Press Release

Printer Friendly Version View printer-friendly version
<< Back
Wyndham Worldwide Reports Second Quarter 2010 Earnings

Results Exceed Expectations
Increases Full-Year Guidance
Board Increases Share Repurchase Authorization By $300 Million

PARSIPPANY, N.J., July 28, 2010 /PRNewswire via COMTEX/ --

Wyndham Worldwide Corporation (NYSE: WYN) today announced results for the three months ended June 30, 2010.

HIGHLIGHTS:

  • Second quarter 2010 diluted earnings per share (EPS) was $0.51, compared with Company-issued guidance of $0.38 - $0.42 and $0.39 in the second quarter of 2009.
  • Free cash flow, which the Company defines as net cash from operations less capital expenditures, equity investments and development advances, increased 32% to $486 million in the first half of 2010, compared with $368 million during the same period in 2009.
  • The Company's Board of Directors authorized an increase to the current share repurchase program by $300 million. For the quarter, the Company repurchased approximately 2.2 million shares of its common stock at an average price of $24.33.
  • The Company announced on July 26, 2010 that it completed a term securitization transaction involving the issuance of $350 million of investment-grade asset-backed notes at an advance rate of 83.25% and an all-in yield of 4.15%.

"Continued strong operating performance in each of our businesses in the second quarter, combined with a lower overall tax rate, enables us to increase our full-year earnings guidance," said Stephen P. Holmes, chairman and CEO, Wyndham Worldwide. "We continue to generate significant levels of sustainable free cash flow that we are deploying to drive shareholder value."

SECOND QUARTER 2010 OPERATING RESULTS

Second quarter revenues of $963 million increased 5% from the prior-year period. The revenue growth primarily reflected continued sales momentum across the Company's three business units. Excluding the $37 million of Vacation Ownership revenue associated with the percentage-of-completion (POC) accounting method in the second quarter of 2009, second quarter 2010 adjusted revenue growth was 9%.

Net income for the second quarter of 2010 grew 34% to $95 million, or $0.51 per diluted share, compared with net income of $71 million, or $0.39 per diluted share, for the second quarter of 2009. The increase in net income from 2009 primarily reflected the year-over-year improvement in the Exchange and Rentals business, a lower effective tax rate and the favorable net effect of foreign currency.

BUSINESS UNIT RESULTS

Lodging (Wyndham Hotel Group)

Revenues were $178 million in the second quarter of 2010, an increase of 2%, compared with the second quarter of 2009, reflecting increased royalty, marketing and reservation revenues primarily from room growth. In constant currency, second quarter 2010 system-wide RevPAR decreased 1.2%. Including the impact of foreign currency, system-wide RevPAR remained flat in the second quarter of 2010. Second quarter 2010 adjusted EBITDA was $50 million, consistent with 2009.

As of June 30, 2010, the Company's hotel system consisted of approximately 7,160 properties and 606,800 rooms, of which 24% were international. The development pipeline included approximately 980 hotels and 107,600 rooms, of which 54% were new construction and 49% were international.

Wyndham Hotel Group acquired the Tryp hotel brand from Sol Melia Hotels & Resorts on June 30th. The acquisition of the midmarket international brand adds 92 hotels or approximately 13,200 rooms concentrated in cosmopolitan cities such as Madrid, Barcelona and Paris.

Vacation Exchange and Rentals (Wyndham Exchange & Rentals)

Revenues were $281 million in the second quarter of 2010, consistent with the second quarter of 2009. In constant currency, revenues increased by 3%.

Exchange revenues were $161 million, a 2% decline compared with the second quarter of 2009. In constant currency, exchange revenues decreased 3% from the second quarter of 2009 reflecting a 2% decline in exchange revenue per member and a 1% decline in the average number of members.

Vacation rental revenues were $115 million, a 6% increase compared with the second quarter of 2009. In constant currency, vacation rental revenues increased 12% from the second quarter of 2009, reflecting the contribution of incremental revenues from the recently acquired Hoseasons brand.

Second quarter 2010 Exchange and Rentals EBITDA was $78 million, compared with adjusted EBITDA of $58 million in the second quarter of 2009. Excluding a favorable net effect of foreign currency of $10 million, second quarter 2010 adjusted EBITDA increased 17% from the second quarter of 2009, due to the impact of the Hoseasons acquisition and continued cost management efforts.

Vacation Ownership (Wyndham Vacation Ownership)

Gross Vacation Ownership Interest (VOI) sales were $371 million in the second quarter of 2010, up 13% from the second quarter of 2009, reflecting an increase of 16% in volume per guest (VPG), while tour flow remained relatively flat.

Total segment revenues were $505 million in the second quarter of 2010, compared with $467 million in the second quarter of 2009, which included the recognition of $37 million of previously deferred POC revenues. The absence of these revenues in the second quarter of 2010 was more than offset by the reduction in the provision for loan losses of $35 million primarily related to improved credit metrics of the portfolio and a $31 million increase in gross VOI sales.

EBITDA for the second quarter of 2010 was $104 million, compared with adjusted EBITDA of $108 million in the second quarter of 2009. Excluding an estimated $17 million impact from the POC method of accounting in the second quarter of 2009, second quarter 2010 adjusted EBITDA growth was 14%. This growth reflected the lower provision for loan losses and the increase in VOI sales.

Other Items

  • The Company repurchased approximately 2.2 million shares of its common stock during the second quarter of 2010 at an average price of $24.33 and an additional 525,000 shares at an average price of $21.39 through July 27, 2010.
  • Interest expense in the second quarter of 2010 was $36 million, an increase of $10 million from the second quarter of 2009, reflecting higher interest expense related to long-term debt issuances in May 2009 and February 2010.

Balance Sheet Information as of June 30, 2010:

  • Cash and cash equivalents of approximately $240 million, compared with $155 million at December 31, 2009
  • Vacation ownership contract receivables, net, of $3.0 billion, compared with $3.1 billion at December 31, 2009
  • Vacation ownership and other inventory of approximately $1.3 billion, unchanged from December 31, 2009
  • Securitized vacation ownership debt of $1.5 billion, unchanged from December 31, 2009
  • Other debt of $1.8 billion, compared with $2.0 billion at December 31, 2009, reflecting the repayment of the outstanding balance on the revolving credit facility and a decrease in fair value of the conversion feature related to the Company's convertible notes. The remaining borrowing capacity on the revolving credit facility was $919 million, compared with $869 million as of December 31, 2009.

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

Outlook

The Company increased full-year 2010 guidance:

  • Revenues increased to $3.7 - $4.0 billion from $3.6 - $3.9 billion
  • Adjusted EBITDA increased to $825 - $860 million from $805 - $840 million
  • Adjusted diluted EPS increased to $1.78 - $1.88 from $1.56 - $1.71
  • Lodging RevPAR of 0% - 3% from (3%) - 0%
  • Vacation Ownership VPG of 10% - 14% from 6% - 9%

For the third quarter of 2010, the Company expects adjusted diluted EPS of $0.60 - $0.64.

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

Board Increases Share Repurchase Authorization

The Company's Board of Directors has increased the authorization for the stock repurchase program by $300 million. As of July 27, 2010, $91 million remained unused under the previous $200 million authorization. The amount and timing of specific repurchases is subject to market conditions, applicable legal requirements and other factors. Repurchases may be conducted in the open market or in privately negotiated transactions.

Completed $350 Million Term Securitization

On July 26, 2010, the Company announced that it completed a term securitization transaction involving the issuance of $350 million of investment-grade, asset-backed notes with an advance rate of 83.25%. Sierra Timeshare 2010-2 Receivables Funding LLC issued $286 million of A rated and $64 million of BBB rated notes, with coupons of 3.84% and 5.31%, respectively, backed by vacation ownership loans.

