Timeshare Trends Blog

Orlando is the new corporate headquarters of Marriott Vacations Worldwide Corporation, the first large publicly traded company focused almost exclusively on selling timeshares. Marriott was the hotel industry’s timeshare pioneer being the first hotel brand to enter the timeshare business, in 1984, ending an era in which timeshares had largely been the province of independent operators and the target of consumer criticism. Marriott Vacations Worldwide Corporation is a spin-off of Marriott and the new operations will have little effect on its 2,650 timeshare employees in Orlando and 10,000 worldwide, and it should be a fairly seamless transition for customers of it vacation ownership resorts. There are currently 64 Marriott resorts with 400,000 owners and revenue reaching $1.6 billion in 2010 with a reported profit of $67 million

Bookmark To:

Marriott Vacations Worldwide Corporation, the Marriott International’s spinoff of its Orlando based timeshare division became official on November 21 with the distribution of the new company’s shares to existing Marriott shareholders. Operating separately from Marriott International and based in Orlando, eligible shareholders received one common stock for every ten shares on Marriott International Class A common stock they hold. The timeshare company’s stock is trading on the New York Stock Exchange under the symbol VAC. Marriott Vacations Worldwide is joining Standard & Poors SmallCap 600 stock index after the close of trading Monday, replacing LoJack Corp.

Bookmark To:

While highlighting its significant market opportunities and competitive advantages, Marriott International has informed security analysts and institutional investors in New York, that its earnings per share of stock could hit well above the highest earnings achieved during Marriott’s most recent peak earnings year of 2007. The company expects to add at least 80,000 to 90,000 hotel rooms to its portfolio from 2011 through 2013 with additional opportunities for 22,000 rooms to open in Europe and Asia during that same period. Marriott has plans to adapt and expand current brands, such as Courtyard and Fairfield, to meet the growing needs of customers in markets worldwide. The company will also be expanding its new brands outside of the United States, including Edition, which just opened its first hotel on Waikiki Beach in Hawaii. Marriott is also successful in the high-end timeshare market.

Bookmark To:

Marriott Vacation Club introduces new vacation ownership program. Marriott Vacation Club, the timeshare brand of Marriott International, recently announced the launch of the points-based Marriott Vacation Club Destinations program in North America and the Caribbean, rather than the once usual week at a designated resort. The points system is designed to accommodate new trends in travel and increase flexibility for timeshare owners, allowing them to book multiple, shorter stays rather than a full week. Current owners of Marriott timeshares will maintain their full rights and privileges, but will also have the option to enroll in the new program.

Bookmark To:

Timeshare division of Marriott International has hurt earnings. According to the Orlando Sentinel, Marriott International lost $466 million in the recent quarter on hefty impairment charges from its Orlando-based timeshare business, which declined drastically in the recession as vacationers cut back spending.

Marriott lost $1.31 a share for the period ending September 11 compared with a profit of $94 million or 25 cents a share a year earlier. In the recent quarter, adjusted timeshare contract sales declined 42% to $176 million, compared with $49 million in the prior year quarter.

Bookmark To:

Marriott International is cutting back on the high-demand home development business and is cutting prices at some of its fractional ownership resorts. Marriott is also planning to halt its timeshare development in Europe. However, according to a recent Orlando Sentinel story, Marriott officials report that their timeshare business run by Orlando based Marriott Vacation Club International is doing better than its high-end counterpart.

According to Marriott’s president and chief operating officer, Arne Sorenson, the significant decline in demand for luxury residential real estate is reflective of today’s economy. It also reflects the relative strength and deeper market of the traditional timeshare business, which while impacted by the weaker economy has proved to be more resilient.

Bookmark To:

Marriott International, the biggest hotel chain in the US, reported a fourth quarter loss $10 million compared against profits of $176 million one year earlier.

According to Arne Sorenson, Marriott’s chief financial officer, “Economic conditions in the U.S. and now around the globe are difficult.” Marriott International’s Orlando based timeshare unit reported an adjusted loss of $2 million, as it has struggled with a weak demand for timeshares and a deteriorating credit market. Timeshare sales have declined 23% from one year earlier.

Bookmark To: