Vacasa to Buy Wyndham Vacation Rentals for $162M
- Jul 30, 2019
Wyndham Destinations, the world’s largest vacation home ownership company, has agreed to sell its Wyndham Vacation Rentals business to Vacasa for $162 million. Through the deal, NYSE-listed Wyndham Destinations will take an equity interest in Vacasa, a fast-growing vacation rental management platform.
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The acquisition will boost Vacasa’s global portfolio by nearly two-thirds to 23,000 homes, bringing an array of regional and local Wyndham Vacation Rentals brands under the company’s umbrella, including:
- Hatteras Realty
- ResortQuest Whistler
- Smoky Mountains Property Management
- Kaiser Realty
- Corolla Classic Vacations
- Vacation Palm Springs
Portland, Ore.-based Vacasa, which bills itself as North America’s largest vacation rental firm, expects to fully integrate Wyndham Vacation Rentals by fall 2020, according to a statement. The company foresees more than $1 billion in gross bookings and more than $500 million in net revenue over the next 12 months.
Vacasa currently has a portfolio of 14,000 units and will add 9,000 more properties through the acquisition. The purchase of Wyndham Vacation Rentals will be complimentary to Vacasa’s current inventory, according to the statement, with a combined portfolio that spans the Americas, Europe and Africa.
“Many of the U.S. states where Vacasa is currently operating will see increased density with the addition of Wyndham properties,” Eric Breon, Vacasa’s founder & CEO, told Multi-Housing News. “Through the acquisition, Vacasa will also expand into new regions such as the state of Delaware, along with new markets in Canada.”
Vacasa will finance the purchase of Wyndham Vacation Rentals through a combination of cash and equity, including $45 million in cash at closing, up to $30 million of Vacasa equities, and the remaining $87 million in either seller financing or cash at closing.
Founded in 2009, Vacasa has raised $207.8 million in total funding, most recently scoring $64 million from Riverwood Capital last October. In the same month, it acquired home-share company Oasis Collections with backing from Hyatt Hotels, a deal that put Vacasa ahead of Wyndham Vacation Rentals in terms of portfolio size in North America.
Vacasa soon thereafter expanded its property management services into the multifamily market by launching Vacasa Multifamily, which enters into long-term lease agreements with landlords and property managers to handle all aspects of managing short-term rentals.
Vacasa runs a website where property owners can list their homes and also hires personnel to provide full-service property management, from filing lodging taxes to stocking homes for guests.