A spinoff can more often than not unlock a dormant business
segment and provide opportunities for that business segment to grow and prosper
without all the ‘red tape’ associated with being under a convoluted, corporate
umbrella. Recently, Hilton Worldwide Holdings Inc. (NYSE: HLT) said it will
spin off its lodging properties and timeshare business into separate publicly
traded companies in a bid to boost shareholder value as the world’s largest hotel
operator faces increased competition. Companies like FlexWeek, Inc. (OTC: FXWK)
can benefit greatly from a move like this for several reasons: this will allow
them to deal with the ‘Hilton Timeshare Company’ directly; the shear number of
timeshares available from ‘Hilton Timeshare Company’ will be staggering; and
public relations for the timeshare industry as a whole will benefit from the
large marketing budget ‘Hilton Timeshare Company’ will surely possess.
Hilton’s timeshare spinoff will include about 50 properties
in the U.S. and Europe. Hilton plans to keep the management of its timeshare
business, Hilton Grand Vacations, in place. David Loeb, an analyst at Robert W.
Baird & Co., estimates the timeshare company would be valued at about $2.1
billion.
Hilton is facing increased competition from traditional
rivals and startups such as AirBNB. FlexWeek’s peer-to-peer (P2P) website and
mobile application are similar to AirBNB’s $20 billion approach to the travel
industry, but they create the first and only P2P marketplace exclusive to
fractional vacation ownerships. FlexWeek differs from the existing model, in
which timeshare weeks must be “banked” with a trading company such as Interval
International or RCI, and instead charges the booking fees to the renter of the
vacation time, eliminating the cost to the private timeshare owner.
Also, FlexWeek helps eliminate costly maintenance charges by
allowing a timeshare owner to offer their unused vacation time to the FlexWeek
marketplace, so they can recoup some of the maintenance costs or even reap a
nice profit. With more de-consolidation, as with Hilton, exciting days of
competition and opportunity for FlexWeek and the timeshare industry as a whole
are rapidly approaching.
For more information, visit www.flexweek.com
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