With the traditional start to the summer travel season underway, investors may be looking for ways to capitalize on increased activity in the vacation sector. But can investors expect normal travel demand after two decidedly abnormal summers?
In this clip from “The Rank” on Motley Fool Live, recorded on May 23, Motley Fool contributors John Bromels, Matthew Frankel, CFP®, and Jason Hall discuss one possible way to play the vacation space that could also be a good income play.
John Bromels: I do like Marriott Vacations Worldwide (VAC 2.86%). I think it’s sort of Airbnb-esque, which I like about it, it is competing in that sort of same-space as Airbnb, Vrbo, those players. I think and correct me if I’m wrong, is that organized as a REIT or it’s primarily an income play.
Matt Frankel: It is an income play. It’s not a REIT.
Bromels: It’s not a REIT. But yeah, you’re looking at that as a dividend stock as Boston Stuart says. As for a company that is owning vacation real estate, and you are looking to generate a fixed-income return from those assets. Yeah, structured quite well, run quite effectively, obviously again, last few years, big asterisk on all of these properties. But yes, I think it’s a good play in that space.
Jason Hall: Here’s its first-quarter earnings. I think these are the big ones, 88% occupancy in the first quarter and the highest first-quarter contract sales. Also some spin-off action here, but again, this is what’s telling you about the momentum of the business itself. I think that’s a good starting point.