This is an interesting move by MVW, "Marriott Vacations Worldwide Appoints Christian Alejandro Asmar to Board of Directors"

[WBP]

https://ir.marriottvacationsworldwide.com/news-releases/news-release-details/marriott-vacations-worldwide-appoints-christian-alejandro-asmar

Read carefully about the future direction of the MVW Board of Directors, in particular, about profitability, and TECHNOLOGY.

 

[billymach4]

Impactive Capital is an Activist Investment Management Firm Focused on Positive Systemic Change | Impactive Capital

Founded by Lauren Taylor Wolfe and Christian Alejandro Asmar, we focus on positive systemic change to build competitive, sustainable businesses.

www.impactivecapital.com

"Marriott Vacations Worldwide Corporation (NYSE: VAC) (“MVW” or the “Company”) announced the appointment of Christian Alejandro Asmar to its Board of Directors effective today. Mr. Asmar is the co-founder and Managing Partner of Impactive Capital, which owns approximately 9.5% of the outstanding shares of MVW."

"Mr. Asmar is the co-founder and Managing Partner of Impactive Capital, which owns approximately 9.5% of the outstanding shares of MVW.

Impactive Capital is an activist investment management firm founded by Lauren Taylor Wolfe and Christian Alejandro Asmar. Our co-founders have worked together for a decade as activist investment managers and our team has over 30 years collective experience in activist investing with Board experience across public and private companies.

We focus on positive systemic change to help build more competitive, sustainable businesses for the long run."

 

[Steve A]

WBP

What do you think it means?

 

[billymach4]

WBP

What do you think it means?

The only thing anyone can make of this is that Impactive Capital wants to force changes?

I wonder how much of a percentage the Marriott main corp or Family owns and controls of shares?

 

[rthib]

Activist investors are usually not good news, ask Southwest airlines.

 

[billymach4]

Activist investors are usually not good news, ask Southwest airlines.

FWIW Southwest was overdue for change. Better or worse.

 

[dioxide45]

Unfortunately many of these investors fail to see that increasing value to the customer (or owner in this case) is the path to increasing value to investors. More and more it is about squeezing the last cent from the customer vs. giving the customer something of value they are willing to pay more for.

 

[jwalk03]

Activist investors are usually not good news, ask Southwest airlines.

100% this!

 

[billymach4]

Unfortunately many of these investors fail to see that increasing value to the customer (or owner in this case) is the path to increasing value to investors. More and more it is about squeezing the last cent from the customer vs. giving the customer something of value they are willing to pay more for.

Sad but true.

 

[billymach4]

Unfortunately many of these investors fail to see that increasing value to the customer (or owner in this case) is the path to increasing value to investors. More and more it is about squeezing the last cent from the customer vs. giving the customer something of value they are willing to pay more for.

And in some way directly or indirectly some of yours, mine and everyone else has invested in VAC. In the stock VAC not the end product.

 

[Pennytx]

Unfortunately many of these investors fail to see that increasing value to the customer (or owner in this case) is the path to increasing value to investors. More and more it is about squeezing the last cent from the customer vs. giving the customer something of value they are willing to pay more for.

True dat

 

[TSCurious1925]

Last I checked, VAC was trading below book value. They are sitting on a lot of interesting real estate that they may not be able to convey into the MVC Trust due decreasing sales and longtime owners walking away. I was just thinking last week that VAC might be ripe for some sort of takeover. This should be interesting.

 

[TSCurious1925]

I wonder if they are getting to the point where they cannot make new sales because maintaining the Trust properties at a profit costs more than consumers are willing to pay. If that is the case, I could see them exiting the current model altogether and repurposing the real estate they have on hand to the next new new thing. If they abandon sales of the MVC Trust points model, that could leave points holders in a world of hurt in terms of any check on MF for points. Again, this should be interesting.

 

[pedro47]

I’m taking a 6 months wait and see attitude to see what develops with this new board member and his company background in technology.

 

[WBP]

WBP

What do you think it means?

Hostile take-over, nothing good, with venture capital DNA.

I immediately thought of the recent/current unrest at Southwest Airlines.

You may recall that the last appointment to the MVW Board was a former Diamond Resorts executive, the last place that I thought MVW would recruit their executive leadership (Board) from, unless the MVW Board had aspirations of emulating Diamond Resorts unscrupulous, fraudulent, and highly suspect values.

