Wyndham Reports Third Quarter Results

Growth Strong Across Businesses

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. October 14, 2008

NOVEMBER 2, 2006. Wyndham Worldwide Corporation (NYSE:WYN), one of the world's premier hospitality companies, today announced results for the three- and nine- months ended September 30, 2006.

THIRD QUARTER 2006 HIGHLIGHTS INCLUDE:

o Revenue increase of 10% compared to the third quarter of 2005, with strong top-line growth across the Company's three businesses: Lodging, Vacation Exchange and Rental, and Vacation Ownership

o Strong performance across the lodging brands helped to push RevPAR up 11% and drove franchise fee revenue growth 14% when compared to the third quarter of 2005

o Growth in the number of exchange members, vacation rental transactions and average price per rental, helped to fuel a 10% increase in Vacation Exchange and Rental revenue compared to the third quarter of 2005

o Continued growth of the Vacation Ownership business, with gross vacation ownership interest ("VOI") sales increases of more than 20% compared to the third quarter of 2005 driven by increases in tour flow and volume per guest

"I am pleased to report strong results in our initial quarter as an independent, publicly traded company," said Stephen P. Holmes, Wyndham Worldwide chairman and chief executive officer. "We achieved double-digit revenue growth across all of our businesses driven by increases in key operating metrics as consumers and business partners recognized the value of our premier portfolio of brands in a strong travel and leisure environment."

2006 Third Quarter Results

Revenues for the third quarter of 2006 were $1,047 million, up 10% over the same period in 2005, reflecting strong growth across the businesses. Adjusted net income for the third quarter of 2006 was $120 million or $0.59 diluted earnings per share excluding:

o $68 million ($43 million after-tax) of primarily non-cash separation and related costs associated with Wyndham Worldwide's spin-off from Cendant Corporation (now Avis Budget Group)

o A $15 million tax benefit related to refinements of the Company's 2005 state effective tax rates

Including these adjustments, net income for the third quarter of 2006 was $92 million, or $0.45 diluted earnings per share compared to $121 million, or $0.60 per share on a diluted basis (based on a pro forma share count) for the third quarter of 2005.

The third quarter 2006 results include only two months of incremental stand-alone corporate costs as a result of the spin-off occurring on July 31, 2006. The Company estimates that incremental stand-alone, corporate costs would have been approximately $3 million (after-tax) for the month of July. It should be noted that 2005 results did not include incremental stand-alone corporate costs nor interest expense associated with corporate debt, as Wyndham Worldwide was not a separate stand-alone company.

Third Quarter Results of Operating Segments

"During an intense period of activity related to our creation as a separate public company, our businesses delivered strong growth and we continued to position ourselves to capitalize on future growth opportunities," said Holmes. "In Lodging, we have significantly increased our international presence and we have successfully broadened our market position, moving firmly into the attractive upscale and upper upscale segments. We continue to enhance and expand our RCI and vacation rental networks with new markets and products. Finally, we launched an extensive re-branding of our vacation ownership properties to fit under the Wyndham umbrella, which we believe will drive both tour flow and sales efficiencies."

Lodging

Lodging revenues were $189 million for the third quarter of 2006, a 28% increase compared to $148 million for the third quarter of 2005. The 2006 third quarter results include the acquisitions of Wyndham Hotels and Resorts and Baymont Inn & Suites, which together contributed combined revenues of $34 million.

Lodging Adjusted EBITDA for the third quarter of 2006 increased 5% to $68 million (excluding separation and related costs of $1 million) compared to $65 million in the third quarter of 2005. Lodging Adjusted EBITDA for the third quarter of 2006 includes incremental marketing expense of approximately $5 million primarily associated with increasing Wyndham brand recognition. In addition, Lodging revenue and expense for the third quarter of 2006 includes approximately $17 million of revenues and related reimbursable expenses from management contracts.

RevPAR for the third quarter of 2006 was $40.82, an 11% increase from the third quarter of 2005 and the highest quarterly level in the Company's history. This increase was driven by the benefit of management initiatives to enhance the performance of the lodging portfolio that were implemented in prior periods, the overall strength in the hotel industry as well as the inclusion of the Wyndham and Baymont businesses. Excluding the Wyndham and Baymont acquisitions, RevPAR for the third quarter of 2006 was $39.36, an increase of 7% from the third quarter of 2005. Weighted average rooms were flat, sequentially, for the third quarter of 2006 when compared to second quarter of 2006.

The Company's hotel development pipeline as of September 30, 2006, included approximately 800 hotels and approximately 86,000 rooms, of which approximately 25% are international.

