Earnings call transcript Q2 2023

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Operator

Greetings, and welcome to the Marriott Vacations Worldwide Second Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Mr. Investor Marriott President, Worldwide. Vice Goldner, Relations Vacations for Neal Please go ahead.

Neal Goldner

by and Melissa, of Call. XX Marriott today Vice and President welcome and our Vacations role Financial Marino, Tony you, Executive I Geller, Tony Officer; Chief when Worldwide joined and Conference the the Executive Earnings who September to Thank will CFO Terry, assuming President effective XXXX Second am retires. Officer; Chief John Jason Quarter be

today that our federal in everyone risks historical many those statements remind are to cause in comments forward-looking the not as our implied and our under are need could from which securities expressed or future considered are described comments. I filings, and uncertainties numerous facts to of results materially These by SEC subject statements to laws. differ

actual statements comments when Forward-looking as and be well we the effective that only are as release unfold. in night, not made issued as last press events on will call this our updated

Throughout the references financial call, non-GAAP make we will information. to

You non-GAAP remarks can website as page ir.mvwc.com. referred our as to attached the measures of press well our of financial reconciliation the schedules our Investor in at in Relations to a find release

my John now turn it's that, over to to With call Geller. the pleasure

John Geller

thank Thanks, call. our Neal, you everyone, and good second morning, and joining for quarter earnings

a the into to were a coming mixed in comparisons year occupancy we this the run in we tough. we that nearly knew be pleased last had high were XX% macroeconomic While to the VPGs quarter with quarter year going environment,

offset by though to As a be expected on we we this be a lower tours. to basis, VPGs expected result, higher year-over-year

at we and below we've VPG grow result centers that Abound our we We most our to the than was the changes quarter what declined a the quarter, VPGs at more past was in the Marriott did in expected legacy-Welk the by and of points expected X%, locations. this legacy-Vistana the discussed to changes of the selling sales made expectations. believe compared specifically we've few of difference Vacations tours a However, while transition second most

comparison, For quarter, the transition processes, legacy-Vistana are the were decline locations which from the I sales that locations long on sales the impact, will improve down didn't and the we the made business the the that aligning will in at me, Despite that in And transition difficult quarter. a are sales example, in at made strategic product despite legacy-Vistana down double our business future. the contract we've for but us transition decisions were right X% that expect while excuse -- only models didn’t side, selling near-term resulted sales changes Legacy-Welk digits. we in the term, that the confident remain double-digit the benefit change

overseas fully also more sales rentals which been this not by vacationing are in This has in with inbound patterns U.S. Americans replaced higher-end seeing travel destinations negatively like international impacted and travel Hawaii. our travelers. We changes year, shift

Asian XX%. from the sales international increase as However, contract and we European our benefited grew travel in

to our the to Club. Resorts Vacation Ownership under of expect rebrand Vacation Hyatt system. align long-term brand, the the of points our Which to owner sales quarter, continue for first-time basis contract new XXX also on representing one-third We with prior this we Hyatt unified the business, later focus good health this Legacy-Welk one month growth In from driving up them buyers is year.

our vacation owners, as Hyatt In tours cruises we in weeks. a will and Beyond launch the be options adding few for including addition, more we program

member prior and average members to revenue International active the Exchange Third-Party Management X% Moving Interval year. first in very unchanged compared strong to & at compared increased were Inventory the utilization to the per quarter. segment, our was quarter

year due In lower compared in However, Hawaii. to levels. revenue business, lower Aqua-Aston member pre-pandemic prior our deposits remain the was ADRs below to

