Timeshare Real Estate

Becton Hands In Keys To Timeshare Venture

2006-09-21T08:14:00.000-07:00

BECTON Property Group has decided to dump its timeshare joint-venture with hotels giant Accor Asia Pacific after finding the business an uncomfortable fit.

Becton, the company behind a controversial luxury resort project at Byron Bay, said the Accor Premiere Vacation Club (APVC) business fell short of expectations and failed to offer synergy benefits for the group.

This is despite APVC, which has a membership of more than 15,000 and projected 2006 revenues of $150 million, contributing a pre-tax profit of $2.4 million to Becton's bottom line.

Accor Asia Pacific will acquire Becton's half share in APVC for an undisclosed sum, although some market sources have pitched the deal at about $35 million.

The Robina-based APVC was established in 2000 and has since spent more than $80 million on property acquisitions.

A purchase yesterday of the boutique Grand Mercure Mt Lofty House in the Adelaide Hills for just above $5 million brings its timeshare hotel portfolio to 16 properties.

APVC is also expanding into Bali in January.

Becton has moved to sever ties with APVC after an announcement last week it intended to restructure itself into a stapled property group.

It plans to raise $183 million through the issue of stapled securities, to be underwritten by Macquarie Bank, in order to acquire properties through a trust structure. Although APVC contributed to the company's bottom line profit of $24.9 million for 2005-06, the contribution was 37 per cent below forecasts.

Becton's increased profit came from its development and construction divisions, property funds management and retirement village arms.

"In light of our recently announced proposal for stapling and associated capital raising, we believe it is an appropriate time to focus our attention on growing our funds management and retirement businesses, where greater synergy and shareholder value can be created," said Becton chief Hamish Macdonald.

APVC chief executive Martin Kandel said the group had 'benefited greatly from Becton's participation over the past six years. However our expansion plans into Asia, and Becton's changing focus on its retirement and funds management businesses, highlighted the need to link more closely with Accor for our future development.

"Timeshare has matured significantly as an industry since APVC was launched in 2000 and it is now considered the most dynamic sector of the hospitality and tourism industry."

Earlier this year, the Victoria-based Becton secured NSW Government support for its proposed $130 million development of the former Club Med site at Belongil Beach in Byron Bay. The 290-home project won approval after a decade-long saga of public debate, legal battles and public protests.

New Concepts In Timeshare Coming To San Antonio

2006-09-12T12:57:00.000-07:00

A new high-rise under construction in downtown San Antonio is expected to feature many of the amenities common to other downtown condo high-rises, which are tacking on luxuries such as rooftop gardens and pools, valets, and exercise rooms.

But this new residence, Fairfield San Antonio at La Cascada, isn't really for locals, and it's not just condos.

The 10-story tower is under development by Fairfield Resorts Inc. and is the newest addition to the company's portfolio of more than 70 timeshare resorts around the world.

Fairfield is expected to open the 100-unit urban resort next summer.

"We're very excited to be coming to San Antonio," company spokeswoman Lisa Burby said. "We responded to where our owners want to go, and Texas and San Antonio is definitely a destination they wanted."

Timeshare, a vacation option that in the past has come under fire because of scammers and unethical sales tactics, has gained more respect in the last decade or so. The attitude adjustment came as major hotel chains started flying their flags over timeshare resorts.

Timeshare allows vacationers to buy the right to spend a set amount of time at a vacation property, either with a percentage ownership or a long-term lease. With timeshare, the purchase is not so much of a specific, physical property but of time at a resort.
San Antonio has drawn several big names in timeshare over the past few years, and some new concepts in timeshare are coming here soon.

Fairfield San Antonio at La Cascada for example, will be the first resort the Wyndham Worldwide-owned company has built in an urban setting.

The company found that timeshare buyers wanted big-city vacation amenities such as Broadway road shows and major league sports.

"It's a new trend for us," Burby said.

The company also is planning urban resorts in San Diego and San Francisco.

Another development, Villa Verona, is a "private residence club" that San Antonio-based RTK Development is planning alongside its ultraluxurious Piazza San Lorenzo condominiums, which RTK is planning on Soledad Street downtown.

Timeshare prices there are set, for now, at $140,000 for a two-bedroom, $195,000 for a three-bedroom and $280,000 for a four-bedroom. Owners get a one-tenth-share interest in the property and pay annual fees of $6,500, $7,500 or $9,000, depending on the unit.

The residence club is a new concept in timeshare, in which owners choose 14 days in the first half of the year and 14 days in the second half. The club also will set aside 10 units for last-minute vacation plans. Subject to availability, owners may stay at one of the 10 units for up to a week without paying extra.The annual fees cover valet, housekeeping, gratuity and a stocked fridge, among other luxuries.

