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VACATION OWNERSHIP NOTES RECEIVABLE (Tables)
 9 Months Ended
Sep. 30, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Composition of vacation ownership notes receivable balances, net of reserves
The following table shows the composition of our vacation ownership notes receivable balances, net of reserves.
September 30, 2023December 31, 2022
($ in millions)OriginatedAcquiredTotalOriginatedAcquiredTotal
Securitized$1,722 $163 $1,885 $1,571 $221 $1,792 
Non-securitized
Eligible for securitization(1)
59 1 60 63 — 63 
Not eligible for securitization(1)
327 19 346 322 21 343 
Subtotal386 20 406 385 21 406 
$2,108 $183 $2,291 $1,956 $242 $2,198 
(1)Refer to Footnote 7 “Financial Instruments” for discussion of eligibility of our vacation ownership notes receivable for securitization.
Interest income associated with vacation ownership notes receivable The following table summarizes interest income associated with vacation ownership notes receivable.
Three Months EndedNine Months Ended
($ in millions)September 30, 2023September 30, 2022September 30, 2023September 30, 2022
Interest income associated with vacation ownership notes receivable — securitized$70 $60 $205 $179 
Interest income associated with vacation ownership notes receivable — non-securitized9 11 26 30 
Total interest income associated with vacation ownership notes receivable$79 $71 $231 $209 
Financing receivable, nonaccrual
The following table shows our recorded investment in non-accrual vacation ownership notes receivable, which are vacation ownership notes receivable that are 90 days or more past due.
Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
Investment in vacation ownership notes receivable on non-accrual status at September 30, 2023
$144 $25 $169 
Investment in vacation ownership notes receivable on non-accrual status at December 31, 2022
$126 $24 $150 
Aging of recorded investment in principal, before reserves, in vacation ownership notes receivable
The following table shows the aging of the recorded investment in principal, before reserves, in vacation ownership notes receivable as of September 30, 2023 and December 31, 2022.
As of September 30, 2023As of December 31, 2022
($ in millions)Non-SecuritizedSecuritizedTotalNon-SecuritizedSecuritizedTotal
31 – 90 days past due$20 $57 $77 $25 $56 $81 
91 – 120 days past due6 16 22 7 16 23 
Greater than 120 days past due138 9 147 119 8 127 
Total past due164 82 246 151 80 231 
Current465 2,055 2,520 415 1,943 2,358 
Total vacation ownership notes receivable$629 $2,137 $2,766 $566 $2,023 $2,589 
Acquired  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Future principal payments, net of reserves, and interest rates of vacation ownership notes receivable The following table shows future contractual principal payments, net of reserves, and interest rates for our acquired vacation ownership notes receivable at September 30, 2023.
Acquired Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
2023, remaining$2 $8 $10 
20243 33 36 
20253 30 33 
20263 27 30 
20272 22 24 
Thereafter7 43 50 
Balance at September 30, 2023$20 $163 $183 
Weighted average stated interest rate14.0%14.2%14.2%
Range of stated interest rates
0.0% to 21.9%
0.0% to 21.9%
0.0% to 21.9%
Notes receivable reserves
The following table summarizes activity related to our acquired vacation ownership notes receivable reserve.
Acquired Vacation Ownership Notes Receivable Reserve
($ in millions)Non-SecuritizedSecuritizedTotal
Balance at December 31, 2022$11 $18 $29 
Securitizations(2)2 — 
Clean-up call2 (2)— 
Write-offs(21)— (21)
Recoveries13 — 13 
Defaulted vacation ownership notes receivable repurchase activity(1)
14 (14)— 
(Decrease) increase in vacation ownership notes receivable reserve(10)7 (3)
Balance at September 30, 2023$7 $11 $18 
(1)Reflects the change attributable to the transfer of the reserve from the securitized vacation ownership notes receivable reserve to the non-securitized vacation ownership notes receivable reserve when we voluntarily repurchased securitized vacation ownership notes receivable.
Financing receivable credit quality indicators
The following tables show the acquired vacation ownership notes receivable, before reserves, by brand and borrower FICO score.
