The period of low sales and the many owners trying to get out of their timeshares may not be over yet but one giant timeshare company’s rating has been revised from negative to stable by Fitch. Starwood Hotels & Resorts Worldwide Inc.’s, one of the biggest timeshare companies today has been affirmed by Fitch Rating Outlook to Stable from Negative as a reflection of the modestly improving recovery in lodging demand trends.
Also, the company is said to characterize with management’s continued efforts to support its balance sheet, the repositioning of its timeshare business, and the company’s demonstrated willingness and ability to access the capital markets during difficult market conditions.
Locally, Starwood has greatest exposure to the luxury, upper upscale, and urban market segments and its RevPAR performance in upper upscale and urban markets has been consistently outperforming the broader hotel market for five months, while the luxury segment has been consistently outperforming for three months. In addition, Starwood has more international exposure than many of its U.S. peers, and hotel demand internationally is stronger than the US with the sharpest pace of recovery in Asia. As a result of this, Starwood recently improved its company-specific forward RevPAR outlook more than its competitors.
The economic challenges are not over up to this day. Most companies suffer from low sales and many owners trying to get rid of their timeshares. Some of the owners even hire a timeshare transfer company such as the Transfer Smart just to get rid of such property. But despite, due to certain management strategies and company restructuring, some timeshare operators still manage to be profitable. One of these companies is the Starwood which has been recently affirmed by Fitch as stable from negative rating.