John R. Kazanjian, the company's chief executive officer, said he expects that Mexican nationals will buy as much as half of the time at the resort.

Los Angeles-based HollyHills Development also is planning downtown timeshare condos.

The plan calls for 17 stories of luxury at 120 Villita, which is a one-story office building now. The development will include timeshare, several condos and retail at street and river levels.

"Timeshares will take up the vast majority of it," said T.J. Connolly, HollyHills' spokesman.

HollyHills doesn't expect to start on that project until 2010.

Coming sooner is the company's Briggs Ranch Grand Vacation, which is under development near U.S. 90 West and Texas 211. The company broke ground on the 58-acre 1,000-unit timeshare resort in June. The resort will include a 2-acre water park and is near the Texas Golf Club, which is considered one of the nation's best public courses. HollyHills is spending $2.5 million to update the course, including $1.2 million for 75 state-of-the art golf carts with wireless Internet and global positioning systems.

"Would this work in Peoria, Ill.? Probably not. But it can work in San Antonio," Connolly said. "You can play golf almost any day of the year here."

Prices at Briggs Ranch start at $4,990 for one week every other year, and top out at $20,000, which might include two weeks in a four-bedroom unit. All timeshares include golf and discounts at the clubhouse.

The first 100 units are expected to open in January, and HollyHills plans to add 100 or more every year until the development is finished in 2014.

Other new timeshare developments in San Antonio already are on line.

Hyatt Vacation Club has had so much success with its Wild Oak Ranch in Northwest San Antonio near Loop 1604 and Highway 151 that it has added a new sales office downtown, which could employ as many as 30 seasonal workers.

The Hyatt compound includes an indoor-outdoor pool, water park with water slides, shuffleboard, horseshoes, a game room, a media room, a fitness center and a 27-hole golf course.

Prices range from $6,350 for one week every other year to $43,500, which could pay for as many as six weeks of vacation time per year. The prices include a certain number of points each year that can be used for time at other resorts or at Hyatt hotels. The high-end packages include enough points for as many as six weeks of vacation.

A franchisee of Shell Vacation Systems has opened five timeshare units at its Salado Creek Villas, near Harry Wurzbach Road and Loop 410.

The Villas, owned by franchisee Gary Beckley of Winnipeg, Ontario, is a renovation of part of Hill Country Inn and Suites hotel, which he expects to complete in 2011.

"It's a work in progress," he said. "We add units every month."

Part of the complex will remain a hotel. The company also works on the point system and packages start at close to $10,000.

Beckley is in the hotel and timeshare business in Canada, but the Salado Creek Villas is his first project in the States.

Financial experts say timeshares aren't usually considered good real estate investments because they depreciate quickly. But they can make sense for people who like to vacation extensively at the same location.

"The real bargains are in the resales," said William Rogers, founder of Timeshare Users Group, a user-owned consumer group based in Orange Park, Fla. "The savings can be 50 percent or greater."

Rogers started the group in 1993 after he and his wife got duped in a timeshare exchange.

The most important thing about buying a timeshare, he said, is to make sure you understand exactly what you're getting before putting up the cash or taking out a loan.

"Education before you buy instead of after you buy. Unfortunately, that's not always the way timeshare sales go," he said.

Timeshare Ownership Comes With Problems

2006-09-06T13:17:00.000-07:00

Lawmakers have chased away most of the con men who roamed the timeshare industry in its early days three decades ago. But in their place, Corporate America has swallowed the market and filled it with fine print.

Much of the industry is now a well-oiled machine that often nicks consumers at every level of purchasing, owning and getting rid of a time share. Unsuspecting buyers face:

--High-pressure sales tactics

--Expensive financing

--Convoluted reservation systems

--Volatile and steep annual fees and questionable management

--A dismal resale market in which owners virtually must give away their units in order to get rid of them.

Pitches and promises

Helen Allston does not have the luxury of luxury. The 56-year-old Summerville resident has been on disability from her job at the Postal Service since her car was rear-ended in 1997. She is the main support for her 32-year-old son, who is learning disabled and works as a custodian. She has learned not to count on promises, which were exactly what she heard when her boyfriend wrangled her into a timeshare sales pitch on Edisto Beach in 1998.

"I had no intention of buying them and I told him so," Allston said. "I watch my money. ... I wouldn't spend this much on something like this."

The salesman, however, sensed that the boyfriend was won over and attacked Allston's skepticism. He said he was disgusted that the pair would even think of turning him down after he offered up confidential information, Allston recalled.

"He was actually making me feel like dirt for not wanting it," she said.

The guilt tactic worked and the couple paid $3,600 before leaving the office that day - most of which went directly into the pocket of that salesman and his on-site managers, according to other time share salesmen interviewed for this article.

Timeshare promoters have to abide by strict state rules these days. They are not allowed to pitch units as an investment or discuss their possible resale value. They are not allowed to tell potential buyers that the properties can be rented for income.

But sales offices are pressure-cookers and most timeshare owners interviewed for this article said the salespeople they dealt with either broke the rules or came close to illegal territory.

Meredith Exum, a Fairfield saleswoman at the SeaWatch Plantation resort in Myrtle Beach, skillfully stayed within the rules when responding to a Post and Courier reporter who inquired as a member of the public a few weeks ago: "We're not licensed Realtors, so I can't tell you anything about selling or renting them," she said. "Now, do I have owners that do both of those things? Yes. I'm not going to lie to you."

Another Myrtle Beach timeshare salesman, who asked to remain unnamed to avoid retribution from his employer, said good salespeople can earn between $90,000 and $120,000 a year along the Grand Strand. Top sales promoters on Hilton Head Island regularly gross more than $200,000, he said.

Between 2000 and 2004, 14 percent of time share revenue went to paying sales commissions, according to a March report analyzing the industry by PricewaterhouseCoopers, a New York-based auditor.

"Honestly, a salesman is probably going to tell you anything that works, because it's commission," the Myrtle Beach salesman explained. "And they'll finance anybody. They don't give a crap if they have credit or not."

Since the start of 2005, at least six lawsuits have been filed against Hilton Head-based Trew Holdings LLC, alleging that the company's salesmen lied while pitching time shares at its Coral Sands resort, one of four time share properties the company owns on the island.

Archie Elliott, a former salesman, detailed the deception in November for a lawsuit filed by 66 owners, testifying in a sworn affidavit that the staff knowingly promised to rent the units for would-be buyers, buy them back if they ever wanted to sell and grant an extra week's stay, even though none of those provisions were offered in the contract.

Trew Holdings' defense attorney did not return phone calls for this article.

The S.C. Real Estate Commission, which regulates more time share resorts than any state but Florida, has received about 60 complaints about Trew Holdings' properties in the past five years. Most of the gripes involved sales tactics similar to those outlined in lawsuits.

John R. Pitts, Jr., the commission's administrator, acknowledged that misleading sales pitches are a problem industrywide, although the state fields few complaints about some of the biggest players in the market.

"What (buyers) are told verbally and what's in the contract often are two different things," Pitts said. "I would love it if this article would warn the consumer to read the contract before buying, don't just take someone's word on it."

Illegal sales pitches, he added, are particularly hard to prosecute, because they usually pit the buyer's word against the seller's. The contract, which many consumers don't look at closely, often has a disclaimer that says buyers should not "rely upon representations other than those" on the paper in front of them.

Giving, then taking

The points system

and talk to a different agent.

"It was a little bit of a hassle, but you learn how to do it," Terre said. "You learn how to play the system, and that's what it is, playing the system."

But after almost three decades as a time share owner, Terre recently reached his breaking point. He was sitting in the indoor pool of a Myrtle Beach resort when pieces of the ceiling fell in the water around him. A few months later, after checking into a brand new Myrtle Beach resort, the keys didn't work and the appliances were so noisy that he couldn't talk on the phone.

"I'm just thoroughly disgusted with all of it," Terre said. "I'm not going to buy any more points and I wouldn't recommend them to anyone."

Terre also said most of the people he talks to at time share resorts feel the same way and want out.

When asked about customers having trouble booking, time share developers and the industry trade group invariably blame the problems on misinformed customers, not complicated booking systems or oversold resorts.

Thornhill, with Bluegreen, said learning how to use a time share is a big education process. "We do our best to work with customers," she said. "But a lot of times they don't understand the legal obligations that they sign and read."

Skyrocketing fees

Reservation or no reservation, time share owners get billed regularly, coughing up fees to pay for maintenance and occasional refurbishments. These charges generally run between $150 and $1,000 a year and can add up to the original sales price of a unit over 10 or 15 years.

A lot of buyers fall behind on these payments. In 2004, the average week of time share ownership cost $479 in annual maintenance fees, according to an industry trade group. The March study by PricewaterhouseCoopers said some 7.4 percent of time share owners were delinquent in paying those fees.

In addition to sales revenue and high-interest loans, many developers collect a steady stream of recurring fees by managing the resorts that they built, a practice that has sparked criticism. Their employees often dominate the ownership committees that set the annual charges and hire contractors. Some publicly traded time share companies highlight these arrangements in filings with the Securities and Exchange Commission.

Byron Wiegand, a former time share developer who owns California-based Timeshare Resale Alliance, said this is a "total conflict of interest" that is gouging consumers.

"You've got the weasel in charge of the henhouse," he said. "And they're just fee-ing them to death ... stuffing the money in their pockets as fast as they can."

Individual buyers own such a miniscule portion of a resort that they often don't bother exercising their voting rights. Once developers are in charge, Wiegand said, problems often start. Fees go up, maintenance is neglected and one-time "assessment" charges are levied.

Cutting losses

Time shares, like most cars, immediately plummet on the resale market. That's one of the reasons banks won't finance them directly.

Fairfield, for example, was charging $155 for 1,000 points earlier this year. Reserving a week at the company's two-bedroom Myrtle Beach units in the middle of summer requires at least 21,000 points. Yet those same points were fetching less than $20 per 1,000 in recent eBay auctions - roughly 13 percent of the retail value. A Summer Bay Resort time share in Las Vegas recently sold for $26, according to a list of completed eBay auctions.

Wiegand's Timeshare Resale Alliance won't play with points.

"We just tell people, 'I'm sorry that you bought them,' " he said.

Some developers discourage people from buying on the resale market by telling them they won't have as much booking clout or privileges if they buy a second-hand unit. And the industry is still plagued by shady resale firms, boiler rooms full of hucksters who promise great results - even profits - in exchange for a few hundred dollars. Most states outlawed these operations from charging an up-front listing fee, but some operators skirt the rules by calling the payments "appraisal" or "assessment" fees.

Pat Pendleton, who resells time shares out of her Surfside Beach realty office, said most resale companies will "tell people anything" to get the up-front fee. "The majority of them are just advertising companies," she said. "They aren't even licensed to broker a sale. ... And they don't even have to sell them, because they're making so much money up front."

One of the biggest time share fans interviewed for this article was Jack Brewer, a restaurateur from Charleston, W.Va., who bought on the resale market. Over the years, Brewer purchased four time shares from Pendleton Realty, each for about what he would have paid to stay at a hotel for a week.

"It all works for me," Brewer said. "Resale time shares, as far as I'm concerned, is the way to go."

Adding it up

Helen Allston, however, could have rented a lot of nice hotel rooms for the thousands of dollars she and her boyfriend paid to a time share developer. And the thrill of being the owner of a vacation getaway wore off quickly for her, the day she received the gifts that helped clinch the deal.

"The steaks (they sent) were so tough that nobody could eat them; the grill was one of these dime-store Wal-Mart ones," she said.

Allston and her boyfriend have paid off the unit - $353 a month for seven years, including $11,031 to cover the developer's 14.4 percent interest rate. Even though she has never stayed at the Edisto Beach property, Allston still pays $1,440 a year in maintenance fees. She also has forked over another $700 to a Florida resale company that has yielded no results. Now, she's not even trying to recover her money. She's just hoping to get out of her contract and to stop the payments. If Allston stops sending checks, the developer will eventually take back the unit, but not before planting some red flags in her credit report.

"There's no way we could have used this thing enough to make our $15,000 or $20,000, or whatever we've got invested, worthwhile," she said.

Real Estate Agenta Aids In Timeshare Cast-Offs

2006-09-05T04:30:00.000-07:00

Pat Pendleton is a bit of a softie. Her Surfside Beach real estate office is full of stray cats that she did not have the heart to turn away.

Pendleton has the same problem when it comes to distraught timeshare owners - the hordes of financially anemic consumers deserted by the industry. They call her in tears. They come into her office and beg.

"There are so many injustices in the business," she said. "They think I'm the greatest thing since white bread."

This is why Pendleton, at a spry 64 years old, has not hit it big by flipping million-dollar beach homes. She spends almost all of her time collecting timeshare cast-offs and matching them up with savvy buyers, bargain hunters happy to snap up a time share unit for thousands of dollars less than developers are selling them for. Not all of Pendleton's sellers are thrilled to hear how much money they will lose on their investment, but Pendleton is a realist about the dismal resale value of time shares.

"I say 'I can either tell you the truth or tell you what you want to hear,' " she explained.

Pendleton started selling real estate in Columbia 25 years ago. She moved to Myrtle Beach in 1987 and, as a relatively green broker in a new office, she started handling time share sales. A few years later she incorporated Pendleton Realty Inc., now a six-person business that almost exclusively handles fractional properties.

