Vacasa has finalized its acquisition of Wyndham Vacation Rentals from Wyndham Destinations (NYSE: WYND) for a purchase price of $162 million. Vacasa financed the acquisition of Wyndham Vacation Rentals through a combination of cash and equity. After customary closing adjustments, Wyndham Destinations received $156 million in cash and $10 million in Vacasa equity.
Now that the deal has closed, Vacasa will immediately begin to migrate the Wyndham Vacation Rentals portfolio of over 9,000 homes in 50 destinations into its platform.
Vacasa will integrate Wyndham Vacation Rentals signature brands including Corolla Classic Vacations, Hatteras Realty, Kaiser Realty, Oceana, ResortQuest, ResortQuest Whistler, Smoky Mountains Property Management and Vacation Palm Springs onto its platform over the next 12 months. The full integration is expected to be complete by the fall of 2020. Vacasa will manage more than 23,000 homes across North America, Europe, Central and South America, and Africa.
“The Wyndham portfolio has a lot of great inventory, but also a lot of great people,” said Vacasa CEO Eric Breon. “A lot of the leading management talent in the [vacation rental] industry is within Wyndham, along with so many people that we are excited to bring onto our team and get them disciplined with our technology to take things to the next level. In general, we are more about hiring post-acquisition than firing. In the markets where we overlap—where we now have significant presence—you will see us merging those operational structures where appropriate. But at the same time, there is plentiful need and opportunity on the talent side.”
In addition to acquiring Wyndham Vacation Rentals property management contracts, Vacasa will absorb management of 140 homeowners associations (HOAs), which will fold under Vacasa Community Association Management. Short-term rental-focused HOAs in Alabama, Colorado, Delaware, Florida, South Carolina and Utah will transition to Vacasa, bringing the total HOAs under management to 156.
“Throughout the past few months, our team has worked closely with Vacasa leadership to establish a path forward for Wyndham Vacation Rentals, our shareholders, our homeowners, our guests and our associates,” said Michael D. Brown, president and CEO of Wyndham Destinations. “We believe this transition will maximize the value and strengthen the long-term success of all entities. Our confidence in this strategy is reflected in the equity interest we have retained in Vacasa, and we look forward to the evolution of this thriving business.”