Timeshare Business Unwelcome Guest at Marriott International
Given the global economic landscape, Marriott International can no longer rationalize its timeshare business. Going forward, the company expects to continue to license and manage luxury residential projects developed by others, but chief financial officer Carl Berquist told analysts on the third-quarter earnings call the hotelier does not anticipate putting its own capital into the development of new luxury timeshare projects. In my opinion, these decisive strategy adjustments had more to do with mobilizing cash to lower debt default risk and less to do with market conditions of timeshare real estate. The timeshare segment accounted for just 13 percent of total sales in the last quarter, but its operating losses of $681 million wiped out the $160 million in…
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