The recent economic meltdown had a drastic effect on every business including the timeshare industry. This did not only make several owners want to get out of their timeshare units but also make most consumers to resist in owning such property. But as most countries are on their way to economic recovery, there is still a light at the end of the tunnel for the timeshare industry.
The said recovery is evident as Marriott International, Inc., a worldwide operator and franchisor of a broad portfolio of hotels and related lodging facilities said that it expects to add approximately 38,000 rooms to its worldwide lodging system in 2009 thereby raising its guidance of 33,000 gross room additions for 2009 provided in its third quarter earnings.
The company also said that the systemwide revenue per available room (REVPAR) outside North America for the fourth quarter of 2009 should decline 14 to 16 percent. On October 8, the company have provided guidance of a 16 to 18 percent REVPAR decline for the fourth quarter of 2009 year-over-year for comparable systemwide hotels outside North America on a constant dollar basis. Also, a 13 to 16 percent REVPAR decline for comparable systemwide hotels in North America.
For its timeshare business, Marriott expects the contract sales of timeshare intervals in the fourth quarter of 2009 to be slightly better than the guidance of $185 million to $190 million the company provided on October 8. On the other hand, the successful completion of a note sale securitization during the current fourth quarter, with $37 million gain should enable Marriott's timeshare segment to outperform its expectations.
Currently, despite the number of owners who are trying to get rid of their timeshares while some even hire a timeshare transfer company such as the Transfer Smart, there are already signs that shows that the timeshare industry is on its way to recovery.