Marriott Vacations Worldwide (VAC, Financial) (VAC - $137.22 - NYSE) is one of the largest developers, marketers, and managers of timeshare resorts in the world. Shares have rebounded since the first quarter's steep drop and this continued in the fourth quarter as the company continued to demonstrate the resilience in its business model. Despite the steep drop in travel and subsequent drop in new unit sales and the attendant losses, Marriott has maintained neutral/positive cash flow and its balance sheet has not been damaged like many other travel companies. In the third quarter, occupancy returned and sales began to pick up. Throughout this difficult period, Marriott has not seen a substantial rise in defaults on its timeshare loans. With vaccines now approved and being distributed, investors are becoming more confident in a 2021 rebound.
From Keeley Asset Management Corp (Trades, Portfolio)'s Mid Cap Dividend Value Fund fourth-quarter 2020 shareholder commentary.
