WYNDHAM WORLDWIDE CORPORATION

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Lodging Net revenues and EBITDA decreased $93 million (12%) and $43 million (20%), respectively, during 2009 compared to 2008. The decrease in revenues primarily reflects a decline in worldwide RevPAR and other franchise fees. EBITDA further reflects lower marketing expenses, the absence of a non-cash impairment charge recorded during 2008 and the impact of the USFS acquisition, partially offset by higher bad debt expense. The acquisition of USFS contributed incremental net revenues and EBITDA of $11 million and $6 million, respectively. Excluding the impact of this acquisition, net revenues declined $104 million reflecting: k a $60 million decrease in domestic royalty, marketing and reservation revenues primarily due to a RevPAR decline of 15%; k $15 million of lower reimbursable revenues earned by our hotel management business; k a $14 million decrease in other franchise fees principally related to lower termination and transfer volume; k a $12 million decrease in international royalty, marketing and reservation revenues resulting from a RevPAR decrease of 19%, or 14% excluding the impact of foreign exchange movements, partially offset by an 8% increase in international rooms; and k a $3 million decrease in other revenues. The RevPAR decline was driven by industry-wide occupancy and rate declines. The $15 million of lower reimbursable revenues earned by our property management business primarily relates to payroll costs that we incur and pay on behalf of hotel owners, for which we are entitled to be fully reimbursed by the hotel owner. As the reimbursements are made based upon cost with no added margin, the recorded revenues are offset by the associated expense and there is no resultant impact on EBITDA. Such amount decreased as a result of a reduction in costs at our managed properties due to lower occupancy, as well as a reduction in the number of hotels under management. In addition, EBITDA was positively impacted by: k a decrease of $55 million in marketing and related expenses primarily due to lower spend across our brands as a result of a decline in related marketing fees received; k the absence of a $16 million non-cash impairment charge recorded during 2008 (see Note 21 — Restructuring and Impairments for more details); and k $1 million of lower costs relating to organizational realignment initiatives (see Restructuring Plan for more details). Such decreases were partially offset by: k $16 million of higher bad debt expense principally resulting from operating cash shortfalls at managed hotels that have experienced occupancy declines; k a non-cash charge of $6 million to impair the value of an underperforming joint venture in our hotel management business; k $5 million of incremental costs due to remediation efforts on technology compliance initiatives; k the absence of $2 million of income recorded during the second quarter of 2008 relating to the assumption of a credit card marketing program obligation by a third party; and k the absence of $2 million of income associated with the sale of a non-strategic asset during the third quarter of 2008. As of December 31, 2009, we had approximately 7,110 properties and 597,700 rooms in our system. Additionally, our hotel development pipeline included approximately 950 hotels and approximately 108,100 rooms, of which 43% were international and 51% were new construction as of December 31, 2009. Vacation Exchange and Rentals Net revenues decreased $107 million (8%) while EBITDA increased $39 million (16%), respectively, during 2009 compared to 2008. A stronger U.S. dollar compared to other foreign currencies unfavorably impacted net revenues and EBITDA by $81 million and $23 million, respectively. The decrease in net revenues reflects a $50 million decrease in net revenues from rental transactions and related services, a $41 million decrease in ancillary revenues and a $16 million decrease in annual dues and exchange revenues. EBITDA further reflects favorability resulting from the absence of $60 million of charges recorded during the fourth quarter of 2008, $51 million in cost savings from overhead reductions and benefits related to organizational realignment initiatives 52
and $9 million of lower volume-related expenses, partially offset by $29 million of losses from foreign exchange transactions and the unfavorable impact from foreign exchange hedging contracts. Net revenues generated from rental transactions and related services decreased $50 million (8%) during 2009 compared to 2008. Excluding the unfavorable impact of foreign exchange movements, net revenues generated from rental transactions and related services increased $10 million (2%) during 2009 as rental transaction volume increased 1% primarily driven by increased volume at (i) our Landal GreenParks business, which benefited from enhanced marketing programs, and (ii) our U.K. cottage business due to successful marketing and promotional offers as well as increased functionality of its new web platform. Such favorability was partially offset by lower member rentals, which we believe was a result of members reducing the number of extra vacations primarily due to the downturn in the economy. Average net price per rental increased 1% primarily resulting from a change in the mix of various rental offerings, with favorable impacts by our Landal GreenParks and U.K. cottage businesses, partially offset by an unfavorable impact at our Novasol and member rental businesses. Annual dues and exchange revenues decreased $16 million (3%) during 2009 compared to 2008. Excluding the unfavorable impact of foreign exchange movements, annual dues and exchange revenues increased $1 million driven by a 3% increase in the average number of members primarily due to the enrollment of approximately 135,000 members at the beginning of 2009 resulting from our Disney Vacation Club affiliation, partially offset by a 3% decline in revenue generated per member. The decrease in revenue per member was due to lower exchange transactions and subscription fees, partially offset by the impact of higher exchange transaction pricing. We believe that the lower revenue per member reflects: (i) the economic uncertainty, (ii) lower subscription fees due primarily to member retention programs offered at multiyear discounts and (iii) recent trends among