According to a Sept. 30 article in Bloomberg, Stephen Holmes, Chairman and CEO of Wyndham Worldwide, said the company intends to add to its timeshare business by converting whole ownership projects into timeshares.
Patrick Scholes, senior equity research analyst at FBR Capital Markets & Co., said the whole ownership market is the hardest hit and converting a whole ownership project into a timeshare project allows the whole pizza pie to be broken up into affordable slices.
In December, Wyndham said it would cut 4,000 jobs as it restructured its timeshare unit as a result of the credit crisis. The company said it would halt some construction and eliminate some sales offices and marketing programs.
According to the article, Holmes now says “If credit markets stay where they are right now, which is open and somewhat fluid, I don’t anticipate us to have to make any further cuts.”
U.S. timeshare sales dropped 8.5 percent last year to $9.7 billion from a peak of $10.6 billion in 2007, excluding the luxury fractional business and private residence clubs, according to an Ernst & Young LLP study prepared for the American Resort Development Association in Washington.