Due to the dramatic impact of COVID-19 upon travel demand, global tourism provider Marriott Vacations Worldwide announced today the withdrawal of previous full-year 2020 guidance, which had been released on February 26, 2020, in conjunction with its fourth-quarter 2019 results.
Through March 13, first-quarter 2020 Vacation Ownership sales had risen by ten percent in comparison to the same period last year.
However, given the sudden and sweeping closure of theme parks and resorts, closure of public beaches, cancellation of various events and other federal, state and local government-imposed restrictions, the company is already seeing, "near-term cancellations of owner, exchange and rental reservations at its resort businesses, and significant declines in its Vacation Ownership sales."
A leading vacation company with a portfolio that encompasses seven distinct brands offering vacation ownership, exchange and rental options, as well as resort and property management services, Marriott Vacations Worldwide now has much to consider when trying to predict the impact of the COVID-19 pandemic upon its operations.
It, therefore, has not yet offered an alternative outlook for the year, withholding any financial forecast until a better understanding can be acquired as to the duration of this reduced travel demand.
"We have a strong balance sheet and are focused on offsetting these negative impacts with contingency plans to reduce expenses and defer inventory and corporate capital spending," said Stephen P. Weisz, president and chief executive officer, said in a statement.
As a precautionary measure against a potentially extended period of scarcity, the company has drawn upon its $600-million Revolving Credit Facility, "to increase its cash position and preserve financial flexibility."
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