Hospitality giant Marriott is going ahead with plans to double the size of its large timeshare resort at Marriott’s Grand Chateau in Las Vegas this year.
Although Marriott has lost significant revenue in the 4th quarter of 2008 and foresees a difficult 2009, there must have been a decision about the future profitability of such a large project. Before the economic crisis, timeshare sales were at all-time highs and timeshare revenue created much needed profit margins for the hospitality industry in general. It shows that management is willing to take a “gamble” that people will purchase at the Las Vegas timeshare after the economy improves in order to recoup that profit margin back into its balance sheet.
Think about spending millions upon millions of dollars in construction cost during a down economy for a chance of future revenue. The plan is to recoup it and more by selling to people to become timeshare owners.