Marriott, Starwood, & Wyndham Scale Back Time-Share Business

WSJ-Logo-e1352844751634The Wall Street Journal is reporting that the major time-share developers are scaling back their time-share business as they are going through some pretty tough times.  Investors are demanding higher interest rates and buyers are becoming more and more scarce.  Also, a higher percentage of time-share-backed loan securities are becoming delinquent each month.

Our take:  Good news for hotels.  Time-shares have been popping up everywhere in the last 10 years and have really overbuilt in many vacation destinations causing too much competition.  While customer satisfaction has really improved with time-shares, they are still one of the most expensive ways to take a vacation.  Time-shares tend to lose 80 percent of their value the day you buy one.

Have a time-share and disagree?  Post your comments below.

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