Travel + Leisure to Close 17 Resorts by 2025 Despite Strong Financial Growth
Travel + Leisure (TNL) has announced plans to close or sell 17 resorts by 2025 as part of its Resort Optimization Initiative. The company cited high reinvestment costs and poor market alignment for the decision, though it has not named the affected locations. Despite this, TNL reported strong financial results for 2025 and outlined growth targets for the coming year.
The company's full-year 2025 performance exceeded initial guidance, with higher-than-expected gross news sales, VPG, and EBITDA. Management now forecasts 2026 gross news sales between $2.5 billion and $2.6 billion, representing growth of 1% to 5%. EBITDA is projected to reach $1.03 billion to $1.055 billion, a 4% to 7% increase from 2025.
The closure of the 17 underperforming resorts is expected to create both revenue and EBITDA challenges. However, TNL anticipates offsetting these with cost savings, resulting in a net EBITDA benefit. The company also plans to focus on digital and partnership-driven marketing, along with new technology rollouts, to drive growth beyond 2026.
Shareholder returns remain a priority, with the board recommending a $0.60 per share dividend for the first quarter. A new $750 million share repurchase program has been authorised, alongside a projected mid-teens earnings-per-share growth for 2026. While VPG is expected to dip slightly due to a shift toward new owner sales, brand sales from newer platforms are set to grow from single to double digits as a share of total news sales.
TNL's strategy balances cost-cutting measures with investment in digital expansion and shareholder returns. The closure of 17 resorts will streamline operations, while marketing and technology initiatives aim to sustain growth. With a stronger balance sheet and clear capital allocation plans, the company expects to maintain momentum in 2026.
