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Marriott Vacations' (VAC) Q4 Preliminary Contract Sales Improve

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Marriott Vacations Worldwide Corporation (VAC - Free Report) announced preliminary results for fourth-quarter 2020. Following the results, the company’s shares increased 1.1% yesterday. Notably, in the past six months, the company’s shares have gained 55.7%, compared with the industry’s rally of 36.9%.

Preliminary contract sales for fourth-quarter 2020 were $178 million, up more than 25% sequentially. While VPG in the fourth quarter jumped 9% year over year, tours declined 59%. Moreover, Interval international exchange transactions rose nearly 17%. However, average revenue per member declined nearly 4% year over year.

The company ended 2020 with liquidity of nearly $1.3 billion. The company expects to report fourth-quarter 2020 results on or around Feb 24, 2021.

 

Occupancy Increasing Gradually

In late May 2020, the company started reopening some of its resorts for renters and guest. Although the resorts were reopened, the company witnessed very low occupancy. However, with lockdowns being lifted, occupancy rates surged back to the 70% range, highlighting people’s willingness to go on vacations. During the third quarter, the company witnessed strong occupancy rates at short-haul fly-to locations. Notably, occupancy rates at Florida Beach resorts, South Carolina resorts and Mountain Resorts grew from mid-60%, 70% and 75% in July to 70%, 75% and 80% in September, respectively. Also, occupancy rates at Newport Coast Resort (in Southern California) averaged 80% throughout the third quarter. With occupancies beginning to improve, the company reopened 36 sales centers in July and added four between August and September. It also reopened seven Hawaii sales centers in mid-October.

Marriott Vacations, which shares space with Choice Hotels (CHH - Free Report) , Hilton Grand Vacations Inc. (HGV - Free Report) and Playa Hotels & Resorts N.V. (PLYA - Free Report) , carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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