Words: Ashley Rigg
Published: 24th September 2009
Marriott scales back fractional plans
Marriott International, operator of the Marriott and Ritz-Carlton hotel chains is scaling back its investment in fractional ownership schemes due to soft demand and over-supply of high-end luxury real estate.
The company plans to lower prices of residential units, convert certain units to other uses and to sell undeveloped land.
Marriott’s core revenue from fractional comes from US-based timeshare projects which account for 5% of the company’s earnings, down from 25% in 2007. The luxury segment known as the Ritz-Carlton Destination Club, accounts for 10% of the total.
In recent years, Marriott has increased returns on its traditional U.S. timeshare business by cutting costs and delaying new projects.
Yesterday Knight Frank in UK reported
weaker than expected sales of fractional products.
Full story on
Reuters
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