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VACATION OWNERSHIP NOTES RECEIVABLE
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
VACATION OWNERSHIP NOTES RECEIVABLE
6. VACATION OWNERSHIP NOTES RECEIVABLE
The following table shows the composition of our vacation ownership notes receivable balances, net of reserves.
June 30, 2025December 31, 2024
($ in millions)OriginatedAcquiredTotalOriginatedAcquiredTotal
Securitized$1,890 $73 $1,963 $1,824 $93 $1,917 
Eligible for securitization(1)
46 1 47 92 2 94 
Not eligible for securitization(1)
464 11 475 417 12 429 
Non-securitized510 12 522 509 14 523 
Total
$2,400 $85 $2,485 $2,333 $107 $2,440 
(1)Refer to Footnote 7 “Financial Instruments” for discussion of eligibility of our vacation ownership notes receivable for securitization.
We reflect interest income associated with vacation ownership notes receivable on our Income Statements in the Financing revenues caption. The following table summarizes interest income associated with vacation ownership notes receivable.
Three Months EndedSix Months Ended
($ in millions)June 30, 2025June 30, 2024June 30, 2025June 30, 2024
Interest income - securitized vacation ownership notes receivable
$73 $72 $147 $143 
Interest income - non-securitized vacation ownership notes receivable
13 10 25 20 
Total interest income associated with vacation ownership notes receivable$86 $82 $172 $163 
Vacation Ownership Notes Receivable Reserve
The estimates of the variable consideration for originated vacation ownership notes receivable and the reserve for credit losses on the acquired vacation ownership notes receivable are based on default rates that are an output of our static pool analyses and estimates regarding future defaults.
In the second quarter of 2024, we increased our sales reserve by $70 million to reflect the then-current macroeconomic conditions, including the cumulative impact of inflation on consumers and the related impact on year-over-year increases in maintenance fees for 2023 and 2024, which we believed were driving continued elevated delinquencies and default rates, higher consumer debt levels, continued high interest rates, uncertainty around timing and frequency of interest rate adjustments, and continued mixed economic indicators. Beginning in the third quarter of 2024, we also increased our sales reserve rate to reflect higher expected cumulative losses on new originations, consistent with more recent trends. While delinquency rates have declined thus far in 2025, we do not expect to lower the sales reserve for new originations until we have sufficient, sustained evidence of continued improvement in delinquency and default rates.
Credit Quality Indicators - Vacation Ownership Notes Receivable
We use the origination of vacation ownership notes receivable and the FICO scores of the customer by brand as the primary credit quality indicators, as historical performance indicates that there is a relationship between the default behavior of borrowers by FICO score and the brand associated with the vacation ownership interest (“VOI”) they have acquired.
The weighted average FICO score within our consolidated vacation ownership notes receivable pool was 726 and 725, at June 30, 2025 and December 31, 2024, respectively, based upon the FICO score of the borrower at the time of origination.
Originated Vacation Ownership Notes Receivable
Originated vacation ownership notes receivable represent vacation ownership notes receivable originated by Legacy-ILG and Legacy-Welk subsequent to each respective acquisition date, and all Legacy-MVW vacation ownership notes receivable. The following table shows future principal payments, net of reserves, and interest rates for our originated vacation ownership notes receivable at June 30, 2025.
Originated Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
2025, remaining$52 $73 $125 
202672 152 224 
202761 160 221 
202854 167 221 
202944 169 213 
Thereafter227 1,169 1,396 
Balance at June 30, 2025$510 $1,890 $2,400 
Weighted average stated interest rate11.6%13.3%12.9%
Range of stated interest rates
0.0% to 20.9%
0.0% to 20.9%
0.0% to 20.9%
For originated vacation ownership notes receivable, we record the difference between the vacation ownership note receivable and the variable consideration included in the transaction price for the sale of the related vacation ownership product as a reserve on our vacation ownership notes receivable. The following table summarizes the activity related to our originated vacation ownership notes receivable reserve during the first half of 2025.
Originated Vacation Ownership Notes Receivable Reserve
($ in millions)Non-SecuritizedSecuritizedTotal
Balance at December 31, 2024$252 $275 $527 
Increase in vacation ownership notes receivable reserve
81 23 104 
Securitizations(122)122 — 
Clean-up call58 (58)— 
Write-offs(99)— (99)
Defaulted vacation ownership notes receivable repurchase activity(1)
79 (79)— 
Balance at June 30, 2025$249 $283 $532 
(1)Reflects the change attributable to the transfer of the reserve from the securitized vacation ownership notes receivable reserve to the non-securitized vacation ownership notes receivable reserve when we voluntarily repurchased securitized vacation ownership notes receivable.
