Shares of timeshare companies Hilton Grand Vacations and Marriott Vacations Worldwide experienced a drop in value following the release of their second-quarter results.
- Hilton Grand Vacations saw a decline of 7% in their share price.
- Marriott Vacations Worldwide saw an even larger decrease of over 11%, reaching a new 52-week low.
- Travel + Leisure, another player in the timeshare industry, also saw a decrease of 5%.
Marriott Vacations Worldwide Reports Below Expectations
Marriott Vacations Worldwide reported sales and earnings for the second quarter that were below expectations from Wall Street analysts. As a result, the company had to revise its full-year sales and earnings outlook.
According to Chief Executive John Geller, the company is facing challenges due to a decrease in American travelers opting for destinations in Europe and other international markets this summer. The decrease in outbound travelers from the US has not been fully compensated by inbound international travelers.
Additionally, delinquency rates have slightly increased compared to the previous year; however, they still remain within historical average rates.
Hilton Grand Vacations Reports Positive Second Quarter Results
On the other hand, Hilton Grand Vacations reported better-than-expected sales and earnings for the second quarter. However, the company decided to maintain its full-year outlook unchanged. Notably, there was a decline in contract sales compared to the previous year.
