Marriott Vacations Worldwide Corporation (VAC) Stock Analysis & Winston Score

Marriott Vacations Worldwide sells timeshares and vacation ownership packages at resort properties around the world. Customers pay to own a slice of vacation time at destinations like beach resorts and ski lodges, then use points or weeks to book stays each year. The company operates well-known vacation brands including Marriott Vacations, Westin Vacations, and Sheraton Vacations, though it is a separate company from Marriott International hotels. The company makes money by selling vacation ownership interests upfront, collecting annual maintenance fees from existing owners, and earning fees from financing the purchases it arranges for buyers. Most of its resorts are in the United States, with additional properties in Europe, Asia, and the Caribbean. Its large base of existing owners paying recurring fees provides steady income, but the business is sensitive to economic downturns because vacations are a discretionary expense people cut when money gets tight. Rising interest rates also increase the cost of the consumer loans it provides, which can slow new sales.