Hoseasons and English Country Cottages owner Wyndham Exchange & Rentals incurred costs of $1 million in acquiring James Villa Holidays, latest figures from the company show.
The specialist operator was taken over last November for $77 million, adding 2,300 villas and other holiday properties in 50 destinations across the Mediterranean.
Fourth quarter financial results show a 13% year on year drop in adjusted EBITDA, excluding $9 million in restructuring costs and $1 related to the acquisition of James Villa Holidays.
“Excluding the impact of acquisitions, adjusted EBITDA for the fourth quarter of 2010 was flat compared with the fourth quarter of 2009,” the company said.
This reflected the seasonality of the holiday rental business.
The acquisition of James Villa Holidays “enhances the company’s leading position as the world’s largest serviced vacation rentals business, providing access to approximately 97,000 vacation properties worldwide”.
Exchange revenues in the three months to December were $153 million, described as “relatively flat” compared with the fourth quarter of 2009.
Vacation rental revenues were up by 16% to $114 million.
“In constant currency, vacation rental revenues increased 24% from the fourth quarter of 2009, primarily reflecting the contribution of incremental revenues from acquired businesses,” the company said.
Parent company Wyndham Worldwide Corporation reported that quarterly adjusted net profit increased by 15% to $84 million over the same period in 2009.
Adjusted net income for 2010 increased by 13% to $368 million, compared with $327 million in the previous 12 months.
Chairman and chief executive Stephen Holmes said: “We are pleased to report these results, which are further evidence of the strength of our business models and great execution throughout the company.
“We delivered strong cash flow and look to continue to deploy free cash flow to create more value for our shareholders in 2011 through acquisitions, share repurchases and dividends.”