For every kind of traveler. For every kind of trip.
Wyndham Vacation Ownership
Franz S. HanningPresident & CEO
For every kind of traveler. For every kind of trip.
2
Wyndham Vacation Ownership – Who We Are
World’s largest timeshare developer & marketerMore than 140 resorts in North America & South PacificMore than 18,000 individual vacation ownership unitsMore than 750,000 owners
Leading provider of points-based timeshareHighly flexible product structure popular with today’s vacationing consumersWide portfolio of resort destinations and vacation experiencesStrong upgrade sales programs
More than 25 years in the timeshare industryFairfield ResortsTrendwest ResortsCurrently re-branding under Wyndham flag
For every kind of traveler. For every kind of trip.
3
Competitive Environment – Year End 2005
Timeshare Revenue ($ in Millions) Owners
Resorts Units
Source: Vacation Ownership World Magazine, February 2006
$0 $500 $1,000 $1,500
Disney
Hilton
Starwood
Marriott
Wyndham
0 200,000 400,000 600,000 800,000
Disney
Hilton
Starwood
Marriott
Wyndham
0 50 100 150
Disney
Hilton
Starwood
Marriott
Wyndham
0 5,000 10,000 15,000
Disney
Hilton
Starwood
Marriott
Wyndham
For every kind of traveler. For every kind of trip.
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Net VOI Sales Consumer Finance Resort Management & Other Fees
Revenue Drivers
Multiple annuity-like revenue streams
Vacation Ownership Interest Upgrade SalesConsumer FinancingResort Management & Other Fees
(1) For the nine months ending September 30, 2006
71%14%
15%
Revenue Mix(1)
For every kind of traveler. For every kind of trip.
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Vacation Ownership Interest Operating Profit
Product costsLand/Inventory acquisition and product development
Sales and marketing costsLead generationTour costsSales commissionsSales administration
G&A
Vacation Ownership Interest operating profit
≈ 10%
≈25%
≈ 50%
≈ 15%
For every kind of traveler. For every kind of trip.
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Wyndham Consumer Finance – Overview
Wyndham Consumer Finance is a captive finance company
Develops consumer loan programs that support the purchase of vacation ownership intervals
Develops and consummates securitization programs that enable andsupport these consumer loans
Executes upon the processes by which such consumer loans are funded through these securitizations
Services customers and investors through requisite billing, cashmanagement, collections, customer support and reporting activities
Provides accounting, financial planning and portfolio analysis in support of this consumer lending and securitization activity
For every kind of traveler. For every kind of trip.
7Competitive StrengthDiverse Portfolio of Locations
For every kind of traveler. For every kind of trip.
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Competitive Strength – On-site and Off-site Sales Stores
For every kind of traveler. For every kind of trip.
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Competitive Strength – Robust Business Partners
For every kind of traveler. For every kind of trip.
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Competitive Strength – Strong Value Proposition
Greater value for vacation dollarsMore economical than individual hotel staysLarger living space and selection of amenities Fully transferable to heirs
Consistency of accommodationsRCI quality ratedDeveloper maintained & operated at most resortsOwner-driven HOA management & oversight
Vacation certaintyTimeshare owners more apt to take vacations already paid forWide variety of resort locations & experiencesPoints-based ownership allows seamless upgrades to suit evolving life stages
For every kind of traveler. For every kind of trip.
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Types of Ownership – First Generation
For every kind of traveler. For every kind of trip.
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Types of Ownership – First Generation
For every kind of traveler. For every kind of trip.
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Types of Ownership – Next Generation
For every kind of traveler. For every kind of trip.
14
Points-Based Ownership – Strength
For every kind of traveler. For every kind of trip.
15
Points – Alternative Use Options
For every kind of traveler. For every kind of trip.
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Points – Developer Strengths
Enables seamless channel for upgrade transactionsSales programs designed to continually build upon initial owner purchaseInitial value proposition is maintained in subsequent sales
Enables the sale of inventory of a single resort from multiple sales locations
More efficient inventory absorption On-site sales continue at sold-out locations
Ensures demand-driven resort developmentNew builds/acquisitions based on owner usageNo over-built markets to satisfy sales consumption
For every kind of traveler. For every kind of trip.
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Development Lifecycle
For every kind of traveler. For every kind of trip.
18
Development Strategies
Existing Destinations
New Destinations
Urban Destinations
Presidential Unit Inventory
Mixed-Use Developments
For every kind of traveler. For every kind of trip.