Americas, VRI compared and reimbursements Exchange cost April, excluding the declined and to segment sold which X% year. in result, last Third-Party prior we a our Management revenue As

was see quarter, ownership vacation I the been to our for associates tirelessly heartening at for want resorts to demand and experiences it travel. our to difficult who owners, reflecting nearly vacation thank leisure have And Despite members guests. the deliver working XX% continued exceptional our occupancy,

in products past, I'm results successfully strategic an changes forward, I'm satisfied markets brands we've while that confident Looking and has management launched benefits. that long-term the not will quarter, we some hospitality and integrated best businesses our in and of experienced in with have this the team the new after the made provide industry new sought

with in increase the in June And seeing July, for we the grow macroeconomic sales contract mix. buyer while sequentially first-time and we to an are full still environment, improved VPG in fact, variability year. even In some expect

to model. also business impact the expect earnings share of per million generate the our adjusted reflecting of this share free year, strength between grow year's illustrating last alignment, million cash of the We repurchases. flow, adjusted leisure-focused $XXX to $XXX of excluding our And and benefit

turn With to Tony. that, I'll it over

Anthony Terry

outlook. towards I'm Thanks, results, our second to XX% quarter and of our to the and X% the our going in our John. Today, with liquidity Vacation strength Starting levels. XXXX sheet segment. Ownership second balance review quarter of We pre-pandemic grew

quarter grew also packages. package by a year with XX% ago, more pipeline than We ending from second our the XXX,XXX

due they than expected. to last did we year's decline to comp, expected come while in However, lower difficult VPG

remain profit over XX% declined they XX% adjusted year, development margin though sales compared $XXX Adjusted decreased lower sales, contract to Despite to at result, million. strong the above XXXX. XX% profit prior year-over-year XX%. a remained As development

million $X expected profit $XX XX of lower-than-expected by million an key, fees profit revenue $XX to partially increase now per could basis quarter. to on expect financing was year. sales rental than of available business, with the the notes This and excluding borrowing decline In by $X increased this While more down million in offset average acquired moderation to receivable the reserve declined we the and coupon by a balance rate. parts recorded a average Ownership Vacation we that point and lower primarily rate profit pickup be we our due ADR the increased notes million, this rental driven quarter, in stickier it higher rented weighted anticipated our

Resort million other the profit the up in but and still for year. costs to quarter, to declined while roughly management is X% revenue $X due full be profit X% expected higher increased labor

As at adjusted EBITDA segment our a the million, in second in result, Vacation margin $XXX Ownership strong to quarter decreased was XX% while XX%.

compared $X to margin to the Moving EBITDA ADRs due was business, & million Third-Party primarily operating our for the year, Exchange prior adjusted Aqua-Aston, Management at while lower XX% declined quarter. to

year. to Finally, corporate largely prior the G&A expense compared unchanged was

the result, declined margin EBITDA XX%. quarter As EBITDA to company XX% was adjusted adjusted million a and total $XXX in

We in $XXX debt stood of $X approximately cash, targeted liquidity, billion eligible in times, sheet. $X leverage at quarter, average $XXX maturities of balance quarter capacity. With interest the the at gross debt ended corporate with ended roughly end to at line net to securitization adjusted and of the X.X X.X% until including $XX to times with of with an no rate X X.X quarter of debt corporate for EBITDA revolver million ratio our our range. We receivable the Moving million the XXXX. notes billion of million outstanding

of interest next rate hedges We by have million that combined a April. $XXX mature

In debt corporate with notes its its our rate forma our ended with $XXX to future mature, June, to a debt quarter receivable. X.X%. we We extending interest warehouse only XX% of related million of will pro hedges our capacity to $X the facility, those after and maturity securitized still renewed nonrecourse However, be fixed billion support increasing growth.

points points. Finally, year-over-year basis XX Defaults were to compared basis reserve on gross year were portfolio. prior up originated XX the increased notes and delinquencies approximately $X sales million billion our $X.X the up

were downward previous While XXXX. higher in first year, we delinquencies than have seen half them the the of trend

last compared also guidance sales XXX new points assumes higher year. XXX Our basis to reserves to

to million return of cash excess quarter, stock shareholders continue common the paying $XX dividends. $XX to million during We and in repurchasing

the share Board $XXX Directors quarter. with the million authorization repurchase at the Our remaining during end increased of of $XXX quarter to our million

Moving to guidance. our XXXX

As being previous night's this driven roughly mix $X.XX and contract VPG. expect release, This $X.X our saw of billion lower lower a now in year. to tours than you and guidance, billion between with last by X% earnings lower is the difference be sales we

expect up expected year-over-year, tours quarter year's We compared last to in sequentially while but to to be points are third few VPG the quarter. improve to a third be down

the expect sales However, increase contract still our to XXXX for demand leisure-based reflecting continued year-over-year, we products.

