Marriott Vacations says cancelled Maui reservations through Sept. 10 after fires

Marriott Vacations Worldwide provided an update today on the anticipated business impact of the Maui wildfires on its operations and financial results. “The company operates four vacation ownership resorts and sales centers in West Maui representing more than 10% of its annual contract sales. In addition, its Aqua-Aston Hospitality property management business manages five properties in West Maui… Following the wildfire devastation in West Maui on August 8, the company enacted its disaster response protocols to reinstate power, internet and cell communication as quickly as possible. The inability to communicate at the onset with resort leadership, Owners, guests and associates proved challenging as the infrastructure around the town of Lahaina was impaired. With a large percentage of the company’s nearly 1,700 associates on Maui sustaining significant damage to, or loss of, their homes and belongings, efforts have been focused on providing immediate relief while assessing the impacts and the long-term needs of its associates. The company is providing temporary housing, food, supplies, on-site counseling, and fiscal benefits like disaster pay. An existing non-profit Relief Fund affiliated with the company is also providing expedited relief grants while raising funds to aid those associates and their families who incur significant damage or displacement after a natural or civic disaster such as the wildfires in Maui. Physical damage to the company’s resorts and sales centers is minimal, however, with continued recovery efforts ongoing in West Maui and the challenging environment visitors will face if traveling to the area, the company has cancelled all Owner and exchange reservations through at least September 10, 2023 and all transient rental and preview arrivals through at least the end of September. As a result, the company expects contract sales in the third quarter to be adversely impacted by approximately $25 to $30M. In addition, because of lower contract sales and impacts to the Company’s other Vacation Ownership business lines, as well as impacts to its Exchange and Third-party Management segment, the Company currently expects the Maui wildfires to negatively impact its third quarter Net income attributable to common shareholders by $16 to $19M and its Adjusted EBITDA by $22 to $27M. While the company intends to pursue relief available through insurance options, it is too early to estimate any recovery. The impact of the Maui wildfires on fourth quarter operating results will depend on the timing of the re-opening of our resorts and the pace that travel returns to the island of Maui,” the company stated.