The timeshare sector emerged as one of the hospitality industry’s earliest comeback stories during the pandemic — and one of the most active in terms of mergers and acquisitions.
Hilton Grand Vacations acquired Diamond Resorts for $1.4 billion.Wyndham Destinations became the Travel + Leisure Co.after acquiring the media and travel club brand for $100 million. Marriott Vacations Worldwide took over Welk Resorts earlier this year for $485 million.
The takeovers are unlikely to stop there.
“We will continue to look and see if there are other [mergers and acquisitions] opportunities out there,” Marriott Vacations CEO Stephen Weisz said in an interview with Skift. “But, you know, we’re pretty selective about what we look at.”
The criteria for the timeshare company, which encompasses seven brands like Marriott Vacation Club and Hyatt Residence Club, boils down to three things: The takeover target has to expand the company’s footprint. It has to benefit shareholders, and it has to be a good cultural fit.
“That’s one of the things about the Welk acquisition that has been really important to see,” Weisz said. “We thought it was going to be the case, and it’s proven out to be everything that we wanted it to be because the culture of the organization and ours dovetails very nicely.”
The eight-resort Welk portfolio will get rebranded under the Hyatt Residence Club flag within the Marriott Vacations brand line-up. Yes, you read that correctly: Marriott Vacations is a separate company from Marriott International and acquired Hyatt’s timeshare business in 2018 as a result of a $4.7 billion deal in 2018.
Starwood spun out its timeshare business, encompassing Sheraton and Westin brands, shortly before Marriott acquired it in 2016. That standalone timeshare business, Vistana, was then sold to Interactive Leisure Group, which also owned Hyatt’s timeshare business.
Marriott Vacations, which spun out of Marriott International in 2011, then acquired ILG in 2018.
The Welk takeover and ensuing Hyatt rebranding will expand Marriott Vacations’ Hyatt Residence Club portfolio by 90 percent, Weisz said.
“We’re very excited about where that where that’s going to take us,” he added.
Younger Owners:The timeshare and vacation ownership business has a reputation of being a bygone travel sector for older folks. It seems like everyone had a grandparent with a timeshare for the same week every year in the Bahamas or some other sunny destination.
But the timeshare business expanded into new territories and monikers, now using terms like vacation ownership and travel clubs. Owners, or members, redeem points on different resorts and destinations at various times throughout the year.
A key factor behind Wyndham Destinations’ Travel + Leisure takeover was the company’s travel club business. Meredith Corp. still operates the media side of the business.
Something that may surprise people is how much younger the timeshare and vacation club traveler profile became amid the push toward flexibility. Sixty-two percent of buyers in the Marriott Vacations network are millennials.
“People have had a tough time shedding the idea that it’s kind of an older generation product,” Weisz said. “We’ve never found that to be the case.”
Keep in mind: These are affluent millennial buyers. The typical buyer has an annual household income north of $135,000 with a self-reported net worth of at least $1.5 million.
“We don’t cast a net broadly to every millennial or every Gen X traveler,” Weisz said. “But the ones that we do, our product resonates very, very well with them.”
The Power of Upselling:One of the more interesting aspects of the timeshare business is how much money each company has the potential to make off existing clients.Travel + Leisure Co. estimates there is $12.5 billion in owner upgrade potential from current members over the next decade
The figure soars even higher to$19.3 billion when factoring in other revenue streams like management and resort fees and interest payments. A brand just needs travelers to get that first taste of timeshares to get the upgrade momentum moving.
“The more owners we get back to our resorts on an annual basis, the more they enjoy it, [and] the more they buy,”Travel + Leisure Co. CEO Michael Brown told Skift earlier this year.
Marriott Vacations is no different.
“The other traditional belief about the timeshare business was that it was kind of a one trick pony where you made the initial sale and were done,” Weisz said. “Our experience has shown that after the first five years of ownership, on average, people spend an equivalent amount to buy additional points within our system.”