Despite the margin development expect year XX%, XXXX guidance, a slightly still full lower be after contract reserve. sales to around even sales we higher

for now management resort earlier, year As XX% and to I we our this be up decline being in expect rental up. guidance previous mentioned profit profit to versus

also We last excluding to slightly, increase year's alignment profit benefit. expect financing

lower as Management by at to roughly and decline Exchange Third-Party million versus Interval flat our expect $XX the year primarily We to for $XX transactions million Aqua-Aston. lower to as previous International guidance well of full due profit ADRs

be and we lower our XXXX As adjusted million, $XXX our guidance. a EBITDA million result, now to $XXX X% expect than between prior

also million $XX As alignment this reported year's in expect a a year. we benefit do quarter we recur third that to not reminder, last

flow. cash to Moving

sheet We three billion in quarter, sold support of exclude excess the to sales. noncore million approximately free proceeds have $X.X future total ended adjusted we enough quarter in the during inventory which the balance of roughly strong calculation a with million $XXX generating flow. We and of cash assets $XX

the down million of paid our also $XXX during We revolver outstanding quarter.

between With $XXX now to $XXX EBITDA cash expect be expected we lower adjusted adjusted and free year, our this the flow million. million

flow to returning that in use use flow grow to of excess shareholders. business the and we cash consistent free cash remains absence strategy of allocation the believe it capital to acquisitions, free continue compelling our Our our best we in remains

Worldwide. As Marriott always, we in Vacations interest your appreciate

With that, we'll be questions. happy your Melissa? answer to

Operator

line question question. the first Our of proceed Instructions] Deutsche comes [Operator with Chris with Please from your Woronka Bank.

Chris Woronka

maybe and the what this off. consumers? yet? quarter lot bit good more as mean, get a bit the not taking little implemented experience issue of for Abound, it trying morning, salespeople guys from kind question. down was for of of kind you I guys. having Just is the go was Thanks could a this we you to sense a you where pushback back a it? guess Or think little just an drill Was on I unpack of Hey, selling

John Geller

well folks been your product. and from yes, to have of it on right, to a trained change bit little time said, grove down pitch sales on another, get the sales product the can that. when in Well, you one That Yes. take

a bit that. So little of

And in consumer. education we us to like from being the points when the product public this consumer weeks I -- think was company is went other to the an really prior stand-alone right? this bit and a our XXXX, little a of when is

either happen were for but time. of it use can they that owners into and the is, Flex play arguably product flexibility, existing people the consumer rolling terms stay the were to in better at use some Abound in ownership, best go takes resorts. Abound offers and program, is in Remember, a product Marriott a can weeks Sheraton new use Flex a that bought those cruise start The program. bought sold were or you're now specific the they They the different different options the out how in trips they exchanges. their that sold thing product. And already They Westin things they program product, and weeks, more which that The it right?

and use made old there plans, year, we under folks product So the products. already those earlier their is had this it, it, lot their to launched a call education/getting the of consumer vacation right, because

little which little education take the product, side. best Sheraton Flex So Westin just of to the takes the is that, bit going the and using it's a owners and a time, time the on transition there's of bit getting just

Anthony Terry

that, And interested Chris, in the to about, the that owners educating that them is to new they there and something products. means to out add-on are there's one talk

for So that is a us for tours. good source

the to us to in something door talk get You come about. to

Chris Woronka

going question there And Is Sure. going to Okay. of to the from kind a the -- and way problem gives it little reserves you or say, -- confidence is us then -- towards particular any there's that on the type? the prepared to there color? that little any it? be of the some possible is remarks Is on parse comment get give Understood. a Thanks. more this maybe a Is us the through larger on of follow-up customer Can end coming you not later. just that more or detail bit up. segment gives specific

