Marriott Vacations warns of Q3 income impact from Maui wildfires

Marriott Vacations Worldwide Corp. on Thursday warned its third-quarter net income will be negatively impacted by the Maui wildfires and it will tap insurance coverage for relief.

Third-quarter contract sales are expected to take a hit of between $25 million and $30 million, which will negatively impact its quarterly net income attributable to common shareholders by $16 million to $19 million, Marriott Vacations said.

It intends to pursue insurance options for relief, but “it is too early to estimate any recovery,” the company said.

The impact on fourth-quarter results will depend on the timing of the re-opening of its resorts and the pace that travel returns to the island.

Physical damage to its resorts and sales centers is minimal, but with recovery efforts ongoing in West Maui and the challenging travel environment, all owner and exchange reservations have been canceled through Sept. 10 and all transient rental and preview arrivals through the end of the month, the company said.

Insured losses from the wildfires Aug. 8-10 in Hawaii could exceed $4.5 billion, according to a recent estimate from Moody’s RMS.