Marriott Vacations Worldwide has announced that the recent Maui wildfires will have a significant impact on its third-quarter results. As a result of ongoing recovery efforts in West Maui and anticipated challenges for visitors, the timeshare company has cancelled all owner and exchange reservations until at least September 10, as well as transient rental and preview arrivals for the remainder of September.
The cancellation of these reservations is expected to lead to a decline in third-quarter contract sales by an estimated $25 million to $30 million. Consequently, Marriott Vacations anticipates its quarterly net income attributable to shareholders to be affected, ranging from $16 million to $19 million.
While the company has yet to determine the extent of its recovery, Marriott Vacations intends to explore insurance relief options. The impact on fourth-quarter results is contingent upon the reopening of its resorts and the pace of travel recovery.
Marriott Vacations' presence in West Maui is significant, with four vacation ownership resorts and sale centers, which account for more than 10% of its annual contract sales. Additionally, one of its property-management businesses oversees five properties in the affected area.
The Maui wildfires in Lahaina and Kula have ravaged over 3,000 acres, resulting in the destruction of more than 2,200 structures. With an estimated $5.5 billion in damage, it is the deadliest wildfire in the United States in over a century. At present, approximately 1,000 individuals remain unaccounted for.