Marriott Vacations Worldwide Reports $4.967 Billion Revenue, Net Income Declines to $218 Million

Marriott Vacations Worldwide Corporation (MVW) reported a total revenue of $4.967 billion for the fiscal year ending December 31, 2024, marking a 5.1% increase from $4.727 billion in 2023. The company's net income attributable to common stockholders was $218 million, a decrease from $254 million in the previous year. The decline in profitability was attributed to increased expenses, including a rise in marketing and sales costs, which reached $919 million, up from $823 million in 2023. Additionally, the company recorded a non-cash impairment charge of $30 million related to inventory, further impacting its financial performance.

In terms of operational metrics, MVW's total contract sales for vacation ownership products increased to $1.829 billion in 2024, up from $1.800 billion in 2023. The number of sales tours conducted rose by 7% to 432,716, although the volume per guest (VPG) decreased by 4% to $3,911. The company attributed the increase in contract sales to a higher number of first-time buyer tours, despite a decline in VPG due to a larger mix of international buyers, who typically have lower spending levels.

Strategically, MVW has focused on enhancing its product offerings and expanding its market presence. The company completed the acquisition of several properties, including a $65 million purchase of vacation ownership units in Waikiki, Hawaii, and a $19 million acquisition in Savannah, Georgia. These acquisitions are part of MVW's strategy to develop new vacation ownership properties and enhance its inventory. The company also rebranded all Legacy-Welk resorts as Hyatt Vacation Club resorts, further integrating its offerings.

As of December 31, 2024, MVW's total assets amounted to $9.808 billion, with vacation ownership notes receivable net of reserves at $2.440 billion. The company had approximately 22,300 employees, with a significant portion based in the United States. Looking ahead, MVW anticipates continued growth in its vacation ownership segment, although it remains cautious about potential economic challenges, including inflation and rising interest rates, which could impact consumer financing and overall demand for vacation ownership products. The company plans to maintain its focus on operational efficiencies and strategic growth initiatives to navigate these challenges effectively.