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we are about vacation experiences.
+Added: We have been an independent public company since our November 2011 spin-off from Marriott International.
We are a global leader in vacation ownership with some of the most iconic brands in the industry.
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Regis brand for specified fractional ownership products.
−Removed: In addition, as part of our acquisition of Welk Resorts, we intend to rebrand all Welk resorts as Hyatt-branded resorts once all necessary approvals are obtained.
−Removed: In the exchange arena, Interval International is our high-quality membership brand that serves as the gateway to unparalleled vacation experiences around the world, including access to its affiliated resorts.
+Added: In addition, as part of our acquisition of Welk, we plan to rebrand all Legacy-Welk resorts as Hyatt-branded in 2023.
+Added: Interval International is our high-quality membership brand that serves as the gateway to unparalleled vacation experiences around the world, including access to its affiliated resorts.
+Added: Our Aqua-Aston business provides management services for resorts, hotels, and other third-party vacation property owners.
Our business operates in two reportable segments:
Vacation Ownership and Exchange & Third-Party Management.
−Removed: We have been an independent public company since our November 2011 spin-off from Marriott International (the “Marriott Spin-Off”).
($ in millions) Segment Revenue % of Segment Revenue
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Total Segment Revenue $ 4,633 100%
−Removed: COVID-19 Pandemic Update
−Removed: The COVID-19 pandemic has caused significant disruptions in international and U.S.
−Removed: economies and markets.
−Removed: Our results of operations from 2021 and 2020 reflect significantly adverse impacts related to the COVID-19 pandemic.
−Removed: At this time, our businesses continue to recover, and nearly all of our sales centers, resorts, and other properties have reopened.
−Removed: While financial results for certain areas of our business remain below pre-pandemic levels, we continued to experience significant sequential improvement during each quarter of 2021, with certain fourth quarter 2021 results exceeding pre-pandemic levels.
−Removed: We expect improvement to continue across our businesses during 2022 as urban markets continue to recover, international travel restrictions subside, and we continue to strengthen our digital infrastructure, grow online tour packages, and enhance customer experiences.
−Removed: Because demand for our products and services has increased and we expect it to continue to increase, in mid-year 2021, we ceased our workforce reduction plans and instead implemented workforce recalls, attraction and retention plans.
−Removed: We discuss the COVID-19 pandemic and its current and potential future implications in this report;
−Removed: however, the COVID-19 pandemic, and any recovery therefrom, continues to evolve and its further potential impacts on our business in the future remain uncertain.
−Removed: We continue to closely monitor and seek to manage the ongoing effects of the COVID-19 pandemic on our business and operations, and to adapt our operations.
The Vacation Ownership Industry
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In the United States, most vacation ownership products are sold as timeshare estates, which can be structured in a variety of ways, including a deeded real estate interest in a specified accommodation unit, an undivided interest in a building or an entire resort, or a beneficial interest in a trust that owns one or more resort properties.
−Removed: By purchasing a vacation ownership interest, owners make a commitment to vacation.
+Added: By purchasing a VOI, owners make a commitment to vacation.
For many purchasers, vacation ownership provides an attractive alternative to traditional lodging accommodations (such as hotels, resorts and condominium rentals).
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Purchasers who might otherwise buy a second home find vacation ownership a preferable alternative because it is more affordable and reduces maintenance and upkeep concerns, and because they are interested in buying a lifetime of vacations.
−Removed: Typically, developers sell vacation ownership interests for a fixed purchase price that is paid in full at closing or financed with a loan.
+Added: Typically, developers sell VOIs for a fixed purchase price that is paid in full at closing or financed with a loan.
Many vacation ownership companies provide financing or facilitate access to third-party bank financing for customers.
−Removed: Vacation ownership resorts are often operated by a nonprofit owners’ association of which owners of vacation ownership interests are members.
+Added: Vacation ownership resorts are often operated by a not-for-profit owners’ association of which owners of the VOIs are members.
Most owners’ associations are governed by a board of directors that includes owners and which may include representatives of the developer.
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The board of the owners’ association, or trustee, as applicable, typically delegates much of the responsibility for managing the resort to a management company, which is often affiliated with the developer.
−Removed: After the initial purchase, most vacation ownership programs require the owner of the vacation ownership interest to pay an annual maintenance fee.
+Added: After the initial purchase, most vacation ownership programs require the owner of the VOI to pay an annual maintenance fee.
This fee represents the owner’s allocable share of the costs and expenses of operating and maintaining the vacation ownership property and providing program services.
−Removed: This fee typically covers expenses such as housekeeping, landscaping, taxes, insurance, and resort labor, a property management fee payable to the management company for providing management services, and an assessment to fund a capital asset reserve account used to renovate, refurbish and replace furnishings, common areas and other assets (such as parking lots or roofs) as needed over time.
−Removed: Owners typically reserve their usage of vacation accommodations in advance through a reservation system (often provided by the management company or an affiliated entity), unless a vacation ownership interest specifies fixed usage dates and a particular unit every year.
+Added: This fee typically covers expenses such as housekeeping, landscaping, taxes, insurance, and resort labor, a property management fee payable to the management company for providing management
+Added: services, and an assessment to fund a capital asset reserve account used to renovate, refurbish and replace furnishings, common areas and other assets (such as parking lots or roofs) as needed over time.
+Added: Owners typically reserve their usage of vacation accommodations in advance through a reservation system (often provided by the management company or an affiliated entity), unless a VOI specifies fixed usage dates and a particular unit every year.
The vacation ownership industry has grown through expansion of established vacation ownership developers as well as entrance into the market of well-known lodging and entertainment brands, including Marriott, Sheraton, Hilton, Hyatt, Westin and Disney.
−Removed: The industry’s growth can also be attributed to increased market acceptance of vacation ownership products, stronger consumer protection laws and the evolution of vacation ownership interests from a fixed- or floating-week product, which provides the right to use the same property every year, to membership in multi-resort vacation networks, which offer a more flexible vacation experience.
+Added: The industry’s growth can also be attributed to increased market acceptance of vacation ownership products, stronger consumer protection laws and the evolution of VOIs from a fixed- or floating-week product, which provides the right to use the same property every year, to membership in multi-resort vacation networks, which offer a more flexible vacation experience.
These vacation networks often issue their members an annual allotment of points that can be redeemed for stays at affiliated vacation ownership resorts or for alternative vacation experiences available through the program.
−Removed: To enhance the flexibility and appeal of their products, many vacation ownership developers affiliate their projects with vacation ownership exchange service providers so that owners may exchange their rights to use the developer’s resorts in which they have purchased an interest for accommodation at other resorts in the exchange service provider’s broader network of properties.
+Added: To enhance the flexibility and appeal of their products, many vacation ownership developers affiliate their projects with vacation ownership exchange service providers so that owners may exchange their rights to use the developer’s resorts in which they have purchased an interest for accommodations at other resorts in the exchange service provider’s broader network of properties.
The two leading exchange service providers are our subsidiary Interval International, and RCI, LLC, a subsidiary of Travel + Leisure Co.
−Removed: Interval International’s network includes nearly 3,200 affiliated resorts, and RCI’s network includes over 7,000 affiliated resorts, as identified on RCI’s website.
+Added: Interval International’s network includes more than 3,200 affiliated resorts, and RCI’s network includes over 4,200 affiliated resorts, as identified on RCI’s website.
According to the American Resort Development Association (“ARDA”), a trade association representing the vacation ownership and resort development industries, as of December 31, 2021, the U.S.
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We are also the exclusive licensee for the Sheraton and Westin brands in vacation ownership.
−Removed: Our license agreements for these brands grant us the exclusive right, for the terms of the license agreements, to use certain Sheraton and Westin marks and intellectual property in our vacation ownership business, and the right to use the St.
+Added: Our license agreements for these brands grant us the exclusive right, for the term of the license agreement, to use certain Sheraton and Westin marks and intellectual property in our vacation ownership business, and the right to use the St.
Regis brand for specified fractional ownership products.
−Removed: In addition, we assumed a license agreement with Hyatt that grants us the exclusive global use of the Hyatt brand in connection with the Hyatt Vacation Ownership business.
−Removed: As part of the Welk Acquisition, we acquired a short-term license to use the Welk brand in connection with the continued operations of the Welk business.
−Removed: We intend to rebrand all Welk resorts as Hyatt-branded resorts once all necessary approvals are obtained.
+Added: In addition, we are party to a license agreement with Hyatt that grants us the exclusive global use of the Hyatt brand in connection with the Hyatt Vacation Ownership business.
+Added: As part of the Welk Acquisition, we acquired a short-term license to use the Welk brand in connection with the continued operations of the Welk business through March 31, 2022.
+Added: We plan to rebrand all Legacy-Welk resorts as Hyatt-branded resorts in 2023.
We operate in a highly competitive industry and our brand names, trademarks, service marks, trade names and logos are very important to the marketing and sales of our products and services.
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Business Strategy
−Removed: Our strategic goal is to further strengthen our leadership position in the vacation ownership industry.
−Removed: To achieve this goal, we are pursuing the following initiatives, as we continue to focus in the years ahead on further enhancing the vacation experience to help our members and owners live their lives to the fullest:
+Added: Our strategic goal is to strengthen our leadership position in the vacation industry by further enhancing the vacation experience to help our members and owners live their lives to the fullest.
+Added: Our core strategies are as follows:
Drive profitable revenue growth
−Removed: We intend to continue to generate growth in vacation ownership sales by leveraging our powerful mix of trusted hospitality brands and membership programs and targeting high-quality inventory that allows us to add desirable new destinations to our systems with new on-site sales locations.
+Added: We intend to leverage our powerful mix of trusted hospitality brands and membership programs to continue to generate owner and member growth, and to drive growth in vacation ownership sales, by targeting high-quality inventory that allows us to add desirable new destinations to our systems with new on-site sales locations.
We expect to continue to generate growth through our integrated platform that provides exclusive access to the world-class loyalty programs of Marriott International and Hyatt.
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We are concentrating on growing our tour flow cost effectively as we seek to grow first-time buyer tours through our strategy that emphasizes new sales locations and new marketing channels, including digital and social media marketing.
−Removed: As the vacation ownership business continues to grow sales and we add new resorts, our vacation ownership revenue streams from consumer financing, management fees, rentals and ancillary services are expected to grow.
−Removed: We also plan to grow our recurring revenues which tend to be less capital intensive than sales of vacation ownership.
+Added: We also see the use of virtual sales presentations continuing to be a large part of our sales process.
+Added: We also plan to grow our recurring revenues which tend to be less capital intensive than sales of VOIs.
Our recurring revenues include management of resorts and owners’ associations, financing revenues, and membership, club and other revenues in both our Vacation Ownership and Exchange & Third-Party Management segments.
