Photo Credit: A timeshare resort. Travel + Leisure Co.
The timeshare segment is a lending business in a hospitality costume, and that dynamic is helping to drive consolidation.
LinkedIn X Facebook Email Gift Which remaining independents (Westgate, Holiday Inn Club Vacations, Capital Vacations) are the most likely next acquisition targets? How does the 'resort-optimization' program that cut 12 resorts fit with acquiring 23 new ones—is the net effect growth or portfolio repositioning? How quickly can Travel + Leisure convert the 100,000 new owners to its points platform, and what conversion rate is realistic? Select a question above or ask something else
Executives at Travel + Leisure Co. explained the logic behind their acquisition of Yes& Vacations and a pending purchase of Spinnaker Resorts, for a combined $343 million upfront.
CEO Michael Brown cited inventory as a key rationale on an earnings call Wednesday. The deals add 23 resorts to a portfolio of more than 280, with more than half of the new properties in new destinations for its network.
"Both of these companies are well-run companies that have resorts and destinations where we had white space," Brown said. "Hilton Head, South Carolina, and Maui are 2 locations that are highly demanded by our owner bases."
The deals also bring more than 100,000 owners, expanding Travel + Leisure's customer base by more than 10%, Brown said.
Timeshare owners buy an annual allotment of points redeemable for stays across a resort network, plus annual maintenance fees. Most buy an annual allotment of points, redeemable for stays across a network of
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Tags: earnings , mergers and acquisitions , timeshares , travel + leisure , vacation ownership
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