VAC - Earnings call 3 2023 | Marriott Vacations Worldwide Corporation

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Operator

Greetings, and welcome to the Marriott Vacations Worldwide Third Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Neal Goldner, Vice President, Investor Relations for Marriott Vacations Worldwide. Thank you.

You may begin.

Neal Goldner

welcome Conference Marriott Call. and Quarter Worldwide Melissa, Earnings XXXX you, to Vacations the Third Thank Vice Financial I'm and and Executive Chief today Executive and joined by Officer; Jason John Marino, Officer. Geller, President President Chief our

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

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

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

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

the damage West earnings in release results third having Before I with on our saw had negative resorts night, ownership physical properties. impact quarter call you as turn the a vacation no our X the last to in wildfires Maui, our in John, to despite over

of quarter to We where your our release wildfires earnings illustrate exclude conversation a except commentary to the table this consolidated the night excluding line facilitate fires, and To wildfire's a of impact the noted. morning business, will the our our the to Maui for analysis. last facilitate results discussion about of by impact, the this added about impact our business morning

sales of vacation third Vactions quarter In the we our Sheraton Westin Marriott addition, [indiscernible] and ownership Marriott, contract Worldwide, terms brands. during with the aligned year's launch of across last

for methodologies vacation We notes these reserve accounting on aligned and combined ownership receivable our for the brands. also

to the earnings year's to this of the what year a quarter adjusted alignment, benefit. which schedules resulted to results vacation due without last nonrecurring EBITDA changes, have revenue The sale from would third night's $XX illustrate release the ownership last of as prior million in we Marriott our branded in in year-to-date interest. acceleration refer quarter of These benefit and period we provided been

of John call our to commentary alignment Geller. last and all With today, now pleasure the changes our that, about discussion call During year's year-over-year it's to over turn benefit. my exclude

John Geller

Thanks, the wildfires one reflecting start thank Good to by you third that joining the earnings today the most and morning, everyone, West third for of quarter, our Maui. battered on quarter I call. call in happenings the Neal. significant wanted

have their a While homes. any with our resorts, we our did not the physical families associates on impact and them of losing had hundred damage several to their profound wildfires

of with with as and our dedication our other to their associates work continue Thanks community rebuild. and all and in they our of For associates. them to be thoughts the Maui, prayers to each hard work

We Maui, occupancy have reopened was below October our resorts normal. West well although in in

levels. we early until seeing returns reservations to the build of until expect though We normal take it the year year are more next balance occupancy will for

same support respectful and island focus explore time, guests local our the and been travel that enjoy members owners, on on businesses the to tourism. the and At rebuilds has need our visitors any community the encouraging as educating of

results. we when Moving announced a year to first quarter ago, only our was third It bound. a

our Abound a have more using to resorts wanting introduced other owners higher. of resorts customers Since portfolio people provide interest and much to and access a of we have buyers with and time the benefits. at to then, owners broader been currency elevated been couldn't about learn common Abound, see first-time and continue to direct thousands enthusiasm to its Our at

is it the near-term of in product. doubt impacts fundamentally transition, my that no mind the a there's Despite better

now previously directly XX are and Westin our they into who for owners, Sheraton and any had points resorts book and to Sheraton owners, using had more around legacy For of of world currency. a vacation limited than legacy any their Western to ownership branded able book Marriott resorts, system access common Marriott the of directly using they a can resorts more the now into

of In more. now their Sheraton vacation alternatives to cruises access events, have and addition, broadway the to selection options a robust to using Westin choose stays much legacy and hotel from points plays and owners more of new with from vacation sporting thousands other

working and Over salespeople the hard been about of benefits the are our educating consumers more selling it. past year, Abound getting we've experience

to this allow the more seen quarter, use elect of results the we've in experience sequentially This owners increased evident Legacy that was number Vistana VPG to this have last, owners firsthand. program compared a the more from to Wealth in quarter We Abound XX% Xx year changes sites legacy X% where second also the than transitioned will which the benefits VPG made drive sequential our and our for helped improvement. business,

X% VPG total second despite the As Maui of a improved from company sequentially result, impact the fires. the quarter

satisfaction launch owner drive our of properties vacation the quarter, Club formally brand. Residence launched BEYOND new a also access XX incremental owners which the to more under higher and offerings, Vacation help experiences, tours. brand travel Club Vacation We program, including Club and single the have And now Hyatt the cruises will with and Hyatt bringing former Legacy during Hyatt third Wealth resort

and to this impacted North U.S. America negatively provide Our continues more Pacific with strong has year-over-year, growth XX% international year, results. with consumers traveling but contract our sales business Asia growing this abroad across Europe

and long-term health in of continue is We focus representing owners sales good the the of for with our on of sales, new tours our the to which driving half contract quarter of system. X/X buyers first-time

years. intend Club. a as few a the market, to we opens sales by in Savannah, Georgia, destination new a Westin On convert ranks we tourism This acquired which the property will top development a it our also consistently front, resort centers Vacation owners. into XX-unit add when in Savannah in

in year-over-year, while increased. our slightly down member members Exchange per Third-Party quarter. Management revenue our line performed Active and expectations In were Interval this business segment, with

Looking of same and impact as well higher to forward, with patterns ownership with and time, demand vacation At our business rates made the as the revert the are to continues consumers mixed in we've changes feel Abound Legacy business of economic to those encouraging. launch interest travel branded the to historical conditions Marriott our starting inflation. are Wealth

hard from the X% were improved sound up reflecting our is the quarter of even above the work. business growth impacting with levels and our QX fundamentally Taking VPGs second with opportunities. Maui long-term longer results, XXXX, view, fires the our benefits team's XX%

potential. in each industry, of some brands vacation with ownership best the We have the own its expansion

technologies streamlining enable more in our by digital make organization. to are data self-service the the to across people lower members. offers We're owners right and to right costs investments We to processes while our the making time, at leveraging smart right

We economic exposure year also a to cash cycles stock to generate we high-margin revenue at of have use amount in, times can't out. shareholders. flow substantial think current to of like and this substantial a that better reduce it year return of price, recurring I in our streams free except that our And cash

to to it that, discuss With results. turn our Jason over I'll

Jason Marino

XXXX. of XXXX our Today, John. our to I'm about our review guidance third early Thanks, updated thoughts sheet balance the liquidity, strength results, quarter some and and going

where the about facilitate a Maui of mentioned, estimated wildfires, addition, of except all as business, noted. the morning conversation will Neal impact my this In to exclude our comments

with X%, Maui about the impact of was $X,XXX, X% of and second owner $XX Abound. Vacation a quarter fires. segment. the of sharing third the over year-over-year education sales Starting excluding only declined training our well At Contract benefits organization estimated as continued VPG sales the our down million Ownership XX% in the of illustrating best as benefits decline the quarter across the in practices versus the

grew compared is that be a future to a robust our continues driver sales. and Another sign key XX% which year pipeline encouraging is of to package ago,

loss saw As you release gross our additional charge billion our an $XX recorded night, in receivables quarter $X.X we notes last on loan the in portfolio. million

in As these the we expect into have macroeconomic earlier expectations. to the still this the adjusted provision, year, in above for they quarter, continue near- factors the estimate data to- in and trends prior we on last our from loan but saw loss and medium-term, this taking and we observed we account. mixed XXXX, we the year Based remain our discussed delinquency improved

we EBITDA Mountain $XX was adjusted locations higher is approximately not After in reserved. in as declined added adequately lower our as partial back our in which million offset this year-over-year adjusted calculation impact the to million, the Rental our adjustment, million RevPAC $XX on of have well portfolio EBITDA. to believe costs. ownership, primarily $XX and Orlando due consumer loan cost holding With inventory basis, profit of we of vacation a

nature recurring profit grew Financing high-margin X% revenue streams. increased profit X% Finally, and Resort the year-over-year of these Management reflecting

estimated quarter, segment Ownership would in As in year-over-year of impact adjusted a $XXX third decreased Vacation the to the million EBITDA our result, have XX% Maui. excluding

compared $X year, Third-Party XX% while our Exchange RevPAR to Moving million International the Aqua-Aston, exchange operating fewer to declined Management the quarter. Adjusted and for just prior lower margin driven over at business. and Interval transactions at by was EBITDA

company the have would $XXX adjusted total result, quarter. a EBITDA to As in declined million

the approximately ratio to and balance adjusted debt a of Moving the to EBITDA net X.Xx. billion quarter sheet. We with ended $X liquidity in

shape B million good [ remains QX only will rate authorization. in X.X% sheet our rate of hedges underlying our And almost million fixed repurchase our $XXX at loan variable no total XX% XXXX, million an $XX to our stock remaining repurchases debt mature be maturities after when of balance million of with rates. year-to-date today's Our our debt corporate still the common interest interest rate in ] repurchased in until matures. April, with corporate quarter, $XXX bringing with in We term $XXX

our to guidance. XXXX on Moving

expect an loss to million increased net last in from $XXX $XX decrease As night, from million million and release EBITDA you $XX our million be impact the million, $XX the loan our the adjusted Maui between and fires including $XXX now to we estimated provision. saw

to fourth million $XXX EBITDA to Maui including be the $XX wildfires. quarter, estimated expect For and million an adjusted impact $XXX $XX million the from million, between we

between sales We fires XXX now the this point to $X.XX impact year for after basis be the of and be after development around XX% billion and an margin loss to contract provision. year Maui billion estimated $XX million million extra $X.XX full expect loan of to the $XX impact

Maui contract impact $XXX between fourth and be the to $XX fires. $XX quarter, an to estimated million million million of we the expect after sales million For $XXX

management resort expect profit higher be increase due ABS year-over-year market. the continued down fourth profit financing in and million quarter the rates $X than interest for in to more to slightly, We to

profit lower higher approximately million impact rental one estimated to expect decline of we due this addition, slightly wildfires. operating In the Maui costs $X year-over-year to RevPAR and

to transaction Aqua-Aston. lower at due to our million Interval in the we Third-Party and primarily and decline RevPAR quarter roughly $X profit business, International Management at In expect Exchange lower fourth

in EBITDA adjusted a year's that As to this last a reported alignment reminder, year. $X million recur not fourth we quarter benefit will

Moving future million We approximately the ended inventory support more with to sales. flow. enough billion cash than quarter to $XXX of in $X excess

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

a Finally, provide still next XXXX plans, while are little our working to color we for we wanted on year.

to a revenues and expect to in We sales and of marketing team sales grow portion rebuild despite Maui. our having contract

we However, where profit pressures. business, there two are to cost due decline parts of to year-over-year vacation ownership our expect

year higher rates be expect expect negatively We business, to pressures And rental our result expect which our in revenue. profit. the next the insurance in continued to offset will in ABS in in increased we to business, market costs. our due and This costs labor, to fees materials financing increase to impact we in maintenance by inflationary owners not interest inventory finance higher do mid-teens

be more will also you the We'll information about to more expenses in In compensation report addition, impact year. February variable clarity give negatively the able earnings we Maui. will expense in of recovery G&A when return when we have next

we'll Marriott and in Melissa? As questions answer any happy to be we have interest your you always, appreciate now. Vacations Worldwide,

Operator

the Instructions] [Operator Truist question Securities. from Our Patrick with first of line comes Scholes

Charles Scholes

A number of questions here.

that another there's $XXX that cut What the What First a $XX is we at am million, million. provision the about loan one, million? thinking there Maui, your $XX is bridge can roughly midpoint. $XX know help And million but full so, roughly by million correctly? if is year $XX I guidance you difference -- what loss about

John Geller

well in continues given, really take VPG been in sales the you expecting for in on the quarter, be terms were It's the our X.X%, we did a off quarter bit bit of X% flow We up on just a tour the, was if thing same two pieces higher. little has terms call improvement, in about little we down, exclude Maui, primarily. but increase tour but Sure. third and mostly something were Still did margin versus were expectations. third flow excluding VPG of the where doing we contract it, Maui more -- to expect sequential

miss quarter, that of that So we based on kind in third ran the through.

million call a what it little roughly was, we Maui, in contract expectations excluding kind that quarter third than from development sales, gives the of if through it, impact So you of you're at probably terms did quarter about kind in $XX and we based lower got about bit fourth the look the running the our that on previously you of trends the half on $XX million talking of profit. in here

of some but some our just mountain to business we've in last the And then our relative of to trends of our some in about as the past, other particularly just talked markets, do piece, year, Orlando, rental well, resorts. continues the

as We lower softer have ADRs as occupancy. slightly slightly well seen

So those it really was two things.

couple minus around but profit. couple million in development plus and or or of rentals a really a G&A, it's in got plus things, the there of the You minus,

Charles Scholes

Okay. some the On program? that the related continued Abound inclusion sales into to due to first of part, weakness of that was

John Geller

was little wasn't where XX% I made X% VPG think was going up sales Abound, would But about good a the you sequentially, at the forward. progress, to VPG, third from that the a progress quarter make at second continue right? if here positive bit. to about we overall transition saw very I there the So say in really we'll increase we centers look quarter good and in

of on the kind VPGs gap closed pre-Abound the haven't yet. We

going And the we our get the BEYOND then thing, with call enhancements offering, about see X% it, same to program sequentially Hyatt and to to from launch expect centers improvement the traction side, started changes we've on sales the, that there. you more and Walton of And forward. made

we tours points or quarter. the the two just said, of of it's like VPG more expected broadly I more below generally, and So a throughout system couple what point a being for

Charles Scholes

Okay.

move topic on possibly Or just it's has been combination or from now It that forecasting down are forecasts? forecast, of there go that provision seems taking any to customers' in in something do ability these to mean didn't seeing when hits. Let's you material challenges me just the Or a actual or other loan the it to one your loss their with any pay didn't of downturn loans? right? loans? the I paying is you right sit and the go

John Geller

Yes. your look We right? little bit background. past how pools defaulted loan based loss going be static the historical defaulted in the Sure. history loans project of projects, have And the future curve. what scores A based timing, on that we reserves So on of in reserves, when that, they loss and on loan at loan should static forward. pool based reserve loss FICO

to So in you're right? have minuses, any given going quarter, pluses always some and

of continue to prior that. the those delinquencies of that quarters kind the to remained and they of static delinquencies, historical pools and last even kind And some still a last year, in were we higher first related on down, first quarter in about We take static little versus right? about but did basis the year, talked last quarter we couple above the trend year true-ups we versus talked As of and though bit, quarter expectations the right? seeing pool a in those sequentially

based reserve. couple forward, on And assuming need as defaults out so of the said, that, these say, going we look here some quarters to we and we of had a let's adjust higher look, trends,

reserves portfolio. billion, which $X.X charge, we've adequately think Remember, we we So billion $X.X us. took a loan now got

adequately now a of that on of book, about portfolio. loan couple reserves think higher on that we're points we you're So reserved here talking

forward, loss kind and of historically probably which going to our that if at minus been reserve it which this level, that be resales, what is here. should at to of at experienced we've propensity, or look XX% to going you prior in to financing similar what assumes loan we've And you quarter, be sales sales, net that contract if number contract net plus X.X% high a look a XX% running roughly of

puts we our all a we based So this based and best have today. going think on good forward on information the spot us estimates in

Charles Scholes

weak question. Okay. there net high problem with worth has the that, your really here Is worth last seeing in class a one I'm consumer middle And average here. pretty $X.X I'm you over down trying solidly because two? a $XXX,XXX or something income, household And here? follow-up to is any year to related -- that are just not puts other related standards just have sort changes there Then you you it's seeing upper just really dig underwriting it of been [indiscernible] in net record, the consumer above places. or do it million

John Geller

X-plus we mean, changed about No, say inflation, margin, I put you. of in loans our over think I rates. there's underwrite seeing the years. the consumer. interest know higher would Yes, the got a impact I nothing's given how higher aside, terms income I last from -- be on I to mean, don't we're

on plenty side, of right? think there there bright on travel, out are to that consumers are the spend I continuing

a a of the kind and in year were ago. we or there's seen nothing can marketplace. the they so see from consumer, just stressed are bit on seeing what now I it's more but consumer general you're says, little that's is -- -- But That's well, my this generally, -- what consensus think and a consumer observe we've And that than that seeing. I

terms by In any broader You're points, feel in it seeing, a pervasive it's of couple margin, on you like a issue it, right? doesn't here, means. took like terms if the we of charge feels will, it. additional It a I said, of the call bit

Charles Scholes

you're FICO the say in above? of Is the in the it seeing one the is it weakness? or sort it last just is question. across score XXXs closer I'm Okay. Would that sorry, spectrum? Or where or high you all XXXs

John Geller

look, know, it just we great at there's some debt. how your take you all level predicting for right? the balance into account -- see as your It's -- doesn't but We defaults, score is FICO consumer sheet, manage

or We the generally haven't band. seen across We one another. see increases band

versus not FICO a So score to specific a band FICO lower it's band. score it's like higher

there. Jason, anything, think, like to it's any one another. you I want I where seen or color haven't add specific to if band But

Jason Marino

is XXXs. more add are little sub-XXXs FICO the No, the probably it a it all up They're Patrick, I above bit, lower the but would just pronounced at bands, versus the that more... up call sub-XXXs

John Geller

for You pool. got loan sub-XXX remember, to what us our of is percent

Jason Marino

XX% of is our pool above today loan FICO. XXX

Operator

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

John Geller

we Brandt, you. cannot hear

Brandt Montour

me Can now? you hear

John Geller

was It better. all that's Yes, cracking.

