Under the terms of the deal, the business being sold has entered into a 20-year agreement to pay royalties of 1% of net revenue to Wyndham's hotel business, so it can use the Wyndham Vacation Rentals endorser brand.
The company had announced in August 2017 that it was exploring strategic alternatives for the business.
Wyndham said the deal is expected to close in the second quarter of 2018.
The NYSE-listed group said it plans to use the proceeds from the sale for general corporate purposes, which could include paying down debt and helping fund its recently announced acquisition of La Quinta Holdings' hotel franchising and management businesses.
Wyndham Worldwide shares were down 0.3% at US$121.29 in pre-market New York trading.