>The time-share industry has been shrinking since the latest recession began. But only now are we seeing the full extent of the pullback among the industry’s biggest players.
Starwood Hotels and Resorts Worldwide Inc. on Thursday disclosed in its fourth-quarter earnings report that it is taking a $362 million write-down as it stops most of its construction of timeshare resorts.
“Our [view of] the timeshare business was that it was a nice adjunct to our hotel business as long as there are high rates of return achievable and we can get a nice spread on our capital,” Starwood Chief Financial Officer Vasant Prabhu said Thursday in an interview. “Today, the results of the business are at a level where you wouldn’t put more capital in.”