−Removed: These revenues generally are more predictable due to the relatively fixed nature of resort operating expenses and, in the case of management and exchange revenues, contractual agreements that typically span many years and are often automatically renewable.
+Added: These revenues generally grow as we add new resorts and are more predictable due to the relatively fixed nature of resort operating expenses and, in the case of management and exchange revenues, contractual agreements that typically span many years and are often automatically renewable.
Financing revenues are relatively stable as the majority of these revenues generated in any given year come from prior year note originations.
−Removed: Additionally, we plan to drive revenue growth by focusing on younger customers and by accessing a wider array of vacationers through new membership programs in our exchange businesses.
−Removed: Maximize cash flow and optimize our capital structure, including by selectively pursuing capital efficient vacation ownership deal structures
+Added: We seek to continuously evolve and expand our core product offerings, as demonstrated by the launch of the Marriott Vacation Club Destinations (“MVCD”) points product in 2010 and Abound by Marriott Vacations program in 2022, and through the integration of the Legacy-Welk and Hyatt businesses.
+Added: Additionally, we intend to drive revenue growth in part by targeting a wider array of vacationers through new membership programs and products in adjacent market spaces.
+Added: Maximize cash flow by selectively pursuing capital efficient vacation ownership deal structures and business models
Through the use of our points-based products, we are able to more closely match inventory investment with sales pace, thereby generating strong cash flows over time.
Limiting the amount of completed inventory on hand and pursuing capital efficient vacation ownership inventory arrangements enable us to reduce the maintenance fees that we pay on unsold inventory and improve returns on invested capital and liquidity.
−Removed: In addition, we reacquire previously sold vacation ownership interests at lower costs than would be required to develop new inventory which increases margins on our sales of vacation ownership interests.
−Removed: Our business model is characterized by steady, consistent cash flow, which is driven in part by our “asset-light” capital efficient framework.
−Removed: We expect to maintain an attractive leverage profile.
−Removed: We intend to meet our ongoing liquidity needs through cash on hand, operating cash flow, our $600 million revolving credit facility (the “Revolving Corporate Credit Facility”), our $350 million non-recourse warehouse credit facility (the “Warehouse Credit Facility”), and continued access to the asset-backed securities (“ABS”) term financing market.
−Removed: We believe this will enable us to maintain a level of liquidity that provides financial flexibility, giving us the ability to pursue strategic growth opportunities, withstand potential future economic downturns, optimize our cost of capital, and pursue strategies for returning excess capital to shareholders.
−Removed: Enhance digital capabilities
+Added: In addition, we reacquire previously sold VOIs at lower costs than would be required to develop new inventory, which increases margins on our sales of VOIs.
+Added: Our business model is designed to deliver steady, consistent cash flow, which is driven in part by our “asset-light” capital efficient framework as we expect to maintain an attractive leverage profile.
+Added: We believe our access to capital markets and credit facilities will enable us to maintain an attractive leverage profile and level of liquidity that provides financial flexibility, giving us the ability to pursue strategic growth opportunities, withstand potential future economic downturns, optimize our cost of capital, and pursue strategies for returning excess capital to shareholders.
+Added: Enhance digital capabilities and data analytics
A key area of focus for us is the expansion of digital tools to drive more efficient digital marketing and enhance user experience for our owners and members of our exchange and other membership programs.
−Removed: We believe there is much more innovation and growth to come, and we intend to build efficiencies in our cost of delivery of marketing and to facilitate access to our portfolio of brands with new digital tools.
+Added: We believe there is much more innovation and growth to come, and we intend to build efficiencies in our cost of service delivery and to facilitate access to our portfolio of brands with new digital tools.
+Added: We are actively building and enhancing customer facing digital platforms to support existing and future products by enabling customers to transact online across all of our brands with respect to all of our products.
+Added: In addition, we are focused on using data to facilitate the use of advanced analytics to improve efficiency, enhance customer experiences, improve targeted marketing, and increase profitability.
Focus on the satisfaction of our owners, members, and guests as well as the engagement of our associates
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Because our owners, members, and guests are our most cost-effective vacation ownership sales channels, we intend to continue to leverage our strong customer satisfaction to drive higher margin sales volumes.
−Removed: From our earliest days, we have sought to create a culture that emphasizes warm and welcoming customer service and authentic care for our associates.
−Removed: At Marriott Vacations Worldwide, these characteristics are two sides of the same coin.
−Removed: They give meaning to our vision of helping our customers and associates live their lives to the fullest.
−Removed: Our caring culture unites our associates across a wide range of backgrounds, geographies and experiences.
+Added: We seek to continue delivering operational excellence while remaining focused on core customer expectations, which we believe will drive growth and efficiency.
+Added: As part of the integration of the ILG and Legacy-Welk businesses, the improved customer experience
+Added: from self-service tools and the streamlining of our business processes through technology, we are able to provide enhanced owner and member experiences.
+Added: From our earliest days, we have sought to create an inclusive culture that emphasizes warm and welcoming customer service and authentic care for our associates.
+Added: We believe these characteristics give meaning to our vision of helping our customers and associates live their lives to the fullest.
+Added: Our core belief is that developing and retaining top talent will foster an innovative culture and strengthen our leadership pipeline, while enabling business growth.
+Added: We believe our caring culture unites our associates across a wide range of backgrounds, geographies and experiences.
It is this very diversity that make us “Better Together” and that has allowed us to grow and prosper over the years.
−Removed: Transform our business in connection with the integration of the ILG and Welk Acquisitions
−Removed: Perhaps no aspect of our business has changed more over the years than the range of diverse vacation experiences we provide.
−Removed: The dramatic shift was made possible by the ILG Acquisition in 2018 and enhanced by the Welk Acquisition in 2021.
−Removed: Interval International has been our valued exchange partner since 1988 and became part of the Marriott Vacations Worldwide family as a result of the ILG Acquisition.
−Removed: As we continue to further integrate the ILG and Welk businesses, we are simultaneously working to develop new growth channels and streamline our business processes through technology.
−Removed: We are focused on integrating functions, leveraging strengths across our businesses, and pursuing transformational opportunities that can further differentiate us from our competitors.
−Removed: We intend to continue advancing our company analytics to encourage greater points utilization and usage of our exchange and travel products, provide enhanced resort experiences, and create more relevant and high value targeted leads for tour offers and vacation options.
−Removed: This is a multi-year process that is designed to achieve cost savings and increase revenue opportunities that we expect will continue into 2022.
Selectively pursue compelling new business opportunities
−Removed: We are positioned to explore new business opportunities, such as the continued enhancement of our exchange programs, new management affiliations, acquisitions of existing vacation ownership and related businesses, and the creation of new innovative travel-related products that are outside of our core vacation ownership and exchange company offerings.
+Added: We are positioned to explore new business opportunities, such as the continued enhancement of our exchange programs, new management affiliations, acquisitions of existing vacation ownership and related businesses, and the creation of new innovative travel-related products that are complementary to our core vacation ownership and exchange company offerings.
We intend to selectively pursue these types of opportunities, focusing on those opportunities that drive recurring revenue and profit streams.
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We are one of the world’s largest vacation ownership companies, based on number of owners, members, number of resorts and revenues.
−Removed: Since becoming a standalone public company 10 years ago, our vacation ownership business has nearly doubled in size, from 64 vacation ownership resorts and approximately 420,000 owners to over 120 vacation ownership resorts and approximately 700,000 owner families as of the end of 2021.
−Removed: Our exchange networks and membership programs are comprised of nearly 3,200 affiliated resorts and almost 1.4 million members, and we also provide management services to over 150 other resorts and lodging properties, as of the end of 2021.
+Added: Since becoming a standalone public company in 2011, our vacation ownership business has nearly doubled in size, from 64 vacation ownership resorts and approximately 420,000 owners to over 120 vacation ownership resorts and approximately 700,000 owner families as of the end of 2022.
+Added: Our exchange networks and membership programs are comprised of more than 3,200 affiliated resorts and over 1.6 million members, and we also provide management services to over 25 other resorts and lodging properties, as of the end of 2022.
We believe our scale and global reach, coupled with our renowned brands and development, marketing, sales, exchange and management expertise, help us achieve operational efficiencies and support future growth opportunities.
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We also believe our size helps us obtain better financing terms from lenders, achieve operational cost savings from our increased scale, and attract talented management and associates.
−Removed: In the exchange arena, Interval International is the high-quality membership brand that serves as the gateway to unparalleled vacation experiences.
−Removed: Our Interval International network includes members and resorts from our Marriott, Westin, Sheraton and Hyatt clubs, as well as other high quality branded and independent resorts, that can attract developers and owners’ associations to affiliate with the network and provide exchange opportunities for their owners.
−Removed: The breadth and depth of our operations enables us to offer a variety of products and to continue to adapt those products to the ever changing needs and preferences of our existing and future customers.
+Added: In the exchange arena, Interval International is the high-quality membership brand that serves as the gateway to premium vacation experiences.
+Added: Our Interval International network includes members and resorts from our Marriott, Westin, Sheraton and Hyatt products, as well as other high quality branded and independent resorts, that can attract developers and owners’ associations to affiliate with the network and provide exchange opportunities for their owners.
+Added: The breadth and depth of our operations enable us to offer a variety of products and to continue to evolve our products to address the changing needs and preferences of our existing and future customers.
For example, the tapestry of vacation experiences we offer includes not only traditional resort experiences but also urban experiences at our Marriott Vacation Club Pulse locations, which are unique properties that embrace the spirit and culture of their urban locations.
Premier global brands with access to expansive customer bases
−Removed: Each of our owned or licensed brands - from Marriott Vacation Club to Hyatt Residence Club, from Interval International to Aqua-Aston, from Sheraton Vacation Club to Westin Vacation Club - is a highly respected and widely trusted leader in the travel and hospitality industry.
+Added: We believe that each of our owned or licensed brands - from Marriott Vacation Club to Hyatt Residence Club, from Interval International to Aqua-Aston, from Sheraton Vacation Club to Westin Vacation Club - is a highly respected and widely trusted leader in the travel and hospitality industry.
We are creating distinct lanes for our brands to grow within.
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Through the brands we license from Marriott International for use in vacation ownership, we benefit from exclusive long-term access to members in the Marriott Bonvoy loyalty program, which includes over 177 million members as of December 31, 2022.
−Removed: Similarly, through our relationship with Hyatt Corporation, we benefit from access to members of Hyatt’s award-winning guest loyalty program, the World of Hyatt, which includes approximately 30 million members as of December 31, 2021.
−Removed: We believe our access to guests with an affinity for our brands aids our marketing efforts and significantly enhances our ability to drive future sales, as we predominantly generate vacation ownership interest sales through brand loyalty-affiliated sales channels.
