WYNDHAM WORLDWIDE CORPORATION

owners, vacation ownership developers and other hospitality providers. This is primarily a fee-for-service
business that provides stable revenue streams, requires low capital investment and produces strong cash
flow.
k Our vacation ownership business, Wyndham Vacation Ownership, is the world’s largest vacation ownership
business based on the number of resorts, units, owners and revenues. Through our vacation ownership
business, we develop and market vacation ownership interests to individual consumers, provide consumer
financing in connection with the sale of vacation ownership interests and provide property management
services at resorts. While the vacation ownership business has historically been capital intensive, a central
strategy for Wyndham Worldwide is to leverage our scale and marketing expertise to pursue low-capital
requirement, fee-for-service business relationships that produce strong cash flow. In 2010, we introduced
our WAAM which offers turn-key solutions for developers or banks in possession of newly developed
inventory, which we sell for a fee through our extensive sales and marketing channels.
Our mission is to increase shareholder value by being the leader in travel accommodations and welcoming our
guests to iconic brands and vacation destinations through our signature “Count On Me!” service. Our strategies to
achieve these objectives are to:
k Increase market share by delivering excellent service to drive business customer, individual consumer and
associate satisfaction.
k Grow cash flow and operating margins through superior execution in all of our businesses.
k Rebalance the Wyndham Worldwide portfolio to emphasize our fee-for-service business models.
k Attract, retain and develop human capital across our organization.
k Support and promote Wyndham Green and Wyndham Diversity initiatives.
We strive to provide value-added services and products that are intended to both enhance the travel experience
of the individual consumer and drive revenues to our business customers. The depth and breadth of our businesses
across different segments of the hospitality industry provide us with the opportunity to expand our relationships with
our existing individual and business customers in one or more segments of our business by offering them additional
or alternative services and products from our other segments.
We expect to generate annual net cash provided by operating activities less capital expenditures, equity
investments and development advances in the range of approximately $600 million to $700 million annually
beginning in 2011. This cash flow is expected to be utilized for acquisitions, share repurchases and dividends.
Our lodging, vacation exchange and rentals and vacation ownership businesses all have both domestic and
international operations. During 2010, we derived 74% of our revenues in the U.S. and 26% internationally. For a
discussion of our segment revenues, profits, assets and geographical operations, see Note 20 to the Consolidated
Financial Statements included in this Annual Report.
History and Development
Wyndham Worldwide’s corporate history can be traced back to the 1990 formation of Hospitality Franchise
Systems (which changed its name to HFS Incorporated or HFS). HFS initially began as a hotel franchisor that later
expanded its hospitality business and became a major real estate and car rental franchisor. In December 1997, HFS
merged with CUC International, Inc., or CUC, to form Cendant Corporation (which changed its name to Avis
Budget Group, Inc. in September 2006).
In October 2005, Cendant determined to separate Cendant through spin-offs into four separate companies,
including a spin-off of its Hospitality Services businesses to be re-named Wyndham Worldwide Corporation. During
July 2006, Cendant transferred to its subsidiary, Wyndham Worldwide Corporation, all of the assets and liabilities of
Cendant’s Hospitality Services businesses and on July 31, 2006, Cendant distributed all of the shares of Wyndham
Worldwide common stock to the holders of Cendant common stock issued and outstanding on July 21, 2006, the
record date for the distribution. The separation was effective on July 31, 2006. On August 1, 2006, we commenced
“regular way” trading on the New York Stock Exchange under the symbol “WYN.”
Each of our lodging, vacation exchange and rentals and vacation ownership businesses has a long operating
history. Our lodging business began with the Howard Johnson and Ramada brands which opened their first hotels in
1954. RCI, our vacation exchange business, was established 37 years ago, and we have acquired and grown some of
the world’s most renowned vacation rentals brands with histories starting as early as Hoseasons in 1940, Landal
GreenParks in 1954 and Novasol in 1968. Our vacation ownership brands, Wyndham Vacation Resorts and
WorldMark by Wyndham, began vacation ownership operations in 1980 and 1989, respectively.
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