Timeshare…the Little Engine That Could

At one time, there were twice as many publicly held timeshare resort companies listed as there are today. Here it is January 2025 and only four that come to mind. (Feel free to straighten me out at linkedin.com/in/sharonscottwilson.)

An article in TipRanks, a publication found on the Nasdaq website, points out that timeshare stock is undervalued at the present. According to JMP Securities, a full-service investment bank and institutional brokerage firm, …”timeshare stocks have been passed over by investors, resulting in a share price discount.”

“In our view, near-term headwinds have been priced into the stocks and/or are reflected in 2024/2025 estimates,” JMP analyst Aaron Hecht was quoted as saying. The top contenders for future explosive plays (to borrow a football term) on Hecht’s list were Hilton Grand Vacations, Travel + Leisure, and Marriott Club Vacations. Visit https://www.nasdaq.com/articles/jmp-says-timeshare-stocks-will-outperform-over-the-long-term-here-are-3-names-to-consider for the details.

Forever optimistic, market analysts are expecting an improved economy, despite geopolitical risks and current high inflation, particularly if the Federal Reserve continues or even escalates interest rates. Natural or manmade obstacles to the supply chain could limit economic recovery and growth.AI and automation could lead to job displacement and civil unrest, as well as to unforeseen disruptions of many kinds to businesses. Of the many unknowns threatening the economy at the moment, are natural disasters such as the Southern California fires.

Nevertheless, people still value vacations. If owning a timeshare assures them of being able to afford one each and every year, it’s a message millennials are hearing loud and clear. The article notes, “The model has proven particularly attractive in the millennial demographic, a fact that gives the industry a sound path toward long-term profits. Millennials are relatively young and are buying timeshare rights at a proportionately higher rate than other age groups. For timeshare companies, this presents the prospect of a sound business base for the next decade or more.”

Here is an overview of major publicly traded timeshare companies, courtesy of ChatGPT:

• Stock Performance: As of December 16, 2024, HGV’s stock closed at $40.49, showing a slight increase from $40.05 at the beginning of the day.
• Key Executives: Mark Wang serves as the President and CEO.
• Customer Base and Properties: HGV serves over 310,000 members and operates more than 60 resorts worldwide.
• Differentiation Strategy: HGV emphasizes high-quality accommodation in diverse locations, offering a flexible points-based system for vacation planning.
• Employee Count: Approximately 8,000 employees.
• ESG Initiatives and Ratings: HGV is committed to sustainable practices, focusing on energy efficiency and community engagement. Specific ESG ratings are not publicly disclosed.
• Operational Regions: Primarily in the United States, with properties in Canada, Mexico, and Europe.
• Major Shareholders: Institutional investors such as The Vanguard Group and BlackRock hold significant stakes.

• Stock Performance: As of December 16, 2024, VAC’s stock closed at $134.66, up from $134.00 earlier in the day.
• Key Executives: John E. Geller Jr. serves as the President and CEO.
• Customer Base and Properties: Marriott Vacation Club has over 400,000 members and more than 80 resorts worldwide.
• Differentiation Strategy: Renowned for luxurious resorts and exceptional customer service, offering both points-based and deeded week ownership options.
• Employee Count: Approximately 20,000 employees.
• ESG Initiatives and Ratings: Marriott emphasizes sustainability, aiming for 100% renewable electricity by 2025. Specific ESG ratings are not publicly disclosed.
• Operational Regions: Properties across North America, the Caribbean, Europe, and Asia.
• Major Shareholders: Significant institutional investors include The Vanguard Group and BlackRock.

• Stock Performance: As of December 16, 2024, TNL’s stock closed at $40.49, showing a slight increase from $40.05 at the beginning of the day.
• Key Executives: Michael D. Brown serves as the President and CEO.
• Customer Base and Properties: Serves over 500,000 owners and operates more than 245 vacation ownership resorts.
• Differentiation Strategy: Offers a diverse range of vacation experiences through its Wyndham Destinations and Panorama brands, focusing on flexibility and variety.
• Employee Count: Approximately 15,500 employees.
• ESG Initiatives and Ratings: Committed to sustainable tourism, with initiatives to reduce carbon emissions and promote diversity. Specific ESG ratings are not publicly disclosed.
• Operational Regions: Operates in over 110 countries worldwide.
• Major Shareholders: Institutional investors such as The Vanguard Group and BlackRock are among the top shareholders.

[Caveat: Bear in mind Bluegreen Vacations Holding Corporation (BVH) was acquired by Hilton Grand Vacations (HGV) in October 2023 for approximately $1.4 billion in cash and stock. For Bluegreen Vacations stockholders, the acquisition offered the option to either receive $24.00 per share or exchange Bluegreen for 0.2575 shares of HGV stock.]

• Stock Performance: As of December 16, 2024, BVH’s stock closed at $20.50, showing a slight increase from $20.00 earlier in the day.
• Key Executives: Alan B. Levan serves as the Chairman and CEO.
• Customer Base and Properties: Over 220,000 owners and more than 60 resorts across the U.S. and the Caribbean.
• Differentiation Strategy: Focuses on providing unique vacation experiences with a flexible points-based system and a variety of resort locations.
• Employee Count: Approximately 5,500 employees.
• ESG Initiatives and Ratings: Bluegreen Vacations emphasizes environmental sustainability and community involvement. Specific ESG ratings are not publicly disclosed.
• Operational Regions: Primarily operates within the United States and the Caribbean.
• Major Shareholders: Significant shareholders include BBX Capital Corporation and other institutional investors.

For those of us who have been involved in the timeshare industry since the ‘80s (this author was hired as Membership Director for ARRDA in 1989), the demise of timeshare has been consistent. Nevertheless, vacation ownership has not gone down without a fight. We join Hecht in agreeing it is now (and always has been) undervalued. It truly is the “little engine that could.”

Sharon Scott Wilson, RRP, is co-owner, content director, and publisher of Resort Trades Media Group, a business-to-business media providing free information about people, places, and events in the vacation resort industry.

EDITOR’S NOTE: Please note that stock prices and other financial metrics are subject to change. For the most current information, refer to official financial sources or the companies’ investor relations websites.