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Wyndham Worldwide Reports First Quarter 2009 Results

PARSIPPANY, N.J., April 29 /PRNewswire-FirstCall/ -- Wyndham Worldwide Corporation (NYSE: WYN) today announced results for the three months ended March 31, 2009.

    HIGHLIGHTS:

    --  First quarter 2009 adjusted net income was $74 million, or $0.41
        diluted earnings per share (EPS), compared with adjusted net income of
        $62 million, or $0.35 diluted EPS, for the first quarter of 2008.

    --  First quarter 2009 net cash from operating activities was
        approximately $210 million, compared with $87 million in the first
        quarter of 2008.  The remaining borrowing capacity on the Company's
        revolving credit facility increased to approximately $355 million
        compared with approximately $290 million as of December 31, 2008.

"Wyndham Worldwide delivered solid first quarter results despite strong economic headwinds and a significant reduction in revenues due to the realignment of our vacation ownership business," said Stephen P. Holmes, Chairman and CEO, Wyndham Worldwide. "Adjusted EPS was up 17% from last year, and the Company generated net cash from operating activities of approximately $210 million. These results reflect the durability of our businesses and the resilience of our fee-for-service business models, as well as strong execution and continued cost discipline."

FIRST QUARTER 2009 OPERATING RESULTS

First quarter revenues of $901 million declined by 11% from the prior-year period, due to adverse foreign currency effects resulting from the strengthening U.S. dollar in the vacation exchange and rental business, the previously announced initiative to reduce sales in the Company's vacation ownership business as well as an increased loan loss provision. These items were partially offset by the recognition of previously deferred vacation ownership revenue. Under the percentage-of-completion (POC) method of accounting for the sale of vacation ownership interests, the Company recognized $67 million of previously deferred revenue during the first quarter of 2009, while first quarter 2008 reported revenues were reduced by $82 million of deferred revenue.

Reported net income for the first quarter of 2009 was $45 million, or $0.25 diluted EPS, compared with net income of $42 million, or $0.24 diluted EPS, for the first quarter of 2008.

Adjusted net income for the first quarter of 2009 was $74 million, or $0.41 per diluted EPS, an increase of 19%, or 17% per diluted EPS, as compared with adjusted net income of $62 million, or $0.35 per diluted EPS, for the first quarter of 2008. 2009 first quarter adjusted EPS excludes the after-tax impact of $29 million in restructuring costs and legacy items. First quarter 2008 adjusted EPS excludes the after-tax impact of $20 million related to the Company's rebranding initiative and legacy items.

    BUSINESS UNIT RESULTS

    Lodging (Wyndham Hotel Group)

Revenues were $154 million in the first quarter of 2009, a decline of 9% compared with the first quarter of 2008, primarily reflecting a decline in worldwide revenue per available room (RevPAR) and lower property management reimbursable revenues.

In constant currency, the first quarter of 2009 system-wide RevPAR decreased 11.3%, reflecting declines of 13.4% and 5.5% in domestic and international RevPAR, respectively. Including the impact of foreign currency, system-wide RevPAR declined 14.0% in the first quarter of 2009.

First quarter 2009 EBITDA was $35 million, a 24% decline from the first quarter of 2008, primarily driven by the decline in worldwide RevPAR and $3 million of restructuring costs, partly offset by lower marketing expenses. Excluding restructuring costs, first quarter 2009 adjusted EBITDA would have been $38 million, a 17% decrease from the prior year.

As of March 31, 2009, the Company's hotel system consisted of approximately 7,000 properties and 588,500 rooms, of which 21% were international. The development pipeline included approximately 1,000 hotels and 108,600 rooms, of which 54% were new construction and 39% were international.

Vacation Exchange and Rentals (Group RCI)

Revenues were $287 million in the first quarter of 2009, a 16% decrease compared with the first quarter of 2008, primarily related to the impact of a stronger U.S. dollar. In constant currency, revenues decreased 5%, reflecting lower rental and ancillary revenues.

Annual dues and exchange revenues were $127 million, a 7% decline from the first quarter of 2008, or relatively flat in constant currency. The revenues in constant currency reflect a 4% increase in the average number of members and a 5% decline in revenue per member.

Vacation rental revenues were $130 million, a 19% decrease from the first quarter of 2008. In constant currency, revenues generated from rental transactions and related services decreased $5 million, or 3%. The revenues in constant currency were driven by a 3% decrease in the average net price per rental. Rental transaction volume was flat compared with the first quarter of 2008.

Other ancillary revenues were $30 million, a 32% decrease from the first quarter of 2008. In constant currency, revenues decreased 25% due to lower miscellaneous fees and our termination of a low margin travel service contract.

First quarter 2009 EBITDA was $76 million, compared with $93 million in the first quarter of 2008. Excluding $4 million of restructuring costs, first quarter adjusted EBITDA was $80 million, a 14% decline from the prior year period. Excluding the unfavorable net effect of foreign currency translations of $12 million, adjusted EBITDA would have decreased $1 million, or 1%, from the first quarter of 2008.

