wyndham worldwide corporation

For every kind of traveler. For every kind of trip.

Wyndham Worldwide Corporation

Deutsche Bank Hospitality & Gaming ConferenceMay 11, 2007


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Forward-Looking StatementsCertain statements in this presentation constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Any statements that refer to expectations or other characterizations of future events, circumstances or results are forward-looking statements. Such forward-looking statements include projections. Such projections were not prepared in accordance with public guidelines of the American Institute of Certified Public Accountants regarding projections and forecasts, nor have such projections been audited, examined or otherwise reviewed by independent auditors of Wyndham Worldwide Corporation.

Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Wyndham Worldwide to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

You are cautioned not to place undue reliance on these forward-looking statements. Important assumptions and other important factors that could cause actual results to differ materially from those in the forward looking statements are specified in Wyndham Worldwide’s Annual Report on Form 10-K under “Risk Factors” filed with the SEC on March 7, 2007. Except for ongoing obligations of Wyndham Worldwide to disclose material information under the federal securities laws, Wyndham Worldwide does not undertake any obligation to release any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.

The information in this presentation should be read in conjunction with the consolidated financial statements and accompanying notes, “Management's Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” in Wyndham Worldwide's Form 10-K filed with the Securities and Exchange Commission.


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Wyndham Worldwide - TodayWyndham Worldwide is one of the world’s largest hospitality companies

with over $3.8 Billion of Net Revenues (1) in 2006

Wyndham Worldwide‘WYN’

Wyndham Hotel GroupLodging

RCI Global Vacation NetworkVacation Exchange and Rental

Wyndham Vacation OwnershipVacation Ownership

World’s largest lodging franchisor as measured by the number of franchised hotels with over 539,000 rooms and nearly 6,500 propertiesWorld’s largest lodging loyalty program, based on number of participating hotels.26% of WYN’s 2006 combined segment EBITDA(2)


RCI Global Vacation NetworkVacation Exchange and Rentals


(1) Includes Corporate and Other(2) Combined segment EBITDA percentages calculated excluding Corporate and Other


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Wyndham Hotel Group — Who We Are

The world’s largest lodging franchisor as measured by the number of franchised hotelsFranchise fee-for-service business model

Strong cash flow/high ROIFee generation resilient through lodging market cycles

Nearly 6,500 franchised hotels and over 539,000 rooms on six continents as of March 31, 2007Hotel Group has exceeded the Economy segment’s RevPAR growth performance since 2003Acquisitions of Wyndham Hotels and Resorts and Baymont brands completed in October 2005 and April 2006, respectivelyWorld’s largest lodging loyalty program, TripRewards, based on number of participating hotelsHotel management provides new incremental revenue stream


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World’s largest vacation exchange network with more than 3.4 million membersLeading European Vacation Rental Group with more than 56,000 properties33% of WYN’s 2006 combined segment EBITDA(2)







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RCI Global Vacation Network — Who We Are

RCI is an established, respected brand in the global vacation exchange industry, providing services to more than 3.4 million vacationing members30+ year operating historyFee-for-service business model

Typically serves as an intermediary, not a principalHigh margin, annuity-like revenue streamsMatches supply and demand for non-hotel accommodations

Market leader in European vacation rental homes and global vacation condos, offering vacationers more than 56,000 rental accommodations around the world and serving more than four million leisure-bound families a yearMarkets products and services using seven primary brands and other related brands, and operates through over 60 offices worldwide

Not dependent on one region

Market leader with proven track record in the vacation exchange and rental industry


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World’s largest vacation ownership business with over 20,000 units, approx. 150 resorts and over 800,000 ownersLeading provider of points-based timeshare41% of WYN’s 2006 combined segment EBITDA(2)








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Wyndham Vacation Ownership — Who We Are

World's largest vacation ownership business as measured by vacation ownership resorts, units and owners

Resorts: Approximately 150 resorts throughout North America, the Caribbean and the South PacificUnits: More than 20,000 vacation ownership unitsOwners: More than 800,000 owners

Leading provider of points-based vacation ownershipHighly flexible product structure popular with today’s vacationing consumersWide portfolio of resort destinations and vacation experiencesStrong upgrade sales programs

Innovative marketingSales offices equipped to sell multiple locationsMultiple distribution channelsRobust marketing alliances in key growth areas

Market leading consumer finance organization


9Vacation Ownership Industry – Strong Continued Growth

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2

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12

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1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Vacation Ownership Sales 1990 to 2005$ in Billions

United States

Non U.S.