Anthony Terry

Yes.

out can has In notes looking say our jump at Let then to you balance $X.X John there. if in. have me a billion we you reserves, when start, and start total, receivable originated anything

look So at we in places, took from at When million a a but take quarter, those as had about $XX permanent. we different of the those portfolio. pretty to tend we defaults. of a big lot them look a defaults And and true-ups came treat

way calculation. one that our that's And we do

an they're to curve. future. our are of anything do So on continue and we that default acceleration permanent it's they the assume We don't that assume into going

for we We we So the or sales that reserve us rate adequate what have remainder reserve to we get right the of the that now. we on the and sales feel we right that year, for increased contract the have rate those an default today. based feel put place know that will against

John Geller

a Tony are indicator I up year. mentioned when So a things, of yes, -- Chris, right, of couple other -- his is while delinquencies, defaults and future it think last over which in you potential remarks,

higher go you so we've yes, them some in historical, in we line delinquencies, said, you've last over our time. As of below, There but delinquents if more those them COVID, up. you out time, looked at if seen come than delinquencies, seen a arguably coming lot And right? the with year of of back over we're --

The other Tony's down, this the sign, a of key in have trend that’s point, indicator. been is year positive So future right? point that, that's delinquencies And a to those today. variability potential feel good quarter, outlook, in at we some got a kind of But charge we the including our higher range about we defaults. where this yes, of took second we're coming

Chris Woronka

very Okay, guys. Thanks helpful.

Operator

Thank you.

your of proceed comes question Montour Barclays. with next the question. Brandt Please Our line from with

Brandt Montour

second system Abound much Hey do bit cadence of here? -- quarter? of with under I everybody. taking to more the the just in selling the us we Abound. reminding How Thanks about Maybe my could the how -- for talk want little from and rollout of how the start much what's a was question.

John Geller

right? to of the say, owners right? Because and and you the The is selling allows Legacy Vacation Abound But the the in program. when Well, Sure. Marriott come vast or is program Marriott Club, in that core broader the talk majority about centers should Sheraton play majority, Westin the system Abound are abound, the Marriott of Flex Abound, I Abound. exchange sales the selling

the selling So in the the selling Westin sales transitioned the it I'd over XX% call that Flex brand a legacy the change ones Vistana probably, right, of Club. we're Marriott that the about talking to XX%, about quarter were from like centers Vacation

product, the see the best are to have focus where owners. why trying to a are those they want that for educating to but them. understand understand So benefits way in we're product, the was you That's product, bought I new ones use different and the the them actually it

To in helping Tony's capture, point, owner well it's educate drive and product. buyers as obviously, and owners come on first-time want as, the them to

on. all work's So that going

Now there the inventory still are Flex. Flex Sheraton some we -- in on have the side, Sheraton

those So were Vistana we expecting there over the are are haven't versus doing that Legacy yet. And what of transitioned centers certain broader. kind

more legacy we've big Hyatt, is more as about broadly, the it over, so the well. and seen the So impact really Welk we with ones centers right, transitioning there talked even sales

Brandt Montour

if this the When sort Is guys. there multiyear positive tons and you meaningful when Abound. of look benefits that to that, going remind and in end think just back you start to disruption really to recall, from for specific campaign you're are things. the I management you when out all do -- from brands. what disruptive you to to -- And seeing override weeks different was that balance these think can you had legacy transition Okay. you you at us there's do remember the benefits sheet transition that the -- a playbook, that come will which, points, of inventory implications And financial and likened from those John, the it financial management for a

John Geller

Yes.

the be improve change year. go was forward July. about, much months. But through back you're would know back, to it here to time. to I over see all think a happening talked and I not I like we it we us sequentially here, I will move to And bounce We big in what's this I in looking points, is on or picture, for nine say bigger what think -- expecting than if see based but it weeks you did do months we're the six June build obviously, right? outlook, as VPGs behind this I continued will improvement we're going

And that the VPG. be is one to not saying tell to VPGs starting second I to but is So now, higher won't we're see are right? a quarter, you're month line, about be. we where can straight it in than going more see improvements right you running some quarter -- the But starting X% the in broadly saw you're

as to this through better this through So get get we're we get a year next. lot we continue of and hoping into

already starting as will, you But we're transition. start some this shoots, if we green see to

again, will to I would hard VPGs Marriott. put bought point yes, saying, there as to normal. all out other But a little didn't get once or was VPGs have relative than the good were expected that even to So and we take. we bit be back I We a we moved to deadline different Vistana would the But XX% there. transition quickly probably get of down it to and when think how pretty long a up sense those benefit Vistana. faster to

confident leadership. point hyper-focused They're leaders right as been right on this getting get we've possible, there. we've have through got this So we're is, as quickly before. going that and got I'm to the My

Anthony Terry

last the to couple a three And Trust not had the Abound. that we perspective trust And in in build selling benefit running have probably Brandt, the seen done Abound of specifically. we would we from we've of to that, And program, were over inventory had low on sheet that Western inventory I'd years. add balance probably of little trusts. bit here different on already a Remember, we're

It's coming, one was have it trust separate. customers one inventory why we Abound. of to we selling We have spend. major and of the reasons that's knew now instead lower our three we're because So

Brandt Montour

A Thanks helpful color. all.

Operator

Thank you.

the David proceed Please Jefferies. line Our next with with your Katz comes question. question from of

David Katz

Hi, good morning everyone.

far So Analyst listening targets. pushed a have by a last be about Meeting sense bit get get and the that on some and love some to couple the has of questioners. be things. should amount, that, your coupled it comments we'd could just suppose some it, XXXX of datedness obviously I of And how your has little deck open, to and those couple to One, with which I but out assumption that

what pressure feel like the from Hyatt where is, Have the versus have what's have of now, that we I it. we I'm the is of of control days that Abound? seen asking of your good we we we point. XX the worst at time Do today under degree confidence And might is we suppose the be firm address relatively guidance from rollout World next this right

John Geller

Sure.

sequential taking improvement. second So are we bit a the as I earlier, part, seeing yes, said little yes,

So We're on Vistana are at get as for we full based we haven't you, give gradual the in on terms said, we hockey stick that we year guidance outlook. we that full Welk current achieve that's outlook where sales are look sites and sites assumed that that improvement the our transitioning. but at Legacy should the transition a that the some assuming the of year, up we for the confident

the Day, couple Investor back Going got of we years. look, to a

recover decision. get you going in guys because the have quickly, it longer-term think we is a strategic what how asked, Abound and right is I as of XXXX the lot happens

knew We you a product. a things, you these right, or you're have transition. anytime change make of to bumps to some it, transition about was that we to going some talked And as

like it how going harder The come you here. got where I years get when a that's to of back trying again. predict couple And said, we and and is part quickly -- will

have investments up are talked mean also of this we're better I on at we in the And hopper. terms isn't at as technology clarity. we're where in not the we side. the this get thing So making giving XXXX. significant We'll point we've about, only in

lot force at product. as initiatives of rolling out you be we going to the and got you're transitioning going how sites, marketing, so marketing perspective We're from digital a this our time sales at out same our target a sales

at come but XXXX up we'll the longer So term on terms at here back point. some this and in we're and not look XXXX, giving of focused, team point is

David Katz

quarter follow this acceleration Understood. we if and out up a not I clearly the there of this vision, whether June? you I'm and of and more one throughout we toward these there, in with pressures have in direction, Or and I'm some throw been can hear some this what up curious And which the I -- sort guess end did sneak some way? I'll about was as quarter, perspective through asking, enough? in I was it and sort some the just it of certainly into of myself is out of did got Or

John Geller

in things started came we May in improvement yes, I bit, directionally, the worse little when see think, to in we quarter, a into and got Well, then June.

we So back. if you around million We kind quarter, a mix, of EBITDA million call expectations coming going the own what $XXX we $XXX were look to guide of don't Consensus the of were million, right? let's probably it, our take into our on step second do, at $XXX was, quarter.

