WASHINGTON — Marriott Vacations Worldwide agreed to acquire Miami-based timeshare broker ILG Inc. in a cash and stock deal valued at $4.7 billion.
ILG offers timeshare owners a brokerage service that lets them swap their timeshare intervals for stays at more than 3,200 resorts. The company also has more than 40 properties in its own Vistana Signature Experiences and Hyatt Vacation Ownership portfolios.
ILG has 250,000 owners in its timeshare ownership portfolio. Its exchange network has nearly 2 million members.
When the acquisition closes, Marriott Vacations Worldwide will be the leader in the timeshare industry, with seven upper-upscale and luxury and vacation brands, including Marriott Vacation Club, Grand Residences by Marriott, Ritz-Carlton Destination Club, Sheraton Vacation Club, Westin Vacation Club, St. Regis Residence Club and Hyatt Residence Club.
“This transaction will combine two of the premier global vacation ownership companies to create a more diversified company with significantly enhanced marketing potential and scale to drive sales growth and value for both MVW and ILG shareholders,” said Stephen Weisz, CEO of Marriott Vacations Worldwide.
The combined company will have 650,000 timeshare owners and more than 100 vacation properties.
Marriott Vacations said the combination will create a timeshare business with $2.9 billion in annual revenue.
Interval International, ILG’s exchange business, will keep its Miami headquarters, where it has been based since its founding in 1976.
Marriott Vacations, a separate, publicly traded company from Bethesda, Maryland’s Marriott International, is based in Orlando, Florida. Marriott spun off the timeshare business in 2011.
The acquisition, which still requires regulatory and shareholder approval, is expected to close in the second half of 2018, Marriott said.
The combined company will trade on the New York Stock Exchange under the “VAC” symbol.
Like WTOP on Facebook and follow @WTOP on Twitter to engage in conversation about this article and others.