Today, in an exclusive interview with Marriott Vacation Club International (MVCI)’s Vice President-Public Relations Ed Kinney, I was told the company’s executive committee had been considering dividing its two primary businesses – its hotel management/franchise and the vacation ownership/timeshare models – as early as the third quarter of 2010. Both entities, Marriott International and MVCI, will be publicly-traded companies.
As contributing editor for Resort Trades (www.ResortTrades.com), I will be reporting on what the leadership and direction of the new entity will look like. Kinney revealed to me some new information about the spin-off, including divulging that Bill Marriott’s daughter and oldest child, Deborah Marriott Harrison, will serve on its board of directors.
The company’s new name has yet to be determined, Kinney told me. But it will have the tag ‘Marriott’ on it – for sure. Kinney explained to me how the prior entity was like mixing apples and oranges for Wall Street rating agencies and investors. “It’s like going to buy a fleet of cars and finding you are getting motorcycles, too,” he quipped.
The idea of splitting into separate companies is not a new one for Marriott. Marriott Corporation split into Marriott International, Inc. to handle management and franchising; and Host Marriott Corporation for the real estate side in 1993.
Kinney revealed that Bill Shaw who recently announced his retirement as co-chairman of Marriott International will assume the position of chairman for the timeshare company. MVCI’s current president, Steve Weisz, like Shaw, has been with Marriott 37 years and will be promoted to the position of chief executive officer for the spin-off. John Geller will continue to serve as senior vice president and chief financial officer for the timeshare company. Kinney said that the executive leadership will remain in place.
Watch for details from this exclusive interview in my article, “Marriott’s vacation ownership to fly solo,” in the April edition of Resort Trades.
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