−Removed: We expect to continue to leverage our exclusive call transfer arrangements, on-site marketing at Marriott and Hyatt branded hotels, and use of certain exclusive marketing rights to increase sales across all of our Marriott-affiliated and Hyatt-affiliated vacation ownership properties, respectively.
+Added: Similarly, through our relationship with Hyatt, we benefit from access to members of Hyatt’s award-winning guest loyalty program, the World of Hyatt, which includes approximately 36 million members as of December 31, 2022.
+Added: We believe our access to guests with an affinity for our brands aids our marketing efforts and significantly enhances our ability to drive future sales, as we predominantly generate VOI sales through brand loyalty-affiliated sales channels.
+Added: We expect to continue to leverage our exclusive call transfer
+Added: arrangements, on-site marketing at Marriott and Hyatt branded hotels, and use of certain exclusive marketing rights to increase sales across all of our Marriott-affiliated and Hyatt-affiliated vacation ownership properties, respectively.
Loyal, highly satisfied customers
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Owner and member satisfaction is evidenced both by positive historical survey responses, high levels of engagement that we see in the many customer and associate care stories shared on social media sites, and higher than industry average historical resort occupancy for our Vacation Ownership segment.
−Removed: We believe that strong customer satisfaction and brand loyalty result in more frequent use of our products, increase in member retention, and encourage owners to purchase additional products and to recommend our products to friends and family, which in turn generates higher revenues.
+Added: We believe that strong customer satisfaction and brand loyalty result in more frequent use of our products, increase in member retention, and encourage owners to purchase additional products and to recommend our products to friends and family, which in turn helps generate higher revenues.
Capital efficient business model providing strong free cash flow and financial flexibility
We believe that our scale, recurring revenue fee streams and enhanced margin profile will enable us to maintain flexibility for continued organic growth, strategic acquisitions, debt repayment, and return of capital to shareholders.
−Removed: Our total revenue excluding cost reimbursements derived from sources other than the sale of vacation ownership interests has increased and continues to increase.
−Removed: Our Exchange & Third-Party Management businesses also create ample opportunities to realize recurring higher-margin, fee-based revenue streams with modest required capital expenditures, enhancing our margins and free cash flow generation over time.
+Added: Our total revenue excluding cost reimbursements derived from sources other than the sale of VOIs has increased and is expected to continue to increase.
+Added: Our Exchange & Third-Party Management businesses also create ample opportunities to realize recurring higher-margin, fee-based revenue streams with modest required capital expenditures, which we believe will enhance our margins and free cash flow generation over time.
We were also among the first of the major hospitality brands to move from a fixed-week, fixed-unit operating model to a points-based system.
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We are able to better manage our inventory needs, while achieving top line growth without a need to significantly increase inventory investments.
−Removed: Our disciplined inventory approach and use of capital efficient vacation ownership deal structures, including working with third parties that develop new inventory or convert previously built units that are sold to us close to when such inventory is needed to support sales, is expected to support strong free cash flow generation.
+Added: Our disciplined inventory approach and use of capital efficient vacation ownership transaction structures, including working with third parties that develop new inventory or convert previously built units that are sold to us close to when such inventory is needed to support sales, is expected to support strong and stable free cash flow generation.
Long-standing track record, experienced management and engaged associates
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Since our early days, we have sought to create a culture that emphasizes authentic care for associates.
−Removed: Our seasoned management team is led by Stephen P.
−Removed: Weisz, our Chief Executive Officer.
−Removed: Weisz has served as our Chief Executive Officer since 2011, and as our President from 1996 through December 2020.
−Removed: Weisz has almost 50 years of combined experience at Marriott International and Marriott Vacations Worldwide.
+Added: Weisz, who served as our President from 1996 until 2021 and as our Chief Executive Officer since our spin-off from Marriott International in 2011, retired on December 31, 2022 after a combined 50 years with Marriott International and Marriott Vacations Worldwide.
+Added: As of January 1, 2023, our seasoned management team is led by John E.
+Added: Geller, Jr., President and Chief Executive Officer.
+Added: Geller has served as our President since 2021, and served as our Chief Financial Officer from our spin-off from Marriott International in 2011 until 2021.
Shaw, the Chairman of our Board of Directors, is the former Vice Chairman, President and Chief Operating Officer of Marriott International and spent nearly 37 years with Marriott International.
−Removed: Our eleven executive officers have an average of nearly 29 years of total combined experience at Marriott Vacations Worldwide, our subsidiary companies, and Marriott International.
−Removed: We believe our management team’s extensive public company and vacation ownership industry experience has enabled us to achieve solid operating results and will enable us to continue to respond quickly and effectively to changing market conditions and consumer trends.
−Removed: Our management’s experience in the highly regulated vacation ownership industry also provides us with a competitive advantage in expanding existing product forms and developing new ones that include more non-perpetual products.
+Added: Our ten executive officers as of January 1, 2023 have an average of approximately 26 years of total combined experience at Marriott Vacations Worldwide, our subsidiary companies, and Marriott International.
+Added: We believe our management team’s extensive public company and vacation ownership and hospitality industry experience has enabled us to achieve solid operating results and will enable us to continue to respond quickly and effectively to changing market conditions and consumer trends.
+Added: Our management team’s experience in the highly regulated vacation ownership industry also provides us with a competitive advantage in expanding existing product forms and developing new ones.
Engaged associates delivering high levels of customer service driving repeat customers
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Sales to existing owners typically have significantly lower sales and marketing costs than sales to new owners.
−Removed: We leverage outstanding associate engagement and strong corporate culture to deliver positive customer experiences in sales, marketing, exchange, management and resort operations.
−Removed: We survey our associates regularly through an external survey provider to understand their satisfaction and engagement, defined as how passionate employees are about the company’s mission and their willingness to “go the extra mile” to see it succeed.
−Removed: We have historically ranked highly compared to other companies participating in such surveys.
−Removed: Our caring culture contributes to the long tenure of associates at both leadership and operational levels.
−Removed: We use the results of our annual engagement surveys to improve the experience of our associates and to help chart their career progression.
−Removed: To this end, we provide a learning-rich environment with many training and career advancement opportunities.
+Added: We leverage high levels of associate engagement and a strong corporate culture to deliver positive customer experiences in sales, marketing, exchange, management, and resort operations.
+Added: We use an external third-party service provider to regularly survey our associates for feedback.
+Added: We use the results of our annual engagement surveys to improve the associate experience and to further develop a caring culture that contributes to the long tenure of associates at both leadership and operational levels.
+Added: In 2022, we were recognized as a Kincentric Best Employer globally as part of Kincentric’s robust assessment that measures associate engagement and identifies organizations that have implemented people practices that drive better business results.
+Added: As part of the Kincentric Best Employers 2022 assessment, we conducted an associate survey that achieved a 91% response rate, which demonstrated a strong level of overall associate engagement.
+Added: The survey identified several areas of strength, including inclusion and diversity, department/team leadership, and sustainability (modeling socially and environmentally responsible efforts).
+Added: We believe that our distinction as a Kincentric Best Employer and our identified strengths demonstrate the incredible care we have for each other and for the associate experience, leading to recognition by current and potential future associates as an employer of choice.
VACATION OWNERSHIP SEGMENT
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This collection of vacation ownership resorts builds on an iconic legacy of trusted hospitality, and brings to life a warm, energetic haven for families to gather and nurture their most precious relationships by allowing owners and guests to relax, play and experience what the world has to offer.
−Removed: Sheraton Vacation Club upper upscale vacation ownership resorts are part of the Vistana Signature Network.
+Added: Sheraton Vacation Club upper upscale vacation ownership resorts are part of the Vistana Signature Network (“VSN”).
Westin Vacation Club is a collection of vacation ownership resorts located in some of the most sought-after destinations and designed with living well in mind.
From the world-renowned Heavenly Bed to an energizing WestinWORKOUT and revitalizing experiences, every element of a vacation stay is created to leave owners and guests feeling better than when they arrived.
−Removed: Westin Vacation Club upper upscale vacation ownership resorts are part of the Vistana Signature Network.
+Added: Westin Vacation Club upper upscale vacation ownership resorts are part of VSN.
Grand Residences by Marriott provides vacation ownership through fractional real estate and whole ownership offerings.
Grand Residences by Marriott is dedicated to providing carefree property ownership.
−Removed: The accommodations for this brand are similar to those we offer under the Marriott Vacation Club brand, but the duration of the vacation ownership interest is longer, ranging between three and thirteen weeks.
+Added: The accommodations for this brand are similar to those we offer under the Marriott Vacation Club brand, but the duration of the VOI is longer, ranging between three and thirteen weeks.
The Ritz-Carlton Destination Club is a collection of vacation ownership resorts that provide luxurious vacation experiences for members and their families commensurate with the legacy of The Ritz-Carlton brand.
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Set in unique destinations from Maui, Carmel and Aspen to Sedona, San Antonio and Key West, Hyatt Residence Club resorts deliver genuine Hyatt care.
−Removed: In addition, as part of the Welk Acquisition, we intend to rebrand all Welk resorts as Hyatt-branded resorts once all necessary approvals have been obtained.
+Added: In addition, as part of the Welk Acquisition, we plan to rebrand all Legacy-Welk resorts as Hyatt-branded resorts in 2023.
+Added: The Legacy-Welk resorts are located in highly desirable vacation destinations, including California, Colorado, Missouri, New Mexico and Cabo San Lucas, Mexico, and feature unique sets of amenities and special touches that are designed to make the vacation experience even more meaningful.
+Added: Products and Services
Points-Based Vacation Ownership Products
−Removed: We sell the majority of our products through points-based ownership programs, including Marriott Vacation Club Destinations, Sheraton Flex, Westin Flex, Westin Aventuras, and the Hyatt Residence Club Portfolio Program.
−Removed: Our points-based systems and exchange networks enable owners and members to access virtually any kind of vacation experience they want.
+Added: We sell the majority of our products through points-based ownership programs, including Marriott Vacation Club Destinations, Sheraton Flex, Westin Flex, Westin Aventuras, the Hyatt Residence Club Portfolio Program, and the Hyatt Vacation Club Platinum Program.
+Added: Our points-based systems and exchange networks enable owners and members to access a large variety of different vacation experiences.
While the structural characteristics of each of our points-based programs differ, in each program, owners receive an annual allotment of points representing owners’ usage rights, and owners can use these points to access vacation ownership units across multiple destinations within their program’s portfolio of resort locations.
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John and Hawaii, that allow owners to access that particular single site using points in a similar use fashion to the other points-based products.
−Removed: Our points programs allow owners to bank and borrow their annual point allotments, access other locations through the applicable internal exchange programs that we operate, and access Interval International’s network of nearly 3,200 affiliated resorts.
+Added: Our points programs allow owners to bank and borrow their annual point allotments, access other locations through the applicable internal exchange programs that we operate, and access Interval International’s network of more than 3,200 affiliated resorts.
Owners can trade their vacation ownership usage rights for Marriott Bonvoy points or World of Hyatt points, as applicable, which can be used to access participating hotels or redeemed for airline miles or other merchandise offered through such customer loyalty program.
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Weeks-Based Vacation Ownership Products
−Removed: We continue to sell Marriott Vacation Club, Westin, Sheraton and Hyatt branded weeks-based vacation ownership products in select markets, including in countries where legal and tax constraints currently limit our ability to include those locations in one of our existing points-based programs.
−Removed: Our products include multi-week vacation ownership interests in specific Grand Residences by Marriott, St.
+Added: We continue to sell Marriott-, Westin-, Sheraton- and Hyatt-branded weeks-based vacation ownership products in select markets, including in countries where legal and tax constraints currently limit our ability to include those locations in one of our existing points-based programs.
+Added: Our products include multi-week VOIs in specific Grand Residences by Marriott, St.
Regis Residence Club, The Luxury Collection Residence Club, and The Ritz-Carlton Destination Club resorts.
Our weeks-based vacation ownership products in the United States and select Caribbean locations are typically sold as fee simple deeded real estate interests at a specific resort representing an ownership interest in perpetuity, except where restricted by leasehold or other structural limitations.
−Removed: We sell vacation ownership interests as a contractual right-to-use product subject to a finite term in Asia Pacific and Europe.
+Added: We sell VOIs as a contractual right-to-use product subject to a finite term in Asia Pacific and Europe.
Global Exchange Opportunities
−Removed: Most of our vacation ownership products, including our Marriott-, Sheraton-, Westin-, and Hyatt-branded products, are affiliated with the Interval International network, the high-quality membership brand that serves as the gateway to unparalleled vacation experiences.
−Removed: We offer our existing Marriott Vacation Club owners who hold weeks-based products the opportunity to participate, on a voluntary basis, in Marriott Vacation Club Destinations (“MVCD”), an exchange program through which many of MVCD’s vacation experiences are offered.
+Added: Most of our vacation ownership products, including our Marriott-, Sheraton-, Westin-, and Hyatt-branded products, are affiliated with the Interval International network, the high-quality membership brand that serves as the gateway to premium vacation experiences.
+Added: We offer our existing Marriott Vacation Club owners who hold weeks-based products the opportunity to participate, on a voluntary basis, in MVCD, an exchange program through which many of MVCD’s vacation experiences are offered.
All existing owners, whether or not they elect to participate in the MVCD exchange program, retain their existing rights and privileges of vacation ownership.
Owners who elect to participate in the exchange program receive the ability to trade their weeks-based interval usage for vacation club points usage each year, typically subject to payment of an initial enrollment fee and annual club dues.
−Removed: As of the end of 2021, approximately 177,000 weeks-based owners have enrolled approximately 279,000 weeks in MVCD’s exchange program, with more than 239,000 total owners able to use points.
−Removed: The Vistana Signature Network (“VSN”) provides Westin Vacation Club and Sheraton Vacation Club owners access to its affiliated resorts as well as the opportunity to exchange their points through the Marriott Bonvoy program to Marriott resorts, through the Interval International network, or for a cruise.
+Added: As of December 31, 2022, approximately 176,000 weeks-based owners have enrolled approximately 275,000 weeks in MVCD’s exchange program, with approximately 247,000 total owners able to use points.
+Added: VSN provides Westin Vacation Club and Sheraton Vacation Club owners access to its affiliated resorts as well as the opportunity to exchange their points through the Marriott Bonvoy program to Marriott resorts, through the Interval International network, or for a cruise.
Based on the point value of the home resort interest owned, customers can choose other VSN affiliated resorts, the type of villa, the date of travel and the length of stay.
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As of December 31, 2022, VSN included more than 185,000 members.
−Removed: Hyatt Residence Club provides its owners internal exchange rights among Hyatt Residence Club resorts as well as the opportunity to trade their club points for World of Hyatt points which may be redeemed at participating Hyatt branded properties and exchanged through the Interval International network.
+Added: In August 2022, we launched Abound by Marriott Vacations, a new owner benefit and exchange program which affiliates the Marriott, Sheraton and Westin vacation ownership brands to offer similar benefits to owners of our products under these brands.
+Added: Under this program, owners of Marriott-, Sheraton- and Westin-branded VOIs can access over 90 resorts under the Marriott Vacation Club, Sheraton Vacation Club and Westin Vacation Club brands using a common currency.
+Added: The program also harmonizes fee structures and owner benefit levels and allows us to transition most of our Legacy-ILG sales galleries to sell our Marriott Vacation Club Destinations product, which includes certain Sheraton- and Westin-branded VOIs.
+Added: Hyatt Residence Club provides its owners internal exchange rights among Hyatt Residence Club resorts as well as the opportunity to trade their club points for World of Hyatt points which may be redeemed at participating Hyatt branded properties and the ability to exchange their points through the Interval International network.
Owners will receive Hyatt Residence Club points if they have not reserved at their home resort or through its points program during their allotted preference period or if they elect to convert to points earlier.
As of December 31, 2022, this points-based membership exchange system served more than 28,000 owners.
+Added: Hyatt Vacation Club provides its owners exchange rights through Interval International.
+Added: Eligible members may also redeem their club points for World of Hyatt points, which may be redeemed at participating Hyatt-branded properties.
Sources of Revenue
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Sale of Vacation Ownership Products
−Removed: Our principal source of revenue is the sale of vacation ownership interests.
+Added: Our principal source of revenue is the sale of VOIs.
Resort Management and Other Services
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We also receive annual fees, club dues, and certain transaction-based fees from owners and other third parties, including external exchange service providers with which we are associated.
−Removed: We earn interest income on loans that we provide to purchasers of our vacation ownership interests, as well as loan servicing and other fees.
+Added: We earn interest income on loans that we provide to purchasers of our VOIs, as well as loan servicing and other fees.
+Added: We offer financing to qualified customers for the purchase of most types of our vacation ownership products.
We generate revenue from rentals of inventory that we hold for sale as interests in our vacation ownership programs or as residences, or inventory that we control because our owners have elected alternative usage options permitted under our vacation ownership programs.
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We sell our upper upscale tier vacation ownership products under our brands primarily through our worldwide network of resort-based sales centers and certain off-site sales locations.
−Removed: Our vacation ownership interests are currently marketed for sale throughout the United States and in over 30 countries around the world, targeting customers who vacation regularly with a focus on family, relaxation and recreational activities.
+Added: Our VOIs are currently marketed for sale throughout the United States and in over 30 countries and territories around the world, targeting customers who vacation regularly with a focus on family, relaxation and recreational activities.
In 2022, over 90% of our vacation ownership contract sales originated at sales centers that are co-located with one of our resorts.
We maintain a range of different off-site sales centers, including our central telesales organization based in Orlando and our network of third-party brokers in Latin America and Europe.
−Removed: We have more than 90 global sales locations focused on the sale of vacation ownership interests.
+Added: We have more than 90 global sales locations focused on the sale of VOIs.
We utilize a number of marketing channels to attract qualified customers to our sales locations, including digital and social media marketing.
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In 2022, approximately 70% of our vacation ownership contract sales were to our existing owners.
−Removed: In addition, we are concentrating on growing our tour flow cost effectively as we seek to generate more first-time buyer tours through our strategy that emphasizes adding new sales locations and new marketing channels.
−Removed: We also market to existing Marriott and Hyatt customer loyalty program members and travelers who are staying in locations where we have like-branded resorts.
+Added: In addition, we are concentrating on growing our tour flow cost effectively as we seek to generate more first-time buyer tours through our strategy that emphasizes adding new sales locations and new marketing channels, including digital and social media marketing.
+Added: We also market to existing Marriott and Hyatt customer loyalty program members and travelers who are staying in locations where we have resorts that are affiliated with those brands.
We market extensively to guests in Marriott International or Hyatt hotels that are located near one of our sales locations.
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A significant part of our direct marketing activities is focused on prospects in the Marriott and Hyatt customer loyalty program databases and our in-house databases of qualified prospects.
−Removed: We offer guests who do not buy a vacation ownership interest during their initial tour the opportunity to purchase a return package for a future stay at our resorts.
+Added: We offer guests who do not buy a VOI during their initial tour the opportunity to purchase a return package for a future stay at our resorts.
These return guests are nearly twice as likely to purchase as a first-time visitor.
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Our sales tours are designed to provide our guests with an overview of our company and our products, as well as a customized presentation to explain how our products and services can meet their vacationing needs.
−Removed: From a single week at a fixed location to today’s abundance of getaway options, our vacation experience has undergone a remarkable metamorphosis.
+Added: From a single week at a fixed location to today’s abundance of getaway options, the range of vacation experiences we offer has undergone a remarkable metamorphosis.
The vacation experience we provide today isn’t just about a visit to a resort.
It can be a bicycle tour, a culinary journey, an adventure cruise, or a once-in-a-lifetime trip to a major sporting event.
−Removed: That’s why our sales force is highly trained in a consultative sales approach designed to ensure that we meet customers’ needs on an individual basis.
+Added: That’s why our sales force is highly trained in a consultative sales approach designed to enable us to meet customers’ needs on an individual basis.
We hire our sales executives based on stringent selection criteria.
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We maintain a prominent presence on the www.marriott.com, www.ritzcarlton.com and www.hyatt.com websites.
−Removed: Our proprietary sites include www.marriottvacationsworldwide.com, www.marriottvacationclub.com, www.ritzcarltonclub.com, www.vistana.com, www.theresidenceclub.com, and www.hyattresidenceclub.com.
+Added: Our proprietary sites include www.marriottvacationsworldwide.com, www.marriottvacationclub.com, www.ritzcarltonclub.com, www.vistana.com, www.theresidenceclub.com, www.hyattvacationclub.com, and www.hyattresidenceclub.com.
Inventory and Development Activities
−Removed: We secure inventory by building additional phases at our existing resorts, reacquiring previously sold inventory in the secondary market, reacquiring inventory as a result of owner loan or maintenance fee defaults, or developing or acquiring inventory at resorts in strategic markets.
−Removed: We proactively buy back previously sold vacation ownership interests under our repurchase programs at lower costs than would be required to develop new inventory.
+Added: We secure inventory by developing or acquiring inventory at resorts in strategic markets, reacquiring previously sold inventory in the secondary market, reacquiring inventory as a result of owner loan or maintenance fee defaults, or building additional phases at our existing resorts.
+Added: We proactively buy back previously sold VOIs under our repurchase programs at lower costs than would be required to develop new inventory.
Efficient use of our capital is also achieved through our points-based business model, which allows us to supply many sales locations with new inventory sourced from a small number of resort locations.
We intend to continue to selectively pursue growth opportunities primarily in North America by targeting high-quality inventory that allows us to add desirable new destinations to our system with new on-site sales locations in ways that optimize the timing of our capital investments.
