Dive Brief:
- Marriott Vacations Worldwide posted results from the fourth quarter of 2023 on Wednesday, which showed a 2% year-over-year decline in Consolidated Vacation Ownership contract sales.
- The vacation ownership company estimated that the August wildfires in Maui negatively impacted the quarter’s results by approximately $25 million. The impact to adjusted EBITDA was $24 million.
- The company operates four vacation ownership resorts and sales centers in West Maui, the side of the island most heavily impacted by the fires. Altogether, the West Maui properties account for more than 10% of its annual contract sales.
Dive Insight:
John Geller, Marriott Vacations’ president and CEO, called 2023 “a challenging year.”
The company estimated, however, that without the impact of the fires, contract sales would have grown. In a statement, Geller said Marriott Vacations was still ending “the year on a very positive note, growing contract sales by 4% in the fourth quarter on a year-over-year basis with [volume per guest] in-line with the prior year, after adjusting for the estimated impact of the Maui wildfires.”
In September, Marriott Vacations Worldwide predicted that the Maui wildfires would impact third-quarter sales by between $25 and $30 million; in November, the total Q3 impact was reported as $28 million.
None of the company’s property in West Maui sustained physical damage as a result of the fires, Marriott Vacations shared. But the drop in sales shows that the impact of the wildfires on the island’s hospitality industry is not over.
Hilton Grand Vacations also operates properties on the island: two resorts and one sales center. The company has not yet announced fourth-quarter results for 2023, but in the third quarter, revenue dipped, partially due to “the ongoing impact of limited Maui operations,” CEO Mark Wang said at the time.
In a previous announcement, Marriott Vacations said it would pursue relief through insurance options.
The wildfires in August led to the deaths of nearly 100 people, and the displacement of many others. At the time, Lisa Paulson, executive director for the Maui Hotel and Lodging Association, said it was “nothing that any of us have seen before.” Hawaii Gov. Josh Green said it was “likely the largest natural disaster in Hawaii state history.”
Several hotels and historic buildings sustained major damage. Maui officially reopened tourism in November and has since held campaigns to encourage travelers to return.
This week, the Hawai’i Tourism Authority launched a campaign, “Makaukau Maui,” to tell visitors that West Maui is open for travel.
