This is a paper write down. They'll carry the inventory, rent them at out reduced rates during the downturn and when the market comes back in 3-7 years then they will sell them again. Now is when you want to buy their stock and then is when you want to sell their stock as today's write offs will turn into tomorrow's (figuratively, really 3-7 years) profits.

As far as buying a time share, for me the math is the same whether it is good or bad times. The degree to which it is a bad deal is just that more pronounced during bad times since room rates are lower, returns on investments are awesome right now (the meteoric rise in the stock market just amazes me), and real estate values will suck for another 3-7 years as it did in the 90s. Even during good times you can't sell time shares for a decent price on the secondary market, much less in today's market. Given those factors, on the earnings using the money I would have spent on a time share at Ko Olina for example, I can pay for a week or more at the JW Ihilani instead. In essence staying for free.

YMMV