Sixty percent of the company’s sales in recent years came from existing owners, and Weisz doesn’t think the Travel + Leisure upgrade figure is an industry anomaly.
“What Mike may have said is not inconsistent with how we believe our product is going to resonate,” he added. “In fact, I would argue, given the multi-brand nature of our company, we probably have even more opportunity than they do.”
Marriott’s China Snafu
Marriott International did an about-face last week following a report that one of its hotels in Prague declined to host a conference of political activists from China’s Uyghur population.
The Uyghurs are a primarily Muslim group of people residing in northwestern China. The Chinese government detained more than a million Uyghurs in internment camps, and the U.S. government has labeled such policy as genocide.
Marriott initially defended its decision to refuse the Uyghur group as part of the company’s political neutrality despite Marriott hotels routinely hosting political fundraisers, Axios reported.
But a Marriott representative later told Axios the hotel would apologize to the group as “the hotel’s response was not consistent with our policies.”
Marriott has found itself in hot water with China before. The hotel company previously apologized to the Chinese government in 2018 for listing Hong Kong, Macau, Tibet, and Taiwan as separate countries. China claims all four as part of China, with Taiwanese independence generating the most geopolitical tension in recent months.
The hotel company has economic reasons to keep Chinese leaders happy. Marriott and other western hotel chains see the country as fertile soil for brand expansion and development.
Marriott has the second-largest development pipeline, behind Hilton, in China, according to Lodging Econometrics. Hilton had124,602 roomsin its Chinese construction pipeline at the end of the third quarter while Marriott had 104,674 rooms.
FAQs
Average Marriott Vacations Worldwide Sales Executive yearly pay in the United States is approximately $127,839, which is 59% above the national average.
How much do Marriott timeshare salesmen make? ›
Average Marriott Vacations Worldwide Sales Executive yearly pay in the United States is approximately $127,839, which is 59% above the national average.
Who is the CEO of Marriott Vacations? ›
John E.
Geller, Jr. serves as President & Chief Executive Officer for Marriott Vacations Worldwide Corporation and is a member of the company's executive committee.
How much does a sales executive make at Marriott Vacations Worldwide? ›
The estimated total pay for a Sales Executive at Marriott Vacations Worldwide is $113,733 per year.
Who runs Marriott Vacation Club? ›
Jeanette E. Marbert is president of exchange and third-party management for Marriott Vacations Worldwide Corporation (NYSE: VAC), a leading global vacation company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products and services.
Do people who sell timeshares make good money? ›
While ZipRecruiter is seeing annual salaries as high as $184,500 and as low as $14,000, the majority of Timeshare Sales salaries currently range between $31,000 (25th percentile) to $100,000 (75th percentile) with top earners (90th percentile) making $150,000 annually across the United States.
Do timeshare salesmen make commission? ›
If you are selling less than one for every ten clients, then this isn't good for yourself, nor the company you are working for. Remember, a timeshare sales rep makes their money through commissions, so no sales no wages.
How many Marriott timeshare owners are there? ›
Marriott Vacations Worldwide runs more than 120 resorts with over 700,000 Owners and Members. Its brands include Marriott Vacation Club, Marriott Vacation Club Pulse, Grand Residences by Marriott, and The Ritz-Carlton Destination Club.
How much does the CEO of Marriott make? ›
The estimated total pay for a Chief Executive Officer (CEO) at Marriott International is $421,994 per year.
What is Marriott Vacations net worth? ›
How much a company is worth is typically represented by its market capitalization, or the current stock price multiplied by the number of shares outstanding. Marriot Vacations Worldwide net worth as of May 02, 2023 is $5.03B.
Salaries at Marriott International, Inc. range from an average of $43,045 to $115,648 a year.
