Marriott to Spin Off Timeshare Business [merged]

VacationPro · Feb 14, 2011

Marriott announced their earnings this afternoon, and as part of the press release announced they will be spinning off the timeshare business into a separately traded company.

Here's the press release:

http://news.marriott.com/2011/02/ma...business-and-reports-fourth-quarter-2010.html

GregT · Feb 14, 2011

Interesting -- at least we'll start to get some real information on the timeshare operations from the public disclosures and securities filings, versus having to hunt and speculate on the information.

Thx for posting this

yumdrey · Feb 14, 2011

Ok, I just finished reading that LONG report.
So, there's no change for the current owners to use the weeks/use hotel points, etc...
Should we worry about this?

Swice · Feb 14, 2011

No immediate worries

The way I read this is we will still have everything we have now -- at least for several years.

BUT, there are no guarantees.

The "new" company will be independent and could do whatever it wants to do in the long distance future.

Of course, things could also get better if the company is free to make decisions without the consideration of big Marriott.

timeos2 · Feb 14, 2011

Nothing more than a name

yumdrey said:
Ok, I just finished reading that LONG report.
So, there's no change for the current owners to use the weeks/use hotel points, etc...
Should we worry about this?

It means they see no future in timeshares vs other opportunities (such as hotels). It may very well mean an end to any expansion of the system as without the overall corporate umbrella for financing the big investments required to build new resorts won't be there anymore.

It likely means that Marriott as a brand in timeshare will just be a management firm for the existing resorts/programs. The days of growth are likely over.

Or it could mean no change at all or something in between the two extremes. I'd hazard a pretty secure bet that it will NOT be good for owners no matter what direction it takes. It will almost certainly mean even higher fees as those become the sole source of income for the company. I'm glad we decided against owning Marriott.

SueDonJ · Feb 14, 2011

I think that IF Marriott were to sell off their timeshare business then this move would make it an easier transaction, but I don't necessarily see it as an indicator of an impending sale. I think it's just a way for Marriott to separate the losses suffered by the timeshare segments from the more profitable hotel segments. It's a good move for Marriott shareholders.

I did find this very interesting - “With the launch of the Marriott Vacation Club Destinations timeshare program, our points-based product, in 2010, we are confident in our ability to fulfill the dreams and meet the growing expectations of our customers. We expect to continue to create value for shareholders through a diverse stream of income, including development, management and financing. We dramatically improved our cost structure and efficiency in the last two years and are well-positioned for the upturn. And with over $1.5 billion in timeshare segment inventory at year-end 2010, our near term investment needs are modest. All in all, we expect to generate meaningful cash from operations in the next few years. I am enormously excited by this new opportunity for our business and our associates.”

I think that's pretty much an acknowledgment of what most of us have been theorizing for months anyway - that new timeshare resorts won't be announced any time soon, and if the DC product doesn't meet its goals then we could be looking at big changes.

dioxide45 · Feb 14, 2011

timeos2 said:
It means they see no future in timeshares vs other opportunities (such as hotels). It may very well mean an end to any expansion of the system as without the overall corporate umbrella for financing the big investments required to build new resorts won't be there anymore.

It likely means that Marriott as a brand in timeshare will just be a management firm for the existing resorts/programs. The days of growth are likely over.

Or it could mean no change at all or something in between the two extremes. I'd hazard a pretty secure bet that it will NOT be good for owners no matter what direction it takes. It will almost certainly mean even higher fees as those become the sole source of income for the company. I'm glad we decided against owning Marriott.

I agree. Marriott doesn't see timeshare as the growth business it once was. The hotel business on the other hand is a business that is seeing an uptick. Timeshare is forecast to remain flat for many years to come. Also, given their glut of inventory, it is an albatross to Marriott's other businesses.

So it makes sense for THEM to spin it off as a separate company. Their other businesses won't be held back as a collective whole going forward.

However, i foresee more fees to us as owners. Not not only will we get to pay management fees, but also licensing and franchise fees to have the Marriott name slapped on all of our resorts.

disnefile · Feb 14, 2011

Marriott has pretty much said this is not a good business. Working in Corporate America and in finance for 30 years this spin off is doomed. It will not be an investment grade company (Marriott's words, not mine) which means it can't borrow money effectively. I would not be surprised to see the new Timeshare company file Chapter 11 in 2 years. I know I now regret my investment. I assume all of the investment have 0 resale value now. In 2 or so years, you will not get credit in the Mariott hotel program for stays at timeshares, I can almost guarantee that. The Marriott hotel company has to maximize their profits. Would you buy under the new timeshare points program. I am sure Marriott will spin off a huge amount of debt to the Timeshare company. I wish I was wrong but I have seen this too many times. Very little will change initially but mark my words in 2 or so years we as owners are screwed.

