Travel + Leisure CEO Would Be 'Very Disappointed' If Two Acquired Timeshare Units Don't Double
Michael Brown ties the Spinnaker and Yes And deals to a November points-sales test and cost savings he says will land within 12 months.
Travel + Leisure CEO Michael Brown said on the company's third-quarter earnings call Tuesday that he would be "very disappointed" if the two businesses it just bought were not doubling in size "both on the top and the bottom line" over the next several years. The timeshare company, which sells vacation ownership interests and runs the RCI exchange network, posted revenue of $1.1 billion for the quarter.
A November test for Club Wyndham points
The Spinnaker Resorts and Yes And deals add more than 100,000 owners, Brown said. Starting in November, Club Wyndham points will be sold at select properties alongside the acquired businesses' existing products.
The company will not "go global" at first, Brown said. It plans to test a few sites, survey owners, and roll the product out across the enterprise in 2027 once systems are integrated. He said the company expects to capture the full cost benefits of integration within the first 12 months, and that by the first-quarter call next year management will have "a significant amount of water under the bridge" on early sales.
Pressed by a Deutsche Bank analyst on closing the gap in sales per guest, Brown said the acquired businesses sit about where the whole company was before COVID. He said he feels more confident in October than when the deals were made in July.
Early money from the acquisitions
CFO Erik Hoag said the two deals contributed about 21 million of gross sales of vacation ownership interests and 7 million of EBITDA in the quarter, tracking to the company's 2026 accretion guidance of 15 to 20 million.
Spinnaker closed ahead of schedule on August 1. Hoag said that pulled more tours into the quarter and added dilution to volume per guest, which fell 1% as reported to $3,286. On an organic basis it rose by a low single-digit percentage, he said.
Hoag also said the acquired receivables should generate an additional $80 million of cash when securitized, adding to share-repurchase capacity in 2027.
Quarter and outlook
Revenue rose 5%, EBITDA 6% and earnings per share 23% to $2.21, Hoag said. Gross sales of vacation ownership interests rose 6% and tours 7%.
Management narrowed full-year gross sales and EBITDA guidance to the top of the range and raised its earnings-per-share outlook. EBITDA is guided to $1.07 billion to $1.085 billion.
Brown said the next checkpoint on the points test comes with the first-quarter call next year, and management's next call after this one is in February.
Sources
- Travel + Leisure Co. (TNL) Tops Q3 Earnings and Revenue Estimates — Yahoo Finance
- Travel+Leisure beats top-line and bottom-line estimates; updates FY26 outlook | Seeking Alpha — seekingalpha.com
- Travel + Leisure Co. Reports Third Quarter 2026 Results — businesswire.com
- Vacation Lodging Breaking News and Press Releases — businesswire.com