The following tables show originated vacation ownership notes receivable, before reserves, by brand and borrower FICO score at origination.
Originated Vacation Ownership Notes Receivable as of June 30, 2025
($ in millions)700 +600 - 699< 600No ScoreTotal
Marriott Vacation Ownership$1,569 $632 $57 $385 $2,643 
Hyatt Vacation Ownership211 73 2 3 289 
$1,780 $705 $59 $388 $2,932 
Originated Vacation Ownership Notes Receivable as of December 31, 2024
($ in millions)700 +600 - 699< 600No ScoreTotal
Marriott Vacation Ownership$1,513 $634 $58 $365 2,570 
Hyatt Vacation Ownership210 75 2 3 290 
$1,723 $709 $60 $368 $2,860 
The following tables detail the origination year of our originated vacation ownership notes receivable, before reserves, by brand and borrower FICO score at origination as of June 30, 2025, and gross write-offs by brand for the first half of 2025.
Originated Vacation Ownership Notes Receivable - Marriott Vacation Ownership
($ in millions)20252024202320222021 & PriorTotal
700 +$283 $473 $307 $215 $291 $1,569 
600 - 69978 170 127 102 155 632 
< 6008 16 11 8 14 57 
No Score97 136 71 34 47 385 
$466 $795 $516 $359 $507 $2,643 
Gross write-offs$1 $13 $28 $18 $22 $82 
Originated Vacation Ownership Notes Receivable - Hyatt Vacation Ownership
($ in millions)20252024202320222021 & PriorTotal
700 +$55 $62 $42 $33 $19 $211 
600 - 69915 23 15 13 7 73 
< 6001 1 — — — 2 
No Score— 1 1 1 — 3 
$71 $87 $58 $47 $26 $289 
Gross write-offs$— $4 $6 $5 $2 $17 
Acquired Vacation Ownership Notes Receivable
Acquired vacation ownership notes receivable represent vacation ownership notes receivable acquired as part of the ILG Acquisition and the Welk Acquisition. The following table shows future contractual principal payments, net of a $7 million reserve, and interest rates for our acquired vacation ownership notes receivable at June 30, 2025.
Acquired Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
2025, remaining$4 $10 $14 
20263 19 22 
20272 15 17 
20281 10 11 
20291 6 7 
Thereafter1 13 14 
Balance at June 30, 2025$12 $73 $85 
Weighted average stated interest rate13.8%14.2%14.1%
Range of stated interest rates
0.0% to 21.9%
0.0% to 21.9%
0.0% to 21.9%
The following tables show the acquired vacation ownership notes receivable, before reserves, by brand and borrower FICO score at origination.
Acquired Vacation Ownership Notes Receivable as of June 30, 2025
($ in millions)700+600 - 699< 600No ScoreTotal
Marriott Vacation Ownership$24 $17 $2 $4 $47 
Hyatt Vacation Ownership27 17 1 — 45 
$51 $34 $3 $4 $92 
Acquired Vacation Ownership Notes Receivable as of December 31, 2024
($ in millions)700+600 - 699< 600No ScoreTotal
Marriott Vacation Ownership$30 $21 $3 $5 $59 
Hyatt Vacation Ownership34 22 — 1 57 
$64 $43 $3 $6 $116 
Vacation Ownership Notes Receivable on Non-Accrual Status
For both non-securitized and securitized vacation ownership notes receivable, we estimated the average remaining default rates of 13.48% as of June 30, 2025 and 13.96% as of December 31, 2024. A 0.5 percentage point increase in the estimated default rate would have resulted in an increase in the related vacation ownership notes receivable reserve of $14 million as of both June 30, 2025 and December 31, 2024.
The following table shows our recorded investment in non-accrual vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due.
Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
Investment in vacation ownership notes receivable on non-accrual status at June 30, 2025
$183 $17 $200 
Investment in vacation ownership notes receivable on non-accrual status at December 31, 2024
$171 $24 $195 
The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of June 30, 2025 and December 31, 2024.
As of June 30, 2025As of December 31, 2024
($ in millions)Non-SecuritizedSecuritizedTotalNon-SecuritizedSecuritizedTotal
31 – 90 days past due$24 $58 $82 $29 $74 $103 
91 – 120 days past due8 13 21 11 19 30 
Greater than 120 days past due175 4 179 160 5 165 
Total past due207 75 282 200 98 298 
Current567 2,175 2,742 579 2,099 2,678 
Total vacation ownership notes receivable$774 $2,250 $3,024 $779 $2,197 $2,976