MVCI Customer Advocate · Feb 14, 2011

Marriott Vacation Club Response

Posted by Marriott Vacation Club Customer Advocacy Office (2/14/2010): Attached are answers that will address some of the frequently asked questions that Marriott Vacation Club owners may have. As always, we encourage you to contact Marriott Vacation Club Customer Advocacy office with specific questions at customer.advocacy@vacationclub.com.

How will this affect my current ownership?
This transaction will not affect your ownership. Marriott Vacation Club owners should see no changes in the branding of their properties, services, usage options, use of Marriott Rewards ® points, or access to Marriott International’s hotels. In addition you will be able to access Interval International as you always have.

Who will manage the resorts?
Marriott Vacation Club International and its affiliates will manage the resorts. They will still be developed and managed to the exacting brand standards established by Marriott.

How will this transaction affect my ability to trade my week for Marriott Rewards ® points?
There will be no change in the ability to trade for Marriott Rewards ® points. You will still receive elite credit for stays at Marriott Vacation Club and you will still receive Marriott Rewards ® points if you are renting at Marriott Vacation Club. There will be no changes in your current point balances.

How will this transaction affect my ability to trade my week through Interval International?
There will be no change. The agreements that are in place with Interval International will continue with new Marriott Vacation Club International.

Will there be any changes with my COA as a result of this transaction?
The COA management structure will stay the same. We expect that the same people that work with your COA today will continue operating the resorts. Marriott established brand standards will apply to operating the resorts and the physical plant.

Why was this decision made?
This transaction will allow both companies to focus on growing and developing their respective business models. It also advances Marriott’s longstanding strategy of separating real estate from management and franchising operations and will position Marriott Vacation Club International to consider expanded business opportunities.

Is the decision in any way tied to the move to the new Marriott Vacation Club Destination’s points program?
The decision is not tied to the Marriott Vacation Club Destinations ™ program. The new points program has been very successful and has vastly exceeded our expectations with over 110,000 weeks already enrolled. We believe it is the most exciting timeshare product in the industry. The new Marriott Vacation Club International structure will allow us to focus on further developing this product and new vacation opportunities for our owners.

Does this mean that no new resorts will be developed and that Marriott is getting out of the timeshare business?
No. It will allow Marriott Vacation Club International to focus on the timeshare business and to create new and expanded offerings it would not have been able to do in the past. It should position MVCI to expand faster over time. Marriott International will remain involved, as it focuses on its core businesses, it will also create value by leveraging its brand equity, positioning Marriott Vacation Club International as the exclusive developer and operator of timeshare, fractional and related products under the Marriott brand.

When will this transaction be effective?
We expect the transaction will take place before the end of 2011.

What will be the relationship between Marriott and Marriott Vacation Club?
Marriott Vacation Club International will be similar to a franchisee and will be the exclusive developer and operator of timeshare, fractional and related products under the Marriott brand.

I am a Marriott stockholder – what does this mean for me?
Details of the transaction are not final but Marriott International stockholders are expected to receive stock in the new Marriott Vacation Club International as a stock dividend, and, of course, retain existing shares of Marriott International.

Note on Forward-looking statements: Statements in this document about the proposed spin-off of Marriott International, Inc.'s timeshare operations and development business concern anticipated future events and expectations that are not historical facts and are “forward-looking statements” within the meaning of federal securities laws. We cannot assure you that the spin-off will occur or take place on schedule, as there remain many risks and uncertainties that could delay or otherwise affect the transaction. These risks include the ability to obtain regulatory approvals; receipt of a favorable letter ruling from the Internal Revenue Service; final approval by Marriott's board of directors; and other risk factors identified in Marriott’s soon to be issued 2010 annual report on Form 10-K. Any forward-looking statements in this document are made as of February 14, 2011 and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

GregT · Feb 14, 2011

disnefile said:
Marriott has pretty much said this is not a good business. Working in Corporate America and in finance for 30 years this spin off is doomed. It will not be an investment grade company (Marriott's words, not mine) which means it can't borrow money effectively. I would not be surprised to see the new Timeshare company file Chapter 11 in 2 years. I know I now regret my investment. I assume all of the investment have 0 resale value now. In 2 or so years, you will not get credit in the Mariott hotel program for stays at timeshares, I can almost guarantee that. The Marriott hotel company has to maximize their profits. Would you buy under the new timeshare points program. I am sure Marriott will spin off a huge amount of debt to the Timeshare company. I wish I was wrong but I have seen this too many times. Very little will change initially but mark my words in 2 or so years we as owners are screwed.