How much does Marriott Vacation Club pay? ›
Marriott Vacation Club Salary
| Annual Salary | Monthly Pay |
|---|
| Top Earners | $43,000 | $3,583 |
| 75th Percentile | $36,000 | $3,000 |
| Average | $32,015 | $2,667 |
| 25th Percentile | $24,000 | $2,000 |
The typical Marriott International Front Office Executive salary is ₹2,64,177 per year. Front Office Executive salaries at Marriott International can range from ₹2,48,410 - ₹3,00,000 per year.
Is Marriott Vacation Club a deeded timeshare? ›
Marriott Vacation Club offers deeded as well as membership properties that typically operate on a floating system. If you are interested in learning how to buy or sell a timeshare within the Marriott Vacation Club, feel free to browse our website or call us for more information.
Does Marriott Vacation Club count towards elite status? ›
Additionally, Vistana and Marriott Vacation Club owners receive Gold Elite status. Marriott Select and Executive Vacation Club owners receive Platinum Elite status, while Presidential and Chairman's Club members receive Titanium Elite status.
What is the difference between Marriott and Marriott Vacation Club? ›
Marriott Bonvoy points, which can be earned and redeemed at Marriott hotels, are different from Marriott Vacation Club points. The latter are purchased as part of an annual contract. When you become a Marriott Vacation Club owner, you buy Vacation Club points that you can redeem at different vacation properties.
What percentage of people regret buying a timeshare? ›
But at some point, you may realize your timeshare has you trapped. A whopping 85% of timeshare buyers regret their purchase, according to a University of Central Florida study.
Do you ever finish paying a timeshare? ›
As we mentioned before, you should never just stop paying your timeshare maintenance fees. You will default on your ownership, and it will stay on your credit report for seven years. If you are done with paying maintenance fees, you can try to sell your timeshare on the resale market.
How do I sell a timeshare that is paid off? ›
5 Methods for How to Get Rid of a Timeshare That Is Paid Off
- Reach Out to Your Timeshare Resort. ...
- Try Your Hand at the Timeshare Resale Market. ...
- Choose to Give Your Timeshare Away. ...
- Rent Out Your Timeshare to Vacationers. ...
- Get Help From an Expert Timeshare Exit Team.
A timeshare or vacation home is considered a personal capital asset and the sale is reported on Schedule D. A gain on such a sale is reportable income. If you incurred a loss on the sale, the IRS doesn't allow you to deduct the loss.
All timeshare resorts charge share owners annual fees for maintenance, utilities and taxes. Annual fees in the $300 to $400 range are typical, although larger shares or peak-season shares can have higher annual fees, often more than $1,000 every year. These fees are due whether the share owner uses the property or not.
Why do timeshares have a bad rep? ›
Timeshares are NOT a sound investment. They tend to depreciate over time rather than increase in value. Also, the supply of new timeshares is typically greater than the demand and they come with significant fees.
What is the largest timeshare company in the world? ›
Wyndham Destinations, the world's largest vacation ownership business as part of Travel + Leisure Co.
What is the largest privately held timeshare company? ›
Vacation like never before at Westgate Resorts! As the largest privately owned vacation ownership company in the world, Westgate Resorts is your source for a most memorable vacation experience.
Who owns the most Marriott stock? ›
Marriott International (NASDAQ: MAR) is owned by 58.73% institutional shareholders, 129.78% Marriott International insiders, and 0.00% retail investors. John W. Marriott Iii is the largest individual Marriott International shareholder, owning 73.82M shares representing 24.34% of the company. John W.
Is Marriott a billionaire? ›
John Willard "Bill" Marriott Jr. (born March 25, 1932) is an American billionaire businessman who is the executive chairman of Marriott International, of which he owns 11.28%.
Does Ritz-Carlton own Marriott? ›
In 1998, the success of The Ritz-Carlton Hotel Company had attracted the attention of the hospitality industry, and the brand was purchased by Marriott International. Since this purchase, The Ritz-Carlton has continued to grow, providing exceptional service and genuine care to their guests across the globe.
