VACATION OWNESHIP Marriott Stops New Developments
Back of last year's US$466 million write off by Marriott International on its branded residential and timeshare operations. The company has reiterated that it will not continue to pursue developments or expand in the segment.
Many Wall Street analysts harshly criticized the company from highly leveraging itself in a finance-based business model versus its core hospitality units which produced strong cash flows.
Back of the US downturn which has also effected its Asian vacation ownership business the company is now focusing on its hotel driven units; while for the existing timeshare operations lower entry point, and cheaper cash packages are being offered to improve revenue.
Here in Phuket MVCI has been a market leader but the move certainly paves the way for opportunity with players such as Laguna Holiday Club and Absolute both here and in the region. Global player Wyndham who was set to enter Asia has also been hit hard in both the US and Australia, and has deferred development here for the moment for its vacation ownership unit.