timeshare vacation ownership developers to enroll members in private label clubs, whereby the members have the option to exchange within the club or through RCI channels. Such trends have a positive impact on the average number of members but an offsetting effect on the number of exchange transactions per member. A decrease in ancillary revenues of $41 million was driven by: k $21 million from various sources, which include fees from additional services provided to transacting members, fees from our credit card loyalty program and fees generated from programs with affiliated resorts; by: k $16 million in travel revenues primarily due to our termination of a low margin travel service contract; and k $4 million due to the unfavorable translation effects of foreign exchange movements. In addition, EBITDA was positively impacted by a decrease in expenses of $146 million (14%) primarily driven k the favorable impact of foreign currency translation on expenses of $58 million; k $51 million in cost savings primarily from overhead reductions and benefits related to organizational realignment initiatives; k the absence of $36 million of non-cash impairment charges recorded during the fourth quarter of 2008 (see Note 21 — Restructuring and Impairments for more details); k the absence of a cash charge of $24 million recorded during the fourth quarter of 2008 due to a currency conversion loss related to the transfer of cash from our Venezuela operations; k $9 million of lower volume-related expenses; and k $3 million of lower costs relating to organizational realignment initiatives (see Restructuring Plan for more details). Such decreases were partially offset by: k $29 million of losses from foreign exchange transactions and the unfavorable impact from foreign exchange hedging contracts; k $5 million of marketing and IT costs to support our e-commerce initiative to drive members to transact on the web; and k $3 million of higher facility operating costs. Vacation Ownership Net revenues decreased $333 million (15%) while EBITDA increased $1,461 million during 2009 compared to 2008. 53
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UNITED STATES SECURITIES AND EXCHAN
Page 3 and 4: PART I FORWARD LOOKING STATEMENTS T
Page 5 and 6: Our portfolio of well-known hospita
Page 7 and 8: The following table sets forth the
Page 9 and 10: free access to a gym facility and t
Page 11 and 12: as annual budget preparation, finan
Page 13 and 14: Our field services team, strategica
Page 15 and 16: Competition Competition is robust a
Page 17 and 18: we offer property owners marketing
Page 19 and 20: Internet Given the increasing inter
Page 21 and 22: According to information compiled b
Page 23 and 24: Owners who participate in Club Wynd
Page 25 and 26: Purchaser Financing Wyndham Vacatio
Page 27 and 28: EMPLOYEES As of December 31, 2010,
Page 29 and 30: that we will be able to achieve the
Page 31 and 32: Our inability to adequately protect
Page 33 and 34: 2014; Atlanta, Georgia expiring in
Page 35 and 36: Stock Performance Graph The Stock P
Page 37 and 38: (f) (g) (h) (i) (j) (k) (l) (m) (n)
Page 39 and 40: We enter into agreements to franchi
Page 41 and 42: eal estate inventory costs incurred
Page 43 and 44: Year Ended December 31, 2010 vs. Ye
Page 45 and 46: Arrangements), (ii) $16 million of
Page 47 and 48: at our U.K. and France destinations
Page 49 and 50: In addition, EBITDA was negatively
Page 51 and 52: OPERATING STATISTICS The following
Page 53: k $29 million of losses from foreig
Page 57 and 58: k $25 million of increased costs re
Page 59 and 60: k a $49 million increase in franchi
Page 61 and 62: Operating Activities During 2010, n
Page 63 and 64: Capital Deployment We are focusing
Page 65 and 66: Capacity As of December 31, 2010, a
Page 67 and 68: We believe that our bank conduit fa
Page 69 and 70: on the matter. As a result of settl
Page 71 and 72: was approximately $373 million as o
Page 73 and 74: performance for a five-year period.
Page 75 and 76: cash flow model in determining the
Page 77 and 78: Cendant’s Vacation Network Group
Page 79 and 80: SIGNATURES Pursuant to the requirem
Page 81 and 82: REPORT OF INDEPENDENT REGISTERED PU
Page 83 and 84: WYNDHAM WORLDWIDE CORPORATION CONSO
Page 85 and 86: WYNDHAM WORLDWIDE CORPORATION CONSO
Page 87 and 88: The Company’s franchise agreement
Page 89 and 90: manages paid Wyndham Exchange & Ren
Page 91 and 92: expenses amounted to $48 million, $
Page 93 and 94: average exchange rates during the p
Page 95 and 96: integrated the operations of its ac
Page 97 and 98: (3) Adjusting the carrying value of
Page 99 and 100: 7. Income Taxes The income tax prov
Page 101 and 102: The following table summarizes the
Page 103 and 104: Credit Quality for Financed Receiva
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10. Property and Equipment, net Pro
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measurement date and a maximum cons
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As of December 31, 2010, the Compan
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Vacation Rental Capital Leases. The
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The following table presents additi
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Consolidated Statement of Operation
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capacity and the Company’s corpor
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shareholders and further amended as
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comprehensive income on the Consoli
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Total restructuring costs by segmen
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and Avis Budget Group to satisfy th
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(a) (b) (c) (d) (e) (f) (g) (h) (i)
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10.4 Employment Agreement with Fran
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14.1 101.INS XBRL Instance document
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Name WYNDHAM WORLDWIDE CORPORATION
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Exhibit 23.1 CONSENT OF INDEPENDENT
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CERTIFICATION Exhibit 31.2 I, Thoma
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WYNDHAM WORLDWIDE CORPORATION

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