The company has four vacation ownership resorts and sales centres in West Maui, as well as a property management business that manages five properties.
Following the wildfire devastation in West Maui on 8 August 2023, the company enacted its disaster response protocols to re-instate power, internet and cell communication as quickly as possible.
With a large percentage of the company’s nearly 1,700 associates on Maui sustaining significant damage to, or loss of, their homes and belongings, efforts have been focused on providing immediate relief while assessing the impacts and the long-term needs of the company’s associates.
Marriott is reportedly providing temporary housing, food, supplies, on-site counselling and fiscal benefits such as disaster pay. An existing non-profit relief fund affiliated with the company is also providing expedited relief grants while raising funds to aid those associates and their families who incur significant damage or displacement after a natural or civic disaster such as these wildfires in Maui.
Cancellations of reservations and income impact
Physical damage to Marriott’s resorts and sales centres is said to be minimal.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
However, with continued recovery efforts ongoing in West Maui and the challenging environment visitors will face if travelling to the area, the company has cancelled all owner and exchange reservations until at least 10 September 2023 and all transient rental and preview arrivals until at least the end of the month.
Marriott therefore expects contract sales in the third quarter of 2023 to be adversely impacted by $25m to $30m.
Due to lower contract sales and impacts to its other vacation ownership business lines, as well as impacts to its exchange and third-party management segment, the company also currently expects the Maui wildfires to negatively impact its third-quarter net income attributable to common shareholders by $16m to $19m, and its adjusted earnings before interest, taxes, depreciation and amortisation by $22m to $27m.
While the company intends to pursue relief available through insurance options, it states that it is too early to estimate any recovery. The impact of the Maui wildfires on fourth-quarter 2023 operating results will depend on the timing of the re-opening of the resorts and the pace that travel returns to the island of Maui.
Marriott Vacations Worldwide president and CEO John Geller commented: “Hawaii is a very special place for our company and the tragic loss that the people of Maui have to endure as a result of the wildfires is difficult to see.”