Conference Call Information

Wyndham Worldwide Corporation will hold a conference call with investors to discuss this news on Wednesday, July 28, 2010 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 July 28, 2010. The conference call may also be accessed by dialing (800) 369-2052 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 for approximately 90 days beginning at noon EDT on July 28, 2010, at (800) 876-5258.

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 Corporation

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 approximately 7,160 franchised hotels and approximately 606,800 hotel rooms worldwide. Wyndham Exchange & Rentals offers leisure travelers, including its 3.8 million members, access to over 80,000 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 155 vacation ownership resorts serving over 820,000 owners throughout North America, the Caribbean and the South Pacific. Wyndham Worldwide, headquartered in Parsippany, N.J., employs approximately 25,000 employees globally.

For more information about Wyndham Worldwide, please visit the Company's website 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, related financial and operating measures and share repurchases.

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 Quarterly Report on Form 10-Q, filed with the SEC on April 30, 2010. 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 consumer financing interest), interest income
     (excluding consumer financing interest) and income taxes, each of which
     is presented on the Company's Consolidated Statements of Operations. 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 its 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 and six
     months ended June 30, 2010 and 2009:

                                        Three Months Ended June 30,
                                        ---------------------------
                                       2010                      2009
                                       ----                      ----
                                  Net                      Net
                                Revenues    EBITDA       Revenues    EBITDA(e)
                                --------    ------       --------    ---------
    Lodging                         $178       $49(d)        $174      $50
    Vacation
     Exchange
     and
     Rentals                         281        78            280       56
    Vacation
     Ownership                       505       104            467      107(f)
                                     ---       ---            ---      ---
         Total
          Reportable
          Segments                   964       231            921      213
     Corporate
     and
     Other
     (a) (b)                          (1)      (14)            (1)     (17)
         Total
          Company                   $963      $217           $920     $196
                                    ====      ====           ====     ====

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

    EBITDA                                    $217                    $196
    Depreciation and
     amortization                               42                      45
    Interest expense                            36                      26
    Interest income                             (2)                     (2)
                                               ---                     ---
    Income before income
     taxes                                     141                     127
    Provision for income
     taxes                                      46                      56
                                               ---                     ---
    Net income                                 $95                     $71
                                               ===                     ===


                                         Six Months Ended June 30,
                                         -------------------------
                                       2010                      2009
                                       ----                      ----
                                  Net                      Net
                                Revenues    EBITDA       Revenues    EBITDA(i)
                                --------    ------       --------    ---------
    Lodging                         $322       $82(d)        $328      $85
    Vacation
     Exchange
     and
     Rentals                         582       158(g)         566      132
    Vacation
     Ownership                       950       186            929      151(j)
                                     ---       ---            ---      ---
         Total
          Reportable
          Segments                 1,854       426          1,823      368
     Corporate
     and
     Other
     (a) (c)                          (5)      (34)            (2)     (39)
         Total
          Company                 $1,849      $392         $1,821     $329
                                  ======      ====         ======     ====

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

    EBITDA                                    $392                    $329
    Depreciation and
     amortization                               85                      88
    Interest expense                            86(h)                   45
    Interest income                             (2)                     (4)
                                               ---                     ---
    Income before income
     taxes                                     223                     200
    Provision for income
     taxes                                      78                      84
                                               ---                     ---
    Net income                                $145                    $116
                                              ====                    ====


    ---------------------
    (a)  Includes the elimination of transactions between segments.
    (b)  Includes $1 million, net of tax, of a net benefit and $2 million, net
         of tax, of a net expense during the three months ended June 30, 2010
         and 2009, respectively, related to the resolution of and adjustment
         to certain contingent liabilities and assets.
    (c)  Includes $1 million ($0, net of tax) and $3 million ($3 million, net
         of tax) of a net expense during the six months ended June 30, 2010
         and 2009, respectively, related to the resolution of and adjustment
         to certain contingent liabilities and assets.
    (d)  Includes $1 million ($1 million, net of tax) related to costs
         incurred in connection with the Company's acquisition of the Tryp
         hotel brand during June 2010.
    (e)  Includes restructuring costs of $2 million and $1 million for
         Vacation Exchange and Rentals and Vacation Ownership, respectively.
         The after-tax impact of such costs is $2 million.
    (f)  Includes a non-cash impairment charge of $3 million ($2 million, net
         of tax) to reduce the value of certain vacation ownership properties
         and related assets held for sale that are no longer consistent with
         the Company's development plans.
    (g)  Includes $4 million ($3 million, net of tax) related to costs
         incurred in connection with the Company's acquisition of Hoseasons
         Holdings Ltd. during March 2010.
    (h)  Includes $1 million and $15 million for Vacation Ownership and
         Corporate and Other, respectively, of costs incurred for the early
         extinguishment of the Company's term loan facility and revolving
         foreign credit facility during March 2010.  The after-tax impact of
         such costs is $10 million.
    (i)  Includes restructuring costs of $3 million, $6 million, $36 million
         and $1 million for Lodging, Vacation Exchange and Rentals, Vacation
         Ownership and Corporate and Other, respectively.  The after-tax
         impact of such costs is $29 million.
    (j)  Includes a non-cash impairment charge of $8 million ($6 million, net
         of tax) to reduce the value of certain vacation ownership properties
         and related assets held for sale that are no longer consistent with
         the Company's development plans.


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



                          Three Months Ended       Six Months Ended
                               June 30,                June 30,
                           2010           2009       2010       2009
                           ----           ----       ----       ----
    Net revenues
      Service fees and
       membership          $409           $397       $833       $797
      Vacation ownership
       interest sales       271            242        488        482
      Franchise fees        120            117        211        216
      Consumer financing    106            109        211        217
      Other                  57             55        106        109
                            ---            ---        ---        ---
    Net revenues            963            920      1,849      1,821
                            ---            ---      -----      -----

    Expenses
      Operating             387  (a)       391        769  (a)   759
      Cost of vacation
       ownership
       interests             49             33         86         82
      Consumer financing
       interest              29             35         53         67
      Marketing and
       reservation          138            137        261        275
      General and
       administrative (b)   146            122        293        258
      Asset impairment        -              3  (c)     -          8  (c)
      Restructuring costs     -              3  (d)     -         46  (d)
      Depreciation and
       amortization          42             45         85         88
                            ---            ---        ---        ---
    Total expenses          791            769      1,547      1,583
                            ---            ---      -----      -----

    Operating income        172            151        302        238
    Other income, net        (3)             -         (5)        (3)
    Interest expense         36             26         86  (e)    45
    Interest income          (2)            (2)        (2)        (4)
                            ---            ---        ---        ---

    Income before
     income taxes           141            127        223        200
    Provision for
     income taxes            46             56         78         84
                            ---            ---        ---        ---

    Net income              $95            $71       $145       $116
                            ===            ===       ====       ====

    Earnings per share
      Basic               $0.53          $0.40      $0.81      $0.65
      Diluted              0.51           0.39       0.78       0.64

    Weighted average
     shares outstanding
      Basic                 180            179        180        178
      Diluted               187            182        186        180


    __________
    (a)  Includes $1 million ($1 million, net of tax) during both the three
         and six months ended June 30, 2010 related to costs incurred
      in connection with the Company's June 2010 acquisition of the Tryp
      hotel brand.  The six months ended June 30, 2010 also
      includes $4 million ($3 million, net of tax) of costs incurred in
      connection with the Company's March 2010 acquisition of
      Hoseasons Holdings Ltd.
    (b)  Includes $1 million, net of tax, of a net benefit and $2 million, net
         of tax, of a net expense during the three months ended
      June 30, 2010 and 2009, respectively, and $1 million ($0, net of tax)
      and $3 million ($3 million, net of tax) of a net expense
      during the six months ended June 30, 2010 and 2009, respectively,
      related to the resolution of and adjustment to certain
      contingent liabilities and assets.
    (c)  Relates to non-cash impairment charges to reduce the value of
         certain vacation ownership properties and related assets
      held for sale that are no longer consistent with the Company's
      development plans.  The after-tax impact of such charges
      was $2 million and $6 million during the three and six months ended
      June 30, 2009, respectively.
    (d)  Relates to costs incurred as a result of various strategic
         initiatives approved by the Company and commenced during 2008.
      The after-tax impact of such costs was $2 million and $29 million
      during the three and six months ended June 30, 2009,
      respectively.
    (e)  Includes costs incurred for the early extinguishment of the Company's
         term loan facility and revolving foreign credit facility
      during March 2010.  The after-tax impact of such costs was $10 million.



