Starwood Hotels & Resorts Worldwide (NYSE:HOT) has announced plans to spinoff its timeshare business.

The spinoff will take Starwood Hotels’ Starwood Vacation business and make it its own publicly traded company. Starwood Vacation has 22 timeshare locations and has sold $6 billion worth of timeshares in the last 30 years, reports the Associated Press.

The name of the new spinoff of Starwoods Hotels hasn’t been announced and the process won’t be complete until the end of the year. The new company will remain at its headquarters in Orlando, Florida. The CEO of the company will be Matthew Avril, who was previously president of the company’s hotel division, the Associated Press notes.

“This is the right time for us to spin off our vacation ownership business and move Starwood forward in its asset light strategy,” Frits van Paasschen, CEO of Starwood Hotels, told The Wall Street Journal

. “Not only does SVO [Starwood Vacation Ownership] continue to have a great outlook for growth, but valuations for timeshare companies are at attractive levels.”

HOT shares were up 7% as of Noon Tuesday.

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