Marriott Vacations: Still Keeping My Distance

Felipe Brum, CFA217 FollowersFollow5ShareSavePlay(11min)CommentsSummaryMarriott Vacations has significantly underperformed the S&P 500 since May 2025, remaining flat while the index rose over 15%.VAC's growth engines are sputtering, with 2026 contract sales guided to just 1% growth and revenue flat since 2022.First-time buyer additions have slowed sharply, highlighting weakening demand and a challenging timeshare industry backdrop.I expect continued underperformance for VAC, with only intermittent periods of relative strength or weakness. VAC is a Hold for now.Henrik Sorensen/DigitalVision via Getty Images At some point in early 2025, I was intrigued by how richly valued the hotel companies were, namely Marriott (MAR), Hilton (HLT), and InterContinental (IHG). While all were trading atThis article was written byFelipe Brum, CFA217 FollowersFollowCFA Charterholder looking for value and GARP ideas with a long term mindset in play.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.