Starwood Hotels & Resorts to spin-off Starwood Vacation OwnershipStaff writer ▼ | February 11, 2015
Starwood Hotels & Resorts Worldwide announced plans to spin-off its vacation ownership business, Starwood Vacation Ownership (SVO), into a separate publicly traded company.
Starwood A new pure-play vacation ownership company
The transaction, which is expected to be tax-free to Starwood shareholders, will be effected through a pro rata distribution of the new entity's stock to existing Starwood shareholders.
SVO reported vacation ownership revenues of approximately $640 million in 2014 and has successfully sold more than $6 billion of vacation ownership intervals to over 220,000 owners over its 30+ year history. SVO has been recognized as a leader in the timeshare industry with deep management experience across its operations, and has a long track record for delivering world-class experiences to its owners and guests.
"This is the right time for us to spin-off our vacation ownership business and move Starwood forward in its asset light strategy. Not only does SVO continue to have a great outlook for growth, but valuations for timeshare companies are at attractive levels," said frits van paasschen, President and Chief Executive Officer of Starwood.
"Separating this distinct part of our business will allow Starwood to continue participating in this growth industry through a fee-based business model, as we do with our managed and franchised hotel business. This transaction puts us in a position to build on the strength of our brands to fuel growth and create shareholder value for both companies." ■