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


                                                                         Full
                        Year      Q1        Q2       Q3       Q4         Year
                        ----     ---       ---      ---      ---         ----
     Lodging (a) (b)
       Number of Rooms   2010   593,300   606,800      N/A      N/A        N/A
                         2009   588,500   590,200  590,900  597,700        N/A
                         2008   551,100   551,500  583,400  592,900        N/A
                         2007   539,300   541,700  540,900  550,600        N/A

      RevPAR             2010    $25.81    $32.25      N/A      N/A        N/A
                         2009    $27.69    $32.38   $34.81   $26.47     $30.34
                         2008    $32.21    $38.87   $41.93   $30.03     $35.74
                         2007    $31.35    $38.35   $43.10   $33.09     $36.48

    Vacation Exchange
     and Rentals (c)
      Average Number of
       Members (in
       000s)          2010     3,746     3,741      N/A      N/A        N/A
                         2009     3,789     3,795    3,781    3,765      3,782
                         2008     3,632     3,682    3,673    3,693      3,670
                         2007     3,474     3,506    3,538    3,588      3,526

      Exchange Revenue
       Per Member        2010   $201.93   $172.20      N/A      N/A        N/A
                         2009   $194.83   $174.22  $173.90  $163.89    $176.73
                         2008   $234.05   $201.04  $193.39  $165.99    $198.48
                         2007   $236.71   $203.84  $203.44  $195.86    $209.80

      Vacation Rental
       Transactions (in
       000s) (d)         2010       291       297      N/A      N/A        N/A
                         2009       273       231      264      196        964
                         2008       269       220      255      191        936
                         2007       272       223      254      192        942

      Average Net Price
       Per Vacation
       Rental (d)        2010   $361.17   $387.01      N/A      N/A        N/A
                         2009   $353.15   $471.74  $594.34  $499.66    $477.38
                         2008   $442.50   $541.69  $659.93  $460.86    $528.95
                         2007   $365.20   $465.60  $598.26  $504.47    $480.32

     Vacation Ownership
      Gross Vacation
       Ownership Interest
       (VOI) Sales (in
       000s) (e)         2010  $308,000  $371,000      N/A      N/A        N/A
                         2009  $280,000  $327,000 $366,000 $343,000 $1,315,000
                         2008  $458,000  $532,000 $566,000 $432,000 $1,987,000
                         2007  $430,000  $523,000 $552,000 $488,000 $1,993,000

      Tours              2010   123,000   163,000      N/A      N/A        N/A
                         2009   137,000   164,000  173,000  142,000    617,000
                         2008   255,000   314,000  334,000  240,000  1,143,000
                         2007   240,000   304,000  332,000  268,000  1,144,000

      Volume Per Guest
       (VPG)             2010    $2,334    $2,156      N/A      N/A        N/A
                         2009    $1,866    $1,854   $1,944   $2,210     $1,964
                         2008    $1,668    $1,583   $1,550   $1,630     $1,602
                         2007    $1,607    $1,596   $1,545   $1,690     $1,606

    ---------------------
    Note: Full year amounts may not foot across due to rounding.
    (a)  Includes the impact of the acquisition of Microtel Inns & Suites and
         Hawthorn Suites (July 2008) from the acquisition date forward.
         Therefore, the operating statistics are not presented on a
         comparable basis.
    (b)  Number of rooms includes the impact of the acquisition of the Tryp
         hotel brand (June 2010) from the acquisition date forward and, as
         such, the number of rooms is not presented on a comparable basis.
         RevPAR excludes the impact of the acquisition of the Tryp hotel brand
         as the acquisition was not completed until June 30, 2010.
    (c)  Vacation Exchange and Rentals statistics were revised during the
         first quarter of 2010 to capture member-related rentals and other
         servicing fees as components of the exchange statistics.  Prior to
         the first quarter of 2010, such amounts were included within the
         Company's vacation rental statistics and other ancillary revenues.
    (d)  Includes the impact of the acquisition of Hoseasons Holdings Ltd.
         (March 2010) from the acquisition date forward.  Therefore, the
         operating statistics are not presented on a comparable basis.
    (e)  Includes gross VOI sales under the Company's Wyndham Asset Affiliate
         Model (WAAM) beginning in the first quarter of 2010 (see Table 9 for
         a reconciliation of Gross VOI sales to Vacation ownership interest
         sales).




                                                                       Table 3
                                                                      (2 of 3)

                          Wyndham Worldwide Corporation
                                ADDITIONAL DATA


                                                                        Full
                        Year      Q1        Q2       Q3       Q4        Year
                        ----     ---       ---      ---      ---        ----
    Lodging (a)
      Number of
       Properties        2010    7,090    7,160      N/A      N/A         N/A
                         2009    6,990    7,020    7,040    7,110         N/A
                         2008    6,550    6,560    6,970    7,040         N/A
                         2007    6,450    6,460    6,460    6,540         N/A

    Vacation Ownership
      Deferred Revenues
       (in 000s) (b)     2010       $-       $-      N/A      N/A         N/A
                         2009  $66,516  $37,140  $36,102  $46,784    $186,543
                         2008 $(81,716) $(5,240) $(2,023) $13,870    $(75,108)
                         2007   $3,906  $(4,908)    $506 $(21,092)   $(21,588)

      Provision for Loan
       Losses (in 000s)
       (c)               2010  $86,332  $87,331      N/A      N/A         N/A
                         2009 $107,202 $121,641 $117,111 $103,115    $449,069
                         2008  $82,344 $112,669 $118,609 $136,090    $449,712
                         2007  $60,869  $75,032  $85,762  $83,644    $305,307

      Sales under the
       WAAM (in 000s)
       (d)               2010   $5,000  $13,000      N/A      N/A         N/A

      WAAM Commission
       Revenues (in
       000s)             2010   $3,000   $8,000      N/A      N/A         N/A


    -----------------
    Note: Full year amounts may not foot across due to rounding.
    (a)  Information includes the impact of the acquisition of Microtel Inns &
         Suites and Hawthorn Suites (July 2008) and the Tryp hotel brand
         (June 2010) from the acquisition date forward.  Therefore, the data
         is not presented on a comparable basis.

    (b)  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.

    (c)  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 Statements of Income.

    (d)  Represents gross VOI sales under the Company's WAAM for which the
         Company earns commission revenue (WAAM Commission Revenues).  The
         commission revenue earned on these sales is included in service fees
         and membership revenues on the Consolidated Statement of Income.
         The Company implemented this sales model during the first quarter of
         2010 and, as such, there is no historical data prior to 2010.


                           Table 3
                          (3 of 3)

     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 the Wyndham Hotels and Resorts brand for which we receive a fee for reservation and/or other services provided or (iii) properties managed under a 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.

