POSTED: 01:30 a.m. HST, Nov 22, 2011
BETHESDA, Md. » Marriott International Inc., the largest publicly traded U.S. hotel chain, completed the spinoff of its time-share division as it focuses on its lodging management and franchise business.
The Bethesda, Md., company said Monday that shares of the new company, Marriott Vacations Worldwide Corp., are being distributed to existing Marriott shareholders.
The new company will begin trading today under the stock ticker "VAC" on the New York Stock Exchange.
Marriott International operated nearly 3,700 properties and time shares at the end of the third quarter. Marriott's board approved the spinoff last month.
"Today is a milestone," said J.W. Marriott Jr., chairman and CEO of Marriott International. "We are tremendously grateful for the business our colleagues built in the vacation ownership industry, and with the spinoff we know that our time-share brands being operated by Marriott Vacations Worldwide will be in the best hands with a company whose culture was 'built by Marriott.'"
Marriott Vacations Worldwide has four time-share properties and three fractional ownership properties in Hawaii. The fractional ownership properties are another version of a time share and provide for a longer length of stay. The seven time-share properties are Marriott's Maui Beach Club, Marriott's Kauai Beach Club, Marriott's Ko Olina Beach Club, Marriott's Waiohai Beach Club on Poipu Beach on Kauai, Ritz-Carlton Destination Club in Kapalua on Maui, the Ritz-Carlton Destination Club in Kauai Lagoons and Grand Residences by Marriott in Kauai Lagoons.
The spinoff "has virtually no impact on those (Hawaii time-share) properties whatsoever," said Ed Kinney, vice president of corporate affairs for Marriott Vacations Worldwide.
Kinney said the spinoff was a strategic decision by Marriott International to separate the hotel and time-share operations.
"The hotel side will remain under Marriott International, and ourselves, Marriott Vacations Worldwide, will be separate and publicly traded on our own," Kinney said. "We each can focus on our respective businesses."
The Marriott hotel properties in Hawaii include JW Marriott Ihilani Resort & Spa, Waikiki Beach Marriott Resort & Spa, Wailea Beach Marriott Resort & Spa on Maui, Waikoloa Beach Marriott Resort & Spa on Hawaii island and Kauai Marriott Resort on Kalapaki Beach.
Marriott International posted a $179 million loss last quarter after recording $324 million in costs related to the spinoff of its time-share business. In the third quarter of 2010, Marriott earned $83 million.
The company's stock fell 70 cents, or 2.3 percent, to $30.22 Monday on the NYSE.
Star-Advertiser reporter Dave Segal contributed to this story.