Write Downs in the Timeshare Industry is a Relief to Companies

Several write downs were experienced by the timeshare industry these past couple of months. These write downs reveal that the exodus of timeshare owners who are seeking for timeshare relief is not the only dilemma that the timeshare industry is currently experiencing, especially during this economic recession.

Timeshare industry is one of the most famous vacation options in the accommodation industry. It has grown to offer the most luxurious vacation locations to people and has even enticed hotel companies to engage in this type of business.

However, the recent financial crisis revealed some of these companies closing down and others writing down some of their assets. Starwood Hotels and Resorts Worldwide, Inc. disclosed their $362 million write down with their fourth quarter earnings last Thursday. The company is discontinuing the construction of some of its timeshare resorts. They also included the amount for the raw land that they intended to use for a timeshare complexes. They will no longer continue with the plan.

This Starwood write down is not the first for the industry. Five months ago, Marriott International, Inc. also declared a write down amounting to $760 million. The moves of these companies are brought about by the decrease in sales as well as the difficulty in financing being experienced worldwide.

If these write downs will continue, the timeshare industry will surely experience a decrease in timeshare developments. This will worsen the current situation of the industry where timeshare owners are already getting rid of their timeshares.