II is Now a Public Company

[bizaro86]

IAC, which was formerly II's parent company, has spun off Interval International and ResortQuest Hawaii as one independent public company trading on Nasdaq.

http://www.intervalleisuregroup.com/releases.cfm

Any thoughts on how this will affect members? Will any of you be buying stock?

Some of the risks mentioned in the prospectus included:
-Competition with RCI and their access to Wyndham properties
-Growth of internal trading systems
-Potential for fee decreases/changes due to increased competition
-Numerous developer contracts coming up for renewal in 2008

Michael

 

[rickandcindy23]

I thought II and ResortQuest were related somehow.

 

[Kola]

OK, now we know: For 2007, Interval generated revenue of $318.4 million.
Isn't it time to reduce annual membership fees and/or exchange charges ?

K.

 

[travelhome]

em... interesting...

with Wyndham being with RCI and chances that Marriott will be leaving II, what else does II have left? Mostly independent resorts and smaller groups?

 

[rickandcindy23]

Hyatts, Starwood, WorldMark (still deposits a substantial number to II), Four Seasons, Disney, Lawrence Welk, and a plethora of others. Plus they have a huge number of Maui resorts in their exchange system.

Marriott won't leave II. The bigger they get, the harder the transition will be. I am hoping they don't leave, but if they do, II will be okay.

Thank goodness I still have RCI too.

 

[bizaro86]

Does anyone really think Marriott will leave II completely? Maybe they'll set up an internal exchange program like Starwood, Hyatt, Hilton, et al., but I doubt they'd quit entirely. Also, wouldn't existing Marriott owners have the right to continue trading with II whether they were still using them for new resorts or not?

The example I'm thinking of here is Worldmark. I'm sure if Wyndham could make Worldmark owner's exclusively use RCI, they would.

Michael

 

[gmarine]

Marriott isnt going to leave II entirely. There is speculation that Marriott may implement an internal exchange system for Marriott owners but Marriott owners will still be able to exchange with other II resorts.

 

[travelhome]

Isn't that Marriott has already had an internal exchange system where owner can exchange their weeks without going out of the network?

 

[dlpearson]

Isn't that Marriott has already had an internal exchange system where owner can exchange their weeks without going out of the network?

Nope. Even to exchange from one Marriott to another, you must go through II (albeit for a slightly reduced exchange fee).

David

 

[Steve]

Marriott is not going to leave II. If Marriott implements an internal exchange system, the information I have gotten indicates that, in fact, Marriott will have II design and run this system for them. This is the type of arrangement that Hyatt has with II. Plus, Marriott owners will still need to use II to exchange into non-Marriott resorts.

The rumors that Marriott is planning to leave II are just flat out wrong.

Steve

 

["Roger"]

It is interesting that both RCI and II now list internal trading systems as a major threat to their profits. I have been saying this for years, but have constantly been pooh-poohed by another poster.

Even if Marriott were to stay in II, if they develop an internal exchange system that will cut into II profits. They might get some pocket change for managing the exchange, but they won't get the entire exchange fee any more.

I guess the question is why wouldn't Marriott develop such an system? Why would they let II have the entire profit from an internal Marriott exchange?

 

[Lee B]

I guess the question is why wouldn't Marriott develop such an system? Why would they let II have the entire profit from an internal Marriott exchange?

Marriott manages hotels, real estate and other businesses. They are not interested in reinventing a timeshare exchange wheel. They sell timeshare intervals, which is very profitable to them. That is why they put money into II to keep it going. They need an exchange system to offer potential buyers, but not to do themselves.

 

[Mel]

Maybe, maybe not. Yes, Marriott needs an exchange system, but that doesn't mean it has to be II. Marriott (like Disney) used to trade through RCI. Those resorts that were with RCI from the beginning, and sold as deeded weeks STILL trade with RCI, as well as with II.

Marriott is likely to negotiate with both companies as their contracts come up for renewal. Maybe they will stay with II, but if RCI offers them a sweetheart deal, they might move back. Anyone with a fixed deeded week should still be able to trade through II. Anyone with points might have to go with whichever company Marriott chooses, but would still have the option of other exchange companies as well.

As for why Marriott might not want their won internal system, there are benefits to what the have now. The most desireable weeks are held for other Marriott owners first, and are often taken by those owners, whether the person depositing chose to stay at another Marriott, or go elsewhere. With an internal system, the owners decide where their week is deposited - if they want to travel to a non-Marriott resort, their week will no longer be in their system.

If they do choose to run their own internal system, there are many companies with the ability to do so for them. But doing so for themselves wouldn't be that difficult. They already have their hotel points programs, the timeshare program wouldn't need to be that different, and might be easier.

Marriott is not going to leave II. If Marriott implements an internal exchange system, the information I have gotten indicates that, in fact, Marriott will have II design and run this system for them. This is the type of arrangement that Hyatt has with II. Plus, Marriott owners will still need to use II to exchange into non-Marriott resorts.

The rumors that Marriott is planning to leave II are just flat out wrong.

Steve

 

[travelhome]

when will the renewal come up? It is mentioned frequently here. Anyone knows when?

How long does the contract last? five years? ten years?

 

[mamiecarter]

If you missed out on Bear Sterns and Fannie Mae by all means buy II

Come on now, someone might buy II stock? Give us a break. The timeshare exchange companies like the entire vacation industry are bleeding. II without Marriott sounds like popcorn without the movie and no butter or salt.

 

[Kola]

The timeshare exchange companies like the entire vacation industry are bleeding. II without Marriott sounds like popcorn without the movie and no butter or salt.

Where do you see the "blood" ? I wouldn't mind having 1% of their $318 million annual "blood" !

K.

 

[gmarine]

Come on now, someone might buy II stock? Give us a break. The timeshare exchange companies like the entire vacation industry are bleeding. II without Marriott sounds like popcorn without the movie and no butter or salt.

The company has no debt and quarterly year over year renenue has increased 20%. With net income of 77 million on revenue of over 400 million its definitely not bleeding.