How much does the Marriott family own of Marriott? ›
2020 America's Richest Families Net Worth
Today, Marriott International controls over 7,000 properties in 131 countries, including the Ritz-Carlton and St. Regis luxury brands. The family still owns about 18% of the company's shares.
How much is a Marriott Vacation Club point worth in dollars? ›
Whether you have a load of Marriott Bonvoy points from credit cards, vacations or business travel, you might be curious how much these Bonvoy points are actually worth. Based on our analysis, the Marriott points value is about 0.7 cent each. This is a baseline value, drawn from real-world data, not a maximized value.
How much does Marriott Vacations Worldwide pay financial analysts? ›
Average Marriott Vacations Worldwide Senior Financial Analyst yearly pay in the United States is approximately $79,844, which is 12% below the national average.
Marriott International
| Marriott International's new headquarters building (2022) in Bethesda, Maryland |
|---|
| Key people | Bill Marriott (Chairman Emeritus) David Marriott (Chairman) Stephanie Linnartz (President) Anthony Capuano (CEO) |
| Products | Hotels Resorts |
| Revenue | US$13.86 billion (2021) |
| Operating income | US$1.75 billion (2021) |
17 more rowsHighest salary that a Hotel Manager can earn is ₹12.0 Lakhs per year (₹1.0L per month).
What is the highest status with Marriott? ›
The top tier in the Marriott program is Bonvoy Ambassador Elite. You must reach 100 elite qualifying nights and $23,000 in qualifying spending to qualify for this tier.
Do Marriott employees get paid every week? ›
If you work for a property that is managed by corporate, you get paid weekly. If you work for a property that is managed by a franchise it depends on their terms (either weekly, biweekly or semimonthly).
Can a timeshare be a good investment? ›
They don't gain value
The Federal Trade Commission has even warned consumers never to enter into "timeshare agreements for their investment value," because timeshares don't appreciate and can be hard to sell.
Do Marriott employees get holiday pay? ›
No they do not pay holiday pay, just straight pay.
Is timeshare same as vacation club? ›
Timeshares typically involve the purchase of a specific unit of property. In contrast, vacation clubs usually involve the purchase of points that can be used to book vacations at a variety of locations. Timeshares and vacation clubs can be expensive, and there are often maintenance fees associated with ownership.
What is the highest salary of front office? ›
Front Office Executive salary in India ranges between ₹ 0.2 Lakhs to ₹ 4.2 Lakhs with an average annual salary of ₹ 2.2 Lakhs.
What is Executive Level Marriott? ›
The Executive level consists of Owners with between 7,000 and 9,999 Vacation. Club Points.* Marriott Vacation Club Resorts.
What is the highest salary of front office manager? ›
Front Office Manager salary in India ranges between ₹ 1.2 Lakhs to ₹ 10.3 Lakhs with an average annual salary of ₹ 3.5 Lakhs.
To get out of a timeshare legally, consider these options:
- Use the rescission period.
- Call the timeshare developer.
- Rent your timeshare out.
- Sell your timeshare on the resale market (but expect to take a hit).
- Gift your timeshare to a friend, family member or stranger.
A timeshare is a type of vacation property with a shared ownership model. With a typical timeshare, you share the cost of the property with other buyers, and in return, you receive a guaranteed amount of time at the property each year. In many cases, timeshares are smaller units within a larger resort property.
Do timeshare owners own the property? ›
Time-sharing is a form of fractional ownership, where buyers purchase the right to occupy a unit of real estate over specified periods. For example, purchasing one week of a timeshare means the buyer owns one-fifty-second of the unit.
How do you get lifetime platinum at Marriott? ›
You must earn 600 Qualifying Nights and 10 years as Platinum Elite or higher to achieve Lifetime Platinum Elite status. Marriott Bonvoy® would love to welcome you to the Lifetime Platinum Elite community!
