Financial research concept

Vacation Ownership Average Remaining Default Rate

measures management's estimated average remaining default rate on vacation ownership notes receivable.

By Lee BaileyPublished Sep 26, 2026

Research context

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Research date: Sep 26, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
Operating-model context: 17 connected conceptsPart of the reviewed Vacation Ownership Economics; issuer definitions remain distinct where disclosed.
Company examples: 1 reviewed companyRelationships reflect supported examples, not a normalized cross-company KPI ranking.

The default estimate sits between nonaccrual and reserve ratios
Each credit metric describes a different stage of risk
Estimated remaining defaults are not annual charge-offs
Part of the Vacation Ownership Economics
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Vacation Ownership Average Remaining Default Rate measures management's estimated remaining lifetime default rate on vacation ownership notes receivable.

Marriott Vacations Worldwide reported 13.51% in its 2025 disclosures.

The default estimate sits between nonaccrual and reserve ratios

Gross originated notes receivable were $3.030 billion, nonaccrual notes were $185 million, and the notes reserve was $527 million.

Those balances equal about 6.1% nonaccrual and 17.4% reserve relative to gross originated notes, compared with the 13.51% remaining-default estimate.

Each credit metric describes a different stage of risk

Nonaccrual is a current problem-loan stock, the reserve is an accounting allowance, and the remaining-default rate is a forward-looking estimate.

Use Vacation Ownership Notes Receivable Reserve and Vacation Ownership Nonaccrual Notes Receivable together rather than treating the percentages as interchangeable.

Estimated remaining defaults are not annual charge-offs

The 13.51% figure depends on lifetime assumptions across outstanding notes.

It should not be read as current-year delinquency or default incidence.

Primary source: Marriott Vacations Worldwide 2025 Form 10-K.

Part of the Vacation Ownership Economics

Connect tour flow, volume per guest, contract sales, development profit, recurring resort and exchange services, and consumer-financing credit and securitization economics across a branded vacation ownership platform.

Browse the full operating model in Company Analysis →

Where this concept fits

Consumer financing, credit reserves, and securitizationCurrent relationship
Financing revenue monetizes the receivable base, gross originated notes show financed-sales exposure, the reserve and estimated remaining default rate frame expected credit loss, nonaccrual notes show stressed balances, and securitization proceeds show how receivables are funded and recycled into cash.
Vacation Ownership Average Remaining Default RateCurrent conceptVacation Ownership Financing Revenue Vacation Ownership Nonaccrual Notes Receivable Vacation Ownership Notes Receivable Reserve Vacation Ownership Originated Notes Receivable Vacation Ownership Notes Receivable Securitization Proceeds
Tours, VPG, contract sales, and development economics
Sales tours are the funnel activity base, VPG combines closing performance and contract value, and contract sales measure gross signed vacation ownership sales. Development profit and margin then reflect product cost, marketing and sales expense, reserve assumptions, and inventory mix.
Vacation Ownership Contract Sales Vacation Ownership Development Profit Vacation Ownership Development Profit Margin Vacation Ownership Sales Tours Vacation Ownership Volume per Guest
Recurring resort and exchange-member economics
Resort management revenue, profit, and margin describe recurring services tied to the ownership base; occupancy mixes owner, preview, and transient use; and active Interval members plus revenue per member describe a separate exchange-network recurring-revenue stream.
Vacation Ownership Active Exchange Members Vacation Ownership Average Exchange Revenue per Member Vacation Ownership Resort Management and Other Services Margin Vacation Ownership Resort Management and Other Services Profit Vacation Ownership Resort Management and Other Services Revenue Vacation Ownership Resort Occupancy

See It in Company Research

These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.

VACOpen operating-model research →17 of 17 reviewed concepts in Vacation Ownership EconomicsConsumer financing, credit reserves, and securitization6 of 6 bridge concepts supportedContinue through this bridge:Vacation Ownership Financing Revenue Vacation Ownership Nonaccrual Notes Receivable Vacation Ownership Notes Receivable Reserve Vacation Ownership Notes Receivable Securitization Proceeds Vacation Ownership Originated Notes Receivable

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Compare the forward-looking default estimate with reserve and nonaccrual ratios across the notes portfolio.

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