Wyndham Worldwide and Marriott International Inc. both announced their earnings yesterday. Marriott did better than analysts predictions despite a $760 million writedown from their timeshare business. Wyndham’s stock price rose 7.4% when Goldman Sachs raised its rating to ‘outperform’ based on the fact that the company is selling off its existing timeshare inventory.
Both large hotel chains have been significantly reducing the scale of their timeshare businesses given the current economic conditions of less disposable income and increased difficulty to available credit for financing. By decreasing their supplies, they can keep prices stable and wait for a time when times are better.