What happens to Marriott points when someone dies? ›
Allow unredeemed Marriott Bonvoy® Points from the deceased Member's Account to be transferred to a Family Member or a Friend who is an active Marriott Bonvoy® Member upon the Company's receipt and review of all requested documentation and communications.
What Marriott status gets lounge access? ›
Lounge access is available to Platinum, Titanium and Ambassador Elite members of the Marriott Bonvoy program. Members can also bring one guest to the lounge. Gain Platinum Elite status after 50 nights in a year; 75 nights will take you to Titanium Elite.
How many people are in the Marriott Vacation Club? ›
Marriott Vacations Worldwide runs more than 120 resorts with over 700,000 Owners and Members. Its brands include Marriott Vacation Club, Marriott Vacation Club Pulse, Grand Residences by Marriott, and The Ritz-Carlton Destination Club.
Does Marriott Vacation Club expire? ›
PlusPoints can be used to reserve accommodations and other Exchange Benefits within the Marriott Vacation Club Destinations Program, subject to terms and conditions of the Exchange Company Documents. PlusPoints expire 24 months from deposit.
How much do Hilton timeshare sales reps make? ›
$101K. The estimated total pay for a Sales Representative at Hilton Grand Vacations is $100,994 per year. This number represents the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users. The estimated base pay is $53,772 per year.
How much are timeshare commissions? ›
But for that service, which saves time and anxiety for owners, the developer or resort will charge a rental commission that typically ranges between 25 and 30 percent. It is not uncommon, however, for some resorts to charge 40 to 50 percent commissions.
There are multiple reasons why it's so hard to sell your timeshare. The timeshare resale market is nowhere near as large as you were promised. It's virtually (but not completely) nonexistent. Timeshares also lose their value the longer you keep it.
How much of a hotel discount do Marriott employees get? ›
Associates can participate in Marriott Bonvoy and also receive: 20% Food and Beverage Discount. 20% Spa Treatment Discount. 30% Retail Discount at Marriott Stores.
Who makes money on a timeshare? ›
One advantage of investing in timeshares is that you can do it without much money. But of course timeshares make the most money for the initial developer. They get to take a little apartment or condo that is worth perhaps $140,000 and sell the use of it for as much as $7,000 for each week of the year.
Is timeshare business profitable? ›
A timeshare is not an investment, it's a vacation. It's also an illiquid asset that is likely to lose value over time. Ultimately, timeshares are like swimming pools, if you buy one, do so because you love the idea of owning it, not because you expect to make a profit.
How do I sell my fully paid timeshare? ›
If deeding back your timeshare isn't an option, another solution for how to sell a timeshare that is paid off is pursuing a timeshare resale. To do this, you can hire a real estate agent to evaluate the value of your property and help you sell your timeshare weeks on the resale market.
What is the average yearly maintenance fee for a timeshare? ›
ARDA Estimates of Annual Timeshare Maintenance Fees
ARDA estimates that the average fees for a studio run $640 per year. A timeshare with three bedrooms or more is estimated to have an annual fee amount of $1,290. ARDA then concluded that the average timeshare maintenance fees across the board are $1,000 per year.
Do you ever pay off a timeshare? ›
Do you ever pay off a timeshare? No, you never pay off a timeshare, because unlike purchasing a vacation home with a mortgage, you're not set up to own the property.
What is the fair market value of a timeshare? ›
Fair market value is the estimated value of a timeshare ownership that a knowledgeable and willing buyer would buy from a knowledgeable and willing seller. Fair market value for timeshares differ greatly based on where and how they are being purchased and sold.
Why timeshares are a waste of money? ›
Because you don't own a piece of property outright, you can't really treat a timeshare as an investment that might gain value. Plus, timeshares can be very difficult to sell -- namely because you're not selling a piece of property, but rather, the option to use one.
Can I give my timeshare back to the resort? ›
Deed-back programs allow you to sell your timeshare interest back to your resort developer. Technically, you don't receive any money in return for a deed back, but it can deliver you some future savings with your mortgage payment and maintenance fee.
