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Marriott Shakes Up Vacation Ownership Structure

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Posted: 06 Aug 2011 | 6:00 am

Global hospitality group Marriott International have undergone a significant restricting of their vacation ownership business unit.

A split will be made into two listed companies with delineation between hotel and alternative ownership (timeshare) divisions within this year.

Marriott's vacation ownership business was hit hard by the global financial crises and US recession which saw the financing model diminish.

While the group's Asian operations had bright prospects a forced cost cutting and downsizing hit regional development of the brand.

Industry sentiment remains mixed on the subject given Marriott's large leveraging in North America and a cloud over discretionary spending on the horizon.

Unfortunately a model which was poised to become a giant in a booming economic climate in Asia has been caught up in domesticated financial issues.

DO YOU LIKE THIS?

"a giantin a booming economic climate in Asia"? Asians are not stupid to buy Timeshare. The marketing expense for most timeshare company is VERY high in Asia and it is not a sustainable model. Asians in general like to vacation by renting villas or hotels. They do not like to pay something upfront and then keep paying maintenance fees for their timeshare. The interest rates in Banks in Asia are higher and people put their savings in mutual funds and Banks and use the interest to vacation.
In all Timeshare is a struggling business for anyone. And with what is going on in the market, time will tell if this model will survive.

Dd, 06 Aug 2011 | 9:04 am

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