Vacation Ownership (Wyndham Vacation Ownership)

Gross Vacation Ownership Interest (VOI) sales were $280 million for the first quarter of 2009, down 39% from the first quarter of 2008. This decrease was driven by the previously announced initiative to reduce sales in response to the disjointed capital markets that included a refocusing of the business' sales and marketing efforts that resulted in fewer tours.

Total segment revenues were $462 million in the first quarter of 2009, down 8% from the first quarter of 2008, reflecting the previously mentioned lower tour flow and a higher provision for loan losses. This was partially offset by the recognition of revenue that was previously deferred under the POC method of accounting and a higher volume per guest (VPG), which increased 12% from the first quarter of 2008.

EBITDA for the first quarter of 2009 was $44 million, compared with $7 million in the first quarter of 2008, driven by a $70 million impact from the net increase in the recognition of revenue previously deferred under the POC method of accounting, offset by the net impact related to the planned reduction of VOI sales volume as well as restructuring costs. Excluding $35 million of restructuring costs, first quarter 2009 adjusted EBITDA was $79 million, compared to adjusted EBITDA of $35 million in the first quarter of 2008, which excludes a $28 million non-cash impairment charge relating to the Company's rebranding initiative.

Other Items

Interest expense in the first quarter of 2009 was $19 million, unchanged from the first quarter of 2008. Depreciation and amortization declined $1 million to $43 million.

    Balance Sheet Information as of March 31, 2009:
    --  Cash and cash equivalents of approximately $135 million, unchanged
        from December 31, 2008
    --  Vacation ownership contract receivables, net, of $3.2 billion compared
        with $3.3 billion at December 31, 2008
    --  Vacation ownership and other inventory of approximately $1.3 billion,
        unchanged from December 31, 2008
    --  Securitized vacation ownership debt of $1.7 billion compared with $1.8
        billion at December 31, 2008

    --  Other debt of $1.9 billion, compared with $2.0 billion at December 31,
        2008; remaining borrowing capacity on revolving credit facility was
        approximately $355 million compared with approximately $290 million as
        of December 31, 2008

A schedule of debt is included in the financial tables section of this press release.

Outlook

For the second quarter of 2009, the Company expects adjusted EPS of $0.36 - $0.41.

The Company reaffirms full-year 2009 guidance:

    --  Revenues of $3.5 - $3.9 billion
    --  Adjusted EBITDA of $760 - $810 million
    --  Depreciation and amortization expense of $185- $195 million
    --  Interest expense, net of $80 - $90 million
    --  Effective tax rate of approximately 39%
    --  Adjusted net income of $289 - $331 million

-- Adjusted EPS of $1.61 - $1.85 based on weighted average shares of

approximately 179 million

The guidance reflects assumptions used for internal planning purposes. All guidance excludes legacy items and restructuring costs, if any, which may have a positive or negative impact on reported results. If economic conditions improve or deteriorate materially from current levels, these assumptions and our guidance may change materially.

Conference Call Information

Wyndham Worldwide Corporation will hold a conference call with investors to discuss this news on Wednesday, April 29, 2009 at 8:30 a.m. EDT. Listeners may access the webcast live through the Company's website at www.wyndhamworldwide.com/investors/. An archive of this webcast will be available at the website for approximately 90 days beginning at noon EDT on April 29, 2009. The conference call may also be accessed by dialing (888) 989-4394 and providing the passcode "Wyndham." Listeners are urged to call at least 10 minutes prior to the scheduled start time. A telephone replay will be available at (866) 359-3793 beginning at noon EDT on April 29, 2009 until 5 p.m. EDT on June 15, 2009; callers must provide the passcode "147852."

Presentation of Financial Information

Financial information discussed in this press release includes both GAAP and non-GAAP measures, which include or exclude certain items. These non-GAAP measures differ from reported results and are intended to illustrate what management believes are relevant period-over-period comparisons. A complete reconciliation of reported GAAP results to the comparable non-GAAP information appears in the financial tables section of the press release.

About Wyndham Worldwide

As one of the world's largest hospitality companies, Wyndham Worldwide offers individual consumers and business-to-business customers a broad suite of hospitality products and services across various accommodation alternatives and price ranges through its premier portfolio of world-renowned brands. Wyndham Hotel Group encompasses almost 7,000 franchised hotels and approximately 588,500 hotel rooms worldwide. Group RCI offers its 3.8 million members access to more than 73,000 vacation properties located in approximately 100 countries. Wyndham Vacation Ownership develops, markets and sells vacation ownership interests and provides consumer financing to owners through its network of over 150 vacation ownership resorts serving over 830,000 owners throughout North America, the Caribbean and the South Pacific. Wyndham Worldwide, headquartered in Parsippany, N.J., employs approximately 25,500 employees globally.

