In February, Marriott announced that it is spinning off the timeshare business into a standalone organization. The new company will control the management and planning of the timeshare properties, including properties under-construction and unsold. The main reason for this is that Marriott’s hotel revenues have been increasing while timeshare sales have continued to lag. The Wall Street Journal reported that Marriott’s COO, Arne Sorenson, said Marriott shareholders have lost their appetite for the timeshare business. He also said that “this recession was harder on the timeshare business than last recessions.”
Marriott has indicated in a recent email to owners that “you should experience no changes in your ownership from this transaction”. I do believe them for now–only time will tell.
This month (August 2011), Marriott International moved one step closer towards the planned spinoff of the timeshare division. The new company will be called Marriott Vacations Worldwide Corp.
I am glad to see that Marriott’s name is still associated with the new company.