To me, all of the above, is a dramatic contrast, a negative one, to what existed at MVCI, when MVCI was a wholly owned subsidiary of Marriott International. In my opinion, the Marriott (International) values, that at one time, had a presence at MVCI, were thrown out with the baby and the bath water.

I see MVW and MVC on a downward spiral, plummet, and implosion, despite which, for the time being, I believe that there are favorable resort experiences for guests to have, at MVC resorts (ideally, for the guest, in my opinion, without owning the MVC product).

 

[Superchief]

It will be really important for legacy owners to become more involved in knowing the candidates for the BOD at their resorts. MVW has already infiltrated these boards with their own employees so they can influence more of the management at these resorts.

 

[pedro47]

I do not want MVC or MVW to be taking over by a hostile take over;.
Especially by a hedge company liked what happen to DRI.

 

[WBP]

It will be really important for legacy owners to become more involved in knowing the candidates for the BOD at their resorts. MVW has already infiltrated these boards with their own employees so they can influence more of the management at these resorts.

An entirely accurate observation by you, and, in my opinion, spot-on.

The writing has been on the wall for more than ten years. Over that time period, if not longer, MVC chose never to capitalize www.vacationclub.com, to allow multiple week owners to make reservations for consecutive or concurrent weeks. MVC could not be clearer, they’d love to see the “weeks owners” go away.

 

[WBP]

I do not want MVC or MVW to be taking over by a hostile take over;.
Especially by a hedge company liked what happen to DRI.

Your timing may be late. That last two appointments of Directors to the MVW Board raised my eyebrows, and suspect. Each of the last two appointments, failed my Smell Test.

 

[dioxide45]

It seems there are some underlying issues with the company and cash flow. The pandemic peak of their stock seems to have been mostly smoke and mirrors. They are trying to pay out dividends and buy back stock all while continuing to issue new debt against timeshare notes. I understand they are still carrying a lot of debt from the ILG acquisition. They need to clean house.

 

[jabberwocky]

The only thing anyone can make of this is that Impactive Capital wants to force changes?

I wonder how much of a percentage the Marriott main corp or Family owns and controls of shares?

From what I can gather from the disclosure entities directly related to the Marriott family or main corp control 5.8% (2 million shares).

Activist investors have their place. They keep management honest in some respects. It doesn’t seem like there was any fight for a board seat - so the board caved.

 

[jabberwocky]

It seems there are some underlying issues with the company and cash flow. The pandemic peak of their stock seems to have been mostly smoke and mirrors. They are trying to pay out dividends and buy back stock all while continuing to issue new debt against timeshare notes. I understand they are still carrying a lot of debt from the ILG acquisition. They need to clean house.

I think you’ve hit the nail on the head. For too long they have been trying to drive returns from financial engineering rather than improving operations and the value proposition. My hope is this new board member can help orient them towards defining a good value prop which will end up benefiting shareholders in the long run.

 

[goodbadugly]

I wonder if they are getting to the point where they cannot make new sales because maintaining the Trust properties at a profit costs more than consumers are willing to pay. If that is the case, I could see them exiting the current model altogether and repurposing the real estate they have on hand to the next new new thing. If they abandon sales of the MVC Trust points model, that could leave points holders in a world of hurt in terms of any check on MF for points. Again, this should be interesting.

The Point model is broken. Maybe these guys can fix it

 

[dioxide45]

I wonder if they are getting to the point where they cannot make new sales because maintaining the Trust properties at a profit costs more than consumers are willing to pay. If that is the case, I could see them exiting the current model altogether and repurposing the real estate they have on hand to the next new new thing. If they abandon sales of the MVC Trust points model, that could leave points holders in a world of hurt in terms of any check on MF for points. Again, this should be interesting.

Owners of the resorts are responsible for maintaining the properties. For trust only resorts, there are still maintenance fees that are collected through the fees billed to point owners. They still earn a management fee for operation of the trust only properties. For MVW, it is all about profitability of sales, management and resort operations (Food & Beverage). Sales is perhaps the biggest factor.

 

[jwalk03]

Owners of the resorts are responsible for maintaining the properties. For trust only resorts, there are still maintenance fees that are collected through the fees billed to point owners. They still earn a management fee for operation of the trust only properties. For MVW, it is all about profitability of sales, management and resort operations (Food & Beverage). Sales is perhaps the biggest factor.

Yes sales is certainly the biggest factor- particularly when you listen to the earning calls and investor events. They are always focused on the sales piece. I don't know if I have ever heard them talk about the management fee revenue or F&B revenue. Interval revenue does come up sometimes as well.