Marriott’s $466M Timeshare Loss
Marriott International lost $466 million in timeshare writeoffs last quarter, following an announcement last month that it would stop developing any new luxury-residential and new timeshare properties. The company said it would finish building any development still under construction. In an earnings call, Marriott president Arne Sorenson said that the company is dropping pricing to “accelerate cash flow” and that more than half of its timeshare customers are now paying cash for one-week timeshares and not relying on company financing. “Our timeshare business looks forward to a stronger economy,” he said. Despite the sugarcoating, critics took aim. “I took issue with the whole timeshare debacle,” said Bryan Maher, managing director at Collins Stewart LLC. “Taking a write-down [of that size] shows that you let that…
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