19
Development Strategies
New Destinations Develop resorts in new destinations currently not served by Wyndham Vacation Ownership
For every kind of traveler. For every kind of trip.
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New Destinations
Waikiki Beach Walk, HI
For every kind of traveler. For every kind of trip.
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New Destinations
Palm Springs, CA
For every kind of traveler. For every kind of trip.
22
New Destinations
La Cascada – San Antonio, TX
For every kind of traveler. For every kind of trip.
23
New Destinations
West Yellowstone, WY
For every kind of traveler. For every kind of trip.
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Development Strategies
New Destinations
Develop resorts in popular urban destinations
Urban Destinations
For every kind of traveler. For every kind of trip.
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Urban Destinations
WorldMark San Diego
For every kind of traveler. For every kind of trip.
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Urban Destinations
Canterbury – San Francisco
For every kind of traveler. For every kind of trip.
27
Development Strategies
New Destinations
Leverage the Wyndham brand to expand high-end Presidential Unit Inventory
Urban Destinations
Presidential Unit Inventory
For every kind of traveler. For every kind of trip.
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Presidential Inventory
Bonnet Creek Resort –Orlando, FL
For every kind of traveler. For every kind of trip.
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Presidential Inventory
Grand Desert – Las Vegas, NV
For every kind of traveler. For every kind of trip.
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Presidential Inventory
WorldMark Indio – Palm Springs, CA
For every kind of traveler. For every kind of trip.
31
Development Strategies
New Destinations
Leverage the Wyndham brand to develop mixed-use hotel and vacation ownership properties
Urban Destinations
Presidential Unit Inventory
Mixed-Use Developments
For every kind of traveler. For every kind of trip.
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Mixed-Use Development
Wyndham Lake Buena Vista Hotel & Spa at Bonnet Creek Resort
For every kind of traveler. For every kind of trip.
33
Development Strategies
New Destinations
Increase market penetration at existing destinations that continue to experience strong demand
Urban Destinations
Presidential Unit Inventory
Mixed-Use Developments
Existing Destinations
For every kind of traveler. For every kind of trip.
34
Existing Destinations
Bonnet Creek Resort – Orlando, FL
For every kind of traveler. For every kind of trip.
35
Existing Destinations
Grand Desert – Las Vegas, NV
For every kind of traveler. For every kind of trip.
36
Existing Destinations
Myrtle Beach, SC
For every kind of traveler. For every kind of trip.
37
Existing Destinations
National Harbor – Washington, D.C.
For every kind of traveler. For every kind of trip.
38Existing DestinationsFive-Year Growth Comparison
2000 2001 2002 2003 2004 2005
Branson - 8% Gatlinburg - 24% Myrtle Beach- 16% Orlando - 12% Las Vegas - 46%
Site CAGR
For every kind of traveler. For every kind of trip.
39
Investing in the Future – Wyndham Re-branding
For every kind of traveler. For every kind of trip.
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Investing in the Future – Wyndham Re-branding
Wyndham-branded marketing campaigns beginning in Q4 2006
For every kind of traveler. For every kind of trip.
41
Investing in the Future – Wyndham Re-branding
Re-flagging 16 resorts during Q4 2007
Remaining properties to incorporate Wyndham branding during 2007
For every kind of traveler. For every kind of trip.
42
Investing in the Future – Wyndham Re-branding
Wyndham-branded sales process currently in place at all stores
Additional elements scheduled for 2007
For every kind of traveler. For every kind of trip.
43Investing in the Future – Wyndham Program Integration
Wyndham Hotels integrated within timeshare programs
Preferred pricing hotel stays for Wyndham timeshare owners
Timeshare inventory available through Wyndham Hotel reservations system
Common loyalty program
For every kind of traveler. For every kind of trip.
44
Investing in the Future – Wyndham Re-branding
Develop and leverage high-profile consumer branding initiatives
For every kind of traveler. For every kind of trip.
45
Strategic Impact to Financial Results
Growth Projections
2006E Base 2011E w/ Strategic Impact
80%
20%350 basis pointmargin improvement
84%
16%
Expense EBITDA
For every kind of traveler. For every kind of trip.
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Strong Long-Term Growth Prospects
Grow the owner base
Expand the product offering
Drive business model efficiencies
Execute the Wyndham Vacation Ownership brand strategy