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.

Exchange Revenue Per Member: Represents total revenue generated from fees associated with memberships, exchange transactions, member-related rentals and other servicing for the period divided by the average number of vacation exchange members during the period.

Vacation Rental Transactions: Represents the number of transactions that are generated in connection with customers booking their vacation rental stays through us. One rental transaction is recorded each time a standard one-week rental is booked.

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

Vacation Ownership

Gross Vacation Ownership Interest Sales: Represents sales of vacation ownership interest (VOIs), including Wyndham Asset Affiliation Model sales, before the net effect of percentage-of-completion accounting and loan loss provisions. See Table 9 for a reconciliation of Gross VOI sales to Vacation Ownership Interest Sales. We believe that Gross VOI sales provides an enhanced understanding of the performance of our vacation ownership business because it directly measures the sales volume of this business during a given reporting period.

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

Volume per Guest (VPG): Represents gross VOI sales (excluding tele-sales upgrades, which are non-tour upgrade sales) divided by the number of tours. We have excluded non-tour upgrade sales in the calculation of VPG because non-tour upgrade sales are generated by a different marketing channel. See Table 9 for a detail of tele-sales upgrades for 2007-2010. We believe that VPG provides an enhanced understanding of the performance of our vacation ownership business because it directly measures the efficiency of this business' tour selling efforts during a given reporting period.

General

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




                                                                       Table 4

    Wyndham Worldwide Corporation
    REVENUE DETAIL BY REPORTABLE SEGMENT
    (In millions)


                                                                        2010
                                                                        ----
                                            Q1     Q2     Q3    Q4     Year
                                            --     --     --    --     ----
    Lodging
      Royalties and Franchise Fees           $52    $69    N/A   N/A     N/A

      Marketing, Reservation and Wyndham
       Rewards Revenues (a)                   50     65    N/A   N/A     N/A

      Hotel Management Reimbursable
       Revenues (b)                           21     20    N/A   N/A     N/A

      Ancillary Revenues (c)                  21     24    N/A   N/A     N/A

      Total Lodging                          144    178    N/A   N/A     N/A
                                             ---    ---     --    --      --

    Vacation Exchange and Rentals
      Exchange Revenues                      189    161    N/A   N/A     N/A

      Rental Revenues                        105    115    N/A   N/A     N/A

      Ancillary Revenues (d)                   6      5    N/A   N/A     N/A
                                             ---    ---     --    --      --
      Total Vacation Exchange and Rentals    300    281    N/A   N/A     N/A
                                             ---    ---     --    --      --

    Vacation Ownership
      Vacation Ownership Interest Sales      217    271    N/A   N/A     N/A

      Consumer Financing                     105    106    N/A   N/A     N/A

      Property Management Fees               100    100    N/A   N/A     N/A

      Ancillary Revenues (e)                  22     28    N/A   N/A     N/A

      Total Vacation Ownership               444    505    N/A   N/A     N/A
                                             ---    ---     --    --      --
    Total Reportable Segments               $888   $964    N/A   N/A     N/A
                                            ====   ====     ==    ==      ==


                                            2008
                                            ----
                                            Q1     Q2     Q3    Q4     Year
                                           --     --     --    --      ----
    Lodging
      Royalties and Franchise Fees           $64    $78    $88   $66    $297

      Marketing, Reservation and Wyndham
       Rewards Revenues (a)                   60     75     84    61     280

      Hotel Management Reimbursable
       Revenues (b)                           27     26     25    21     100

      Ancillary Revenues (c)                  19     21     16    22      76

      Total Lodging                          170    200    213   170     753
                                             ---    ---    ---   ---     ---

    Vacation Exchange and Rentals
      Exchange Revenues                      213    185    178   152     728

      Rental Revenues                        119    119    169    88     495

      Ancillary Revenues (d)                   9     10      7    10      36
                                             ---    ---    ---   ---     ---
      Total Vacation Exchange and Rentals    341    314    354   250   1,259
                                             ---    ---    ---   ---   -----

    Vacation Ownership
      Vacation Ownership Interest Sales      294    414    446   309   1,463

      Consumer Financing                      99    104    111   112     426

      Property Management Fees                85     84     89    89     346

      Ancillary Revenues (e)                  26     19     15   (18)     43

      Total Vacation Ownership               504    621    661   492   2,278
                                             ---    ---    ---   ---   -----
    Total Reportable Segments             $1,015 $1,135 $1,228  $912  $4,290
                                          ====== ====== ======  ====  ======

                                                                        2009
                                                                        ----
                                            Q1     Q2     Q3     Q4    Year
                                            --     --     --     --    ----
    Lodging
      Royalties and Franchise Fees           $57    $68    $72    $57   $254

      Marketing, Reservation and Wyndham
       Rewards Revenues (a)                   54     66     73     53    246

      Hotel Management Reimbursable
       Revenues (b)                           22     23     21     19     85

      Ancillary Revenues (c)                  21     17     17     20     75
                                             ---    ---    ---    ---    ---
      Total Lodging                          154    174    183    149    660
                                             ---    ---    ---    ---    ---

    Vacation Exchange and Rentals
      Exchange Revenues                      185    165    164    154    668

      Rental Revenues                         96    109    157     98    460

      Ancillary Revenues (d)                   6      6      6      6     24
                                             ---    ---    ---    ---    ---
      Total Vacation Exchange and Rentals    287    280    327    258  1,152
                                             ---    ---    ---    ---  -----

    Vacation Ownership
      Vacation Ownership Interest Sales      239    242    285    287  1,053

      Consumer Financing                     109    109    108    109    435

      Property Management Fees                91     94     96     95    376

      Ancillary Revenues (e)                  23     22     19     17     81
                                             ---    ---    ---    ---    ---
      Total Vacation Ownership               462    467    508    508  1,945
                                             ---    ---    ---    ---  -----
    Total Reportable Segments               $903   $921 $1,018   $915 $3,757
                                            ====   ==== ======   ==== ======


                                            2007
                                            ----
                                            Q1     Q2     Q3     Q4    Year
                                           --     --     --     --     ----
    Lodging
      Royalties and Franchise Fees           $63    $78    $89    $67   $296

      Marketing, Reservation and Wyndham
       Rewards Revenues (a)                   60     73     84     64    281

      Hotel Management Reimbursable
       Revenues (b)                           16     22     26     28     92

      Ancillary Revenues (c)                  13     13     12     17     56
                                             ---    ---    ---    ---    ---
      Total Lodging                          152    186    211    176    725
                                             ---    ---    ---    ---    ---

    Vacation Exchange and Rentals
      Exchange Revenues                      206    179    180    175    740

      Rental Revenues                         99    104    152     97    452

      Ancillary Revenues (d)                   9      5      4      8     26
                                             ---    ---    ---    ---    ---
      Total Vacation Exchange and Rentals    314    288    336    280  1,218
                                             ---    ---    ---    ---  -----

    Vacation Ownership
      Vacation Ownership Interest Sales      373    443    467    383  1,666

      Consumer Financing                      81     88     93     96    358

      Property Management Fees                74     78     79     78    310

      Ancillary Revenues (e)                  21     20     32     19     91
                                             ---    ---    ---    ---    ---
      Total Vacation Ownership               549    629    671    576  2,425
                                             ---    ---    ---    ---  -----
    Total Reportable Segments             $1,015 $1,103 $1,218 $1,032 $4,368
                                          ====== ====== ====== ====== ======


    Note: Full year amounts may not foot across due to rounding.
    (a)  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.  Wyndham Rewards revenues
         represent fees we receive relating to our loyalty program.
    (b)  Primarily represents payroll costs in our hotel management business
         that we pay on behalf of property owners and for which we are
         reimbursed by the property owners.
    (c)  Primarily includes additional services provided to franchisees.
    (d)  Primarily includes fees generated from programs with affiliated
         resorts.
    (e)  Primarily includes revenues associated with bonus points/credits
         that are provided as purchase incentives on VOI sales and fees
         generated from other non-core businesses.