Thanks for the thoughts, but I believe they are way too extreme. We should anticipate that the new management of SpinCo thinks this is there opportunity to run an independent company (and make personal wealth) therefore they will take advantage of the opportunity. We should note that Wyndham still manages to attract $3B in debt, so SpinCo should remain financeable at some price.

As others have said, we should expect higher fees in the future (a la Wyndham), but we did anyway. Also, perhaps SpinCo will become aggressive and acquire Interval International since they will need a stable revenue base -- II generates $100M in revenue per quarter and is cash flow positive. We know that SpinCo will still earn reasonably strong management fees from the existing portfolio ($150M quarter? Not sure if this is right?) --- perhaps SpinCo will get extremely aggressive and try to buy the management rights and remaining inventory of the other timeshare stepchildren -- Starwood comes to mind, and become the luxury/quality version of what Wyndham wanted to be.

Really, its very interesting to think about, and I'm much happier that Marriott spun out the franchise and gave them an opportunity to build a new high-quality leisure organization then just gave up and sold the franchise to Wyndham (ugh). SpinCo still has the Marriott and Ritz Carlton brands to protect and will figure out a way to generate the recurring cash flow that is needed. If not, stock traders will punish the stock and Marriott will be pissed that the Marriott and Ritz Carlton brand was tainted.

More interesting times in front of us.

Best to all,

Greg

Edited: I see MVCI Advocate's response -- good response and thanks

dioxide45 · Feb 14, 2011

disnefile said:
Marriott has pretty much said this is not a good business. Working in Corporate America and in finance for 30 years this spin off is doomed. It will not be an investment grade company (Marriott's words, not mine) which means it can't borrow money effectively. I would not be surprised to see the new Timeshare company file Chapter 11 in 2 years. I know I now regret my investment. I assume all of the investment have 0 resale value now. In 2 or so years, you will not get credit in the Mariott hotel program for stays at timeshares, I can almost guarantee that. The Marriott hotel company has to maximize their profits. Would you buy under the new timeshare points program. I am sure Marriott will spin off a huge amount of debt to the Timeshare company. I wish I was wrong but I have seen this too many times. Very little will change initially but mark my words in 2 or so years we as owners are screwed.

I wonder how quickly after the spin-off is complete that the new company announces that it is up for sale? The goal is to maximize shareholder value. If they can find a likely suitor, it would definitely meet that goal. The problem is that there are really not many other timeshare companies that are large enough to absorb Marriott's business.

disnefile · Feb 14, 2011

So now we will have to pay Marriott for its name too. More increases in the high maintenance fees. Marriott has said all the right things but will change things radically in 2 years or so. Look at their track record. Would you trust anything they say? A good line of business is rarely spun off. Marriott Corp sees a bleak future in timeshare but can not say that. It will be impossible to sell your weeks. This is not good for timeshare owners. This response is standard corporate bull. I will never recommend any timeshare, especially Marriott. They have a lot of people's trust.

I am so disappointed in a product that at one time was the best in the industry. This is Corporate America. I know as I was part of it.

siberiavol · Feb 14, 2011

We have $1.5 billion of real estate we can't sell and management is tired of hearing about it on the quarterly conference calls would have been another way of relating the news.

disnefile · Feb 14, 2011

siberiavol

Could not have said better myself. You hit the nail on the head. Too bad we are stuck.

hotcoffee · Feb 14, 2011

dioxide45 said:
I wonder how quickly after the spin-off is complete that the new company announces that it is up for sale? The goal is to maximize shareholder value. If they can find a likely suitor, it would definitely meet that goal. The problem is that there are really not many other timeshare companies that are large enough to absorb Marriott's business.

A while back, I read that some financial analysts had urged Marriott to exit the timeshare business. I think the spinoff will make it a little easier should they eventually decide to jettison the business. However, with the DC rollout so recent, I think they will give it a few years to see how things go. Another downturn in the economy might do it though.

Anyone care to make some comments on the sales figures quoted by the customer advocate post?

equitax · Feb 14, 2011

TUG Users to acquire 66 2/3% of Spinco...

