Profile: Marriott Vacations Worldwide Corp (VAC.N)
14 Jun 2019
Marriott Vacations Worldwide Corporation, incorporated on June 21, 2011, focuses entirely on vacation ownership, based on number of owners, number of resorts and revenues. The Company is a worldwide developer, marketer, seller and manager of vacation ownership and related products under the Marriott Vacation Club and Grand Residences by Marriott brands. The Company operates through three segments, including North America, Europe and Asia Pacific. In the North America segment, it develops, markets, sells and manages vacation ownership and related products under the Marriott Vacation Club and Grand Residences by Marriott brands. It also develops, markets and sells vacation ownership and related products under The Ritz-Carlton Destination Club brand, as well as whole ownership residential products under The Ritz-Carlton Residences brand. Its Europe segment is engaged in selling its existing projects and managing existing resorts. Its Asia Pacific segment, it develops, markets, sells and manages two points-based programs that it designed to appeal to the vacation preferences of the market, Marriott Vacation Club, Asia Pacific and Marriott Vacation Club Destinations, Australia, as well as a weeks-based right-to-use product. Its business focuses on selling vacation ownership products; managing its resorts; financing consumer purchases of vacation ownership products, and renting vacation ownership inventory. As of December 30, 2016, its portfolio consisted of over 60 properties, with 13,318 vacation ownership villas (units) and had approximately 400,000 owners.
The Company designs, builds, manages and maintains its properties at upscale and luxury levels under four brands in accordance with the Marriott and Ritz-Carlton brand standards. The Marriott Vacation Club brand is its signature offering in the upscale tier of the vacation ownership industry. Marriott Vacation Club resorts combines the comforts of home, such as spacious accommodations with one, two and three bedroom options, living and dining areas, in-unit kitchens and laundry facilities, with resort amenities, such as swimming pools, restaurants and bars, convenience stores, fitness facilities and spas, as well as sports and recreation facilities appropriate for each resort's unique location. Marriott Vacation Club Pulse is an extension to the Marriott Vacation Club brand. Grand Residences by Marriott is a tier vacation ownership and whole ownership residence brand. The accommodations for this brand are similar to those it offers under the Marriott Vacation Club brand, but the duration of the vacation ownership interest is longer, ranging between 3 and 13 weeks. It also offers whole ownership residential products under the Grand Residences by Marriott brand.
The Ritz-Carlton Destination Club is a luxury tier vacation ownership brand. The Ritz-Carlton Destination Club provides luxurious vacation experiences commensurate with the legacy of the Ritz-Carlton brand. The Ritz-Carlton Destination Club resorts typically feature two, three and four bedroom units that include marble foyers, walk-in closets, custom kitchen cabinetry and luxury resort amenities, such as pools and access to full service restaurants and bars. On-site management and services, which usually include daily housekeeping service, valet, in-residence dining, and access to fitness facilities, as well as spa and sports facilities as appropriate for each destination, are provided by The Ritz-Carlton Hotel Company. The Ritz-Carlton Residences is a luxury tier whole ownership residence brand. The Ritz-Carlton Residences include whole ownership luxury residential condominiums co-located with The Ritz-Carlton Destination Club resorts. Owners can typically purchase condominiums that vary in size from one-bedroom apartments to spacious penthouses. Owners of The Ritz-Carlton Residences can avail themselves of the services and facilities that are associated with the co-located The Ritz-Carlton Destination Club resort on an a la carte basis. On-site management and services are provided by The Ritz-Carlton Hotel Company.
Points-Based Vacation Ownership Products
The Company sells its products through its Marriott Vacation Club points-based ownership programs focused in North America and Asia Pacific. While the characteristics of each of its points-based programs differ, in each program, owners receive an annual allotment of points representing owners usage rights, and owners can use these points to access vacation ownership units across multiple destinations within their program's portfolio of resort locations. Each program permits shorter or longer stays than a traditional weeks-based vacation ownership product and provides for flexibility with respect to check-in days and size of accommodations. The programs enable its owners to utilize their points for variety of vacation experiences included in its Explorer Collection, such as cruises, airline travel, guided tours, safaris and other vacation alternatives. Members of its points-based programs pay annual fees in exchange for the ability to participate in the program.
As of December 30, 2016, its points programs allowed owners to bank and borrow their annual point allotments, access other Marriott Vacation Club locations through internal exchange programs that the Company and Interval International operated, and accessed Interval International's approximately 3,000 affiliated resorts. Owners traded their vacation ownership usage rights for Marriott Rewards Points, which can be used to access the Marriott International's system of over 4,000 participating hotels or redeem their Marriott Rewards Points for airline miles or other merchandise offered through the Marriott Rewards customer loyalty program, as of December 30, 2016.
Weeks-Based Vacation Ownership Products
It sells Marriott Vacation Club branded weeks-based vacation ownership products in select markets, including in countries where legal and tax constraints limit its ability to include those locations in one of its points-based programs. It offers multi-week vacation ownership interests in Grand Residences by Marriott and The Ritz-Carlton Destination Club resorts. It also intends to continue placing luxury branded inventory into its points-based ownership program focused in North America, Marriott Vacation Club Destinations (MVCD). It sells vacation ownership interests as a right-to-use product subject to a finite term under the Marriott Vacation Club brand in Europe and Asia Pacific and under the Grand Residences by Marriott brand in Europe.
Global Exchange Opportunities
The Company offers its existing Marriott Vacation Club owners who hold weeks-based products in the United States and Caribbean the opportunity to participate, on a voluntary basis, in MVCD's exchange program. As of December 30, 2016, over 154,000 weeks-based owners had enrolled approximately 263,000 weeks in MVCD's exchange program since its launch.
The Company competes with Westin Vacation Club, Sheraton Vacation Club, ILG, Inc., Disney Vacation Club, Four Seasons, Exclusive Resorts, Diamond Resorts International, Inc., Timbers Resorts and Hilton Grand Vacations Inc.
Marriott Vacations Worldwide Corp
6649 Westwood Blvd
ORLANDO FL 32821-8029