                                         Table 5
                                 Wyndham Worldwide Corporation
                                       SCHEDULE OF DEBT
                                         (In millions)

                    June 30,  March 31,   December 31, September 30, June 30,
                       2010       2010          2009          2009      2009
                       ----       ----          ----          ----      ----

    Securitized
     vacation
     ownership
     debt
      Term notes     $1,255     $1,258        $1,112        $1,305    $1,290
      Bank conduit
       facilities
       (a)              291        240           395           299       340
                        ---        ---           ---           ---       ---
    Securitized
     vacation
     ownership
     debt (b)         1,546      1,498         1,507         1,604     1,630
    Less:
     Current
     portion of
     securitized
     vacation
     ownership
     debt               248        220           209           291       288
                        ---        ---           ---           ---       ---
    Long-term
     securitized
     vacation
     ownership
     debt            $1,298     $1,278        $1,298        $1,313    $1,342
                     ======     ======        ======        ======    ======

    Debt:
      6.00% senior
       unsecured
       notes (due
       December
       2016) (c)       $798       $798          $797          $797      $797
      Term loan
       (d)                -          -           300           300       300
      Revolving
       credit
       facility
       (due
       October
       2013) (e)          -        199             -            21        30
      9.875%
       senior
       unsecured
       notes (due
       May 2014)
       (f)              239        239           238           237       237
      3.50%
       convertible
       notes (due
       May 2012)
       (g)              362        448           367           309       253
      7.375%
       senior
       unsecured
       notes (due
       March 2020)
       (h)              247        247             -             -         -
      Vacation
       ownership
       bank
       borrowings
       (i)                -          -           153           163       154
      Vacation
       rentals
       capital
       leases           110        123           133           139       135
      Other              36         28            27            23        22
                        ---        ---           ---           ---       ---
    Total debt        1,792      2,082         2,015         1,989     1,928
    Less:
     Current
     portion of
     debt                29         23           175           176       169
                        ---        ---           ---           ---       ---
    Long-term
     debt            $1,763     $2,059        $1,840        $1,813    $1,759
                     ======     ======        ======        ======    ======



    __________


    (a)  Represents (i) a 364-day, non-recourse vacation ownership bank
         conduit facility with a term through October 2010 and borrowing
         capacity of $600 million and (ii) the outstanding balance of the
      Company's prior bank conduit facility through October 8, 2009, the
      date on which such balance was repaid.  As of June 30, 2010, our
      364-day facility has remaining borrowing capacity of $309 million.
    (b)  This debt is collateralized by $2,862 million, $2,712 million, $2,755
         million, $2,947 million and $2,916 million of underlying vacation
         ownership contract receivables and related assets as of June 30,
         2010,
      March 31, 2010, December 31, 2009, September 30, 2009 and June 30,
      2009, respectively.
    (c)  The balance as of June 30, 2010 represents $800 million aggregate
         principal less $2 million of unamortized discount.
    (d)  The Company's term loan facility was fully repaid during March 2010.
    (e)  During March 2010, the Company replaced its five-year $900 million
         revolving credit facility with a $950 million revolving credit
         facility that expires on October 1, 2013.  As of June 30, 2010, the
         Company
      has $31 million of outstanding letters of credit and a remaining
      borrowing capacity of $919 million.
    (f)  Represents senior unsecured notes issued by the Company during May
         2009.  The balance as of June 30, 2010 represents $250 million
         aggregate principal less $11 million of unamortized discount.
    (g)  Represents convertible notes issued by the Company during May 2009,
         which includes debt principal, less unamortized discount, and a
         liability related to a bifurcated conversion feature.  The following
      table details the components of the convertible notes:


                       June 30,   March 31,  December  September   June 30,
                          2010       2010    31, 2009   30, 2009      2009
                       ---------  ----------  --------  ---------  ---------

     Debt principal         $230        $230      $230       $230       $230
     Unamortized
      discount               (31)        (35)      (39)       (43)       (46)
                             ---         ---       ---        ---        ---
     Debt less
      discount               199         195       191        187        184
     Fair value of
      conversion
      feature (*)            163         253       176        122         69
                             ---         ---       ---        ---        ---
     Convertible notes      $362        $448      $367       $309       $253
                            ====        ====      ====       ====       ====



     (*) The Company also has an asset with a fair value equal to the
     conversion feature, which represents cash-settled call options that
     the Company purchased concurrent with the issuance of the
     convertible notes.


    (h)    Represents senior unsecured notes issued by the Company during
           February 2010.  The balance as of June 30, 2010 represents $250
           million aggregate principal
      less $3 million of unamortized discount.
    (i)    Represents a 364-day, AUD 213 million, secured, revolving foreign
           credit facility, which was paid down and terminated during March
           2010.

                                                          Table 6
                                                         (1 of 2)
                    Wyndham Worldwide Corporation
                     HOTEL BRAND SYSTEMS DETAILS



                             As of and For the Three Months Ended
                                        June 30, 2010
                                ------------------------------------
                          Number    Number               Average
                            of         of                  Daily    Average
            Brand      Properties    Rooms     Average      Rate    Revenue
                                              Occupancy               Per
            -----      ----------- -------        Rate     (ADR)   Available
                                                                      Room
                                              ----------   -----   (RevPAR)
                                                                  ---------

    Wyndham Hotels and
     Resorts                    99   27,771         59.5% $108.71     $64.66

    Tryp (a)                    92   13,236          N/A      N/A        N/A

    Wingate by Wyndham         164   15,020         61.5%  $79.97     $49.15

    Hawthorn Suites by
     Wyndham                    80    7,563         57.7%  $78.07     $45.08

    Ramada                     901  118,521         51.3%  $71.95     $36.88

    Baymont                    242   20,496         49.6%  $61.26     $30.38

    Days Inn                 1,857  148,457         48.6%  $60.66     $29.47

    Super 8                  2,149  134,189         51.6%  $55.89     $28.86

    Howard Johnson             477   45,513         46.8%  $60.84     $28.48

    Travelodge                 442   32,762         45.9%  $62.35     $28.63

    Microtel Inns &
     Suites                    318   22,666         52.3%  $56.90     $29.76

    Knights Inn                338   20,157         37.9%  $41.80     $15.84

    Affiliated Hotels
     (b)                         2      404          N/A      N/A        N/A

            Total            7,161  606,755         50.2%  $64.27     $32.25
                             =====  =======




                         As of and For the Three Months Ended June
                                          30, 2009
                            -----------------------------------------
                     Number     Number                 Average
                       of         of                    Daily       Average
            Brand Properties    Rooms     Average        Rate       Revenue
                                         Occupancy                    Per
            ----- -----------  -------       Rate       (ADR)     Available
                                                                     Room
                                         ----------     -----      (RevPAR)
                                                                  ---------

    Wyndham
     Hotels and
     Resorts               85   22,562         55.1%    $117.44       $64.66

    Wingate by
     Wyndham              165   15,109         57.1%     $85.57       $48.87

    Hawthorn
     Suites by
     Wyndham               90    8,386         53.3%     $84.88       $45.22

    Ramada                894  116,225         48.3%     $74.04       $35.78

    Baymont               234   19,850         48.3%     $64.64       $31.19

    Days Inn            1,856  149,901         48.5%     $64.45       $31.24

    Super 8             2,116  131,282         51.6%     $56.66       $29.22

    Howard
     Johnson              475   45,679         42.6%     $62.53       $26.61

    Travelodge            464   34,911         45.6%     $62.23       $28.40

    Microtel
     Inns &
     Suites               317   22,660         53.5%     $55.17       $29.54

    Knights Inn           317   20,039         39.2%     $43.49       $17.03

    Affiliated
     Hotels (b)            11    3,549          N/A         N/A          N/A

            Total       7,024  590,153         48.9%     $66.22       $32.38
                        =====  =======



    _______________


    NOTE: A glossary of terms is included in Table 3 (3 of 3); RevPAR may
    not recalculate by multiplying average occupancy rate by ADR due to
    rounding.
    (a)  The Tryp hotel brand was acquired on June 30, 2010 and, as such,
         average occupancy rate, ADR and RevPAR are not relevant.
    (b)  Represents properties managed under a joint venture and, as of
         December 31, 2009, also includes properties for which we receive a
         fee for reservation services provided.  As these properties are
      not branded, operating statistics (such as average occupancy rate,
      ADR and RevPAR) are not relevant.