For more information about Wyndham Worldwide, please visit the Company's web site at www.wyndhamworldwide.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, conveying management's expectations as to the future based on plans, estimates and projections at the time the Company makes the statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements contained in this press release include statements related to the Company's revenues, earnings and related financial and operating measures.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Factors that could cause actual results to differ materially from those in the forward-looking statements include general economic conditions, the performance of the financial and credit markets, the economic environment for the hospitality industry, the impact of war and terrorist activity, operating risks associated with the hotel, vacation exchange and rentals and vacation ownership businesses, as well as those described in the Company's Annual Report on Form 10-K, filed with the SEC on February 27, 2009. Except for the Company's ongoing obligations to disclose material information under the federal securities laws, it undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.



                                                                      Table 1
                          Wyndham Worldwide Corporation
                    OPERATING RESULTS OF REPORTABLE SEGMENTS
                                  (In millions)


    In addition to other measures, management evaluates the operating results
    of each of its reportable segments based upon net revenues and "EBITDA,"
    which is defined as net income before depreciation and amortization,
    interest expense (excluding interest on securitized vacation ownership
    debt), interest income and income taxes, each of which is presented on the
    Company's Consolidated Statements of Income.  The Company believes that
    EBITDA is a useful measure of performance for the Company's industry
    segments which, when considered with GAAP measures, the Company believes
    gives a more complete understanding of the Company's operating
    performance.  The Company's presentation of EBITDA may not be comparable
    to similarly-titled measures used by other companies.

    The following tables summarize net revenues and EBITDA for reportable
    segments, as well as reconcile EBITDA to net income for the three months
    ended March 31, 2009 and 2008:



                                      Three Months Ended March 31,
                                      ----------------------------
                                   2009                           2008
                                   ----                           ----
                        Net Revenues    EBITDA (c)    Net Revenues    EBITDA
                        ------------    ------        ------------    ------
    Lodging                  $154       $35               $170         $46
    Vacation Exchange and
     Rentals                  287        76                341          93
    Vacation Ownership        462        44                504           7 (d)
                              ---        --                ---          --
      Total Reportable
       Segments               903       155              1,015         146
    Corporate and
     Other (a)(b)              (2)      (21)                (3)        (16)
                               --       ---                 --         ---
      Total Company          $901      $134             $1,012        $130
                             ====      ====             ======        ====

    Reconciliation of EBITDA
     to Net Income
    ------------------------

    EBITDA                             $134                           $130
    Depreciation and amortization        43                             44
    Interest expense                     19                             19
    Interest income                      (2)                            (3)
                                         --                             --
    Income before income taxes           74                             70
    Provision for income taxes           29                             28
                                         --                             --
    Net income                          $45                            $42
                                        ===                            ===
    -------------------------------------------------------------------------
    (a) Includes the elimination of transactions between segments.
    (b) Includes $4 million ($2 million, net of tax) and $3 million ($3
    million, net of tax) of a net expense during the three months ended March
    31, 2009 and 2008, respectively, related to the resolution of and
    adjustment to certain contingent liabilities and assets.
    (c) Includes restructuring costs of $3 million, $4 million, $35 million
    and $1 million for Lodging, Vacation Exchange and Rentals, Vacation
    Ownership and Corporate and Other, respectively, during the three months
    ended March 31, 2009.  The after-tax impact of such costs is $27 million.
    (d) Includes a non-cash impairment charge of $28 million ($17 million, net
    of tax) due to the Company's initiative to rebrand its vacation ownership
    trademarks to the Wyndham brand.



                                                                      Table 2
                            Wyndham Worldwide Corporation
                         CONSOLIDATED STATEMENTS OF INCOME
                        (In millions, except per share data)

                                              Three Months Ended
                                                  March 31,
                                                 -----------
                                               2009       2008
                                               ----       ----
    Net revenues
      Service fees and membership              $400       $453
      Vacation ownership interest sales         239        294
      Franchise fees                             99        112
      Consumer financing                        109         99
      Other                                      54         54
                                                 --         --
    Net revenues                                901      1,012
                                                ---      -----

    Expenses
      Operating                                 386        408
      Cost of vacation ownership interests       49         60
      Consumer financing interest (a)            32         33
      Marketing and reservation                 137        209
      General and administrative (b)            122        145
      Asset impairments                           -         28 (c)
      Restructuring costs                        43 (d)      -
      Depreciation and amortization              43         44
                                                 --         --
    Total expenses                              812        927
                                                ---        ---

    Operating income                             89         85
    Other income, net                            (2)        (1)
    Interest expense                             19         19
    Interest income                              (2)        (3)
                                                 --         --

    Income before income taxes                   74         70
    Provision for income taxes                   29         28
                                                 --         --

    Net income                                  $45        $42
                                                ===        ===

    Earnings per share
      Basic                                   $0.25      $0.24
      Diluted                                  0.25       0.24

    Weighted average shares outstanding
      Basic                                     178        177
      Diluted                                   178        178

    -------------------------------------------------------------------------
    (a) Prior to periods ending September 30, 2008, such amounts were included
    as a component of Operating Expenses.
    (b) Includes $4 million ($2 million, net of tax) and $3 million ($3
    million, net of tax) of a net expense during the three months ended March
    31, 2009 and 2008, respectively, related to the resolution of and
    adjustment to certain contingent liabilities and assets.
    (c) Relates to a non-cash impairment charge of $28 million ($17 million,
    net of tax) for Vacation Ownership due to the Company's initiative to
    rebrand its vacation ownership trademarks to the Wyndham brand.
    (d) Relates to costs incurred as a result of various strategic initiatives
    commenced by the Company during 2008.  Such amount, net of tax, was $27
    million.



