- Joined
- Mar 14, 2008
- Messages
- 1,256
- Reaction score
- 6
- Location
- Solon, OH (for love not the weather)
- Resorts Owned
- WSJ, HRA, WKORV, WMH, SBP, WLR
source: Seekingalpha.com. Call on 26 April 2012.
Guess this means that Aruba probably won't happen, and Europe/Asia expansion won't either. Verbatim excerpt below.
Christopher Agnew - MKM Partners LLC, Research Division
Given the success of the Marriott Vacation spinoff and also the success of Wyndham's asset-light model, I just wonder if you could update us on your thoughts for your own Vacation Ownership business longer term?
Frits van Paasschen
Our continuing philosophy with Vacation Ownership is we'll look at ways that are high IRR, high return opportunities to sustain the sales volume for the business, but not focus on growing the absolute size. We like being able to control and manage our Vacation Ownership business and having it be part of our portfolio at the size as it is. And, as Vasant mentioned over the course of some of his remarks, at the end of this year, we will have gotten to $800 million in positive cash out of our Vacation Ownership business. And the trends of the business right now are very healthy. So while, clearly, others have pursued a different strategy, we feel very good about where we stand right now. And if there's an asset-light model for growing our Vacation Ownership business, clearly in the philosophy of higher return ways of adding inventory, that's something we would look at. But again, we need to make sure that we have product that we can control, that fits with our brands and that works with the owner base that we've developed over time.
Vasant M. Prabhu
Yes, I think you referred to the success of Marriott Vacations and the success of Wyndham. I think we'd want to point to the success of our own Vacation Ownership program where, as Frits said, we've delivered $800 million in cash and still have a growing business that delivers as much EBITDA as Marriott Vacations is going to do this year. So we think what we've done has been quite successful.
Guess this means that Aruba probably won't happen, and Europe/Asia expansion won't either. Verbatim excerpt below.
Christopher Agnew - MKM Partners LLC, Research Division
Given the success of the Marriott Vacation spinoff and also the success of Wyndham's asset-light model, I just wonder if you could update us on your thoughts for your own Vacation Ownership business longer term?
Frits van Paasschen
Our continuing philosophy with Vacation Ownership is we'll look at ways that are high IRR, high return opportunities to sustain the sales volume for the business, but not focus on growing the absolute size. We like being able to control and manage our Vacation Ownership business and having it be part of our portfolio at the size as it is. And, as Vasant mentioned over the course of some of his remarks, at the end of this year, we will have gotten to $800 million in positive cash out of our Vacation Ownership business. And the trends of the business right now are very healthy. So while, clearly, others have pursued a different strategy, we feel very good about where we stand right now. And if there's an asset-light model for growing our Vacation Ownership business, clearly in the philosophy of higher return ways of adding inventory, that's something we would look at. But again, we need to make sure that we have product that we can control, that fits with our brands and that works with the owner base that we've developed over time.
Vasant M. Prabhu
Yes, I think you referred to the success of Marriott Vacations and the success of Wyndham. I think we'd want to point to the success of our own Vacation Ownership program where, as Frits said, we've delivered $800 million in cash and still have a growing business that delivers as much EBITDA as Marriott Vacations is going to do this year. So we think what we've done has been quite successful.
