Timeshare Relief Come in Write Downs for Timeshare Companies

A number of timeshare companies already announced the write downs on their timeshare engagement. This is mainly because of the financial crisis that the whole world experienced this past months. Timeshare owners seeking for timeshare relief may not even be a big factor to this dilemma. So without much improvement in the economy, these write downs will continue to occur for the relief of the industry.

For one, the decision of the Marriott International, Inc. around five months ago to write down $760 million was a big surprise to the industry. And just days before, the Starwood Hotels and Resorts Worldwide, Inc also announced a write down. They did so in time of their announcement of the fourth quarter earnings. It amounted to $362 million, including the amount of the raw land that they planned to use for timeshare complexes. The plan will be discontinued as well as other timeshare constructions that were in the pipeline.

Such decrease in development in the timeshare industry will cause some problem to the industry. There will be a decrease in new timeshares to offer and other timeshares may remain underdeveloped. This may not concern other timeshare companies but as long as the economy behaves this way, the timeshare industry will have to wait for its recovery.

Timeshare owners who are getting rid of their timeshares can then say that their decision is truly rational. Timeshare companies are even trying to support their operations through these write downs because of the financial crisis. So all the more should these timeshare owners make the same decision.