                                                                      Table 3
                                                                     (1 of 2)
                           Wyndham Worldwide Corporation
                              OPERATING STATISTICS

                    Year    Q1       Q2       Q3       Q4     Full Year
                    ----    --       --       --       --     ---------
    Lodging (a)
      Number of
       Rooms (b)    2009  588,500      N/A      N/A      N/A        N/A
                    2008  551,100  551,500  583,400  592,900        N/A
                    2007  539,300  541,700  540,900  550,600        N/A
                    2006  525,500  535,900  533,700  543,200        N/A

      RevPAR        2009   $27.69      N/A      N/A      N/A        N/A
                    2008   $32.21   $38.87   $41.93   $30.03     $35.74
                    2007   $31.35   $38.35   $43.10   $33.09     $36.48
                    2006   $30.45   $36.97   $40.82   $31.41     $34.95

      Royalty, Marketing
       and Reservation
       Revenues (in
       000s)        2009  $95,368      N/A      N/A      N/A        N/A
                    2008 $104,162 $127,238 $145,502 $105,803   $482,709
                    2007 $105,426 $129,453 $146,290 $107,870   $489,041
                    2006 $102,741 $125,409 $138,383 $104,505   $471,039

    Vacation Exchange and Rentals
      Average Number
       of Members
       (in 000s)    2009    3,789      N/A      N/A      N/A        N/A
                    2008    3,632    3,682    3,673    3,693      3,670
                    2007    3,474    3,506    3,538    3,588      3,526
                    2006    3,292    3,327    3,374    3,429      3,356

      Annual Dues and
       Exchange Revenue
       Per Member   2009  $134.38      N/A      N/A      N/A        N/A
                    2008  $150.84  $128.91  $124.51  $109.56    $128.37
                    2007  $155.60  $132.33  $131.38  $124.59    $135.85
                    2006  $152.10  $130.37  $132.31  $128.13    $135.62

      Vacation Rental
       Transactions
        (in 000s)   2009      387      N/A      N/A      N/A        N/A
                    2008      387      319      360      282      1,347
                    2007      398      326      360      293      1,376
                    2006      385      310      356      293      1,344

      Average Net Price
       Per Vacation
       Rental       2009  $335.54      N/A      N/A      N/A        N/A
                    2008  $412.74  $477.63  $553.69  $400.09    $463.10
                    2007  $349.73  $415.71  $506.78  $426.93    $422.83
                    2006  $312.51  $374.91  $442.75  $356.16    $370.93

    Vacation Ownership
      Gross Vacation
       Ownership
       Interest Sales
       (in 000s)    2009 $280,000      N/A      N/A      N/A        N/A
                    2008 $458,000 $532,000 $566,000 $432,000 $1,987,000
                    2007 $430,000 $523,000 $552,000 $488,000 $1,993,000
                    2006 $357,000 $434,000 $482,000 $469,000 $1,743,000

      Tours         2009  137,000      N/A      N/A      N/A        N/A
                    2008  255,000  314,000  334,000  240,000  1,143,000
                    2007  240,000  304,000  332,000  268,000  1,144,000
                    2006  208,000  273,000  312,000  254,000  1,046,000

      Volume Per
       Guest (VPG)  2009   $1,866      N/A      N/A      N/A        N/A
                    2008   $1,668   $1,583   $1,550   $1,630     $1,602
                    2007   $1,607   $1,596   $1,545   $1,690     $1,606
                    2006   $1,475   $1,426   $1,434   $1,623     $1,486

    -------------------------------------------------------------------------
    Note: Full year amounts may not foot across due to rounding.
    (a) Quarterly drivers in the Lodging segment include the acquisitions of
    Microtel Inns & Suites and Hawthorn Suites (July 2008) and Baymont Inn &
    Suites (April 2006) from their acquisition dates forward.  Therefore, the
    operating statistics are not presented on a comparable basis.
    (b) Numbers include affiliated rooms from the fourth quarter of 2006
    forward.



                                                                      Table 3
                                                                     (2 of 2)

                             Wyndham Worldwide Corporation
                                 OPERATING STATISTICS

                                  GLOSSARY OF TERMS
                                  -----------------

    Lodging

    Number of Rooms:
    ----------------
    Represents the number of rooms at lodging properties at the end of the
    period which are either (i) under franchise and/or management agreements,
    (ii) properties affiliated with Wyndham Hotels and Resorts brand for
    which we receive a fee for reservation and/or other services provided or
    (iii) properties managed under the CHI Limited joint venture.

    Average Occupancy Rate:
    -----------------------
    Represents the percentage of available rooms occupied during the period.

