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Marriott to suspend timeshare developments

RDO / Archived Articles  / Marriott to suspend timeshare developments
10 Mar 2010

Marriott to suspend timeshare developments

Marriott International has indicated its intention not to invest in new timeshare developments in the current economic climate, after the publication of its 2009 fourth quarter and full year results showed a decline of 23% in timeshare contract sales year on year.

 

On a more upbeat note, Marriott stated that it expects the timeshare business to pick up in 2010, forecasting US$175 million to US$200 million in net cash flow compared to US$150 million in 2009. The company won’t commit to making any further investment on new timeshare resorts until it sees a steady increase in demand, though.

 

Starwood Hotels and Resorts Worldwide also announced a similar strategy recently, as both developers appear to be reviewing their business models to look at alternative ways of achieving growth while they await the expected recovery of the US economy.
 

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