a higher that, anticipate. missed our million, own development was which the didn't profit half of So that about internal lot And which quite we sales frankly, about of by right? of was $XX we reserve,

held margin So XX%, above we and reserve lower the the still miss notwithstanding bit was our sales, of sales a the development quarter. the contract for

the of bit rentals. miss other was The

my rate. quarter terms in a pretty of talked had rentals as in script, we And about good was I and that in first occupancy

we have travel quarter the moved change seen year second the and outlook patterns. into our in you As for

You got more international. And that seeing U.S. impact. going travelers we're

markets. higher-end a We higher-end have Hawaii, our of lot those keys,

where ADRs, those down back another in higher points three, seeing of you're we've to XXXX. some occupancy, rates in been four able markets. especially Beach, lower are And get area Florida of

were expectations business. we about our the other in So as side on the quarter the are kind $XX that we shifted probably second million those through quarter, the of versus and of miss rental trends the went of second

the you $XX at in we've -- look million another in we've So the our another million, as of through the what's for basis, and books out because so these outlook, -- it the that, to trends kind or -- it similar plus second of at the as and on rentals, on balance are year of terms it's give relative what now flowed we're we while outlook that -- all miss markets seeing strong call the and take, look a right $XX in the quarter.

have where that's So you it.

do be be Tony that expect about, As notwithstanding we're talked percent. up contract sales with we here XX-plus managing to the to having some development of HVO, this and and we're at noise Abound margin

back these them pattern through for unfortunately, haven't well a travel to be to So first that's we side levels. bit as where the come exchange forecasting shifts year, half the the of the we weren't back and seen deposits little on pre-pandemic here

a weeks coming they would a expect I back out seen to bit that be will to well. U.S. the using gets COVID have U.S. patterns, just some expect, there still patterns pull where those shifted little their of we We're the of People continue year-over-year, bit Europe, that right? here of little expecting still back travelers different broader and at and were going bit, to improve might normalize travel a coming would given that's next the We haven't as out in we that. little that a environment And COVID. year,

were of bit side So we're keeping on what rental was surprise we versus the all that, the an little eye seeing. a that on but

Anthony Terry

rental add and When would of year. when the you there the thing other costs especially for a I are rental on that side. you're in fixed getting year your already quarter, to the lot get one second David, And into

of unsold if fees we So costs, maintenance year. the think the beginning inventory about pay you at the

that at excursions. owners have the other use look our programs they do that to You

inventory and get We back to that we rent. have

owners program. So the going or Explorer we're program, in Bonvoy not participating the from to stop

So rentals fixed. of that kind of is lot of a cost

that's what on little why line, flows bottom seeing little a or we're the saw the ADR side lot here on of bottom So of part bit a side, and line. you when through on miss the a revenue on weakness of the bit rentals to that

David Katz

you Thank Appreciate it. the Got very answers. much.

Operator

Thank you.

line Please Our from Truist the with your Patrick Scholes next question. question Securities. comes with of proceed

Patrick Scholes

Hyatt's break $XX looks morning. down the Can just bit the we It's little Hi, from three you roughly million a cut, million like midpoint other components alignment. guidance there's the tougher of the good at comp, said $XX Abound rentals. further items. It and

much those and one to alignment, tougher down how comp, you taking of For each roughly? would EBITDA Hyatt Abound those ascribe

John Geller

Sure, inventory Patrick. the not Yes, The seeing quarter and there. trends $XX another miss in that's we're $XX with like rentals million another million. call of the right, $XX million, exchange, million from said, I $XX million $XX as and about deposits the the second there, it, the

million. So balance, is balance million. the $XX about -- $XX the that's million of development roughly call the the it, $XX And

just And that's talked some a combination I reserve of the lower sales, but of the sales higher about.

already Tony in that come or got, the mentioned, of million we range where a on for out but we've million, given we've $X $XX on year, as $XX the depending million additional sales reserves. So you

the and rest contract it's then the would of sales of some the sales. impact reserve So on more the be

