Are Timeshare Stocks A Ticking Time Bomb?

Apr. 05, 2017 3:55 AM ETHGV, HLF, ILG-OLD, MSFT, VAC, WYN, APO11 Comments
Opaque Investors profile picture
Opaque Investors


  • Timeshare companies are under severe pressure from angry consumers.
  • Hundreds of ongoing investigations.
  • Settlement after settlement when will it all end? Or is the model flawed?

We've all heard of timeshares, maybe we have a relative who bought one, or have used one - or are an owner. After all, there are 9.1 million timeshare US owners according to ARDA - The American Resort Development Association. But what's also telling from ARDA's own website, the claimed 83% satisfaction rate:

83% owner satisfaction = 17% owner dissatisfaction, with 9.1 million US owners that means 1,547,000 dissatisfied owners - that's a lot of unhappy customers however you run the numbers.

In this article, we're going to look at a few timeshare 'big caps' - there are thousands of timeshare companies, most of them are privately owned (not surprisingly). However, some of the largest timeshare 'networks' are publicly traded, notably:

  • Hilton Grand Vacations Inc. (HGV) (Vacation ownership)
  • ILG, Inc. (ILG) (Vacation exchange/rental/ownership)
  • Marriott Vacations Worldwide Corporation (VAC)
  • Wyndham Worldwide Corporation (WYN)

Let's take a look at individual 1-year charts of each:

HGV Chart

HGV data by YCharts

ILG Chart

ILG data by YCharts

VAC Chart

VAC data by YCharts

WYN Chart

WYN data by YCharts

They certainly are having a good year. Now let's unmask some of what lies underneath these numbers.

Issue 1: Timeshare Criminal Fraud

The timeshare industry has attracted criminals that have used various ends of the timeshare industry as a means to rob unsuspecting victims, often who are desperate to exit their obligations. It's not advertised in the national news, so this issue may be overlooked as a growing criminal problem, however - the FTC has more than 120 open criminal investigations into timeshare related fraud. See this recent example from Sacramento:

Marco Antonio Ramirez Zuno, 32, of Cancun, Mexico, has pleaded guilty to conspiracy to commit wire fraud in relation to a timeshare resale fraud scheme, says U.S. Attorney Phillip Talbert. According to court documents, between 2011 and 2012, Mr. Zuno and others conducted a timeshare resale fraud scheme based in

This article was written by

Opaque Investors profile picture
Opaque Investors - we invest in opaque markets.  The more opaque - the better!

Disclosure: I/we have no positions in any stocks mentioned, but may initiate a short position in WYN, APO, VAC, HGV over 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.

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