Financial research concept

Vacation Ownership Development Profit

measures issuer-defined development profit from selling vacation ownership products after product cost and marketing and sales expense.

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.

Development profit was about 19.1% of contract sales
The reported 23.0% margin implies about $1.465 billion of product-sales revenue
Development profit is not consolidated operating income
Part of the Vacation Ownership Economics
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Vacation Ownership Development Profit measures Marriott Vacations' issuer-defined profit from selling vacation ownership products after product cost and marketing and sales expense.

Marriott Vacations Worldwide reported $337 million of development profit in 2025.

Development profit was about 19.1% of contract sales

Contract sales were $1.762 billion.

Dividing $337 million by $1.762 billion gives approximately 19.1%, which is lower than the reported 23.0% development profit margin because the margin uses sale-of-vacation-ownership-products revenue rather than contract sales.

The reported 23.0% margin implies about $1.465 billion of product-sales revenue

Dividing $337 million by 23.0% gives approximately $1.465 billion as the margin denominator.

Use Vacation Ownership Development Profit Margin to preserve that issuer-defined denominator.

Development profit is not consolidated operating income

The measure excludes other recurring-service, financing, corporate, and segment economics.

It should remain inside the vacation-ownership development framework.

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

Tours, VPG, contract sales, and development economicsCurrent relationship
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 SalesVacation Ownership Development ProfitCurrent conceptVacation 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
Consumer financing, credit reserves, and securitization
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 Rate Vacation Ownership Financing Revenue Vacation Ownership Nonaccrual Notes Receivable Vacation Ownership Notes Receivable Reserve Vacation Ownership Originated Notes Receivable Vacation Ownership Notes Receivable Securitization Proceeds

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 EconomicsTours, VPG, contract sales, and development economics5 of 5 bridge concepts supportedContinue through this bridge:Vacation Ownership Contract Sales Vacation Ownership Development Profit Margin Vacation Ownership Sales Tours Vacation Ownership Volume per Guest

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Compare $337M of development profit with contract sales and the implied sale-of-products revenue denominator.

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