Brandt Montour

you everything and the see today sequential So for on But dug me you're loss the sort help here for two from I consumer and what up sit me. behavior one provision, I well question just, us one of sort commentary. understand the in, think sort of for here. all or we today, can of we following appreciate the think, or you of in reserved for assumes questions consumer behavior loan When the that

look trying for just here. So the little provision gets changes, from then -- there's correct? taking sequentially bit figure mean another if to out, sort consumer cushion charge, it's if you if even nothing loss consumer for we from would a go could have what If X.X% loan in happen think there you of I to at the to marginal, of quarter. next worse, back

John Geller

factor what we've we some given in tried Yes. macro. of the to broader expect And

near last in estimate. doesn't in say -- term, best of yes, it And an been here today. couple of of our So what any I estimate over quarters. doesn't kind increase expect the terms great at the seeing it's least we've would It's

materially in. how see guess, on, guess, -- yes, I So we haven't and if did forward, I question. I depending that going that if that's big worse but yes, mean, we was, change a factored your

we've you're at drive a the big medium-term in been increase broader in here, defaults. macro that a stuff to- seeing. the the environment assumed have going near- that haven't great like least necessarily But We some deterioration of in higher we assumed to haven't would

Brandt Montour

commentary That's core helpful. sort what million back to non-LP And would of, sort the year around the you then non-Maui, down. gave some of Okay. guide call, $XX or I of full

mean VPG a You then and a bit little a softer is hear lot softer softer little to ARC of rental tour ex Abound, ADR, better. of I gave and flow good bit that getting color. softer Abound

basis? having all rolling that all If those I'm your it's of across people travel? terms bit fair up, But worse. are traveling the to is those a say think, Are and I little demand. on of gotten of business -- I like still still things in have little sequential impact just sort an adding pull is is you comments sequentially, a consumer or seeing it leisure the there a macro bit back know

John Geller

great -- think question. a it's Well, I

I with up right, like kind couple was Abound Abound, up right? VPG about about, sequentially, was of up improvements think we've about we a points X%. was talked in the seen of sequentially, XX%, Hyatt

will, the centers were non-transition, you X%, up think generally X%. sales I if

talked So about, year last like like We call. yes, a like last we've stabilized, VPG, it the end year, more importantly, kind this talked especially side, now how last markets. realize but our in from on talked we about a higher lot feels about was, good a rental clearly from of we of and it's versus

the are Obviously, we it seeing, points, of off the we'd you is ADRs excluding and a markets in But that, of a if is in will, from right? what here well. bit of and that U.S. in in occupancy second is that down year-over-year Some of higher the the -- Hawaii as markets Maui end firming in here quarter of our we've and a the fires lot couple even stabilized, have some impact the see third thought been quarter. you

maybe this a better last in change to the probably end the do U.S. that We higher-end of year of some will comp went tough higher in year abroad the 'XX, So U.S. lot of in markets. given patterns. still traveler some that than expect and come travel stay

in, rentals factored about something terms as full we thought wasn't the we year. that in for our but -- So of

just they historical basis, well doing still, on are So very a year-over-year.

realized we how pushing rent where That's rooms, team occupancies rates on last getting working is But strong year today, up. was. the and

it's like will, than a we So we business well, as bit in part stabilized, of little if that generally expected. feel the you just lower

Operator

Our Shaun Kelley the next America. from comes question with Bank of line of

Shaun Kelley

for couple for you So mean run the blocks XXXX. onetime if just excluding gave more building a us if provision just provision I'm think a any or with? it, rate us of just the I give think just results forward? about, you EBITDA accruing we the trying forward guidepost a to year-on-year start modestly how of call to help to onetime margins we headwind the something Can more let's think this that with at just you going of Is or the obviously either broad-based could I the kind on kind -- component, for we dollars should that through piece, importantly, higher company level provision.