−Removed: These capital efficient vacation ownership deal structures may include working with third parties to develop new inventory or to convert previously built units to be sold to us close to when we need such inventory.
−Removed: Approximately 20% of our Vacation Ownership segment resorts are co-located with same-branded hotel properties.
−Removed: Co-location of our resorts with same-branded hotels can provide several advantages from development, operations, customer experience and marketing perspectives, including sharing amenities, infrastructure and staff, integration of services, and other cost efficiencies.
+Added: These capital efficient vacation ownership transaction structures may include working with third parties to develop new inventory or to convert previously built units to be sold to us close to when we need such inventory.
+Added: Approximately 20% of our Vacation Ownership segment resorts are co-located with same-branded or affiliated hotel properties.
+Added: Co-location of our resorts with same-branded or affiliated hotels can provide several advantages from development, operations, customer experience and marketing perspectives, including sharing amenities, infrastructure and staff, integration of services, and other cost efficiencies.
The larger campus of an integrated vacation ownership and hotel resort often can afford our owners more varied and elaborate amenities than those that would generally be available at a stand-alone resort.
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Our license agreements with Marriott International and Hyatt allow for the development of co-located properties in the future, and we intend to opportunistically pursue co-located projects with them.
−Removed: Owners generally can offer their vacation ownership interests for resale on the secondary market, which can create pricing pressure on the sale of developer inventory.
−Removed: However, owners who purchase vacation ownership interests on the secondary market typically do not receive all of the benefits that owners who purchase products directly from us receive.
−Removed: When an owner purchases a vacation ownership interest directly from us or a resale on the secondary market, the owner receives certain entitlements that are tied to the underlying vacation ownership interest, such as the right to reserve a resort unit that underlies their vacation ownership interest in order to occupy that unit or exchange its use for use of a unit at another resort through an external exchange service provider, as well as benefits that are incidental to the purchase of the vacation ownership interest.
−Removed: However, the purchaser on the secondary market may not be entitled to receive certain incidental benefits such as full access to our internal exchange programs or the right to trade their usage rights for customer loyalty program points.
−Removed: Additionally, many of our vacation ownership interests provide us with a right of first refusal on secondary market sales.
+Added: Owners generally can offer their VOIs for resale on the secondary market, which can create pricing pressure on the sale of developer inventory.
+Added: However, owners who purchase VOIs on the secondary market typically do not receive all of the benefits that owners who purchase products directly from us receive.
+Added: When an owner purchases a VOI directly from us or a resale on the secondary market, the owner receives certain entitlements that are tied to the underlying VOI, such as the right to reserve a resort unit that underlies their VOI in order to occupy that unit or exchange its use for use of a unit at another resort through an external exchange service provider, as well as benefits that are incidental to the purchase of the VOI.
+Added: However, the purchaser on the secondary market may not be entitled to receive certain ancillary benefits such as full access to our internal exchange programs or the right to trade their usage rights for customer loyalty program points.
+Added: Additionally, many of our VOIs provide us with a right of first refusal on secondary market sales.
We monitor sales that occur in the secondary market and exercise our right of first refusal when it is advantageous for us to do so, whether due to pricing, desire for the particular inventory, or other factors.
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We earn these fees regardless of usage or occupancy.
−Removed: We also receive revenues that represent reimbursement for certain costs we incur under our management agreements, which are principally payroll-related costs at the locations where we employ the associates providing on-site services.
+Added: We also receive revenues that represent reimbursement for certain costs we incur under our management agreements, which are principally payroll-related costs at the locations where we employ the associates providing on-site services, and costs associated with property refurbishments.
+Added: Cost reimbursements consist of actual expenses with no added margin.
The terms of our management agreements generally range from three to ten years and are generally subject to periodic renewal for one to five year terms.
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When our management agreement for a branded resort is not renewed or is terminated, the resort loses the ability to use the brand and trademarks.
−Removed: The owners at such resorts also lose their ability to trade their vacation ownership usage rights for customer loyalty points and to access other resorts through one of our internal exchange systems.
+Added: The owners at such resorts also lose their ability to trade their vacation ownership usage rights for customer loyalty program points and to access other resorts through one of our internal exchange programs.
The Ritz-Carlton Hotel Company manages the on-site operations for The Ritz-Carlton Destination Club and The Ritz-Carlton Residences properties in our portfolio under separate management agreements with us.
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If a management agreement for a resort expires or is terminated, the resort loses the ability to use the Ritz-Carlton brand and trademarks.
−Removed: The owners at such resorts also lose their ability to access other usage benefits, such as the ability to exchange occupancy for customer loyalty points, access to accommodations at other The Ritz-Carlton Destination Club resorts, preferential access to Ritz-Carlton hotels worldwide and access to our internal exchange and vacation travel options.
+Added: The owners at such resorts also lose their ability to access other usage benefits, such as the ability to exchange occupancy for customer loyalty program points, access to accommodations at other The Ritz-Carlton Destination Club resorts, preferential access to Ritz-Carlton hotels worldwide and access to our internal exchange and vacation travel options.
Each management agreement requires the owners’ association, trust association or other governing body to provide sufficient funds to pay for the vacation ownership program and operating costs.
−Removed: To satisfy this requirement, owners of vacation ownership interests pay an annual maintenance fee.
−Removed: This fee represents the owner’s allocable share of the costs of operating and maintaining the resorts or interests in the timeshare plan in which they hold a vacation ownership interest, including management fees and expenses, taxes (in some locations), insurance, and other related costs, and the costs of providing program services (such as reservation services).
+Added: To satisfy this requirement, owners of VOIs pay an annual maintenance fee.
+Added: This fee represents the owner’s allocable share of the costs of operating and maintaining the resorts or interests in the timeshare plan in which they hold a VOI, including management fees and expenses, taxes (in some locations), insurance, and other related costs, and the costs of providing program services (such as reservation services).
This fee includes a management fee payable to us for providing management services as well as an assessment for funds to be deposited into a capital asset reserve fund and used to renovate, refurbish and replace furnishings, common areas and other resort assets (such as parking lots or roofs) as needed over time.
As the owner of completed but unsold vacation ownership inventory, we also pay maintenance fees in accordance with the legal requirements of the jurisdictions applicable to such resorts and programs.
−Removed: In addition, in early phases of development of a resort, we sometimes enter into subsidy agreements with the owners’ associations under which we agree to pay costs that otherwise would be covered by annual maintenance fees associated with vacation ownership interests or units that have not yet been built or committed to a timeshare plan.
−Removed: These subsidy arrangements help keep maintenance fees at a reasonable level for owners who purchase, especially in the early stages of development.
−Removed: If an owner defaults in payment of maintenance fees or other assessments, the owners’ association typically has the right to foreclose on or revoke the defaulting owner’s vacation ownership interest.
−Removed: We have arrangements with several owners’ associations to assist in reselling foreclosed or revoked vacation ownership interests in exchange for a fee, or to reacquire such foreclosed or revoked vacation ownership interests from the owners’ associations.
+Added: We may enter into subsidy agreements with the owners’ associations under which we agree to pay costs that otherwise would be covered by annual maintenance fees associated with VOIs or units that have not yet been built or committed to a timeshare plan.
+Added: If an owner defaults in payment of maintenance fees or other assessments, the owners’ association typically has the right to foreclose on or revoke the defaulting owner’s VOI.
+Added: We have arrangements with several owners’ associations to assist in reselling foreclosed or revoked VOIs in exchange for a fee, or to reacquire such foreclosed or revoked VOIs from the owners’ associations.
Consumer Financing
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In 2022, our financing propensity was 54% and the average loan originated by us for vacation ownership products totaled approximately $28,400, which represented 77% of the average purchase price.
−Removed: For financing on the majority of our brands, we require a minimum down payment of 10% of the purchase price, although down payments and interest rates are typically higher for applicants with credit scores below certain levels and for purchasers who do not have credit scores, such as non-U.S.
+Added: For financing on the majority of our VOIs, we require a minimum down payment of 10% of the purchase price, although down payments and interest rates are typically higher for applicants with credit scores below certain levels and for purchasers who do not have credit scores, such as non-U.S.
The average interest rate for originated loans in 2022 was 13.4% and the average term was 12 years.
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We use other information to determine minimum down payments and interest rates applicable to loans made to purchasers who do not have a credit score or who do not reside within the United States, such as regional historical default rates and currency fluctuation risk.
−Removed: In the event of a default, we generally have the right to foreclose on or revoke the defaulting owner’s vacation ownership interest.
+Added: In the event of a default, we generally have the right to foreclose on or revoke the defaulting owner’s VOI.
We typically resell interests that we reacquire through foreclosure or revocation or place such interests into one of our points-based programs.
We securitize the majority of the consumer loans we originate in support of our vacation ownership business.
−Removed: Historically, we have sold these loans to institutional investors in the ABS market on a non-recourse basis.
−Removed: These vacation ownership notes receivable securitizations provide funding for us at interest rates similar to those available to companies with investment grade credit ratings, and transfer the economic risks and substantially all the benefits of the consumer loans we originate to third parties.
+Added: Historically, we have sold these loans to institutional investors in the asset-backed securities (“ABS”) market on a non-recourse basis.
+Added: These vacation ownership notes receivable securitizations provide funding for us at interest rates similar to those available to companies with investment grade credit ratings, and transfer the economic risks and a significant portion of the benefits of the consumer loans we originate to third parties.
In a vacation ownership notes receivable securitization, various classes of debt securities issued by a special purpose entity are generally collateralized by a single tranche of transferred assets, which consist of vacation ownership notes receivable.
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Those loans may later be transferred to term securitization transactions in the ABS market, which we intend to continue to complete at least once per year.
−Removed: Since 2000, we have issued almost $7.5 billion of debt securities in securitization transactions in the ABS market, excluding amounts securitized through warehouse credit facilities or private bank transactions.
+Added: Since 2000, we have issued approximately $8.1 billion of debt securities in securitization transactions in the ABS market, excluding amounts securitized through warehouse credit facilities or private bank transactions.
We retain the servicing and collection responsibilities for the loans we securitize, for which we receive a servicing fee.
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Regis Residence Club and The Luxury Collection 3 82
−Removed: Hyatt Residence Club 15 1,399
−Removed: Other, including Welk 13 1,975
+Added: Hyatt Residence Club and Legacy-Welk 24 2,836
Sheraton Kauai Resort Kauai, HI
The Westin Resort & Spa, Cancun Cancun, Mexico
−Removed: The Westin Resort & Spa, Puerto Vallarta Puerto Vallarta, Mexico
Hyatt Highlands Inn Carmel, CA
−Removed: Welk Resorts Branson Hotel Branson, MO
+Added: The Branson Hillside Hotel Branson, MO
EXCHANGE & THIRD-PARTY MANAGEMENT SEGMENT
−Removed: Our Exchange & Third-Party Management segment includes exchange networks and membership programs comprised of nearly 3,200 affiliated resorts in over 90 nations and nearly 1.4 million members, as well as provision of management services to over 150 other resorts and lodging properties.
