22 timeshare resorts to be exact. They will form a separate and publicly traded company. Marriott did the same several years ago with a great amount of success.
Starwood Hotels and Resorts Worldwide Inc (HOT.N) just reported better than expected profit and took the occasion to announce the spin off. Starwood is best known by its St Regis and Sheraton brands of hotels.
The timeshare business accounted for roughly 11 percent of Starwood’s revenue last year. The timeshare business also recently posted a new gain of 15 percent in the quarter ending in December generating $640 million in revenue.
If the previous experience of Marriott is any predictor of how things will go for Starwood, things will go well for the timeshare spinoff. Following Marriott’s spin off of their timeshare holdings both the timeshare and parent company experienced great gains.
Starwood timeshare resorts include Sheraton’s Vistana Orlando, Sheratons Desert Oasis, Westin Mission Hills Resort Villas, Sheraton’s Mountain Vista, Buganvilias Resort, Sheraton Broadway Plantation, Lakeside Terrace at Vail Valley, Sheraton’s PGA Vacation Resort