Sales15 Year CAGR

Worldwide 9.7%United States 14.0%

Sources - American Resort Development Association (ARDA), Bear, Stearns & Company, Inc., NorthCourse (a subsidiary of Wyndham Worldwide), PricewaterhouseCoopers, Ernst & Young 2006


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1

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1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 20053

3.5

4

4.5

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5.5

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6.5

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(a)

(b)

Home Sales versus Timeshare Sales

Sept 11th1st Gulf War

Timeshare = Housing

U.S. Timeshare SalesU.S. Timeshare Sales

U.S. Home SalesU.S. Home Sales

$ Billion Millions of units

Sources:(a) U.S. Census Bureau(b) American Resort Development Association, NorthCourse (a subsidiary of Wyndham Worldwide), Ernst & Young


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World’s largest vacation ownership business with over 20,000 units, approx. 150 resorts and over 800,000 ownersLeading provider of points-based timeshare41% of WYN’s 2006 combined segment EBITDA(2)







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Benefits of Breadth and Diversity – Industry CyclesWyndhamWorldwide% of EBITDA (1)

-15

-10

-5

0

5

10

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1989 1991 1993 1995 1997 1999 2001 2003 2005

U.S. RevPAR Annual Percentage Change by Month

• 7 - 10 years from trough to trough

• Average annual RevPAR growth + 4.5%

• Current cycle in fourth growth year

0123456789

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1990 1992 1994 1996 1998 2000 2002 2004

U.S. Vacation Ownership Industry Annual Revenues

• Positive annual growth since 1974

• 15 year CAGR = 14%

$ billions

0

100

200

300

400

500

600

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Global Vacation Exchange Industry Annual Revenues

• Positive annual growth since 1974

• 9 year CAGR = 11%

$ millions

26%

41%

33%

Lodging

Vacation Exchangeand Rentals

Vacation Ownership

(1) 2006 combined segment EBITDA percentages calculated excluding Corporate and Other

Lodging Chart – Smith Travel Research

Vacation Ownership Chart – ARDA, Ernst & Young, PricewaterhouseCoopers and NorthCourse (a subsidiary of Wyndham Worldwide)

Vacation Exchange Chart – Public filings from the Division of Florida Land Sales, Condominiums, and Mobile Homes of the Department of Business and Professional Regulation

Sources:


13Wyndham Worldwide has Strong Long-Term Growth Prospects

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LodgingOptimize performance of North American Economy/Mid-scale portfolioPosition Wyndham flagship and Wingate brands as value-added alternatives to competitive brandsGrow International core brands: Wyndham, Ramada, Days Inn, Super 8, Howard Johnson


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First New-Construction Wyndham Hotel

Gettysburg, PA


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China: First Wyndham hotel

Xiamen


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EMEA: Corinthia Hotels

Budapest, Hungary


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EMEA: Corinthia Hotels

Malta



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Vacation Exchange and RentalsEnhance the network’s value propositionExtend the network’s business modelExpand the network’s geography


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Qatari Diar – Al Houara, Morocco


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Qatari Diar – Al Houara, Morocco



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Vacation Exchange and RentalsEnhance the network’s value propositionExtend the network’s business modelExpand the network’s geography

Vacation OwnershipGrow the owner baseExpand the product offeringDrive business model efficienciesExecute Wyndham Vacation Ownership brand strategy


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National Harbor – Washington, D.C.


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St. Thomas Renaissance RenovationSt. Thomas, U.S. Virgin Islands


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Rio Mar - Rio Grande, Puerto Rico


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Adjusted Income Statement (1) (as of May 1, 2007)

($ in Millions)

Q1'06 Q1'07RevenuesLodging 144$ 152$ Vacation Exchange and Rentals 282 314 Vacation Ownership 445 549 Corporate and Other (1) (3)Total Revenues 870$ 1,012$

EBITDA - AdjustedLodging 41 45 Vacation Exchange and Rentals 77 85 Vacation Ownership 64 66 Corporate and Other (10) (11)Total EBITDA - Adjusted 172$ 185$

(1) Adjusted EBITDA for first quarter 2006 includes estimated incremental stand-alone costs. Adjusted EBITDA excludes separation and related costs, as well as legacy matters. See Table 6 in the Company’s first quarter 2007 press release filed on Form 8-K on May 1, 2007 for a full reconciliation of quarterly income statement items.