Acquired Vacation Ownership Notes Receivable as of September 30, 2023
($ in millions)700+600 - 699< 600No ScoreTotal
Combined Marriott$51 $35 $4 $11 $101 
Hyatt and Welk59 39 1 1 100 
$110 $74 $5 $12 $201 
Acquired Vacation Ownership Notes Receivable as of December 31, 2022
($ in millions)700+600 - 699< 600No ScoreTotal
Combined Marriott$67 $47 $6 $16 $136 
Hyatt and Welk80 53 1 1 135 
$147 $100 $7 $17 $271 
The following tables detail the origination year of our acquired vacation ownership notes receivable, before reserves, by brand and borrower FICO score as of September 30, 2023, and gross write-offs by brand for the first three quarters of 2023.
Acquired Vacation Ownership Notes Receivable - Combined Marriott
($ in millions)202120202019 & PriorTotal
700 +$— $— $51 $51 
600 - 699— — 35 35 
< 600— — 4 4 
No Score— — 11 11 
$— $— $101 $101 
Gross write-offs$— $— $11 $11 
Acquired Vacation Ownership Notes Receivable - Hyatt and Welk
($ in millions)202120202019 & PriorTotal
700 +$4 $13 $42 $59 
600 - 6992 7 30 39 
< 600— — 1 1 
No Score— — 1 1 
$6 $20 $74 $100 
Gross write-offs$1 $2 $7 $10 
Originated  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Future principal payments, net of reserves, and interest rates of vacation ownership notes receivable The following table shows future principal payments, net of reserves, and interest rates for our originated vacation ownership notes receivable at September 30, 2023.
Originated Vacation Ownership Notes Receivable
($ in millions)Non-SecuritizedSecuritizedTotal
2023, remaining$8 $34 $42 
202447 141 188 
202534 147 181 
202634 155 189 
202734 163 197 
Thereafter229 1,082 1,311 
Balance at September 30, 2023$386 $1,722 $2,108 
Weighted average stated interest rate12.1%13.2%13.0%
Range of stated interest rates
0.0% to 20.9%
0.0% to 19.9%
0.0% to 20.9%
Notes receivable reserves The following table summarizes the activity related to our originated vacation ownership notes receivable reserve.
Originated Vacation Ownership Notes Receivable Reserve
($ in millions)Non-SecuritizedSecuritizedTotal
Balance at December 31, 2022$149 $213 $362 
Increase in vacation ownership notes receivable reserve162 21 183 
Securitizations(126)126 — 
Clean-up call43 (43)— 
Write-offs(88)— (88)
Defaulted vacation ownership notes receivable repurchase activity(1)
76 (76)— 
Balance at September 30, 2023$216 $241 $457 
(1)Reflects the change attributable to the transfer of the reserve from the securitized vacation ownership notes receivable reserve to the non-securitized vacation ownership notes receivable reserve when we voluntarily repurchased securitized vacation ownership notes receivable.
Financing receivable credit quality indicators
The following tables show originated vacation ownership notes receivable, before reserves, by brand and borrower FICO score.
Originated Vacation Ownership Notes Receivable as of September 30, 2023
($ in millions)700 +600 - 699< 600No ScoreTotal
Combined Marriott$1,341 $602 $57 $307 $2,307 
Hyatt and Welk180 72 2 4 258 
$1,521 $674 $59 $311 $2,565 
Originated Vacation Ownership Notes Receivable as of December 31, 2022
($ in millions)700 +600 - 699< 600No ScoreTotal
Combined Marriott$1,210 $549 $55 $278 2,092 
Hyatt and Welk157 64 3 2 226 
$1,367 $613 $58 $280 $2,318 
The following tables detail the origination year of our originated vacation ownership notes receivable, before reserves, by brand and FICO score as of September 30, 2023, and gross write-offs by brand for the first three quarters of 2023.
Originated Vacation Ownership Notes Receivable - Combined Marriott
($ in millions)20232022202120202019 & PriorTotal
700 +$377 $413 $228 $78 $245 $1,341 
600 - 699145 174 114 42 127 602 
< 60013 16 11 5 12 57 
No Score117 74 29 19 68 307 
$652 $677 $382 $144 $452 $2,307 
Gross write-offs$2 $14 $22 $9 $27 $74 
Originated Vacation Ownership Notes Receivable - Hyatt and Welk
($ in millions)20232022202120202019 & PriorTotal
700 +$73 $71 $31 $2 $3 $180 
600 - 69926 31 12 1 2 72 
< 600— 1 1 — — 2 
No Score3 1 — — — 4 
$102 $104 $44 $3 $5 $258 
Gross write-offs$— $6 $7 $— $1 $14