Marriott International Inc. (MAR) moved closer to spinning off its timeshare
business Tuesday, filing a initial statement with regulators that named the new company Marriott Vacations Worldwide Corp.
The spinoff's chief executive, Stephen Weisz, said Marriott Vacations is still on track to launch by the end of the year, when it will become the world's biggest stand-alone timeshare
Marriott International shareholders will control the company, receiving an unspecified number of shares for each Marriott share in the spinoff. The new company plans to list its stock under the symbol VAC on an unspecified exchange.
The business booked $1.2 billion in revenue last year for Marriott, around 10% of the company's total. Once a hot sector of the travel industry, timeshare
demand wallowed in the recession. While the hotel industry has been recovering at a upbeat pace from the downturn, timeshare
s have continued to lag.
In the first quarter, Marriott International--which operates Courtyard, Residence Inn, Ritz-Carlton and its namesake hotels, among others--reported 22% earnings growth, but tepid demand in North America crimped revenue growth more than expected.
Marriott International shares were up four cents at $35.61 after hours. Through the close, the stock has fallen 14% since the start of the year.