The second quarter’s contract sales for Hilton Grand Vacations were $617 million, or 5 per cent more than the same period last year. It had a net income (a measure of profit) of $73 million on $948 million in revenue.
Following the pandemic crisis, Hilton Grand Vacation has also been rehiring staff, increasing its workforce by 3,890 over two years to 14,000 in total.
In the meantime, Marriott Vacations Worldwide Corp. has reported that it had earned a net profit of $136 million on $1.16 billion in sales for the previous quarter.
According to some observers, timeshare firms would be able to manage a hypothetical U.S. recession with little difficulty.
In a recent analysis, Chris Woronka of Deutsche Bank and associate research analysts argued:
“To be clear, Marriott Vacations’ business is well within the wheelhouse of being discretionary in nature and the core sales function can also rightfully be described as being a “big ticket” purchase, especially for first time buyers. But VAC also noted that roughly 40 percent of earnings before interest, taxes, depreciation, and amoritization is largely recurring in nature and isn’t directly correlated with contract sales. …. Management also noted that its customers have an average (self-reported) net worth of $1.5 million; 54 percent of Interval owners have annual income in excess of $100,000 compared to an industry average of 29 percent.” —Deutsche Bank Securities.
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