Title line says it all. Who's in?

brigechols · Feb 14, 2011

hotcoffee said:
A while back, I read that some financial analysts had urged Marriott to exit the timeshare business. I think the spinoff will make it a little easier should they eventually decide to jettison the business. However, with the DC rollout so recent, I think they will give it a few years to see how things go. Another downturn in the economy might do it though.

Anyone care to make some comments on the sales figures quoted by the customer advocate post?

It is believable that 110,000 weeks are enrolled. I didn't read any figures for number of points sold.

wof45 · Feb 14, 2011

disnefile said:
So now we will have to pay Marriott for its name too. More increases in the high maintenance fees. Marriott has said all the right things but will change things radically in 2 years or so. Look at their track record. Would you trust anything they say? A good line of business is rarely spun off. Marriott Corp sees a bleak future in timeshare but can not say that. It will be impossible to sell your weeks. This is not good for timeshare owners. This response is standard corporate bull. I will never recommend any timeshare, especially Marriott. They have a lot of people's trust.

I don't agree at all.

We own a week at a resort that can be used or exchanged. The MF depends on the local owners group, and why would they choose another management group instead of Marriott, if that means giving up all of the things that go along with belonging to MVC?

If MVC does not provide a good product at a good price, what wold prevent an owners association from changing to another management company if they decided, for example, that belonging to Wyndham provided a better deal?

If you think that you had an investment and it has lost its value, then take a look at the economy and blame Wall Street for creating derivatives and not regulating credit default swaps to insure them.

I don't see that this announcement really changes anything in the short term, and in the long term the total package depends on whether and when the economy recovers. In the meantime, enjoy your vacation weeks at MVC or wherever you trade into.

SueDonJ · Feb 14, 2011

dioxide45 said:
I agree. Marriott doesn't see timeshare as the growth business it once was. The hotel business on the other hand is a business that is seeing an uptick. Timeshare is forecast to remain flat for many years to come. Also, given their glut of inventory, it is an albatross to Marriott's other businesses.

So it makes sense for THEM to spin it off as a separate company. Their other businesses won't be held back as a collective whole going forward.

However, i foresee more fees to us as owners. Not not only will we get to pay management fees, but also licensing and franchise fees to have the Marriott name slapped on all of our resorts.

But we already pay the fees for Marriott to manage the resorts. The amount they can be paid (10% of total m/f) is stipulated in the governing docs, and the operating budgets are subject to strict auditing actions. How can they increase the percentage they take as management fees, or bypass the budget audits, without a majority vote?

About the name brand, if Marriott sold off the timeshare business to a non-Marriott entity and negotiated a fee for their name on the buildings then we might expect to see an additional fee to keep the branding. But they're not selling to a non-Marriott entity, they're spinning off to a separate Marriott entity. It's unnamed yet, but I can't imagine that they're going to drop either the Marriott or Ritz-Carlton name from their timeshare brands. They only JUST introduced the Destination Club and wouldn't have included the Marriott brand in its name if their intent is to name the spin-off anything other than Marriott. And this spin-off, just like the Destination Club, isn't something that's been implemented without years of forethought.

I think there's reason to be concerned but no more or less than there was yesterday. We've been watching ALL timeshare businesses suffer losses since the economy began tanking, and we knew that Marriott would have to react somehow if their business is to survive the downturn. I'd rather see them take the measures they have than do nothing, because if the DC doesn't support the timeshare business and/or the spin-off doesn't stem shareholder hesitancy, then we could be in a lot worse shape. It's kind of a surprise to me, actually, that anyone wouldn't think that Marriott's number one concern has always been the corporate line.

**********
Aside from all that, I really appreciate that MVCI AC posted here so quickly after the press release. For months, since the advent of the DC, we've been complaining about the fact that Marriott was not prepared to deal with the related questions that we Owners had a right to ask. How many times did we see a comment saying what a terrible job Marriott did with the DC rollout and how ill-prepared the reps appeared to be? Well, we can't say the same here. Marriott knows we're intelligent enough to follow the quarterly earnings statements, they know we read the press releases, they know we know

)) the right questions to ask, and they've learned that we want better customer service when they make significant changes to our timeshare ownerships. I'm not saying that MVCI AC's post here answers all the questions, but it goes a long way toward restoring some trust. For me, anyway. And besides, I'm not sure Marriott can answer ALL the questions at this point anyway. Time will tell where the economy takes us all.

dioxide45 · Feb 14, 2011

From Marriott's own press release:

Marriott will also receive franchise fees from the timeshare company’s use of the Marriott and Ritz-Carlton brands.

