Marriott International Inc. said it plans to take a third-quarter pretax charge of $760 million in its time-share business as the economic slowdown cuts leisure travel and investing.

The company, which operates four time-share properties in Hawai'i, will cut prices, halt development at some luxury fractional ownership and residential resorts, and sell some undeveloped land, Marriott said yesterday. It also plans to sell its inventory of rooms as part of a new program with Ritz-Carlton Destination Club.

Hotel owners are struggling to attract customers as the recession deters vacationers. Demand for luxury time shares "was soft in 2008 and weakened further in 2009," Marriott said.

Time shares have become a diminishing part of Marriott's business, accounting for about 14 percent of revenue in the fiscal year ending in January, compared with 16 percent in the year-earlier period.

Marriott Vacation Club operates the Kauai Beach Club and Waiohai Beach Club on Kaua'i, the Maui Ocean Club on Maui, and the Ko Olina Beach Club on O'ahu.

GRAND WAILEA PROPOSES EXPANSION

Maui's Grand Wailea Resort is seeking approval for a $250 million expansion that would add 310 lodging units and other amenities.

Resort executives acknowledge that the Hawai'i hotel industry has been in a slump, but they expect the economy to rebound by the time construction would be completed in five years.

The expansion would give the Grand Wailea the most lodging units on the island, totaling more than 1,000 and surpassing the Hyatt Regency in Ka'anapali. Other planned improvements include installing energy and water conservation features and building a Hawaiian cultural center.

Some local property owners oppose the project, saying it would affect their use of the beach and lower their rental values.

The Maui Planning Commission says it doesn't expect to act on the application this week.