Starwood Runs Into Delay In Timeshare Spinoff
by Jessica MontevagoStarwood Hotels & Resorts hit a snag in its spinoff of Vistana Signature Experiences.
Interval Leisure Group’s $1.5 billion acquisition of the vacation-ownership business has been delayed while both companies work to avoid unnecessary tax withholding. Starwood and ILG filed with the U.S. Securities and Exchange Commission on April 19. The deal, originally expected to close April 30, now is not expected to be finalized until later this month.
Vistana operates 22 timeshare resorts. Under the terms of the deal, ILG will have the rights to use the Westin and Sheraton brands in vacation ownership, and existing timeshare owners for the resorts can continue to use the Starwood Preferred Guest program.
The transaction was announced in October 2015, a month prior to Marriott International’s announcement it will buyout Starwood.
