STAMFORD, Conn. ― Starwood Hotels & Resorts Worldwide, Inc. announced plans to spin-off its vacation ownership business, Starwood Vacation Ownership (SVO), into a separate publicly traded company. In addition to accelerating Starwood’s ongoing asset-light transformation, the transaction will create a new vacation ownership company with a seasoned management team to take advantage of increasing growth opportunities within the timeshare industry.
As part of the planned spin-off, the new company will develop and operate SVO’s 22 timeshare resorts, continue to expand its existing developments, and enter into a new long-term licence agreement with Starwood for current and future timeshare properties to retain affiliation with the Westin and Sheraton brands, among other mandates.
“This is the right time for us to spin-off our vacation ownership business and move Starwood forward in its asset light strategy. Not only does SVO continue to have a great outlook for growth, but valuations for timeshare companies are at attractive levels,” said Frits van Paasschen, president and CEO of Stamford, Conn.-based Starwood. “Separating this distinct part of our business will allow Starwood to continue participating in this growth industry through a fee-based business model, as we do with our managed and franchised hotel business. This transaction puts us in a position to build on the strength of our brands to fuel growth and create shareholder value for both companies.”