Marriott Vacations Worldwide(US:VAC)2025-05-08 11:15Business Overview - The company operates with iconic brands, encompassing approximately 120 resorts and serving around 700,000 owner families[8] - The company's exchange network includes over 1.5 million Interval International members and access to over 3,200 exchange resorts across more than 90 countries and territories[8] - Vacation Ownership contributes approximately 90% of the company's Adjusted EBITDA, while Exchange and Third-Party Management contribute about 10%[8] - Approximately 40% of the company's Adjusted EBITDA contribution comes from recurring sources[12] Financial Performance and Projections - The company anticipates Adjusted EBITDA to be between $750 million and $780 million for the full year 2025[66] - The company projects Adjusted Free Cash Flow to be between $270 million and $330 million for 2025[66] - The company expects to generate $150 million to $200 million in annualized Adjusted EBITDA benefits by 2026 through strategic modernization initiatives[71] Growth Strategies - The company's strategic modernization is projected to drive $150 million to $200 million in Adjusted EBITDA benefits, split evenly between costs and efficiencies and accelerating revenue[29] - The company is focused on driving Vacation Ownership growth by leveraging strong license relationships to grow contract sales[49] - The company is adding new sales centers in premium locations to grow, with planned openings in Khao Lak, Nashville, Charleston, Nusa Dua, Bali, Orlando and Savannah between 2025 and 2028[53] - The company is investing in digital capabilities, with 14% of 2024 contract sales from North America Marriott brands being sold non-traditionally, including virtual sales, 67% of 2024 points booked digitally, and 49% of FY 2024 tour packages sold digitally[55]