MARRIOTT VACATIONS WORLDWIDE Corp (NYSE: VAC)

MARRIOTT VACATIONS WORLDWIDE Corp is a leading global vacation company that offers vacation ownership exchange rental and resort and property management along with related businesses products and services. The company develops markets sells finances rents and manages vacation ownership and related products under licensed brands such as Marriott Vacation Club Grand Residences by Marriott Sheraton Vacation Club Westin Vacation Club and Hyatt Vacation Club. It also holds exclusive rights to develop market and sell vacation ownership under The Ritz Carlton Club brand and non exclusive rights to whole ownership residential products under The Ritz Carlton Residences brand. Additionally the company licenses the St Regis brand for specified fractional ownership products. Through its subsidiary Interval International it provides a high quality vacation ownership exchange service that gives members access to a network of affiliated resorts worldwide. Its Aqua Aston business delivers management services for resorts hotels and other third party vacation property owners. The firm operates in the vacation ownership industry also known as the timeshare industry. Founded as a spin off from Marriott International in 2011 the company has grown to become one of the most recognized names in vacation ownership.

The company generates revenue from four main streams within its Vacation Ownership segment: the sale of vacation ownership interests, resort management and other services revenue, rental income from inventory held for sale, and financing income from loans provided to purchasers of vacation ownership products. Sale of VOIs represents the largest portion of revenue and includes both upfront contract sales and financing arrangements. Resort management and other services revenue comes from fees charged for operating and maintaining resorts as well as ancillary offerings such as food and beverage retail and golf and spa services. Rental income is earned by making unsold inventory available to short term guests through direct booking channels. Financing income arises from interest and servicing fees on loans originated to consumers purchasing VOIs. In addition the Exchange and Third Party Management segment earns fees from membership and exchange services through Interval International and from property management and rental services through Aqua Aston. Cost reimbursements that represent actual expenses with no margin also contribute to revenue across both segments. The customer base consists of individual vacation ownership purchasers, existing owners who finance additional purchases, members of exchange programs, and third party property owners seeking management services.

The company operates through the following segments: Vacation Ownership and Exchange and Third Party Management.

• Vacation Ownership develops markets sells finances rents and manages vacation ownership and related products under licensed brands including Marriott Vacation Club Grand Residences by Marriott Sheraton Vacation Club Westin Vacation Club Hyatt Vacation Club and The Ritz Carlton Club. It also offers non exclusive whole ownership residential products under The Ritz Carlton Residences brand and licenses the St Regis brand for specified fractional ownership products. As of December 31 2025 the segment had 120 resorts approximately 700 000 owner families and generated $4 805 million in revenue representing 96 percent of total segment revenue. The segment's revenue breakdown shows $1 464 million from sale of vacation ownership products $633 million from resort management and other services $615 million from rental income $360 million from financing and $1 733 million from cost reimbursements. This diverse revenue mix underscores the segment's ability to generate both transactional and recurring income streams.

• Exchange and Third Party Management consists of the Interval International and Aqua Aston businesses. Interval International provides a high quality vacation ownership exchange service to approximately 1 500 000 members worldwide through its Interval Network which includes more than 3 200 affiliated resorts in over 90 countries and territories. Members can exchange their vacation ownership usage rights for stays at other resorts cruises hotel stays or other travel products. Aqua Aston delivers property management and rental services to 23 resorts and lodging properties primarily located in Hawaii and other vacation destinations. In 2025 the segment generated $213 million in revenue representing 4 percent of total segment revenue with $170 million from management and exchange fees $35 million from rental income and $8 million from cost reimbursements. The exchange business benefits from a long established network that enhances liquidity for owners while the third party management business provides stable fee based income with modest capital requirements.

Marriott Vacations Worldwide Corp holds a strong position as one of the largest global vacation ownership and exchange companies measured by number of owners members resorts and revenue. Its competitive strengths include global scale a diversified platform and exclusive access to major hospitality loyalty programs such as Marriott Bonvoy and World of Hyatt. The company benefits from long term license agreements with Marriott International and Hyatt that grant it exclusive use of valuable brands. Its portfolio spans upper upscale and luxury tier properties across North America the Caribbean Europe Asia Pacific and Australia. Key competitors include Hilton Grand Vacations Club Disney Vacation Club and other regional timeshare operators as well as the exchange rival RCI a subsidiary of Travel + Leisure Co. The firm's advantages stem from its recognized brand names its extensive exchange network its recurring fee based revenue streams and its experienced management team. Additionally the company's capital efficient business model and its focus on growing recurring revenues from management financing and membership fees provide a resilient earnings profile that is less dependent on volatile new VOI sales. This strategic focus supports steady cash flow generation and financial flexibility for shareholder returns and reinvestment.

The company serves individual consumers who purchase vacation ownership interests as well as existing owners who finance additional purchases or exchange their usage rights. It also serves members of the Marriott Bonvoy and World of Hyatt loyalty programs who can redeem points for vacation ownership stays. Through Interval International it serves approximately 1 500 000 exchange members worldwide. Its Aqua Aston business serves third party hotel condominium and resort owners seeking management and rental services. While specific individual customer names are not disclosed the customer base consists largely of affluent leisure travelers families and individuals seeking flexible vacation experiences. The firm's sales efforts are directed toward consumers who value spacious accommodations with home like amenities such as kitchens and separate living areas and who appreciate the predictability of locking in vacation costs through ownership rather than facing fluctuating hotel rates. This focus on delivering high quality vacation experiences helps drive repeat purchases and strong owner loyalty which in turn supports ongoing revenue growth.