Transfer Smart News: Starwood Completes Securitization of Timeshare Loans

Recently, almost all industries were affected by the economic downturn. The timeshare industry is not excuse from this as evident from low sales and the many owners who are trying to get out from their timeshare contracts. But as they say that there is light at the end of every tunnel, some timeshare companies are already showing a recovering industry. Last December 10th, the Starwood Hotels & Resorts Worldwide, Inc. completed a securitization that involves the issuance of $166 million of notes by SVO 2009-B VOI Mortgage Corporation.

Starwood Hotels & Resorts Worldwide, Inc. is considered one of the leading hotel and leisure companies in the world. Starwood Hotels is a fully integrated owner, operator and franchisor of hotels and resorts and also owns Starwood Vacation Ownership, Inc.

Meanwhile, the Starwood contributed approximately $200 million in timeshare mortgages with an 83% advance and note rate of 5.81%. Also, it expects that the said securitization will result in a pre-tax gain of over $15 million. Moreover, the notes have not been and will not be registered under the Securities Act of 1933, as amended, or any state securities laws.

As projected by some experts, the timeshare industry is not yet fully free from financial crisis and the coming months will still be stiff. This also means that the sales will still not be in great heights. Also, the number of owners trying to get rid of timeshares will still continue rise. Some of these owners even hire a timeshare transfer company such as the Transfer Smart just to get rid of such property. But despite these, the timeshare companies are doing innovations and restructuring to battle this down economy.

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