It seems that Marriott (the Hotel side) expects to earn fees for the use of their name on our resorts.

According to the Customer Advocate, MVCI (the new company) will manage our resorts, not Marriott. So the management deal and the licensing fees are completely separate. In the early stages, MVCI may opt to eat the licensing fees on the sales front. In the end however we the customers pay for everything, so it has to come out of our pockets either in a MF charge or wrapped in to the sales price.

mwwich · Feb 14, 2011

My employer was spun off from a major drug company about 10 years ago that everyone would recognize, and it's worked out well; however I would say such examples are a minority.

The key test will be if Marriott keeps their 20% stake in the TS business or will they gradually sell that off too. An interesting question....will you buy the stock when it starts trading?

I appreciate the Q&A they put here on TUG, however none of that is promised forever, and could mean little over the long term.

No one knows, could work well and might not either. Interesting how there's a lot of Marriott bashing (me included) with the DC change, yet most feel more secure if the parent company still owned the TS business. Human nature to take the devil we know vs. the devil we don't.

disnefile · Feb 14, 2011

SueDonJ said:
But we already pay the fees for Marriott to manage the resorts. The amount they can be paid (10% of total m/f) is stipulated in the governing docs, and the operating budgets are subject to strict auditing actions. How can they increase the percentage they take as management fees, or bypass the budget audits, without a majority vote?

About the name brand, if Marriott sold off the timeshare business to a non-Marriott entity and negotiated a fee for their name on the buildings then we might expect to see an additional fee to keep the branding. But they're not selling to a non-Marriott entity, they're spinning off to a separate Marriott entity. It's unnamed yet, but I can't imagine that they're going to drop either the Marriott or Ritz-Carlton name from their timeshare brands. They only JUST introduced the Destination Club and wouldn't have included the Marriott brand in its name if their intent is to name the spin-off anything other than Marriott. And this spin-off, just like the Destination Club, isn't something that's been implemented without years of forethought.

I think there's reason to be concerned but no more or less than there was yesterday. We've been watching ALL timeshare businesses suffer losses since the economy began tanking, and we knew that Marriott would have to react somehow if their business is to survive the downturn. I'd rather see them take the measures they have than do nothing, because if the DC doesn't support the timeshare business and/or the spin-off doesn't stem shareholder hesitancy, then we could be in a lot worse shape. It's kind of a surprise to me, actually, that anyone wouldn't think that Marriott's number one concern has always been the corporate line.

**********
Aside from all that, I really appreciate that MVCI AC posted here so quickly after the press release. For months, since the advent of the DC, we've been complaining about the fact that Marriott was not prepared to deal with the related questions that we Owners had a right to ask. How many times did we see a comment saying what a terrible job Marriott did with the DC rollout and how ill-prepared the reps appeared to be? Well, we can't say the same here. Marriott knows we're intelligent enough to follow the quarterly earnings statements, they know we read the press releases, they know we know )) the right questions to ask, and they've learned that we want better customer service when they make significant changes to our timeshare ownerships. I'm not saying that MVCI AC's post here answers all the questions, but it goes a long way toward restoring some trust. For me, anyway. And besides, I'm not sure Marriott can answer ALL the questions at this point anyway. Time will tell where the economy takes us all.

They have taken measures to protect Marriott International not Marriott Timeshares. Marriott Timeshares will be a very weak company. It will not be investment grade and the wall street journal has said that. That is very very bad for any company and especialy in this economy. So, yes things have changed significantly from yesterday for the worse.

TheTimeTraveler · Feb 14, 2011

MVCI Customer Advocate said:
Posted by Marriott Vacation Club Customer Advocacy Office (2/14/2010): Attached are answers that will address some of the frequently asked questions that Marriott Vacation Club owners may have. As always, we encourage you to contact Marriott Vacation Club Customer Advocacy office with specific questions at customer.advocacy@vacationclub.com.

How will this affect my current ownership?
This transaction will not affect your ownership. Marriott Vacation Club owners should see no changes in the branding of their properties, services, usage options, use of Marriott Rewards ® points, or access to Marriott International’s hotels. In addition you will be able to access Interval International as you always have.

Who will manage the resorts?
Marriott Vacation Club International and its affiliates will manage the resorts. They will still be developed and managed to the exacting brand standards established by Marriott.

