$271M$296M1) Based on guidance as of February 7, 2014$320M-$330M1Expand into new geographic marketsgrow organically and through targeted M&ALeverage web technology investmentsenhance online experience & reduce costsDrive revenue and customer retentiondevelop compelling products and services Strategic PrioritiesLeading vacation rental facilitator Access to over 103,000 rental propertiesApprox.1.5 million transactions completed during 201317EXCHANGE AND RENTALS Extending the LeadLeading timeshare exchange network3.7 million membersNearly 4,500 vacation ownership resorts in over 100 countriesRentals StrengthsExchange StrengthsAdjusted EBITDA$340M(1) 1) Adjusted EBITDA decrease primarily due to currency ($17M) $356M2) Based on guidance as of February 7, 2014$375M-$390M(2)Images, Exchange Naruto Japan, Rental Costa Blanca Spain17StrengthsWorlds largest vacation ownership business191 resorts and approximately 907,000 ownersLeading innovatorProperty management and consumer finance have fee-for-service components

Strategic PrioritiesDrive greater sales and marketing efficienciesDeliver better service to owners to enable greater owner satisfactionDrive further cash flow improvementsdevelop Just-in-Time and Fee-for-Service inventory models (WAAM)

18VACATION OWNERSHIPA Transformed BusinessAdjusted EBITDA$552M$640M - $660M(1)1) Based on guidance as of February 7, 2014$621MImage: Asia Pacific Coffs Harbour - Treetops18Segment Long-term Growth Dynamics19Hotel GroupContinued RevPAR recoveryTechnology upgradesInternational expansionExchange & RentalsMigration to web for Exchange business U.S. penetration in rentalsVacation OwnershipDrive sales and marketingImprove portfolio performanceWAAM inventory sourcingHigh-single digit growthMid-single digitgrowthMid-single digitgrowthOrganic EBITDA growth of 6-8%THANK YOU