TUG Lifetime Member
- Jun 16, 2004
- Reaction score
- Sun City Hilton Head, SC
From Marriott's meeting with investor security analysts on June 5 (a PDF file):
- The typical Marriott purchaser has annual household income of $75k-$200k+
- Horizon purchasers typically have household income of $50k-$90k
- 81% of Marriott's vacation ownership sales are MVCI timeshare sales; 3% are Horizons; 14% are Ritz-Carlton; 2% are Grand Residence
- 53% of Marriott's 2004 profit from timeshares came from sales. An astounding 33% came from financing! The remainder came from management fees and rental commissions.
- The typical Marriott timeshare project takes 7-10 years to sell out and generates $300-500 million in sales. Marketing and selling costs are about 43% of sales, construction and other hard costs are about 40% and the remaining 17% is profit.
- 50% of buyers finance their purchases. The typical borrowing is $21,000 at an interest rate of 12.5% to 12.8%. Automatic credit approval requires a credit score of 600 or higher.
- Marriott expects its percentage of fractional interest vacation ownership sales to increase from 16% in 2004 to 26% in 2008. (Thus, timeshare sales would decrease as a percentage of the total from 84% to 74%.)
- Marriott's profits from vacation ownership activities ranged from $123 million in 1999 to $149 million in 2003 before jumping to $203 million in 2004.