    Average Daily Rate (ADR):
    -------------------------
    Represents the average rate charged for renting a lodging room for one
    day.

    RevPAR:
    -------
    Represents revenue per available room and is calculated by multiplying
    average occupancy rate by ADR.  Comparable RevPAR represents RevPAR of
    hotels which are included in both periods.

    Royalty, Marketing and Reservation Revenues:
    --------------------------------------------
    Royalty, marketing and reservation revenues are typically based on a
    percentage of the gross room revenues of each hotel. Royalty revenue is
    generally a fee charged to each franchised or managed hotel for the use
    of one of our trade names, while marketing and reservation revenues are
    fees that we collect and are contractually obligated to spend to support
    marketing and reservation activities.  Marketing and reservation fees are
    also included in Table 4 within Marketing, Reservation and Wyndham
    Rewards Revenues.

    Vacation Exchange and Rentals

    Average Number of Members:
    --------------------------
    Represents members in our vacation exchange programs who pay annual
    membership dues. For additional fees, such participants are entitled to
    exchange intervals for intervals at other properties affiliated with our
    vacation exchange business. In addition, certain participants may
    exchange intervals for other leisure-related products and services.

    Annual Dues and Exchange Revenue Per Member:
    --------------------------------------------
    Represents total revenues from annual membership dues and exchange fees
    generated for the period divided by the average number of vacation
    exchange members during the year.

    Vacation Rental Transactions:
    -----------------------------
    Represents the number of transactions that are generated in connection
    with customers booking their vacation rental stays through us. In our
    European vacation rentals businesses, one rental transaction is recorded
    each time a standard one-week rental is booked; however, in the United
    States, one rental transaction is recorded each time a vacation rental
    stay is booked, regardless of whether it is less than or more than one
    week.

    Average Net Price Per Vacation Rental:
    --------------------------------------
    Represents the net rental price generated from renting vacation
    properties to customers divided by the number of rental transactions.

    Vacation Ownership

    Gross Vacation Ownership Interest Sales:
    ----------------------------------------
    Represents gross sales of vacation ownership interests (including
    tele-sales upgrades, which are a component of upgrade sales) before
    deferred sales and loan loss provisions.

    Tours:
    ------
    Represents the number of tours taken by guests in our efforts to sell
    vacation ownership interests.

    Volume Per Guest (VPG):
    -----------------------
    Represents gross vacation ownership interest sales (excluding tele-sales
    upgrades, which are a component of upgrade sales) divided by the number
    of tours.

    General

    Constant Currency:
    ------------------
    Represents comparison eliminating the effects of foreign exchange rate
    fluctuations between periods.



                                                                      Table 4

                          Wyndham Worldwide Corporation
                                 ADDITIONAL DATA


                     Year    Q1        Q2        Q3        Q4     Full Year
                     ----    --        --        --        --     ---------
    Lodging (a)
      Number of
      Properties (b) 2009    6,990       N/A       N/A       N/A       N/A
                     2008    6,550     6,560     6,970     7,040       N/A
                     2007    6,450     6,460     6,460     6,540       N/A
                     2006    6,300     6,440     6,420     6,470       N/A

      Marketing, Reservation
       and Wyndham Rewards
       Revenues (in
       000s) (c)     2009  $53,915       N/A       N/A       N/A        N/A
                     2008  $62,200   $76,507   $85,491   $62,608   $286,807
                     2007  $61,369   $74,575   $84,820   $65,208   $285,973
                     2006  $58,572   $70,931   $78,856   $61,135   $269,495

      Property Management
       Reimbursable
       Revenues (in
       000s) (d)     2009  $21,640       N/A       N/A       N/A        N/A
                     2008  $27,128   $26,326   $24,973   $21,472    $99,899
                     2007  $15,624   $22,338   $25,612   $28,414    $91,987
                     2006  $15,732   $19,935   $17,210   $16,263    $69,142

    Vacation Ownership
      Deferred Revenues
      (in 000s) (e)  2009  $66,516       N/A       N/A       N/A        N/A
                     2008 $(81,716)  $(5,240)  $(2,023)  $13,870   $(75,108)
                     2007   $3,906   $(4,908)     $506  $(21,092)  $(21,588)
                     2006  $12,708     $(221) $(23,491) $(10,675)  $(21,679)

      Provision for
       Loan Losses
       (in 000s) (f) 2009 $107,202       N/A       N/A       N/A        N/A
                     2008  $82,344  $112,669  $118,609  $136,090   $449,712
                     2007  $60,869   $75,032   $85,762   $83,644   $305,307
                     2006  $61,242   $55,872   $63,213   $78,680   $259,007

    -------------------------------------------------------------------------
    Note: Full year amounts may not foot across due to rounding.

    (a) Information includes the acquisitions of Microtel Inns & Suites and
    Hawthorn Suites (July 2008) and Baymont Inn & Suites (April 2006) from
    their acquisition dates forward.  Therefore, the data is not presented on
    a comparable basis.

    (b) Numbers include affiliated hotels from the fourth quarter of 2006
    forward.

    (c) Marketing and reservation revenues represent fees we receive from
    franchised and managed hotels that are to be expended for marketing
    purposes or the operation of a centralized, brand-specific reservation
    system.  These fees are typically based on a percentage of the gross room
    revenues of each hotel.  Marketing and reservation fees are also included
    in Table 3 (1 of 2) within Royalty, Marketing and Reservation Revenues.
    Wyndham Rewards revenues represent fees we receive relating to our loyalty
    program.

    (d) Primarily represents payroll costs in our hotel management business
    that we incur and pay on behalf of property owners and for which we are
    reimbursed by the property owners.

    (e) Represents the revenue that is deferred under the percentage of
    completion method of accounting.  Under the percentage of completion
    method of accounting, a portion of the total revenue from a vacation
    ownership contract sale is not recognized if the construction of the
    vacation resort has not yet been fully completed.  This revenue will be
    recognized in future periods in proportion to the costs incurred as
    compared to the total expected costs for completion of construction of the
    vacation resort.  Positive amounts represent the recognition of previously
    deferred revenues.

    (f) Represents provision for estimated losses on vacation ownership
    contract receivables originated during the period, which is recorded as a
    contra revenue to vacation ownership interest sales on the Consolidated
    and Combined Statements of Income.



                                                                      Table 5

                              Wyndham Worldwide Corporation
                                    SCHEDULE OF DEBT
                                     (In millions)

                                     March  December  September  June   March
                                       31,     31,       30,      30,     31,
                                      2009    2008      2008     2008    2008
                                      ----    ----      ----     ----    ----

    Securitized vacation ownership
     debt:
      Term notes                    $1,165  $1,252    $1,437   $1,727  $1,278
      Bank conduit facilities (a)      569     558       647      354     841
                                       ---     ---       ---      ---     ---
    Securitized vacation ownership
     debt (b)                        1,734   1,810     2,084    2,081   2,119
    Less: Current portion of
     Securitized vacation
     ownership debt                    305     294       324      284     268
                                       ---     ---       ---      ---     ---
    Long-term securitized
     vacation ownership debt        $1,429  $1,516    $1,760   $1,797  $1,851
                                    ======  ======    ======   ======  ======

    Debt:
      6.00% Senior unsecured notes
       (due December 2016) (c)        $797    $797      $797     $797    $797
      Term loan (due July 2011)        300     300       300      300     300
      Revolving credit facility (due
       July 2011) (d)                  517     576       305      145      95
      Vacation ownership bank
       borrowings                      156     159       172      196     181
      Vacation rentals capital leases  130     139       143      162     165
      Other                             13      13        12       13      14
                                        --      --        --       --      --
    Total debt                       1,913   1,984     1,729    1,613   1,552
    Less: Current portion of debt      166     169       182      207     193
                                       ---     ---       ---      ---     ---
    Long-term debt                  $1,747  $1,815    $1,547   $1,406  $1,359
                                    ======  ======    ======   ======  ======

    -------------------------------------------------------------------------
    (a) Represents (i) a 364-day, non-recourse vacation ownership bank conduit
    facility with a term through November 2009 and capacity of $943 million
    and (ii) the outstanding balance of the Company's prior bank conduit
    facility that ceased operating as a revolving facility as of October 29,
    2008 and will amortize in accordance with its terms, which is expected to
    be less than two years.
    (b) This debt is collateralized by $2,981 million, $2,906 million, $2,721
    million, $2,723 million and $2,667 million of underlying vacation
    ownership contract receivables and related assets at March 31, 2009,
    December 31, 2008, September 30, 2008, June 30, 2008 and March 31, 2008,
    respectively.
    (c) The balance at March 31, 2009 represents $800 million aggregate
    principal less $3 million of unamortized discount.
    (d) The Company's revolving credit facility has a borrowing capacity of
    $900 million.  At March 31, 2009, the Company has $29 million of
    outstanding letters of credit and a remaining borrowing capacity of $354
    million.  The increase in balance from September 30, 2008 to December 31,
    2008 was primarily due to the Company drawing $215 million on its
    revolving credit facility in conjunction with the closing of the Company's
    2008 bank conduit facility during November 2008.  The increase in balance
    from June 30, 2008 to September 30, 2008 primarily related to amounts
    borrowed to fund the July 2008 acquisition of U.S. Franchise Systems, Inc.
    and its Microtel Inns & Suites and Hawthorn Suites hotel brands.