Vacation Exchange and Rental

Vacation Exchange and Rental revenues increased 10% to $310 million in the third quarter of 2006 from $283 million in the third quarter of 2005, reflecting increases in volume, pricing and members.

Vacation Exchange revenues grew 10% compared to the third quarter of 2005, reflecting increases in volume and the average annual dues and exchange revenue per member, as well as 4% growth in the average number of members. RCI continues to be the world's largest vacation exchange network, approaching 3.4 million members.

Net revenues from rental transactions increased 11% compared to the third quarter of 2005 primarily due to a 6% increase in the average price per rental and a 3% increase in rental transaction volume. Arrivals were strong at the Company's Landal GreenParks and Canvas Holiday camping vacation sites and bookings increased at its Novasol and Holiday Cottages properties. Revenues also benefited from $7 million of favorable foreign currency translation.

Vacation Exchange and Rental Adjusted EBITDA grew to $98 million (excluding separation and related costs of $1 million) for the third quarter of 2006, a 4% increase compared to the third quarter of 2005, including continued investment in the Company's international consulting operations and a shift in mix to lower-margin transactions.

Vacation Ownership

Gross VOI sales were $482 million for the third quarter of 2006, up more than 20% compared to the third quarter of 2005, driven by a 15% growth in tour flow and a 6% increase in volume per guest. Consumer finance revenues increased 26% for the third quarter of 2006 compared to the third quarter of 2005, reflecting the continued growth in the Company's contract receivables portfolio, consistent with the VOI revenue growth. The strong tour flow growth was the result of the ongoing development of in-house sales programs and enhancements to local marketing efforts.

Vacation Ownership third quarter 2006 revenues were $551 million and Adjusted EBITDA was $89 million (excluding separation and related costs of $1 million). These results reflect the adoption of SFAS No. 152, "Accounting for Real Estate Time-Sharing Transactions," which reduced revenue and Adjusted EBITDA by $72 million and $5 million, respectively. Excluding the effect of SFAS No. 152, revenues and Adjusted EBITDA for the third quarter of 2006 were both up approximately 20% compared to the third quarter of 2005. The third quarter 2006 Adjusted EBITDA to third quarter 2005 Adjusted EBITDA comparison for Vacation Ownership is helped somewhat by the inclusion in 2005 of $14 million of expenses associated with the Gulf Coast hurricanes, the impact of which continues to affect 2006 Adjusted EBITDA.

Balance Sheet

The Company provided the following balance sheet data as of September 30, 2006:

o Cash and cash equivalents of approximately $160 million compared to $99 million at December 31, 2005

o Vacation ownership contract receivables, net, of $2.3 billion compared to $2.1 billion at December 31, 2005

o Inventory of approximately $880 million compared to $636 million at December 31, 2005

o Securitized vacation ownership debt of $1.3 billion and other debt of $1.2 billion as of September 30, 2006

Share Repurchase

On August 24, 2006, Wyndham Worldwide announced its intention to commence a stock repurchase program of up to $400 million. Through September 30, 2006, the Company had repurchased 4.6 million shares at an average price of $28.43. During October 2006, the Company repurchased an additional 5.0 million shares.

"We believe a stock repurchase program is an effective means to both enhance shareholder value and demonstrate our confidence in the long-term value of Wyndham Worldwide. We think our shares offer a compelling return on investment opportunity and will continue to purchase as appropriate within the parameters of the program," said Holmes.

Outlook

Wyndham Worldwide expects 2006 revenues of $3,670 - $3,770 million and Adjusted EBITDA of $750 -$765 million:

o Including the previously reported second quarter accrual for foreign taxes at the Company's European Vacation rental operations of $21 million

o Including pro forma incremental stand-alone corporate costs for the full year

o Excluding separation and related costs, which are estimated to be approximately $90 - $100 million for the year

For the fourth quarter 2006, the Company expects:

o Depreciation and amortization of $38 - $40 million

o Net interest expense of approximately $17 - $19 million

o Effective tax rate of approximately 38%

o Net income of approximately $77 - $87 million

o Earnings per share of $0.39 - $0.44 assuming 198 million fully diluted shares

Preliminary guidance for the full-year 2007 is:

o Revenue of $4,110 - $4,260 million

o Adjusted EBITDA, excluding separation and related costs, of $820 - $855 million

Further detail on guidance for 2007 will be provided at the Company's Investor Day, scheduled for December 12, 2006.

"We are strongly positioned to leverage our extraordinary footprint in Lodging, Vacation Exchange and Rental, and Vacation Ownership to the benefit of customers and shareholders," said Holmes. "I am excited by our opportunities as we continue to build the Wyndham brand, pursue international opportunities, and develop new offerings to meet the evolving needs of travelers worldwide."