−Removed: We provide these services through a variety of brands including Interval International, Trading Places International, Vacation Resorts International and Aqua-Aston.
+Added: Our Exchange & Third-Party Management segment includes exchange networks and membership programs comprised of more than 3,200 affiliated resorts in over 90 countries and territories and over 1.6 million members, as well as provision of management services to over 25 other resorts and lodging properties.
+Added: We provide these services through our Interval International and Aqua-Aston businesses.
The segment revenue generally is fee-based and derived from membership, exchange and rental transactions, owners’ association management, and other related products and services.
+Added: VRI Americas was part of the Exchange & Third-Party Management segment through the date of sale in April 2022.
The Exchange & Third-Party Management segment represented 6% of our consolidated revenue for 2022.
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Interval International
−Removed: Our primary exchange offering is Interval International’s network, a membership-based exchange program which also provides a comprehensive package of value-added products and services to members and developers.
−Removed: Generally, individuals are enrolled by resort developers in connection with their purchase of vacation ownership interests from such resort developers, with initial membership fees being paid on behalf of members by the resort developers.
−Removed: Members may also enroll directly, for instance, when they purchase a vacation ownership interest through resale or an owners’ association at a resort that participates in the Interval International network.
+Added: Interval International is a membership-based exchange program which also provides a comprehensive package of value-added products and services to members and developers.
+Added: Generally, individuals are enrolled by resort developers in connection with their purchase of VOIs from such resort developers, with initial membership fees being paid on behalf of members by the resort developers.
+Added: Members may also enroll directly, for instance, when they purchase a VOI through resale or an owners’ association at a resort that participates in the Interval International network.
Interval International has established multi-year relationships with resort developers, including leading independent developers and our branded vacation ownership programs, under exclusive affiliation agreements, which typically provide for continued resort participation following the agreement’s term.
Our traditional Interval International network members have the option, after their initial membership period ends, to renew their memberships for terms ranging from one to five years and by paying membership fees directly to us.
−Removed: Alternatively, some resort developers incorporate the Interval International network membership fee into certain annual fees they charge to
−Removed: owners of vacation ownership interests at their resorts or vacation ownership clubs.
+Added: Alternatively, some resort developers incorporate the Interval International network membership fee into certain annual fees they charge to owners of VOIs at their resorts or vacation ownership clubs.
As a result, membership in the Interval International network and, where applicable, the Interval Gold, Club Interval, or Interval Platinum program (as described below), for these corporate members is automatically renewed through the period of their resort’s or club’s participation in the Interval International network.
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Products and Services
−Removed: Members are offered the ability to exchange usage rights in their vacation ownership interest for accommodations which are generally of comparable trading value to those relinquished, based on factors including location, quality, seasonality, unit attributes and time of relinquishment prior to occupancy.
+Added: Members are offered the ability to exchange usage rights in their VOI for accommodations which are generally of comparable trading value to those relinquished, based on factors including location, quality, seasonality, unit attributes and time of relinquishment prior to occupancy.
We also offer additional vacation rental opportunities to members of the Interval International network and certain other membership or affinity programs at attractive rates through Getaways.
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Interval International network members may take advantage of one of our two enhanced membership tiers, Interval Gold or Interval Platinum, each of which provides value-added benefits and services for an additional fee.
−Removed: These benefits and services vary by country of residence, but generally consist of discounts on Getaways, a concierge service, a hotel discount program and Interval Options, a service that allows members to relinquish annual occupancy rights in their vacation ownership interests towards the purchase of various travel products, including hotel, cruise, golf and spa vacations.
−Removed: Members are enrolled in these programs either by resort developers in connection with the initial purchase of their vacation ownership interests or by upgrading their membership directly.
+Added: These benefits and services vary by country of residence, but generally consist of discounts on Getaways, a concierge service, a hotel discount program and Interval Options, a service that allows members to relinquish annual occupancy rights in their VOIs towards the purchase of various travel products, including hotel, cruise, golf and spa vacations.
+Added: Members are enrolled in these programs either by resort developers in connection with the initial purchase of their VOIs or by upgrading their membership directly.
Club Interval
−Removed: This product gives owners of fixed or floating week vacation ownership interests the opportunity to use their resort week as points within the Interval International network.
+Added: This product gives owners of fixed or floating week VOIs the opportunity to use their resort week as points within the Interval International network.
Club Interval members also receive all of the benefits of Interval Gold and can upgrade to Interval Platinum.
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Leisure Time Passport is a travel membership program which provides members with a variety of travel and leisure benefits, including savings on resort accommodations, hotel stays, cruise vacations and more.
−Removed: The Leisure Time Passport membership program is used by resort developers as a trial membership program for potential purchasers of vacation ownership products as well as by non-developer clients, as an addition to their own product(s), which provides ongoing value and customer engagement.
+Added: The Leisure Time Passport membership program is used by resort developers as a trial membership program for potential purchasers of vacation ownership products as well as by non-developer clients, as an addition to their own products, which provides ongoing value and customer engagement.
Dream Vacation Week is a certificate program which provides the recipient with access to book discounted resort accommodations and is used as a marketing premium, sales incentive, or enhancement to an existing program.
Sales and Marketing Support for Interval International Network Resorts
−Removed: Resort developers promote membership in our exchange programs and related value-added services as an important benefit of owning a vacation ownership interest.
+Added: Resort developers promote membership in our exchange programs and related value-added services as an important benefit of owning a VOI.
We offer developers a selection of sales and marketing materials.
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For example, for an additional fee, we provide reservation services and billing and collection of maintenance fees and other amounts due to developers or owners’ associations.
−Removed: In addition, through consulting arrangements, we assist resort developers in the design of tailored vacation programs for owners of vacation ownership interests.
−Removed: Trading Places International
−Removed: Trading Places International provides exchange services to owners at certain of our managed timeshare properties as well as other direct-to-consumer exchanges that do not require a membership fee.
−Removed: For an annual fee, vacation interest owners may choose to join the upgraded Trading Places Prime program with additional benefits.
−Removed: Exchanges in these Trading Places programs are based on like value and upgrades are available upon payment of additional fees.
+Added: In addition, through consulting arrangements, we assist resort developers in the design of tailored vacation programs for owners of VOIs.
Business Development
−Removed: Our exchange businesses maintain corporate and consumer business development departments that are responsible for signing up new resorts, resort developers, and other businesses and implementing marketing strategies.
+Added: Our exchange businesses maintain corporate and consumer business development departments that are responsible for affiliating new resorts, resort developers, and other businesses with Interval International and implementing marketing strategies.
We also develop materials to promote membership participation, exchange opportunities and other value-added services to existing members, as well as for the Interval International business to secure new relationships with resort developers, owners’ associations and resorts, to obtain and retain members, and with other affinity partners, to provide value added travel benefits to their customers.
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Our sales and services personnel proactively seek to establish strong relationships with developers and owners’ associations, providing input on consumer preferences and industry trends based upon years of experience.
−Removed: We believe that we have established a strong reputation within the vacation ownership industry as being highly responsive to the needs of resort developers, owners’ associations, management companies and owners of vacation ownership interests.
+Added: We believe that we have established a strong reputation within the vacation ownership industry as being highly responsive to the needs of resort developers, owners’ associations, management companies and owners of VOIs.
In addition, we sponsor, participate in and attend numerous industry conferences around the world to provide potential and existing industry participants opportunities to network and learn more about vacation ownership.
Third-Party Management
−Removed: We provide resort management services for vacation ownership resorts and other third-party vacation property owners through Vacation Resorts International, Trading Places International and Aqua-Aston.
+Added: We provide management services for resorts, hotels, and other third-party vacation property owners through our Aqua-Aston business.
Our services may include day-to-day operations of the resorts, maintenance of the resorts, preparation of reports, budgets, owners’ association administration, quality assurance and employee training.
As of December 31, 2022, we provided third-party management services to over 25 resorts and lodging properties.
−Removed: Vacation Resorts International and Trading Places International provide management services to vacation ownership resorts pursuant to agreements with terms generally ranging from one to ten years, many of which are automatically renewable.
−Removed: Generally, our management fees are paid by the owners’ association and funded from the annual maintenance fees paid by the individual vacation ownership interest owners to the association.
−Removed: These maintenance fees represent each owner’s allocable share of the costs of operating and maintaining the resorts, which generally includes personnel, property taxes, insurance, a capital asset reserve to fund refurbishment and other related costs.
−Removed: The management fees we earn are highly predictable due to the relatively fixed nature of resort operating expenses.
−Removed: We are reimbursed for the costs incurred to perform our services, principally related to personnel providing on-site services.
−Removed: We also offer vacation rental services to these owners’ associations.
−Removed: These rentals are made online directly to consumers through our websites and through third-party online travel agencies, and through Interval International’s Getaways program.
−Removed: Aqua-Aston provides management and rental services for condominium owners, hotel owners, and owners’ associations.
+Added: Our Aqua-Aston business provides management and rental services for condominium owners, hotel owners, and owners’ associations.
The condominium rental properties are generally investment properties, and, to a lesser extent, second homes, owned by individuals who contract with Aqua‑Aston directly to manage, market and rent their properties, generally pursuant to short‑term agreements.
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Management fees consist of a base management fee and, in some instances for hotels or condominium resorts, an incentive management fee which is generally a percentage of operating profits or improvement in operating profits.
−Removed: Service fee revenue is based on the services provided internally or through third-party providers to owners including reservation services, sales and marketing, property accounting and information technology services.
+Added: Service fee revenue is based on the services provided internally or through third-party providers to owners, including reservation, sales and marketing, property accounting and information technology services.
The success and continued growth of the Aqua-Aston business, which is concentrated in Hawaii, depends largely on our ability to source vacationers interested in booking vacation properties made available through our rental services.
Our in-market sales and marketing team utilizes a variety of sales, marketing, revenue management and digital marketing initiatives to attract consumers and additional properties to Aqua‑Aston.
−Removed: We utilize many channels of distribution including traditional
−Removed: wholesale through tour operators and travel partners, online travel agencies and global distribution systems.
+Added: We utilize many channels of distribution, including traditional wholesale through tour operators and travel partners, online travel agencies and global distribution systems.
In addition, Aqua‑Aston focuses on driving direct business through brand websites and our central reservations office.
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We offer a variety of leisure accommodations to visitors from around the world through various consumer websites, including www.aquaaston.com, www.aquaresorts.com, www.mauicondo.com, and others.
+Added: Disposition of VRI Americas
+Added: On April 29, 2022, we disposed of the VRI Americas business after determining that this business was not a core component of our future growth strategy and operating model.
