A global leader in timeshare development and operation offering luxury vacation ownership experiences under the Marriott brand across key international destinations.
The company benefits from the long-term growth trend in vacation ownership as consumers seek tangible assets and flexibility. Strong operational performance with over $4B in annual revenue suggests resilience and potential for margin expansion if marketing spend efficiency improves. Strategic acquisitions or organic growth in high-demand markets could drive future upside.
Declining net income trends from $391M in 2022 to $217M in 2024 signal deteriorating profitability despite revenue growth, raising concerns about cost management. Significant goodwill of $3.12B and large retained earnings deficit of $852M indicate potential balance sheet weaknesses and past accounting adjustments. Heavy reliance on capital expenditures and marketing spend poses a risk to free cash flow generation.
Marriott Vacations Worldwide Corp operates as a timeshare resort developer and operator globally, serving vacationers seeking ownership interests in luxury resorts. The company's primary product is the sale of timeshare units at its owned and leased properties, supported by robust franchise relationships within Marriott International.
Despite a revenue increase to $4.97B in 2024, net profit declined to $217M from $391M in 2022, reflecting margin compression likely driven by elevated marketing costs of $919M and other operating expenses of $3.50B. Cash flow from operations of $205M was partially consumed by financing outflows of $132M and investing outflows of $115M, resulting in a net cash decrease.
The vacation ownership industry is characterized by high barriers to entry due to the need for significant capital investment in resort development and strong brand recognition. Market dynamics are influenced by discretionary consumer spending, travel confidence, and competition from alternative lodging options like vacation rentals. Industry leaders with established brands and diverse portfolios are better positioned to navigate economic volatility.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $4.66B | $4.73B | $4.97B |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $4.66B | $4.73B | $4.97B |
| Operating Expenses | $4.07B | $4.33B | $4.66B |
| Operating Income | $582.0M | $398.0M | $306.0M |
| G&A | $249.0M | $273.0M | $243.0M |
| Marketing | $807.0M | $823.0M | $919.0M |
| Stock-Based Comp | $39.0M | $31.0M | $33.0M |
| D&A | $132.0M | $135.0M | $146.0M |
| Amortization | $132.0M | $61.0M | $60.0M |
| Other OpEx | $3.02B | $3.23B | $3.50B |
| Non-Operating Income | $0 | $0 | $0 |
| Pre-Tax Income | $582.0M | $398.0M | $306.0M |
| Income Tax | $191.0M | $146.0M | $89.0M |
| Continuing Ops | $391.0M | $252.0M | $217.0M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $391.0M | $252.0M | $217.0M |
| Minority Interest | $0 | $-2.0M | $-1.0M |
| Net to Common | $391.0M | $254.0M | $218.0M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Cash & Equivalents | $524.0M | $248.0M | $197.0M |
| Intangibles | $911.0M | $854.0M | $790.0M |
| Goodwill | $3.12B | $3.12B | $3.12B |
| Operating Leases | $102.0M | $77.0M | $74.0M |
| Total Assets | $9.64B | $9.68B | $9.81B |
| Total Liabilities | $7.14B | $7.30B | $7.37B |
| Shareholders' Equity | $2.50B | $2.38B | $2.44B |
| Retained Earnings | $593.0M | $742.0M | $852.0M |
| AOCI | $15.0M | $16.0M | $-8.0M |
| Treasury Stock | $2.05B | — | — |
| Total L&E | $9.64B | $9.68B | $9.81B |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $391.0M | $252.0M | $217.0M |
| Non-Cash Adjustments | $10.0M | $-164.0M | $16.0M |
| Working Capital Changes | $121.0M | $144.0M | $-28.0M |
| Cash from Operations | $522.0M | $232.0M | $205.0M |
| Capital Expenditures | $65.0M | $118.0M | $57.0M |
| Cash from Investing | $16.0M | $-112.0M | $-115.0M |
| Share Buybacks | $701.0M | $286.0M | $56.0M |
| Dividends Paid | $99.0M | $106.0M | $107.0M |
| Cash from Financing | $-486.0M | $-401.0M | $-132.0M |
| FX Effect | $-1.0M | $1.0M | $-4.0M |
| Net Change in Cash | $51.0M | $-280.0M | $-46.0M |
| Beginning Cash | $803.0M | $854.0M | $574.0M |
| Ending Cash | $854.0M | $574.0M | $528.0M |
The company generates revenue through the sale of timeshare interests at newly built or renovated resorts, sales to existing owners for upgrades or additional units, and management fees from franchised properties. Financials indicate a significant focus on marketing expenses relative to revenue, suggesting heavy investment in unit sales and brand promotion across its portfolio.
High capital expenditure requirements for resort development can strain liquidity, as evidenced by significant investing cash flows. Sensitivity to economic downturns and travel trends may impact timeshare unit sales volume and pricing power. Debt levels are substantial relative to equity, increasing financial leverage risks in a high-interest rate environment.
Leverages the Marriott International brand reputation for luxury and service quality to attract high-net-worth individuals seeking timeshare investments. Strong global real estate development capabilities allow for strategic location selection in premium vacation markets. Extensive existing portfolio of owned and leased resorts provides a stable cash flow base and recurring revenue opportunities.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.