Economic Performance Looks Solid in Timeshare Industry

Many timeshare companies and timeshare developers have now analyzed their second quarter 2007 figures and issued their earnings reports on how business is trending. Here’s a summary of what some timeshare industry leaders are saying:

Wyndham Worldwide Corporation reported that second quarter income increased by 28 percent to $96 million. Wyndham timeshare stock has experienced a 21 percent increase over the past year. The Orlando Business Journal quoted Wyndham Chairman, Stephen P. Homes, as saying in a Reuters interview, “Timeshare is going like gangbusters”.

Hospitality Net reported that the Hilton Corporation listed a second quarter 2007 net income of $165 million compared with $144 million in the same quarter of 2006.

Only stock purchase projections for Starwood timeshare resorts have cooled slightly, but this is attributed to construction delays impacting the opening of new properties. Despite this, as of early August, A.G. Edwards & Sons are still maintaining their “buy” rating for Starwood stocks, as is Terry Ruffolo, in his blog for Zacks Investment Research. Ruffalo says, “…we believe that the pullback (for Starwood stock) has been overdone, and that the current share price represents an attractive entry point.” According to information released by Starwood and quoted on Bloomberg.com, “This year’s earnings may be $2.78 a share, up from the $2.57 predicted in April.”

I thought Michael B. Baker, who writes for Business News Travel Online, made an interesting observation about the hotel industry overall, saying, “Hurricane Katrina’s aftereffects negatively skewed year-over-year comparisons in the first half of the year, with displaced Gulf Coast residents and emergency workers inflating demand in early 2006.” In other words, Baker was noting that some industry analysts think, had it not been for the many individuals displaced by hurricane Katrina, along with all the aid and reconstruction workers, artificially driving up hotel revenues for much of early 2006, hotel and timeshare figures for 2007 would seem even more impressive than they already do. Baker goes on to point out, however, “Although not all analysts agree on Katrina’s impact on performance metrics, it will no longer be a factor in the months ahead.”

The Timeshare Owners Blog never offers financial or investment advice. Even when I report to you on how good the timeshare industry is looking, you should always do your own due diligence, consulting experts in the fields of financial forecasting and investment counseling, before you part with your hard earned cash. But although I never advise on stock purchases, I can confidently say that buying timeshare or a timeshare resale has proven to be a great decision for many people, if they like to vacation and they commit to using their timeshare regularly.