                                                                      Table 6

                              Wyndham Worldwide Corporation
                               HOTEL BRAND SYSTEMS DETAILS


                           As of and For the Three Months Ended March 31, 2009
                           ---------------------------------------------------

                                                                     Average
                                                                     Revenue
                                                        Average        Per
                                           Average       Daily      Available
                  Number of    Number of  Occupancy      Rate          Room
    Brand        Properties      Rooms      Rate         (ADR)      (RevPAR)
    -----        ----------      -----      ----         -----      --------

    Wyndham Hotels
     and Resorts      82        21,650      51.6%       $124.60      $64.27

    Wingate Inn      166        15,195      50.7%        $85.17      $43.15

    Hawthorn Suites   90         8,448      50.6%        $89.93      $45.53

    Ramada           885       114,448      44.0%        $74.44      $32.78

    Baymont          225        18,914      43.8%        $61.63      $26.97

    Days Inn       1,851       150,319      41.4%        $59.30      $24.57

    Super 8        2,105       130,725      43.6%        $54.67      $23.84

    Howard Johnson   475        46,273      39.9%        $60.02      $23.97

    Travelodge       471        35,477      39.6%        $57.07      $22.58

    Microtel Inns
     & Suites        313        22,476      45.5%        $55.96      $25.48

    Knights Inn      309        19,920      36.1%        $41.08      $14.82

    Unmanaged, Affiliated
     and Managed, Non-
     Proprietary
     Hotels (*)       21         4,613       N/A            N/A         N/A
                      --         -----
      Total        6,993       588,458      42.9%        $64.48      $27.69
                   =====       =======



                           As of and For the Three Months Ended March 31, 2008
                           ---------------------------------------------------

                                                                     Average
                                                                     Revenue
                                                        Average        Per
                                           Average       Daily      Available
                  Number of    Number of  Occupancy      Rate          Room
    Brand        Properties      Rooms      Rate         (ADR)      (RevPAR)
    -----        ----------      -----      ----         -----      --------

    Wyndham Hotels
     and Resorts      83        22,763      61.8%       $116.61      $72.04

    Wingate Inn      155        14,172      58.1%        $91.84      $53.39

    Ramada           867       106,142      50.1%        $79.69      $39.91

    Baymont          201        17,373      46.0%        $65.66      $30.23

    Days Inn       1,881       153,323      45.9%        $61.99      $28.43

    Super 8        2,091       129,793      48.5%        $56.78      $27.53

    Howard Johnson   477        46,300      43.8%        $63.11      $27.63

    Travelodge       490        36,798      45.2%        $67.68      $30.58

    Knights Inn      272        18,657      37.9%        $40.88      $15.51

    Unmanaged, Affiliated
     and Managed, Non-
     Proprietary
     Hotels (*)       35         5,736       N/A            N/A         N/A
                      --         -----

      Total        6,552       551,057      47.7%        $67.60      $32.21
                   =====       =======

    -------------------------------------------------------------------------
    NOTE: A glossary of terms is included in Table 3 (2 of 2).
    (*) Represents (i) affiliated properties for which we receive a fee for
        reservation services provided, (ii) properties managed under the CHI
        Limited joint venture and (iii) the remaining AmeriHost-branded
        properties.  The affiliated and managed properties are not branded and
        there are only seven AmeriHost-branded properties remaining; as such,
        certain operating statistics (such as average occupancy rate, ADR and
        RevPAR) are not relevant.



                                                                      Table 7

                             Wyndham Worldwide Corporation
                               NON-GAAP RECONCILIATIONS
                         (In millions, except per share data)

                                                    Three Months Ended
                                                    ------------------
                                            March 31, 2009    March 31, 2008
                                            --------------    --------------

    Reported EBITDA                                  $134              $130
      Asset impairments (a)                             -                28
      Resolution of and adjustment to
       contingent liabilities and assets (b)            4                 3
      Restructuring costs (c)                          43                 -
                                                       --                --

    Adjusted EBITDA                                  $181              $161
    ---------------                                  ----              ----

    Reported PreTax Income                            $74               $70
      Asset impairments (a)                             -                28
      Resolution of and adjustment to
       contingent liabilities and assets (b)            4                 3
      Restructuring costs (c)                          43                 -
                                                       --                --

    Adjusted PreTax Income                           $121              $101
    ----------------------                           ----              ----

    Reported Tax Provision                           $(29)             $(28)
      Asset impairments (d)                             -               (11)
      Resolution of and adjustment to
       contingent liabilities and assets (d)           (2)                -
      Restructuring costs (d)                         (16)                -
                                                      ---                --

    Adjusted Tax Provision                           $(47)             $(39)
    ----------------------                           ----              ----

    Reported Net Income                               $45               $42
      Asset impairments                                 -                17
      Resolution of and adjustment to
       contingent liabilities and assets                2                 3
      Restructuring costs                              27                 -
                                                       --                --

    Adjusted Net Income                               $74               $62
    -------------------                               ---               ---

    Reported Diluted EPS                            $0.25             $0.24
      Asset impairments                                 -              0.10
      Resolution of and adjustment to
       contingent liabilities and assets             0.01              0.01
      Restructuring costs                            0.15                 -
                                                     ----                --

    Adjusted Diluted EPS                            $0.41             $0.35
    --------------------                            -----             -----

    Diluted Shares                                    178               178

    ------------------------------------------------------------------------
    (a) Relates to a non-cash impairment charge due to the Company's
    initiative to rebrand its vacation ownership trademarks to the Wyndham
    brand.
    (b) Relates to the net expense from the resolution of and adjustment to
    certain contingent liabilities and assets.
    (c) Relates to costs incurred as a result of various strategic initiatives
    commenced by the Company during 2008.
    (d) Relates to the tax effect of the adjustments.



