July 14, 2011
Marriott International announced the headquarters for its new timeshare spin-off will be located in Orlando, Florida.
Marriott is the first major hotel operator to create a separate company for its timeshare division, with a separate board of directors and with exclusive focus on selling timeshares.
The new company will be known as Marriott Vacations Worldwide. Under papers filed with the Federal Trade Commission, the Marriott Vacations Worldwide will pay Marriott International $50 million a year to license the brand.
Like many real estate and tourist based industries, the timeshare business has been hammered by the recession. The Marriott timeshare division lost a half billion dollars in 2009 but reported a $67 million dollar profit last year.
The spin-off is expected to have little or no impact on timeshare owners.