Marriott Special Offer

[GregT]

I don't think there can be any doubt that spinning off the timeshare division was a great move for Marriott and its stockholders.

Prior to the spin-off Marriott was valued at approx $10B -- this is combined for the hotel company and the timeshare company.

Right now, Marriott (the hotel company) is valued at approx $12B and the timeshare company is valued at $900M.

Granted, the overall market has improved in the last six months, but it also appears that Marriott just wasn't getting any enterprise value for the timeshare organization -- and arguably the new accounting rules (that require all that debt and all those notes receivable to be on the balance sheet) would just confuse the stockholder who wants to own a hotel company.

So it appears to be an excellent move for Marriott to spin out VAC. Time will tell if it was good for the ownership, but it certainly looks good for the stockholders. And it must be nice to not be answering questions during the quarterly conference call about the timeshare division.

Best,

Greg

 

[jimf41]

Greg,
I own both MAR and VAC. If I were to attend a MAR stockholders meeting the question I would ask is;

"Why did you guys sell off that other company? Their stock has gone up 50% since the spin-off but ours has only increased 22%???"

 

[SueDonJ]

Greg,
I own both MAR and VAC. If I were to attend a MAR stockholders meeting the question I would ask is;

"Why did you guys sell off that other company? Their stock has gone up 50% since the spin-off but ours has only increased 22%???"

Another post for the TUG "Like" button.

 

[GregT]

Greg,
I own both MAR and VAC. If I were to attend a MAR stockholders meeting the question I would ask is;

"Why did you guys sell off that other company? Their stock has gone up 50% since the spin-off but ours has only increased 22%???"

Jim,

I hope they would respond with:

"But Mr. JimF, at the time of the spin-off, your equity value was $30 per share. Today, you are holding a Marriott share worth $36, plus value in VAC of $2.60 (because of the one VAC share for ten MAR shares distribution). So we've made almost 30% for you in that period. Please sit down and refrain from further comment, or we will have security remove you from the room. Or have the boxer guy put another beat-down on you."

Best,

Greg

 

[jimf41]

Jim,

I hope they would respond with:

"But Mr. JimF, at the time of the spin-off, your equity value was $30 per share. Today, you are holding a Marriott share worth $36, plus value in VAC of $2.60 (because of the one VAC share for ten MAR shares distribution). So we've made almost 30% for you in that period. Please sit down and refrain from further comment, or we will have security remove you from the room. Or have the boxer guy put another beat-down on you."

Best,

Greg

And I would reply with,

" But Mr Marriott, VAC was worth $17.65 when it was issued and now it's worth $26.65 giving me a $9 increase in that period and VAC is giving you $50 million a year just to use your name.

I'm not worried about the boxer guy. Last week while presiding over a quarterly meeting of retired Army helicopter pilots I challenged one of the younger guys, he's 63 I'm 65, to push-up contest. I did 6 he only did 5. Word is getting around fast as to just how tough I am. My right shoulder is almost back to usable this week."