                                                           Table 6
                                                          (2 of 2)
                     Wyndham Worldwide Corporation
                      HOTEL BRAND SYSTEMS DETAILS



                          As of and For the Six Months Ended June
                                          30, 2010
                             ---------------------------------------
                          Number    Number              Average
                            of         of                 Daily    Average
            Brand      Properties    Rooms    Average      Rate    Revenue
                                             Occupancy               Per
            -----      ----------- -------       Rate     (ADR)   Available
                                                                     Room
                                             ----------   -----   (RevPAR)
                                                                 ---------

    Wyndham Hotels and
     Resorts                    99   27,771        55.4% $110.61     $61.25

    Tryp (a)                    92   13,236         N/A      N/A        N/A

    Wingate by Wyndham         164   15,020        56.6%  $78.81     $44.63

    Hawthorn Suites by
     Wyndham                    80    7,563        53.4%  $77.56     $41.41

    Ramada                     901  118,521        47.2%  $72.32     $34.15

    Baymont                    242   20,496        45.5%  $59.65     $27.13

    Days Inn                 1,857  148,457        43.6%  $59.39     $25.92

    Super 8                  2,149  134,189        46.4%  $54.59     $25.34

    Howard Johnson             477   45,513        42.8%  $59.42     $25.44

    Travelodge                 442   32,762        42.0%  $61.92     $25.99

    Microtel Inns &
     Suites                    318   22,666        48.0%  $56.04     $26.88

    Knights Inn                338   20,157        35.5%  $40.46     $14.36

    Affiliated Hotels
     (b)                         2      404         N/A      N/A        N/A

            Total            7,161  606,755        45.7%  $63.60     $29.04
                             =====  =======





                          As of and For the Six Months Ended June
                                         30, 2009
                             ---------------------------------------
                      Number     Number                 Average
                        of          of                   Daily    Average
            Brand  Properties     Rooms     Average       Rate    Revenue
                                           Occupancy                 Per
            -----  -----------  -------       Rate       (ADR)    Available
                                                                    Room
                                           ----------    -----    (RevPAR)
                                                                 ---------

    Wyndham Hotels
     and Resorts            85    22,562         53.4%  $120.80      $64.47

    Wingate by
     Wyndham               165    15,109         53.9%   $85.39      $46.04

    Hawthorn
     Suites by
     Wyndham                90     8,386         52.0%   $87.33      $45.37

    Ramada                 894   116,225         46.2%   $74.23      $34.29

    Baymont                234    19,850         46.0%   $63.22      $29.10

    Days Inn             1,856   149,901         45.0%   $62.07      $27.90

    Super 8              2,116   131,282         47.6%   $55.76      $26.55

    Howard Johnson         475    45,679         41.2%   $61.31      $25.28

    Travelodge             464    34,911         42.6%   $59.84      $25.49

    Microtel Inns
     & Suites              317    22,660         49.6%   $55.53      $27.54

    Knights Inn            317    20,039         37.6%   $42.35      $15.94

    Affiliated
     Hotels (b)             11     3,549          N/A       N/A         N/A

            Total        7,024   590,153         45.9%   $65.41      $30.04
                         =====   =======



    _______________


    NOTE: A glossary of terms is included in Table 3 (3 of 3); RevPAR may
    not recalculate by multiplying average occupancy rate by ADR due to
    rounding.
    (a)  The Tryp hotel brand was acquired on June 30, 2010 and, as such,
         average occupancy rate, ADR and RevPAR are not relevant.
    (b)  Represents properties managed under a joint venture and, as of
         December 31, 2009, also includes properties for which we receive a
         fee for reservation services provided.  As
      these properties are not branded, operating statistics (such as
      average occupancy rate, ADR and RevPAR) are not relevant.

                                                              Table 7
                                                             (1 of 2)
                            Wyndham Worldwide
                         NON-GAAP RECONCILIATION
                              (In millions)




    Three months
     ended March      Net
     31, 2010     Revenues   Reported  Acquisition   Legacy     Adjusted
                                          Costs    Adjustments
                   --------  EBITDA        (b)          (c)      EBITDA
                             ------      ------    ------------  ------
    Lodging            $144       $33           $-           $-       $33
    Vacation
     Exchange
     and Rentals        300        80            4            -        84
    Vacation
     Ownership          444        82            -            -        82
                        ---       ---          ---          ---       ---
      Total
       Reportable
       Segments         888       195            4            -       199
    Corporate
     and Other
     (a)                 (2)      (20)           -            2       (18)
                        ---       ---          ---          ---
      Total
       Company         $886      $175           $4           $2      $181
                       ====      ====          ===          ===      ====


    Three months
     ended June       Net
     30, 2010     Revenues   Reported  Acquisition   Legacy     Adjusted
                                          Costs    Adjustments
                  ---------  EBITDA        (b)          (c)      EBITDA
                             ------      ------    ------------  ------
    Lodging            $178       $49           $1           $-       $50
    Vacation
     Exchange
     and Rentals        281        78            -            -        78
    Vacation
     Ownership          505       104            -            -       104
                        ---       ---          ---          ---       ---
      Total
       Reportable
       Segments         964       231            1            -       232
    Corporate
     and Other
     (a)                 (1)      (14)           -            -       (14)
                        ---       ---          ---          ---
      Total
       Company         $963      $217           $1           $-      $218
                       ====      ====          ===          ===      ====


    ________________
    Note: Amounts may not foot across due to rounding.
    (a)   Includes the elimination of transactions between segments.
    (b)   Relates to costs incurred in connection with the Company's
    acquisitions of Hoseasons Holdings Ltd. during March 2010 and the
    Tryp hotel brand during June 2010.
    (c)   Relates to the net expense from the resolution of and
    adjustment to certain contingent liabilities and assets.




