Travel + Leisure shares plunge after warning on rising timeshare loan delinquencies
Updated
Updated · The Wall Street Journal · Apr 28
Travel + Leisure shares plunge after warning on rising timeshare loan delinquencies
4 articles · Updated · The Wall Street Journal · Apr 28
Travel + Leisure shares fell 14%, with Marriott Vacations Worldwide and Hilton Grand Vacations dropping 8% and 4% respectively, following the company's first-quarter warning about increased early-stage delinquencies in timeshare loans.
Investors are concerned that growing defaults among middle-class timeshare buyers signal weakening consumer confidence, especially as these purchases involve significant ongoing financial commitments and high maintenance fees.
While luxury travel demand remains strong, timeshare operators face risks if delinquencies escalate, recalling the 2009 recession's impact on sales and resale markets; executives are working to reassure investors about consumer creditworthiness.
Marriott reports lower delinquencies. Is the current market panic just an overreaction?
Is the timeshare default warning a canary in the coal mine for the US economy?
As older resorts crumble, who will ultimately pay for their massive repair bills?
Timeshares lose 70% of their value instantly. Why do millions of people still buy them?
Trapped by soaring fees and airtight contracts, can timeshare owners ever truly escape?