Patrick Scholes

have Okay. to the timing transitioned the centers what's the on sales about Abound, I you talked believe XX% XX%? other legacy-Vistana of And

John Geller

just a so about Vistana XX%. example, they we a -- there product Adventuras mostly the trust And centers or going me, are are the sell it's remaining Orlando, So excuse So Flex, transition, Myrtle for Westin Flex, next year, won't have The to is right? yes, Mexico, are some different in be XX%, that which really the sales Beach. which ones later in is Sheraton probably not right? Sheraton different then where selling

That Trust. to the will Mexican continue sell

product. example, a for is St. stand-alone Westin Our John,

and Flex. don't of So continue Westin them or me. in transition the And because Sheraton have sell transition. necessarily of all will to front not number will if know don't ones I the Westin that they that It's Sheraton I

then product. remainder existing to XX%. XX%, will So their And sell probably the another continue

Anthony Terry

Yes.

think We you it, be to do we have Flex through. Sheraton driven. about inventory it's sell inventory If more going to have in that the left

deplete inventory and so that trust. some going still to So locations some that can be have our we of old selling back. product that through that trickling always we There's get

centers So into our the the selling keep we'll shifting have some of in but end probably to over. centers more should of sales probably always year, of Sheraton and you next see early through year this sales

John Geller

is Abound thing all in the owners program side, that enrolled Patrick. example, nice notwithstanding the process delay, for and Flex So the are on the about Sheraton those that sales

it using getting that. So educated all and they can start now and

to That's mentioned benefit before, it. use the that of that's right? the is your and the educating but thing, only So getting good piece which owners I not it see

tell to time here the new more educated base would much transition, to So expect about you're go When owner product. a little going a we I will have bit.

Patrick Scholes

Okay.

So safe to all the guess, degree to won't you for the that assume at saw XX% least the had of XX%? with of you that challenges likely first with out the is XX% it first slug that box that continue I remaining

John Geller

think resorts, go piece right? Yes. using for with I'm I Abound that, it benefits or education right? cruises weeks and I all program the space we help tours, will that because the start that the because That's should to product, seeing what it like staying at owners, the exchanging for out of saying. saw different -- owner now, smoother, And things that's mean that Sheraton ability Flex those

right? side delaying on be should than And bit of People transition it weeks a it, to sell bit in points, through starting little of from enroll used easier is is little program, it transition. only a the right? that takes points -- Flex they wanted launch started more Sheraton that to a to make the that helpful, point cold. My should their right, So buy the then

Patrick Scholes

VOI before Okay. that And started roughly. acquisition, owners to but percentage you any sales the did can Abound, Roughly of us represent. what into transition [indiscernible] legacy-Vistana remind you

John Geller

XX% Tony looking say. at to I'm XX%, here. I would

Anthony Terry

I'd that think Patrick, be to have XX%, I should to for but that XX% between you, confirm go it number ballpark. in

John Geller

I back that's and hope we at it, think ballpark-ish. go but look I

Patrick Scholes

I you. Okay, all am Thank set.

Operator

our gentlemen, floor Geller and final question-and-answer turn I'll comments. for Mr. the back to session. Ladies that concludes

John Geller

quarter, not our Despite long with long-term illustrating uncertain diminish quarter, thanks for trajectory. joining satisfied that and everyone doesn't our occupancy experienced again while for the high Melissa, this I'm macro this power you, Thank resorts enthusiasm Great. the my our vacations. of today. call our the results And environment,

hospitality making of to and in We of improvements the alignments side ownership would that core term. made a are branded impossible long right the strategic in Hyatt we're on decisions be our addition we've to to best the propel Marriott the the product, the have some will business that the portfolio growth over resorts with vacation brands replicate our that

all On vacation see hope our your want on to associates, I and our for of in you and world, interest the of thank you Thank to you. customers around owners, members soon. company continued behalf

Operator

conference today's concludes This you. call. Thank

disconnect this lines You your participation. at you time. your Thank for may

Marriott Vacations Worldwide (VAC) 3 Aug 232023 Q2 Earnings call transcript