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Adjusted Income Statement (1) (as of May 1, 2007)

2006 Low HighRevenuesLodging 661$ 700$ - 730$ Vacation Exchange and Rentals 1,119 1,240 - 1,290 Vacation Ownership 2,068 2,400 - 2,500 Corporate and Other (6)

Total Revenues 3,842$ 4,350$ - 4,510$

EBITDA - AdjustedLodging 210 215 - 230 Vacation Exchange and Rentals 268 (2) 310 - 330 Vacation Ownership 343 380 - 400 Corporate and Other (59) (80) - (65)Total EBITDA - Adjusted 762$ 835$ - 875$ Depreciation and Amortization (150) (170) - (160)Interest Expense, Net (63) (80) - (70)Income Before Income Taxes 549 585 - 645 Provision for Income Taxes (210) (220) - (245)Adjusted Net Income 339$ 365$ - 400$

Adjusted EPS 1.70$ 1.98$ - 2.17$

2007E($ in Millions, Except EPS)

(1) 2006 adjusted values and 2007 projections both include estimated incremental stand-alone costs. Adjusted EBITDA for 2006 and 2007 projections exclude separation and related costs, as well as legacy matters. 2007 Adjusted EPS guidance, as of May 1, 2007, is based on a diluted share count of approximately 184 million at March 31, 2007. Projections do not total because we do not expect the actual results of all segments to be at the highest or lowest end of any projected range simultaneously.

(2) Includes a $21 million one-time charge in second quarter 2006 related to local taxes payable to certain foreign jurisdictions.


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Non-GAAP Reconciliation

Note: EPS based on 199 million diluted shares outstanding. See Table 6 (1 of 2) in the Company’s fourth quarter 2006 press release filed on Form 8-K on February 13, 2007 for a full reconciliation of 2006 income statement items. It is not practical to provide a reconciliation of forecasted Adjusted EBITDA for full year 2007 to the most directly comparable GAAP measures, net income and EPS, as applicable, because certain items cannot be reasonably estimated or predicted at this time.

($ in Millions, Except EPS) Year ended December 31, 2006

Adjusted EBITDA 762$ Incremental stand-alone costs 30 Resolution of contingent liabilities 32 Separation and related costs (99)

Reported EBITDA 725$

Adjusted Net Income 339$ Incremental stand-alone costs 37 State tax rate adjustment 15 Resolution of contingent liabilities 30 Separation and related costs (69)

Reported Income Before Cumulative Effect of SFAS No. 152 352 Cumulative effect of SFAS No. 152 (65)

Reported Net Income 287$

Adjusted EPS 1.70$ Incremental stand-alone costs 0.19 State tax rate adjustment 0.08 Resolution of contingent liabilities 0.15 Separation and related costs (0.35)

Reported Income Before Cumulative Effect of SFAS No. 152 1.77$ Cumulative effect of SFAS No. 152 (0.33)

Reported EPS 1.44$


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EBITDA Reconciliation($ in Millions)

Quarter ended March 31, 2006


Adjusted EBITDA 172$ 185$ Incremental stand-alone costs 13 -Resolution of contingent liabilities - 13 Separation and related costs (3) (6)

Reported EBITDA 182$ 192$

Note: See Table 6 in the Company’s first quarter 2007 press release filed on Form 8-K on May 1, 2007 for a full reconciliation of quarterly income statement items.


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Reconciliation of EBITDA to Net Income($ in Millions, Except EPS)

Year ended December 31, 2006


EBITDA 725$ (1) 192$ (2)

Depreciation and amortization (148) (38) Interest expense, net (35) (15)

Income before income taxes 542 139 Provision for income taxes (190) (53)

Income before cumulative effect of accounting change 352 86 Cumulative effect of accounting change, net of tax (65) -

Net income 287$ 86$

(1) Includes the costs incurred in connection with the Company’s separation from Cendant (primarily the acceleration of vesting of Cendant equity awards and the related equitable adjustments of such awards) and the net benefit from the resolution of certain contingent liabilities.

(2) Includes the costs incurred in connection with the Company’s separation from Cendant and the net benefit from the resolution of and adjustment to certain contingent liabilities and assets.


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Capital Allocation

Invest in our businesses

Tuck-in acquisitions/strategic transactions

Reduce debt/buy back stock/pay dividends


Wyndham Worldwide Corporation

wyndham worldwide corporation

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