WYNDHAM WORLDWIDE CORPORATION

negotiated and vary among our different brands, typically contain provisions that permit us to terminate the
agreement if the other party to the agreement fails to meet specified development schedules. The terms of our
master franchise agreements generally are competitive with industry averages.
We also enter into affiliation relationships whereby we provide our development, marketing and franchise
services to brands owned by our affiliated partners. These relationships give us the ability to offer unique
experiences to our guests and unique brand concepts to developers seeking to do business with Wyndham Hotel
Group. Affiliation agreements typically carry lower royalty fees since we do not incur costs associated with owning
the underlying intellectual property. Certain of these affiliated relationships contain development targets whereby our
future development rights may be terminated upon failure to meet the specified targets.
Strategies
Wyndham Hotel Group is strategically focused on the following two objectives that we believe are essential to
our business:
k increasing our system size by adding new rooms and retaining the properties that meet our performance
criteria; and
k strengthening our customer value proposition by driving revenues to hotel owners operating under or
affiliated with our brand offerings.
To increase our system size, we intend to deploy specific tactics to strengthen our leading position in the North
America market, which represents 88% of hotels in our global system. We also expect to grow our system size
outside North America, where a relatively low percentage of hotels are branded. Our global strategy generally
focuses on pursuing new room growth organically although we may consider the select acquisition of brands that
facilitate our strategic objectives. We intend to increase the size of our system by deploying these primary strategies:
k targeting key markets globally where the Wyndham brand is underrepresented and deploying a
hub-and-spoke development strategy;
k creating franchise conversion programs for our Super 8, Days Inn and Ramada brands with a goal of
reducing the average age of the North America system;
k spurring new construction growth in our Microtel and Wingate brands by developing franchisee-financing
options for multi-unit developers in North America;
k introducing the Tryp by Wyndham brand to North America with targeted development efforts in key
markets and continuing to increase its existing presence in Latin America and Europe; and
k targeting new construction and conversion opportunities in China, the Middle East, United Kingdom and
India for our Wyndham, Ramada, Days Inn and Super 8 brands.
We recognize that the value we bring to hotel owners has a direct impact on our ability to retain their property
within our system. This is why helping to make our franchisees and managed hotels profitable, whether through
incremental revenue, cost efficiencies, operational excellence or better service, is a key focus of Wyndham Hotel
Group. We also believe that our ability to attract new franchisees and hotel owners is greatly influenced by
demonstrating our value to existing franchisees and hotel owners. We are enhancing this value through the launch of
a series of strategic initiatives in 2010, collectively known as “Apollo”, with the goal of driving incremental revenue
to our franchised and managed hotels and strengthening the value of our brands. These initiatives and other
strategies to strengthen our customer value proposition are:
k improving consumer conversion on our brand web sites by enhancing navigation, content, rate availability,
and technology;
k improving the overall content of our hotel brands across all web channels;
k optimizing rate information for hotel owners through all distribution channels;
k growing and strengthening our Wyndham Rewards loyalty program; and
k continuing the deployment of our exceptional service culture tool, “Count on Me!”, into every aspect of
the business.
Seasonality
Franchise and management fees are generally higher in the second and third quarters than in the first or fourth
quarters of any calendar year as a result of increased leisure travel and the related ability to charge higher ADRs
during the spring and summer months.
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