+Added: VRI Americas was a component of our Exchange and Third-Party Management segment through the date of the sale.
+Added: See Footnote 3 “Acquisitions and Dispositions” to our Financial Statements for further information regarding this disposition.
CORPORATE AND OTHER
−Removed: Corporate and Other consists of results that are not allocable to our segments, including company-wide general and administrative costs, corporate interest expense, transaction and integration costs, and (provision for) benefit from income taxes.
+Added: Corporate and Other consists of results that are not allocable to our segments, including company-wide general and administrative costs, corporate interest expense, transaction and integration costs, and income taxes.
In addition, Corporate and Other includes the revenues and expenses relating to owners’ associations consolidated under the relevant accounting guidance (“Consolidated Property Owners’ Associations”), which are not included in operating segment resource allocation decision-making.
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Remaining rental revenue is recognized based on occupancy.
−Removed: Competition in the vacation ownership industry is driven primarily by the quality, number and location of vacation ownership resorts, the quality and capability of the related property management program, trust in the brand, pricing of product offerings, cost of ownership (i.e., ongoing maintenance and other fees) and the availability of program benefits, such as exchange programs and access to affiliated hotel networks.
+Added: Refer to Liquidity within Part I, Item 7.
+Added: “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for information regarding the seasonality of our cash flow.
+Added: Competition in the vacation ownership industry is driven primarily by the quality, number and location of vacation ownership resorts, the quality and capability of the related property management program, trust in the brand, pricing of product offerings, cost of ownership (e.g., ongoing maintenance and other fees) and the availability of program benefits, such as exchange programs and access to affiliated hotel networks.
We believe that our focus on offering distinctive vacation experiences, combined with our financial strength, well-established and diverse market presence, strong brands, expertise and well-managed and maintained properties, will enable us to remain competitive.
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Our Interval International exchange business principally competes for developer and consumer market share with Travel + Leisure Co.’s subsidiary, RCI.
−Removed: Our subsidiary, Trading Places International, and several third parties operate in this industry with a significantly more limited scope of available accommodations.
−Removed: This business also faces increasing competition from points‑based vacation clubs and large resort developers, which operate their own internal exchange systems to facilitate exchanges for owners of vacation ownership interests at their resorts as they increase in size and scope.
+Added: This business also faces increasing competition from points‑based vacation clubs and large resort developers, which operate their own internal exchange systems to facilitate exchanges for owners of VOIs at their resorts as they increase in size and scope.
Increased consolidation in the industry enhances this competition.
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We are subject to a wide variety of complex international, national, federal, state and local laws, regulations and policies in jurisdictions around the world.
−Removed: We have proactively worked with ARDA to encourage the enactment of responsible consumer-protection legislation and state regulation that enhances the reputation and respectability of the overall vacation ownership industry.
+Added: We have proactively worked with industry trade associations, including ARDA, to encourage the enactment of responsible consumer-protection legislation and state regulation that enhances the reputation and respectability of the overall vacation ownership industry.
We believe that, over time, our vacation ownership products and services helped improve the public perception of the vacation ownership industry.
−Removed: Some laws, regulations and policies may impact multiple areas of our business, such as securities, anti-discrimination, anti-fraud, data protection and security and anti-corruption and bribery laws and regulations or government economic sanctions, including applicable regulations of the Consumer Financial Protection Bureau (the “CFPB”), the U.S.
+Added: Some laws, regulations and policies may impact multiple areas of our business, such as securities, anti-discrimination, anti-fraud, Americans with Disabilities Act, data protection and security, anti-corruption and bribery laws and regulations or government economic sanctions, including applicable regulations of the Consumer Financial Protection Bureau (the “CFPB”), the U.S.
Department of the Treasury’s Office of Foreign Asset Control and the U.S.
Foreign Corrupt Practices Act (the “FCPA”).
−Removed: The FCPA and similar anti-corruption and bribery laws in other jurisdictions generally prohibit companies and their intermediaries from making improper payments to government officials for the purpose of obtaining or generating business.
+Added: The FCPA and similar anti-corruption and bribery laws in other jurisdictions generally prohibit companies and
+Added: their intermediaries from making improper payments to government officials for the purpose of obtaining or generating business.
The collection, use and protection of personal data of our customers, as well as the sharing of our customer data with affiliates and third parties, are governed by privacy laws and regulations enacted in the United States and other jurisdictions around the world.
−Removed: Other laws, regulations and policies primarily affect one of four areas of our business:
+Added: Other laws, regulations and policies primarily affect one of five areas of our business:
real estate development activities;
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lending activities;
−Removed: resort management activities, and exchange and travel activities.
+Added: resort management activities;
+Added: and exchange and travel activities.
Real Estate Development Regulation
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Federal Trade Commission (the “FTC”) and state “Little FTC Acts” and other laws and regulations governing unfair, deceptive or abusive acts or practices, including unfair or deceptive trade practices and unfair competition, state attorney general regulations, anti-fraud laws, prize, gift and sweepstakes laws, real estate, title agency or insurance, travel insurance and other licensing or registration laws and regulations, anti-money laundering, consumer information privacy and security, breach notification, information sharing and telemarketing laws, home solicitation sales laws, tour operator laws, lodging certificate and seller of travel laws, securities laws, and other consumer protection laws.
−Removed: Many jurisdictions, including many jurisdictions in the United States, Asia Pacific and Europe, require that we file detailed registration or offering statements with regulatory authorities disclosing certain information regarding the vacation ownership interests and other real estate interests we market and sell, such as information concerning the interests being offered, any projects, resorts or programs to which the interests relate, applicable condominium or vacation ownership plans, evidence of title, details regarding our business, the purchaser’s rights and obligations with respect to such interests, and a description of the manner in which we intend to offer and advertise such interests.
+Added: Many jurisdictions, including in the United States, Asia Pacific and Europe, require that we file detailed registration or offering statements with regulatory authorities disclosing certain information regarding the VOIs and other real estate interests we market and sell, such as information concerning the interests being offered, any projects, resorts or programs to which the interests relate, applicable condominium or vacation ownership plans, evidence of title, details regarding our business, the purchaser’s rights and obligations with respect to such interests, and a description of the manner in which we intend to offer and advertise such interests.
Regulation outside the United States includes jurisdictions in which our clubs and resorts operate, such as the European Union, Singapore and Mexico, among others.
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In some countries, our vacation ownership products are marketed by third-party brokers.
−Removed: Laws in many jurisdictions in which we sell vacation ownership interests grant the purchaser of a vacation ownership interest the right to cancel a purchase contract during a specified rescission period following the later of the date the contract was signed or the date the purchaser received the last of the documents required to be provided by us.
−Removed: Regulators in many jurisdictions have increased regulations and enforcement actions related to telemarketing operations, including requiring adherence to the federal Telephone Consumer Protection Act (the “TCPA”) and similar “do not call” legislation.
+Added: Laws in many jurisdictions in which we sell VOIs grant the purchaser of a VOI the right to cancel a purchase contract during a specified rescission period following the later of the date the contract was signed or the date the purchaser received the last of the documents required to be provided by us.
+Added: Regulators in many jurisdictions have increased regulations and enforcement actions related to telemarketing operations, including requiring adherence to the federal Telephone Consumer Protection Act and similar “do not call” legislation.
These measures have significantly increased the costs and reduced the efficiencies associated with telemarketing.
While we continue to be subject to telemarketing risks and potential liability, we believe that our exposure to adverse effects from telemarketing legislation and enforcement is mitigated in some instances by the use of permission-based marketing, under which we obtain the permission of prospective purchasers to contact them in the future.
−Removed: We participate in various programs and follow certain procedures that we believe help reduce the possibility that we contact individuals who have requested to be placed on federal or state “do not call” lists, including subscribing to the federal and certain state “do not call” lists, and maintaining an internal “do not call” list.
+Added: We participate in various programs and follow certain procedures that we believe help reduce the possibility that we contact individuals who have requested to be
+Added: placed on federal or state “do not call” lists, including subscribing to the federal and certain state “do not call” lists, and maintaining an internal “do not call” list.
Lending Regulation
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Resort Management Regulation
−Removed: Our resort management activities are subject to laws and regulations regarding community association management, public lodging, food and beverage services, labor, employment, health care, health and safety, accessibility, discrimination, immigration, gaming, and the environment (including climate change).
−Removed: In addition, many jurisdictions in which we manage our resorts have statutory provisions that limit the duration of the initial and renewal terms of our management agreements for owners’ associations and/or permit the owners’ association for a resort to terminate our management agreement under certain circumstances (for example, upon a super-majority vote of the owners), even if we are not in default under the agreement.
+Added: Our resort management activities are subject to laws and regulations regarding community association management, timeshare and condominium management (including real estate broker licensing), public lodging, food and beverage services (including liquor licensing), labor, employment, health care, health and safety, accessibility, discrimination, immigration, gaming, certain communication devices, transient rentals, structural audits of improvements and reserve accounts associated with such improvements, and the environment (including climate change).
+Added: In addition, many jurisdictions in which we manage our resorts have statutory provisions that limit the duration of the initial and renewal terms of our management agreements for owners’ associations or permit the owners’ association for a resort to terminate our management agreement under certain circumstances (for example, upon a super-majority vote of the owners), even if we are not in default under the agreement.
Exchange and Travel Regulations
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We believe that our management and development of properties comply, in all material respects, with environmental laws and regulations.
−Removed: Our compliance with such provisions also has not had a material impact on our capital expenditures, earnings or competitive position, nor do we anticipate that such compliance will have a material impact in the future.
+Added: Our compliance with such provisions has not had a material impact on our capital expenditures, earnings or competitive position, nor do we anticipate that such compliance will have a material impact in the future.
+Added: We do not exercise complete control over all resorts and properties that we manage;
+Added: rather, our control over these properties is generally limited by the terms of the applicable management agreements.
+Added: As a result, our ability to achieve some or all of our environmental, social, and governance (“ESG”) initiatives or goals may be limited without additional support or action by the owners of those resorts and properties we manage.
We take our commitment to protecting the environment seriously.
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The Audubon partnership is just one of several programs incorporated into our green initiatives.
−Removed: We have more than 20 years of energy conservation experience that we have put to use in implementing our environmental strategy across each of our segments.
+Added: more than 20 years of energy conservation experience that we have put to use in implementing our environmental strategy across each of our segments.
This strategy includes further reducing energy and water consumption, expanding our portfolio of green resorts, including LEED (Leadership in Energy & Environmental Design) certification, educating and inspiring associates and guests to support the environment, and embracing innovation.
Human Capital
−Removed: We recognize that our industry leadership depends in critical part on our continued ability to recruit, motivate, and retain the talented associates that make up our global workforce.