Jason Marino

is Yes, this Shaun, Jason.

place good mentioned, in the overall a we're portfolio. think we John as think for I

contract a we'll you neighborhood. maybe into year, as headwind, I points I QX something a have think forward look into in of then basis percentage it, and tiny XX that as sales, call next would

a So John XXs mentioned next going provision loss area normalized that low I loan forward. X.X%, basis, the a assuming to XX% expect for big don't propensity. on a change But year for think it's

think to that's good about think place it. a I

Shaun Kelley

financing And just Great. broader trying environment. think I we're the to all on grapple then piece, rate with the

out. this call of did You kind

believe you're your ballpark, the of think I of loan or kind to $XX can the one Again, of us you size T&L you guys of range a running to is probably you a relative help of on own numbers us program. your about have. but little still kind roughly talk a believe gave budget any that competitors appreciate of broad your million what it's I headwind. for financing but these book bit some I Again, give through purposes, I about guidepost can of that bit early, think a and larger

Jason Marino

Yes.

our here, a in year. and be the really, it now. a premarketing term. next We're deal going did you So in did around potentially think We rates short earlier to will print deal where the right year, doing go here on at Shaun, in this It are X.X%. market we depends

So that so it, we'll call deal more where or ago. see month see the a with where priced, lands, T&L you

in have the as Obviously, both rates moved underlying in spread. well the

movement next that's I it the think happens terms you kind year. ballpark depends expect. really, the on then of what just can that in So of And

So terms ball your of ours good is as crystal rate environment. in as probably the

Operator

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

David Katz

I wanted bit double just of Abound signs a focus to showing good little It's to on of I wanted higher But it's on improvement. level. back to that sort see some why, just a from anticipated. why now -- could what we obviously what the we were into happen or it surprises There that that it. going quite -- did we way know about though some Abound thinking didn't with

the So I strategy please. back just it on to go wanted of

John Geller

Yes.

that talked different was the always be impact. better overall the a about, can knew we've because David, knew offering. there we before And we some going products it's thing that product, as we in to So right, transitioned

the Vistana is it educating, legacy your are of were part were because So sites -- specifically, transitioning site. you that

of Westin now, Westin because and selling Vacation still Sheraton, the So Flex Sheraton product, Abound. it the old still we product, the have new Abound inventory gets you not We've into most product. Marriott transitioned in Sheraton. the selling is the It's think just

-- Flex [ bumpiness. could knew happen. for be the there's those So their Legacy was owners, that fit of Westin part be bought the would One, or traveling it there and a product what ]product. that need That's Westin to bought. two things of transition there V really They that some bought who they and A part reason, is we certain needs.

can enhance new to a them they be might think is not product product, that right, what need better introducing but a we're we Now a to traveling or product be their might better experience. needs,

We educate information, and really understand but in send them. when a a tour is best the we them try want and online chance to information of it. So come and can they lot take people and

of part process. that education the So

comments, my product, the what people actually 'XX launched elected piece always by using had people Legacy we 'XX second like X.Xx the very year The to from this it their the I X, program and year, this in had you're use that's seeing about for and for is talked few Abound now, people into the vacation elect about Westin they time more Sheraton.

and product, yourselves it then right, product way the pitch, the there retrain is, the offering. is Westin piece, -- product. educate in the selling but And based to use were experienced like the sales of is other on product that So team about team, sold a and sales now And we've we They on then that talked that. confidence all and always the new a a we right? getting different training, sales certain was what bit do better the

So it to more all could disruption we than what we to in bit of VPGs, could lessen things lower like we things be that. expected. that was a that And terms the do attempted little probably

the Abound rebound we're news, way third I not launch to pretty while the right, basis. here VPGs, about back Now the an quarter. in on close, like pre all overall good see you're is we're starting getting to talked on the And

looks good. it So

to happens very Vistana the tougher to little comp Our was trends going the arguably VPGs here a in use to Abound that actually time. little it's and last today which bit year-over-year, and look than positive continue October a -- we've legacy get seen with were program, of all but right? to basically So to year, flat probably those owners help

Operator

from comes question line next with Ryan JPMorgan. Our the Instructions] Lambert of [Operator

Ryan Lambert

being the by to the I different longer your tourism on the that an the view you still know just be some have kind of market dynamics it's Do attractive economy term? attractiveness of of with impacted. Lahaina get got significantly kind of I Maui and labor driven you and market? was majority wanted find it to

kind might it's you what lot see different So a hurricane than in a scenario. Florida a of