How will this transaction affect my ability to trade my week for Marriott Rewards ® points?
There will be no change in the ability to trade for Marriott Rewards ® points. You will still receive elite credit for stays at Marriott Vacation Club and you will still receive Marriott Rewards ® points if you are renting at Marriott Vacation Club. There will be no changes in your current point balances.

How will this transaction affect my ability to trade my week through Interval International?
There will be no change. The agreements that are in place with Interval International will continue with new Marriott Vacation Club International.

Will there be any changes with my COA as a result of this transaction?
The COA management structure will stay the same. We expect that the same people that work with your COA today will continue operating the resorts. Marriott established brand standards will apply to operating the resorts and the physical plant.

Why was this decision made?
This transaction will allow both companies to focus on growing and developing their respective business models. It also advances Marriott’s longstanding strategy of separating real estate from management and franchising operations and will position Marriott Vacation Club International to consider expanded business opportunities.

Is the decision in any way tied to the move to the new Marriott Vacation Club Destination’s points program?
The decision is not tied to the Marriott Vacation Club Destinations ™ program. The new points program has been very successful and has vastly exceeded our expectations with over 110,000 weeks already enrolled. We believe it is the most exciting timeshare product in the industry. The new Marriott Vacation Club International structure will allow us to focus on further developing this product and new vacation opportunities for our owners.

Does this mean that no new resorts will be developed and that Marriott is getting out of the timeshare business?
No. It will allow Marriott Vacation Club International to focus on the timeshare business and to create new and expanded offerings it would not have been able to do in the past. It should position MVCI to expand faster over time. Marriott International will remain involved, as it focuses on its core businesses, it will also create value by leveraging its brand equity, positioning Marriott Vacation Club International as the exclusive developer and operator of timeshare, fractional and related products under the Marriott brand.

When will this transaction be effective?
We expect the transaction will take place before the end of 2011.

What will be the relationship between Marriott and Marriott Vacation Club?
Marriott Vacation Club International will be similar to a franchisee and will be the exclusive developer and operator of timeshare, fractional and related products under the Marriott brand.

I am a Marriott stockholder – what does this mean for me?
Details of the transaction are not final but Marriott International stockholders are expected to receive stock in the new Marriott Vacation Club International as a stock dividend, and, of course, retain existing shares of Marriott International.

Note on Forward-looking statements: Statements in this document about the proposed spin-off of Marriott International, Inc.'s timeshare operations and development business concern anticipated future events and expectations that are not historical facts and are “forward-looking statements” within the meaning of federal securities laws. We cannot assure you that the spin-off will occur or take place on schedule, as there remain many risks and uncertainties that could delay or otherwise affect the transaction. These risks include the ability to obtain regulatory approvals; receipt of a favorable letter ruling from the Internal Revenue Service; final approval by Marriott's board of directors; and other risk factors identified in Marriott’s soon to be issued 2010 annual report on Form 10-K. Any forward-looking statements in this document are made as of February 14, 2011 and we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Nice to see the MVCI Customer Advocacy come out from under their rock to place another posting :cheer:

.

wof45 · Feb 14, 2011

dioxide45 said:
According to the Customer Advocate, MVCI (the new company) will manage our resorts, not Marriott. So the management deal and the licensing fees are completely separate. In the early stages, MVCI may opt to eat the licensing fees on the sales front. In the end however we the customers pay for everything, so it has to come out of our pockets either in a MF charge or wrapped in to the sales price.

I think that the licensing fee is already being paid as part of the resort management fee. If the 10% fee paid does not include the Marriott name and other valuables, then why pay them instead of one of the companies that would do it for less than 10%

wof45 · Feb 14, 2011

mwwich said:
The key test will be if Marriott keeps their 20% stake in the TS business or will they gradually sell that off too. An interesting question....will you buy the stock when it starts trading?

In the end, it doesn't matter if any of us will buy the stock. Everything has a value, so the real test is the value the market places on the total package, since most of the stock will end up in mutual funds. You may own the stock and not even know it.

Marriott to Spin Off Timeshare Business [merged]

VacationPro

GregT

TUG Member

yumdrey

TUG Review Crew: Veteran

Swice

TUG Review Crew

timeos2

Tug Review Crew: Rookie

SueDonJ

dioxide45

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disnefile

MVCI Customer Advocate

GregT

TUG Member

dioxide45

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disnefile

siberiavol

disnefile

hotcoffee

equitax

brigechols

wof45

SueDonJ

dioxide45

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mwwich

TUG Review Crew

disnefile

TheTimeTraveler

wof45

wof45