                                                                      Table 8
                                                                     (1 of 2)

                           Wyndham Worldwide Corporation
                          NON-GAAP FINANCIAL INFORMATION
                       (In millions, except per share data)

                                  Three Months Ended March 31, 2009


                                 As       Legacy      Restructuring     As
                              Reported  Adjustments      Costs       Adjusted
                              --------- -----------      -----       --------
    Net revenues
      Service fees and
       membership                $400                                  $400
      Vacation ownership
       interest sales             239                                   239
      Franchise fees               99                                    99
      Consumer financing          109                                   109
      Other                        54                                    54
                                   --      ---           ---             --
    Net revenues                  901        -             -            901
                                  ---      ---           ---            ---

    Expenses
      Operating                   386                                   386
      Cost of vacation
       Ownership interests         49                                    49
      Consumer financing interest  32                                    32
      Marketing and reservation   137                                   137
      General and administrative  122      (4) (a)                      118
      Restructuring costs          43                    (43) (b)         -
      Depreciation and
       amortization                43                                    43
                                   --      --            ---             --
    Total expenses                 812     (4)           (43)           765
                                   ---     --            ---            ---

    Operating income                89      4             43            136
    Other income, net               (2)                                  (2)
    Interest expense                19                                   19
    Interest income                 (2)                                  (2)
                                    --      -             --             --

    Income before income taxes      74      4             43            121
    Provision for income taxes      29      2 (c)         16 (c)         47
                                    --      -             --             --

    Net income                     $45     $2            $27            $74
                                   ===     ==            ===            ===

    Earnings per share           $0.25  $0.01          $0.15          $0.41

    Weighted average shares
     outstanding                   178    178            178            178

    -------------------------------------------------------------------------
    (a) Relates to the net expense from the resolution of and adjustment to
    certain contingent liabilities and assets.
    (b) Relates to costs incurred as a result of various strategic initiatives
    commenced by the Company during 2008.
    (c) Relates to the tax effect of the adjustment.



                                                                     Table 8
                                                                    (2 of 2)

                          Wyndham Worldwide Corporation
                         NON-GAAP FINANCIAL INFORMATION
                      (In millions, except per share data)

                        Three Months Ended March 31, 2008



                                  As         Asset       Legacy         As
                               Reported   Impairments  Adjustments   Adjusted
                               ---------  -----------  -----------   --------
    Net revenues
      Service fees and
       membership               $453                                   $453
      Vacation ownership
       interest sales            294                                    294
      Franchise fees             112                                    112
      Consumer financing          99                                     99
      Other                       54                                     54
                                  --        ---           ---            --
    Net revenues               1,012          -             -         1,012
                               -----        ---           ---         -----

    Expenses
      Operating                  408                                    408
      Cost of vacation
       ownership interests        60                                     60
      Consumer financing
       interest                   33                                     33
      Marketing and reservation  209                                    209
      General and administrative 145                       (3) (b)      142
      Asset impairments           28        (28) (a)                      -
      Depreciation and
       amortization               44                                     44
                                  --        ---            --            --
    Total expenses               927        (28)           (3)          896
                                 ---        ---            --           ---

    Operating income              85         28             3           116
    Other income, net             (1)                                    (1)
    Interest expense              19                                     19
    Interest income               (3)                                    (3)
                                  --         --             -            --

    Income before income taxes    70         28             3           101
    Provision for income taxes    28         11 (c)         - (c)        39
                                  --         --           ---            --

    Net income                   $42        $17            $3           $62
                                 ===        ===            ==           ===

    Earnings per share
      Basic                    $0.24      $0.10         $0.01         $0.35
      Diluted                   0.24       0.10          0.01          0.35

    Weighted average shares
     outstanding
      Basic                      177        177           177           177
      Diluted                    178        178           178           178

    -------------------------------------------------------------------------
    (a) Represents a non-cash impairment charge due to the Company's
    initiative to rebrand its vacation ownership trademarks to the Wyndham
    brand.
    (b) Relates to the net expense from the resolution of and adjustment to
    certain contingent liabilities and assets.
    (c) Relates to the tax effect of the adjustment.

SOURCE  Wyndham Worldwide Corporation

    -0-                           04/29/2009
    /CONTACT:  Investors, Margo C. Happer, Senior Vice President, Investor
Relations, Wyndham Worldwide Corporation, +1-973-753-6472,
Margo.Happer@wyndhamworldwide.com; or Press,  Julie Tenney, Vice President,
Corporate Communications, Wyndham Worldwide Corporation, +1-973-753-6212,
Julie.Tenney@wyndhamworldwide.com/
    /Web Site:  http://www.wyndhamworldwide.com /
    (WYN)

CO:  Wyndham Worldwide Corporation

ST:  New Jersey
IN:  TRA LEI HRT
SU:  ERN ERP CCA

PR
-- NY05952 --
5952 04/29/2009 07:00 EDT http://www.prnewswire.com