Recent reports have confirmed South Miami-based Interval Leisure Group has entered into an agreement to acquire Vistana Signature Experiences, a Starwood Hotels and Resorts Worldwide vacation ownership business valued at $1.5 billion.
You can read the official communication HERE
Earlier this week a representative for both companies stated that ” the deal would happen after the spin-off is complete, creating a combined company with a more diverse portfolio”.
This is a mammoth investment. A report recently published confirms that both companies have advised that the deal includes ;
– 22 timeshare resorts
– Approximately 220,000 owners
– More than 5,000 employees
It is said that Starwood shareholders will own approximately 55 percent of the combined company, with existing shareholders of ILG owning 45 percent of the combined company. As part of the transaction, Vistana will enter into an 80-year exclusive global license agreement to the non-exclusive license for the existing St. Regis and The Luxury Collection vacation ownership properties and under that agreement, Starwood would receive an annual base royalty fee of $30 million in addition to 2 percent of timeshare interest sales.
Earlier this year Starwood announced a plan to spin off its timeshare unit. The firm later confirmed that it would list that division as Vistana Signature Experiences Inc.
The deal will give Interval Leisure rights to use the Sheraton and Westin brands in vacation ownership, while allowing existing timeshare owners in those resorts to continue using the to the Starwood Preferred Guest program.
Starwood describe themselves as “A thriving community of travelers who have discovered how planning and sharing their vacation experiences make life more fun”
Interval states that they are “a leading global provider of non-traditional lodging, encompassing a portfolio of leisure businesses from exchange and vacation rental to vacation ownership. In its exchange and rental segment”.
The companies have assured consumers that this combination will provide a “Stronger Financial Profile to Drive Growth”.
Only time will tell if this amalgamation will be the start of something beautiful or the end of enjoyable holidays for the consumers.
The signs look promising we have to say.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk