Marriott Timeshare Write-Downs announced
 

Today Marriott announced $760 Million in timeshare write-downs as follows: $300 Million in 5 Luxury Residential Projects, an additional $300 Million in 9 Fractional projects in North America and $95 Million in an additional Marriott timeshare located in North America. They also said that they will NOT develop any new projects in Europe or Asia that they need to fund.

If anyone learns which projects--please post.:(:td:

This is a great thing to take along when I do my next Presentation. I'll simply say if your HQ doesnt believe in their product why should I, Gift Please

I'm not sure I follow your logic..just because they are making adjustments to their development pipeline doesn't mean they dont believe in their product...certainly if that was the case they'd be exiting the business...MVCI has and continues to be a core part of MI's business strategy

when I said they dont believe I didnt mean in the Concept perse, but as a Financial investment at this juncture. I wonder if MRVC are dropping their prices but the same % if not more. I understand thats not the case

I was at a presentation a couple of months ago (not MR), when I wasnt biting the guy said give me a moment. He came back and offered me a unit that the buyer gave up on and purchased a yr before. He quoted me a price of 1/2 what a new unit was going for. I simply said so the value will be like a car in a yrs time it will be worth 1/2 of whatever Im paying, are your prices that Inflated? He then understaood no way was I gonna buy into something where the value of what I was gonna purchase was gonna be like lead in water, it Sinks and Fast

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

So you've never bought a car, then?

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I read the article in today's WSJ and it noted that Marriott owns only 8 of the properties. Any idea where those 8 properties are?

You should be able to find that somewhere in their Annual 10K SEC filing.

:D:D:D

must mean they own 8 hotels with no residential component.

theyre getting out of development of residential units, but not management of them. (four seasons style)

starwood actually stopped managing (new) residential units that are included in hotel inventory.

Marriott has never been in the residential unit development business but that doesn't mean they wont willingly be a part of a mix use development

mixed use = has residences/fractionals/timeshares ("residential") ...

(residences = condo or condohotel depending on whether they are included in inventory or not)

http://online.wsj.com/article/SB125371358595033997.html

personally, im curious which ones those are. there was no discussion in annual report or H1 results.