−Removed: We maintain a set of programs and initiatives, rooted in our Core Values (Caring Culture, Integrity First, Excellence Always, Customer Obsessed, and Better Together), designed to attract, develop, retain and engage our associates that is focused on:
−Removed: • competitive, fair, and transparent compensation and benefits offerings;
−Removed: • supporting the overall well-being of our associates from a physical, mental, and social perspective;
+Added: We recognize that to remain a leader in our industry, we must recruit, motivate, and retain the talented associates who make up our global workforce.
+Added: With that focus in mind, we implement programs and initiatives rooted in our Core Values:
+Added: Caring Culture, Integrity First, Excellence Always, Customer Obsessed, and Better Together.
+Added: Our approach is thoughtfully designed to attract, develop, retain, and engage our associates by:
+Added: • offering competitive, fair, and transparent compensation and benefits;
+Added: • supporting the overall well-being of our associates physically, mentally, and socially;
• creating opportunities for associate growth, development, recognition, training, and education;
−Removed: • promoting an inclusive and diverse workplace, where all individuals are respected regardless of their age, race, notional origin, gender, religion, disability, or sexual orientation.
+Added: • promoting an inclusive and diverse workplace, where all individuals are respected regardless of their age, race, national origin, gender, religion, disability, sexual orientation, or other lived experiences.
As of December 31, 2022, we had a global workforce consisting of approximately 21,400 associates, of which approximately 17,400 (81%) were based in the United States and approximately 4,000 (19%) were based in international locations.
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As a leisure-focused company, we are in the business of bringing people together.
−Removed: Like our customers, our associates come from diverse backgrounds, offering invaluably distinct perspectives.
+Added: Like our customers, our associates come from diverse backgrounds, offering invaluably distinct experiences and perspectives.
Women comprise 54% of our worldwide workforce, and men comprise 46%.
Within the United States, people of color comprise 50% of our management level positions and women comprise 49% of our management level positions.
−Removed: We are implementing recruiting efforts focused on placing women and people of color in management roles.
−Removed: In 2021, we launched an Executive Inclusion Council, which is comprised of approximately 20 senior leaders dedicated to enabling and championing Inclusion and Diversity initiatives throughout the organization.
−Removed: Top priorities include providing guidance regarding our Inclusion and Diversity strategy, increasing leaders’ ability to discuss and be held accountable for driving Inclusion and Diversity outcomes, and increasing awareness and impact of initiatives.
−Removed: With the support of the Executive Inclusion Council, we completed an internal review of our Inclusion and Diversity practices and programs as well as external benchmarking to refine our Inclusion and Diversity strategic framework and ongoing areas of focus.
−Removed: This work led us to establish a framework rooted in our core values and supported by a newly developed Inclusion and Diversity Commitment Statement (included below).
+Added: We continue to leverage recruiting efforts focused on placing women and people of color into management roles.
+Added: In 2022, our inclusion and diversity efforts focused on reinforcing our core values by championing an inclusive work environment for our associates and executing key initiatives, including through associate engagement events, feedback mechanisms, and associate training programs.
+Added: We also continued our work toward increasing diverse representation within our leadership pipelines for executive and senior leadership roles.
+Added: Our highest rated dimension on our 2022 annual associate engagement survey was associates’ perceptions of inclusion and diversity at 87% based on their assessment of leaders’ support for inclusion and diversity, service to customers with diverse backgrounds, respect and well-being of all people comes first at MVW, a work environment that is accepting of diverse backgrounds and ways of thinking and all backgrounds are encouraged to pursue their career aspirations at MVW.
+Added: In 2022, the Company adopted its inclusion and diversity commitment statement, which states:
MVW is committed to advancing and cultivating inclusion and diversity in all aspects of our business.
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Our Global Talent Management team develops and deploys programs and resources for all our associates.
−Removed: Our learning programs are designed to help ensure our company is a desirable place to start and cultivate a fulfilling career, with increased opportunities for growth.
−Removed: In light of the COVID-19 pandemic, a key training focus in 2021 was to provide courses on returning to work safely and supporting our associates’ overall health and well-being.
+Added: Our learning programs are one of the many features that make our Company a desirable place to start and cultivate a fulfilling career, with increased opportunities for growth.
Our Global Talent Management team is also committed to providing our leaders with the opportunity to develop their leadership skills and equip leaders with the skills they need to create a positive work environment for all associates.
−Removed: With a curriculum of approximately 15 distinct courses, the Leadership Development Program provides associates the tools, resources, and practices we believe are important to becoming successful leaders and strengthening our diverse talent pipeline.
−Removed: In 2021, we continued to deliver virtual learning courses to support leadership development training in a socially distant manner.
−Removed: We also adapted in-classroom practices to accommodate live, instructor-lead training for select courses.
−Removed: Our efforts helped us continue to support leaders in building leadership skills for the future.
+Added: We offer a leadership development program that provides associates with tools, resources, and practices that we believe are important to becoming successful leaders and strengthening our diverse talent pipeline.
+Added: We also offer tuition reimbursement to our associates.
+Added: We believe that these efforts help us continue to support leaders in building leadership skills for the future.
Collective Bargaining Agreements
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We maintain a Human Rights Policy that aligns with government, business, and public concerns about issues such as human trafficking and the exploitation of children.
−Removed: We do not recruit child labor, and we support programs and partnerships that help at-risk young people and their families prepare for and find meaningful employment.
+Added: We do not recruit child labor, and we support programs and partnerships that help at-risk youth and their families prepare for and find meaningful employment.
Our Human Rights Policy is available on our website at (www.marriottvacationsworldwide.com) under the “Investor Relations” tab.
+Added: We also have a human trafficking awareness training course that promotes our Human Rights Policy and core values.
+Added: We recognize the risks associated with human trafficking in our properties and have implemented training for our property-based associates to be able to recognize and report suspected cases of human trafficking.
+Added: Our training in the U.S., U.S.
+Added: Virgin Islands, and Puerto Rico was developed based upon best practices established by federal law enforcement agencies.
Available Information
6 unchanged sentences
Name and Title Age Business Experience
−Removed: Chief Executive Officer 71 Stephen P.
−Removed: Weisz has served as our Chief Executive Officer since 2011, and as our President from 1996 through December 2020.
−Removed: Weisz has also been a member of our Board of Directors since 2011.
−Removed: Weisz joined Marriott International in 1972.
−Removed: Over his 39-year career with Marriott International, he held a number of leadership positions in the Lodging division, including Senior Vice President of Sales and Marketing and Executive Vice President-Lodging Brands.
−Removed: Weisz is a past Chairman of the Board of Directors of the American Resort Development Association and also a past Chairman of the Board of Trustees of Children’s Miracle Network.
−Removed: President 54 John E.
−Removed: has served as our President since October 2021.
+Added: President and Chief Executive Officer 55 John E.
+Added: succeeded Mr.
+Added: Weisz as our President and Chief Executive Officer effective January 1, 2023.
+Added: Geller has served as our President since October 2021.
From January 2021 to October 2021, he served as our President and Chief Financial Officer.
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Geller joined Marriott International in 2005 as Senior Vice President and Chief Audit Executive and Information Security Officer.
−Removed: Name and Title Age Business Experience
−Removed: Lee Cunningham
−Removed: Executive Vice President and Chief Operating Officer - Vacation Ownership 62 R.
−Removed: Lee Cunningham has served as our Executive Vice President and Chief Operating Officer - Vacation Ownership since September 2018.
−Removed: From December 2012 to August 2018, he served as our Executive Vice President and Chief Operating Officer.
−Removed: From 2007 to December 2012, he served as our Executive Vice President and Chief Operating Officer – North America and Caribbean.
−Removed: Cunningham joined our company in 1997 as Vice President of Revenue Management and Owner Service Operations.
−Removed: Cunningham joined Marriott International in 1982.
−Removed: As reported in a Current Report on Form 8-K filed on January 12, 2022, Mr.
−Removed: Cunningham announced his decision to retire as our Executive Vice President and Chief Operating Officer - Vacation Ownership in April 2022;
−Removed: Cunningham subsequently announced that he would instead retire in May 2022.
Executive Vice President and Chief Financial Officer 55 Anthony E.
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Terry began his career with the Company in 1996.
−Removed: Lori Gustafson
−Removed: Executive Vice President and Chief Brand and Digital Strategy Officer 38 Lori Gustafson joined our company in November 2020 and serves as our Executive Vice President and Chief Brand and Digital Strategy Officer.
+Added: Executive Vice President and Chief Operating Officer, Hyatt Vacation Ownership 51 Stephanie Sobeck Butera has served as our Executive Vice President and Chief Operating Officer, Hyatt Vacation Ownership since January 2023.
+Added: She served as our Senior Vice President and Chief Operating Officer, Hyatt Vacation Ownership from April 2021 to December 2022.
+Added: Prior to leading Hyatt Vacation Ownership, Ms.
+Added: Sobeck Butera held a number of leadership positions with the Company, serving as Vice President, Asset Management for The Ritz-Carlton Destination Club from August 2014 to October 2018, before moving into the position of Senior Vice President, Vacation Ownership for the Americas, Florida, Mexico, and Caribbean from October 2018 to April 2021.
+Added: Sobeck Butera joined the Company in 1999.
+Added: Name and Title Age Business Experience
+Added: Gustafson Executive Vice President and Chief Brand and Digital Officer 39 Lori Gustafson joined the company in November 2020 and serves as our Executive Vice President and Chief Brand and Digital Officer.
From May 2019 to November 2020, she served as Senior Vice President, Global Brands & Digital for Wyndham Destinations, where she was responsible for brand management and digital marketing.
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Hunter joined Marriott International in 1994.
−Removed: Lizabeth Kane-Hanan
−Removed: Executive Vice President and Chief Development and Product Officer 55 Lizabeth Kane-Hanan has served as our Executive Vice President and Chief Development and Product Officer since September 2018.
−Removed: From November 2011 to August 2018, she served as our Executive Vice President and Chief Growth and Inventory Officer.
−Removed: Prior to that time, she had served as our Senior Vice President, Resort Development and Planning, Inventory and Revenue Management and Product Innovation since 2009.
−Removed: Kane-Hanan joined our company in 2000.
President, Exchange and Third-Party Management 66 Jeanette Marbert has served as our President, Exchange and Third-Party Management since October 2018.
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Prior to that time, he had served as our Senior Vice President, Sales and Marketing and Service Operations since 2007.
−Removed: Miller joined our company in 1991.
+Added: Miller joined the Company in 1991.
Executive Vice President and Chief Information Officer 62 Dwight D.
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Smith joined Marriott International in 1988.
−Removed: Name and Title Age Business Experience
+Added: Smith has announced his decision to retire as our Executive Vice President and Chief Information Officer later in 2023.
Executive Vice President and Chief Human Resources Officer 64 Michael E.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.