Hilton Grand Vacations, a resort timeshare company based in Orlando, Florida, predicts that the Maui wildfires will have a negative effect on its contract sales and earnings for the remainder of the year. While the company’s two Maui properties were not physically damaged by the fires, it anticipates a significant decline in contract sales due to the ongoing fires and limited non-essential travel to the area. As a result, one of the company’s Maui resorts is currently not accepting guest reservations.
Previously, Hilton Grand Vacations had anticipated that business in Hawaii would contribute positively to its future results. However, it now estimates that the impact of the fires will amount to $20 million to $25 million in contract sales during the third quarter and a decrease of $12 million to $15 million in adjusted earnings.
While there haven’t been any noticeable increases in cancellations at other Hawaiian properties owned by Hilton Grand Vacations, there may be disruptions to the company’s statewide business as guests are relocated and rebooked.
Hilton Grand Vacations has issued this update in preparation for an upcoming investor meeting on September 7.