By Denny Jacob
Marriott Vacations Worldwide warned Thursday that its third-quarter results will be taking a hit due to the Maui wildfires.
The timeshare company said it canceled all owner and exchange reservations through at least Sept. 10 and all transient rental and preview arrivals through the end of September, given ongoing recovery efforts in West Maui and expected challenges visitors will face if they travel to the area.
As a result, Marriott Vacations expects third-quarter contract sales to take a hit between $25 million and $30 million. This in turn will affect its quarterly net income attributable to shareholders in the range of $16 million to $19 million, the company said.
Marriott Vacations said it is too early to estimate any recovery though it intends to pursue relief available through insurance. The impact on fourth-quarter results will depend on the reopening of the company’s resorts and the pace of travel recovery.
Marriott Vacations said it operates four vacation ownership resorts and sale centers in West Maui that represent more than 10% of annual contract sales. Additionally, one its property-management businesses manages five properties in the area.
The fires in Lahaina and another community, Kula, burned over 3,000 acres, destroyed more than 2,200 structures and caused an estimated $5.5 billion in damage in the nation’s deadliest wildfire in more than a century. Some 1,000 people are still unaccounted for.
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