                                                                      Table 7
                                                                      (2 of 2)
                                     Wyndham Worldwide
                                 NON-GAAP RECONCILIATIONS
                                       (In millions)



    Three months ended
     March 31, 2009
                                          Restructuring
                         Net    Reported    Related      Legacy       Adjusted
                       Revenues  EBITDA     Costs (b) Adjustments (c)  EBITDA
    Lodging                $154       $35        $3          $-           $38
    Vacation
     Exchange and
     Rentals                287        76         4           -            80
    Vacation
     Ownership              462        44        35           -            79
                            ---       ---       ---         ---           ---
       Total
        Reportable
        Segments            903       155        42           -           197
    Corporate and
     Other (a)               (2)      (21)        1           4           (16)
                            ---       ---       ---         ---           ---
       Total Company       $901      $134       $43          $4          $181
                           ====      ====       ===         ===          ====

    Three months
     ended June
     30, 2009
    Lodging                $174       $50        $-          $-           $50
    Vacation
     Exchange and
     Rentals                280        56         2           -            58
    Vacation
     Ownership              467       107         1           -           108
                            ---       ---       ---         ---           ---
       Total
        Reportable
        Segments            921       213         3           -           216
    Corporate and
     Other (a)               (1)      (17)        -           -           (17)
                            ---       ---       ---         ---           ---
       Total Company       $920      $196        $3          $-          $199
                           ====      ====       ===         ===          ====


    Three months
     ended
     September
     30, 2009
    Lodging                $183       $58             $-          $-      $58
    Vacation
     Exchange and
     Rentals                327       107              -           -      107
    Vacation
     Ownership              508       104              -           -      104
                            ---       ---            ---         ---      ---
       Total
        Reportable
        Segments          1,018       269              -           -      269
    Corporate and
     Other (a)               (2)      (15)             -           2      (13)
                            ---       ---            ---         ---      ---
       Total Company     $1,016      $254             $-          $2     $256
                         ======      ====            ===         ===     ====


    Three months
     ended
     December 31,
     2009
    Lodging                $149       $32             $-          $-      $32
    Vacation
     Exchange and
     Rentals                258        48              -           -       48
    Vacation
     Ownership              508       132              -           -      132
                            ---       ---            ---         ---      ---
       Total
        Reportable
        Segments            915       212              -           -      212
    Corporate and
     Other (a)               (2)      (18)             -           -      (18)
                            ---       ---            ---         ---      ---
       Total Company       $913      $194             $-          $-     $194
                           ====      ====            ===         ===     ====



    Twelve months ended
     December 31, 2009
    Lodging                $660      $175             $3          $-     $178
    Vacation Exchange and
     Rentals              1,152       287              6           -      293
    Vacation Ownership    1,945       387             36           -      423
                          -----       ---            ---         ---      ---
    Total Reportable
     Segments             3,757       849             45           -      894
    Corporate and
     Other (a)               (7)      (71)             1           6      (64)
                            ---       ---            ---         ---      ---
    Total Company        $3,750      $778            $46          $6     $830

    -------------------------
    Note: Amounts may not foot across due to rounding.
    (a)   Includes the elimination of transactions between segments.
    (b)   Relates to costs incurred as a result of various strategic
          initiatives commenced by the Company during 2008.
    (c)   Relates to the net expense from the resolution of and adjustment to
          certain contingent liabilities and assets.





                                                       Table 8
                                                      (1 of 4)

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


                                Three Months Ended June 30, 2010
                                --------------------------------

                                                     Legacy
                         As        Acquisition    Adjustments       As
                      Reported        Costs           (b)        Adjusted

    Net revenues
      Service
       fees
       and
       membership         $409                                       $409
      Vacation
       ownership
       interest
       sales               271                                        271
       Franchise
       fees                120                                        120
      Consumer
       financing           106                                        106
      Other                 57                                         57
                           ---                                        ---
    Net revenues           963            -               -           963
                           ---          ---             ---           ---

    Expenses
      Operating            387           (1) (a)                      386
      Cost of
       vacation
       ownership
       interests            49                                         49
      Consumer financing
       interest             29                                         29
       Marketing and
       reservation         138                                        138
      General and
       administrative      146                                        146
       Depreciation and
       amortization         42                                         42
                           ---                                        ---
    Total expenses         791           (1)              -           790
                           ---          ---             ---           ---

     Operating income      172            1               -           173
    Other income,
     net                    (3)                                        (3)
    Interest expense        36                                         36
    Interest income         (2)                                        (2)
                           ---                                        ---

    Income before income
     taxes                 141            1               -           142
     Provision for
     income taxes           46            -  (c)          1  (c)       47
                           ---          ---             ---           ---

    Net income             $95           $1             $(1)          $95
                           ===          ===             ===           ===

    Earnings per share
      Basic              $0.53           $-              $-         $0.53
      Diluted             0.51            -               -          0.51

    Weighted average
     shares outstanding
      Basic                180          180             180           180
      Diluted              187          187             187           187

    -----------
    Note: EPS amounts may not foot due to rounding.
    (a)  Relates to costs incurred in connection with the Company's
         acquisition of the Tryp hotel brand during June 2010.
    (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 adjustments.

                                           Table 8
                                          (2 of 4)

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


                                   Six Months Ended June 30, 2010
                                        As
                                    Reported           Early
                                                   Extinguishment
                                                         of
                                                       Debt
    Net revenues
      Service fees and membership        $833
      Vacation ownership interest
       sales                              488
      Franchise fees                      211
      Consumer financing                  211
      Other                               106
                                          ---
    Net revenues                        1,849                   -
                                        -----                 ---

    Expenses
      Operating                           769
      Cost of vacation ownership
       interests                           86
      Consumer financing interest          53
      Marketing and reservation           261
      General and administrative          293
      Depreciation and
       amortization                        85
                                          ---
    Total expenses                      1,547                   -
                                        -----                 ---

    Operating income                      302                   -
    Other income, net                      (5)
    Interest expense                       86                 (16) (a)
    Interest income                        (2)
                                          ---

    Income before income taxes            223                  16
    Provision for income taxes             78                   6  (d)
                                          ---                 ---

    Net income                           $145                 $10
                                         ====                 ===

    Earnings per share
      Basic                             $0.81               $0.05
      Diluted                            0.78                0.05

    Weighted average shares
     outstanding
      Basic                               180                 180
      Diluted                             186                 186



                            Six Months Ended June 30, 2010
                                                                   As
                           Acquisition           Legacy        Adjusted
                              Costs           Adjustments
    Net revenues
      Service fees and
       membership                                                   $833
      Vacation ownership
       interest sales                                                488
      Franchise fees                                                 211
      Consumer financing                                             211
      Other                                                          106
                                                                     ---
    Net revenues                     -                  -          1,849
                                   ---                ---          -----

    Expenses
      Operating                     (5) (b)                          764
      Cost of vacation
       ownership interests                                            86
      Consumer financing
       interest                                                       53
      Marketing and
       reservation                                                   261
      General and
       administrative                                  (1) (c)       292
      Depreciation and
       amortization                                                   85
                                                                     ---
    Total expenses                  (5)                (1)         1,541
                                   ---                ---          -----

    Operating income                 5                  1            308
    Other income, net                                                 (5)
    Interest expense                                                  70
    Interest income                                                   (2)
                                                                     ---

    Income before income
     taxes                           5                  1            245
    Provision for income
     taxes                           1  (d)             1  (d)        86
                                   ---                ---            ---

    Net income                      $4                 $-           $159
                                   ===                ===           ====

    Earnings per share
      Basic                      $0.02                 $-          $0.89
      Diluted                     0.02                  -           0.85

    Weighted average
     shares outstanding
      Basic                        180                180            180
      Diluted                      186                186            186


    __________
    Note: EPS amounts may not foot due to rounding.
    (a)   Relates to costs incurred for the early extinguishment of the
          Company's term loan facility and revolving foreign credit facility
          during March 2010.
    (b)   Relates to costs incurred in connection with the Company's
          acquisitions of Hoseasons Holdings Ltd. during March 2010 and the
          Tryp hotel brand during June 2010.
    (c)   Relates to the net expense from the resolution of and adjustment to
          certain contingent liabilities and assets.
    (d)   Relates to the tax effect of the adjustments.

                                           Table 8
                                          (3 of 4)

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


                             Three Months Ended June 30, 2009
                             --------------------------------
                          As                                            As
                      Reported     Legacy         Restructuring      Adjusted
                                 Adjustments
                                     (a)              Costs
    Net
     revenues
      Service
       fees and
       membership          $397                                          $397
      Vacation
       ownership
       interest
       sales                242                                           242
      Franchise
       fees                 117                                           117
      Consumer
       financing            109                                           109
      Other                  55                                            55
                            ---                                           ---
    Net
     revenues               920            -                  -           920
                            ---          ---                ---           ---

    Expenses
      Operating             391                                           391
      Cost of
       vacation
       ownership
       interests             33                                            33
      Consumer
       financing
       interest              35                                            35
      Marketing
       and
       reservation          137                                           137
      General and
       administrative       122                                           122
      Asset
       impairment             3                                             3
       Restructuring
       costs                  3                              (3) (b)        -
       Depreciation
       and
       amortization          45                                            45
                            ---                                           ---
    Total
     expenses               769            -                 (3)          766
                            ---          ---                ---           ---

    Operating
     income                 151            -                  3           154
    Interest
     expense                 26                                            26
    Interest
     income                  (2)                                           (2)
                            ---                                           ---

    Income
     before
     income
     taxes                  127            -                  3           130
    Provision
     for income
     taxes                   56           (2) (c)             1  (c)       55
                            ---          ---                ---           ---

    Net income              $71           $2                 $2           $75
                            ===          ===                ===           ===

    Earnings
     per share
      Basic               $0.40        $0.01              $0.01         $0.42
      Diluted              0.39         0.01               0.01          0.41

    Weighted
     average
     shares
     outstanding
      Basic                 179          179                179           179
      Diluted               182          182                182           182


    __________
    (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
                                                     (4 of 4)

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


                                Six Months Ended June 30, 2009
                                ------------------------------


                         As       Legacy         Restructuring      As
                      Reported  Adjustments         Costs       Adjusted
    Net revenues
      Service
       fees and
       membership         $797                                     $797
      Vacation
       ownership
       interest
       sales               482                                      482
      Franchise
       fees                216                                      216
      Consumer
       financing           217                                      217
      Other                109                                      109
                           ---                                      ---
    Net revenues         1,821        -                 -         1,821
                         -----      ---               ---         -----

    Expenses
      Operating            759                                      759
      Cost of
       vacation
       ownership
       interests            82                                       82
      Consumer
       financing
       interest             67                                       67
      Marketing
       and
       reservation         275                                      275
      General
       and
       administrative      258       (3)  (a)                       255
      Asset
       impairment            8                                        8
       Restructuring
       costs                46                        (46) (b)        -
       Depreciation
       and
       amortization         88                                       88
                           ---                                      ---
    Total
     expenses            1,583       (3)              (46)        1,534
                         -----      ---               ---         -----

    Operating
     income                238        3                46           287
    Other
     income,
     net                    (3)                                      (3)
    Interest
     expense                45                                       45
    Interest
     income                 (4)                                      (4)
                           ---                                      ---

    Income
     before
     income
     taxes                 200        3                46           249
    Provision
     for
     income
     taxes                  84        -   (c)          17  (c)      101
                           ---      ---               ---           ---

    Net income            $116       $3               $29          $148
                          ====      ===               ===          ====

    Earnings
     per share
      Basic              $0.65    $0.02             $0.16         $0.83
      Diluted             0.64     0.02              0.16          0.82

    Weighted
     average
     shares
     outstanding
      Basic                178      178               178           178
      Diluted              180      180               180           180

    ----------
    (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 adjustments.


                                                                      Table 9
                          Wyndham Worldwide Corporation
                NON-GAAP RECONCILIATIONS AND FINANCIAL INFORMATION
                                  (In millions)

    FREE CASH FLOW
    --------------
    The Company defines free cash flow as net cash provided by operating
    activities minus capital expenditures, equity investments and
    development
    advances, excluding cash payments related to the Company's contingent
    tax liabilities that it assumed and is responsible for pursuant to
    its
    separation from Cendant.  The Company considers free cash flow to be
    a liquidity measure that provides useful information to management
    and
    investors about the amount of cash generated by the business that,
    after the acquisition of property and equipment, equity investments
    and hotel
    development advances, can be used for strategic opportunities,
    including making acquisitions, paying dividends, repurchasing the
    Company's
    common stock and strengthening the balance sheet. Analysis of free
    cash flow also facilitates management's comparisons of the Company's
    operating results to its competitors' operating results. A limitation
    of using free cash flow versus the GAAP measure of net cash provided
    by
    operating activities as a means for evaluating Wyndham Worldwide is
    that free cash flow does not represent the total increase or
    decrease in the
    cash balance from operations for the period.

    The following table provides more details on the GAAP financial
    measure that is most directly comparable to the non-GAAP financial
    measure and
    the related reconciliation between these financial measures:


                                    Six Months Ended June 30,
                                    -------------------------
                                   2010                       2009
                                   ----                       ----

    Net cash provided by operating
     activities                    $557                       $459
    Less: Property and equipment
     additions                      (63)                       (87)
    Less: Equity investments and
     development advances            (8)                        (4)
    Free cash flow                 $486                       $368
                                   ====                       ====



    GROSS VOI SALES
    ---------------

    The following table provides a reconciliation of Gross VOI sales (see
    Table 3) to Vacation ownership interest sales (see Table 4):


                      Year
                      ----
                      2010  Q1       Q2       Q3       Q4      Full Year
                      ----  ---     ---      ---      ---      ---------

    Gross VOI sales           $308     $371      N/A      N/A         N/A
    Less: Sales under the
     WAAM                       (5)     (13)     N/A      N/A         N/A
                               ---      ---      ---      ---         ---
    Gross VOI sales, net of
     WAAM sales                303      358      N/A      N/A         N/A
    Less: Loan loss
     provision                 (86)     (87)     N/A      N/A         N/A
    Vacation ownership
     interest sales           $217     $271      N/A      N/A         N/A
                              ====     ====      ===      ===         ===

                      2009
                      ----

    Gross VOI sales           $280     $327     $366     $343      $1,315
    Plus: Net effect of
     percentage-of-
     completion accounting      67       37       36       47         187
    Less: Loan loss
     provision                (107)    (122)    (117)    (103)       (449)
    Vacation ownership
     interest sales           $239     $242     $285     $287      $1,053
                              ====     ====     ====     ====      ======

                      2008
                      ----

    Gross VOI sales           $458     $532     $566     $432      $1,987
    Plus/(less): Net
     effect of percentage-
     of-completion
     accounting                (82)      (5)      (2)      14         (75)
    Less: Loan loss
     provision                 (82)    (113)    (119)    (136)       (450)
    Vacation ownership
     interest sales           $294     $414     $446     $309      $1,463
                              ====     ====     ====     ====      ======

                      2007
                      ----

    Gross VOI sales           $430     $523     $552     $488      $1,993
    Plus/(less): Net
     effect of percentage-
     of-completion
     accounting                  4       (5)       1      (21)        (22)
    Less: Loan loss
     provision                 (61)     (75)     (86)     (84)       (305)
                               ---      ---      ---      ---        ----
    Vacation ownership
     interest sales           $373     $443     $467     $383      $1,666
                              ====     ====     ====     ====      ======


    _____________
    Note: Amounts may not foot due to rounding.



    The following represents tele-sales upgrades, which are excluded
    from Gross VOI sales in the Company's VPG calculation (see Table 3):


           Q1      Q2      Q3      Q4     Full Year
          ---     ---     ---     ---     ---------

     2010     $15      $7     N/A     N/A         N/A
     2009     $24     $23     $29     $28        $104
     2008     $33     $35     $49     $40        $156
     2007     $44     $37     $39     $36        $157


    _____________
    Note: Amounts may not foot across due to rounding.

SOURCE Wyndham Worldwide Corporation