Fractional Ownership News

Marriott to dispose of fractional products and scale back development

Marriott International  has announced it is going to sell a portion of its fractional ownership inventory, lower prices of its residential units, convert certain proposed projects to other uses, and sell some undeveloped land.

The company also said it would scale back development plans for its Ritz-Carlton Destination Club, resulting in a $760 million charge, because of a lack of demand.
The company said it expected profitability to improve at the timeshare segment, with cash flow there positive in 2009 and increasing in 2010.

"We believe the discounted prices will help (Marriott) generate sales activity and sell its remaining inventory," JPMorgan analyst Joe Greff wrote in a research note. Marriott said North American revenue per available room, or RevPAR, fell 19 percent in the third quarter, better than its previous outlook of a 20 percent to 23 percent decline.

www.ritzcarltonclub.com

24/09/09