So just think year that wondering that? effect term of if opening property any sort Waikiki about your next has how of you longer on and market

John Geller

the long but of infrastructure terms hurricanes really to Lahaina example, term versus tragic, come a like do we're that in Yes. the broadly very more an to for your on island No, with Obviously, It still isolated. we see a Caribbean. what damage Maui. could very is of hurricane, the in bit happened and some in point, bullish overall to lot island's a more

about, I probably which We it there October. kind they about a vacation resorts our ownership X West Maui on ran side, seen our reopened. back occupancy, XX% of in in occupancies call come just As the talked given we've for

So you're the owner seeing demand.

to build expect We that going forward.

Our resort of through we're percentage down working but of staffed that. now, couple fully a operations on is points right being some

a XX%, for going next occupancy. think you're my typically talked like us, think to in in I we occupancies, Maui, remarks I Remember, XX% I year. resorts [indiscernible] see run about do early

I our staff. as touched to to through look expect, going early at comments, sales see we're into it marketing this get So next, year that his and we've got do we probably in on and Jason

come ramp We sure not have seen island. We're if back potentially the some people sales back they'll there as here. leave we up

hard here, do to team So we've little the we a a rebuild bit got the working to and little of marketing that. is and sales got team but bit time

impact. the that's So

previous the I back. going all to that go back haven't that get won't Maui me any we'll seen forward. numbers or think and then I gives pause heard anything some

we quarter. out are go since islands some because traded year, other just have here Maui, little maybe into bit some people to surprisingly, in in this pickup seeing Hawaii fourth general, in here you're a the islands the to Maui, to the go of in Waikiki And the not

on we're center which Olina that on sales the It's obviously first Waikiki and out flag excited in our Oahu have. launch. us map We're Ko in there. a don't in gives Waikiki, we about So

for So overall. the long people Hawaii property for believe to that demand excited term we're to super and in really travel open up to

Ryan Lambert

kind just impact sort unknown if fairly forecasting in the builds comfortable unknowns kind you or feel your of any And in that of in of wondering Great. for the there? impact XQ, forecast on if

John Geller

When terms you we obviously, Maui right? today. numbers I going the means. off say here based that sales unknown the adjust would October that reserves sales, up be as about, and in reserved I good October, -- unknowns, a not we've on seeing if And based for you Maui took gets in year-over-year, to talked sure here talked of we're mean, Yes. we're exactly in what in impact contract this forward reserve everything on the start here, about we fact adequately today, feel us know what we it's But

make terms continue year So on progress to the And in those good. bit trends on side, rate [indiscernible] rental hoping and occupancy. side continue of we're of just expectations this to the pretty is our which

travel. time the here sales are want that's right? last staying key. December, on properties. from setup year resort our our we seeing November higher to What's and the than this the the for demand. XX% into occupancies people So come people broader as for -- notwithstanding So year, great of we some our half go want is at of first our to I don't of books macro, the

our of fourth build going on Exchange all So we in as see business. seeing Exchange Exchange get continue in terms And we And next a and business. to to expect that year, go we quarter We're good well. tightening our hopefully, the improvements that, transactions. smaller do growth extent bodes forward through into sequential

here, we're the broader So optimistic outlook of notwithstanding the some about macro.

Operator

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

John Geller

and our mixed the customers' we the economic next excluding Thank Despite Maui our we in you, go we the today. illustrating half same XX% environment, desire ran books year on everyone, first of on year for reservations third more than the had to joining occupancy have time at our quarter, resort ago, a for and call vacation.

was to it. growth are our about years while provide selling more offering XX% centers we've where making increased the VPG than salespeople this core That of quarter, enhancements product sales more will at Abound, We're experience educating come. made progress have good transitioned consumers for that getting to and benefits sequentially our the our evident

XX% more a spot, Our continues be International than business to sales year-over-year. with growing bright

to free And forward $XXX with which returned a Waikiki We million Charleston, our expect have next to year, Resort X and each us in this and sales around of new this provide generate new also will shareholders. year when a come which Georgia looking projects nearly South $XXX open. cash flow we're opening to million Savannah, development late center with will Carolina, year, already new adjusted We've center. sales new announced

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

Operator

concludes Thank conference today's call. you. This

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

Marriott Vacations Worldwide (VAC) 2 Nov 232023 Q3 Earnings call transcript