Wyndham Worldwide Corp., owner of the Ramada and Days Inn brands, said it will spin off its hotel unit into a new publicly traded company and consolidate its timeshare business while exploring strategic alternatives for its European rental brands.

Wyndham Worldwide shares shot up in after-market trading, rising above $109, after closing Wednesday at $103.

“A spinoff of the hotel business and the combination of Wyndham Vacation Ownership with RCI is the best structure to unlock shareholder value and enable strong growth across the businesses,” Stephen Holmes, chairman and chief executive officer of Wyndham Worldwide, said in a statement.

“We will work with the leadership of our European rental organizations, which have outstanding brands in their regional markets, to explore options to fully realize their future growth potential.”

“Management and the board believe the current market multiple does not reflect the true value of the standalone, pure-play businesses,” said Michael Bellisario, an analyst at Robert W. Baird & Co.