Financial research concept

Vacation Ownership Notes Receivable Reserve

measures the credit reserve recorded against originated 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 reserve was about 17.4% of gross originated notes
Reserve coverage exceeded both nonaccrual stock and the remaining-default estimate
Reserve is not realized charge-offs
Part of the Vacation Ownership Economics
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Vacation Ownership Notes Receivable Reserve measures the expected-credit-loss allowance recorded against originated vacation ownership notes receivable.

Marriott Vacations Worldwide reported $527 million of reserve in 2025.

The reserve was about 17.4% of gross originated notes

Gross originated notes receivable were $3.030 billion before reserves.

Dividing $527 million by $3.030 billion gives approximately 17.4%.

Reserve coverage exceeded both nonaccrual stock and the remaining-default estimate

Nonaccrual notes were $185 million, or about 6.1% of gross notes, while the estimated average remaining default rate was 13.51%.

The reserve therefore reflects a broader accounting allowance than the current nonaccrual balance.

Use Vacation Ownership Average Remaining Default Rate to keep the forward-looking estimate separate.

Reserve is not realized charge-offs

Vintage mix, borrower quality, default assumptions, recoveries, and accounting models shape the allowance.

The $527 million should not be interpreted as losses already incurred during 2025.

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 Rate Vacation Ownership Financing Revenue Vacation Ownership Nonaccrual Notes ReceivableVacation Ownership Notes Receivable ReserveCurrent conceptVacation 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 Average Remaining Default Rate Vacation Ownership Financing Revenue Vacation Ownership Nonaccrual Notes Receivable Vacation Ownership Notes Receivable Securitization Proceeds Vacation Ownership Originated Notes Receivable

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Compare the 17.4% reserve ratio with nonaccrual balances and the 13.51% remaining-default estimate.

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