"I guess it just became my niche," she said.

Building the business has not been easy. Developers don't want to lose market share and don't want word to get out that their timeshare units can be had for 30 percent to 50 percent less, on average, than the prices they set. They often don't let Pendleton on their properties, and they try to scare consumers away from the resale market by telling them "used" timeshares don't come with the same perks and reservation clout.

"It's just lies really - baldfaced," Pendleton explained.

And then there is the constant image battle. For years, the timeshare resale industry comprised boiler rooms of swindlers calling owners and promising to flip their unit at a profit if they pay a few hundred dollars up front. Most of those shops never advertised any units, let alone sold them. Lawmakers and attorneys general have cracked down on some, but not all, of those operations.

Meanwhile, Pendleton has kept shuffling around her cramped strip-mall office; punching on a speaker-phone to listen to the sobs of another potential client; spinning through her vast Rolodex of time share fans; and shooing stray cats off of her cluttered desk.

"I've never had a complaint from a buyer," Pendleton said. "And I don't know how many timeshare developers can say that."

Timesharing Is Caring

2006-09-01T04:45:00.000-07:00

I think you’re giving out a little bit of bad advice when you say to never take timeshare companies up on their offers [“The Hard Sell,” issue 31]. I agree that the weekend vacations they offer may sometimes not be worth it. The cash and ticket discounts they offer, however, are almost always worth it. The trick is to not do what either you or your girlfriend did. Her mistake was making them believe that you had money available to spend on their overpriced product. Your mistake was your irrational behavior. Think about it. For most people, paying thousands of dollars for what these companies offer is in and of itself an irrational act. Your behavior said you were exactly the type of person that would purchase from them.

Also, NEVER let them drive you ANYWHERE. If they are leaving the property, tell them you will drive yourself. Here’s my approach. I’m one of those professionals you referred to in your article. My wife and I go in and immediately let the salesperson know that we already know everything about timeshare and how it works. We let them know that their offer must beat the great deals we already get via the Internet and that the offer must also be better than what can be found in the timeshare resale market. Some salespeople will immediately send you on your way with whatever gifts were promised to you. Others will attempt to show how their plan is better financially. It doesn’t take a math whiz to find the flaws in their math. Point out those flaws and they’ll either acknowledge that you’re not a potential customer or they’ll conclude you’re too much of hassle to bother with. If they try to stretch it to their 90-minute limit, at the end of the 90 minutes stand up, let them know that you’re not interested.

I made $800 cash and got free VIP seating at the Marriott Resort’s Luau (purchase price for tickets in the VIP section are $300) while in Maui. I made $700 cash and got free tickets to Sea World, Disney, and Busch Gardens while in Orlando. I made $600 cash and got free tickets to the aquarium while in Gatlinburg. This is just the short list of the tours we’ve taken. I’ve stayed at some presentations for as little as 15 minutes. The max I’ve ever stayed is 90 minutes. I always schedule them early in the morning (which usually includes as free breakfast as well). This frees up the rest of the day to spend all the cash you make.

There is a way to make these timeshare offers work for you. It just takes a small amount of time and even lesser amount of effort.

Timeshare Industry Fastest Growing Segment In Australia’s Tourism Industry

2006-08-31T04:42:00.000-07:00

The Australian Timeshare Ownership Council (ATHOC) has released key findings in their first study into the economic significance of the $700 million a year industry.

It was reported that the timeshare industry is the fastest growing segment in Australia’s tourism industry and is a crucial contributor to the continued survival of regional towns, from employment and training opportunities through to investment and development of Hotels and Resorts.

AEC Group Principal Carey Ramm commented: "It is the fastest growing segment of the tourism industry, both nationally and globally recording growth of 10 per cent per annum in each of the past five years, and employs thousands of workers, both directly and indirectly, across Australia’s regions. The growth potential of the industry cannot be underestimated, with a possible doubling-tripling in size over the next 10 years, going a long way towards meeting the need for accommodation in Australia".

The report also found that the timeshare industry provides training and dispute resolution services and that currently only 6 per cent of owners are dissatisfied with timeshare, with the overall satisfaction rate in Australia amongst the top rating in the world.

Players in the Australian industry are Accor Premiere Vacation Club (APVC), Trendwest South Pacific (RCI, Interval International, Classic Holidays, Holiday Concepts and I.C.E Asia Pacific.

Tips For Timeshare Shopping

2006-08-29T04:56:00.000-07:00

Shopping for a timeshare

• Timeshares offer the right to stay at a property for a set period of time and can be exchanged for time at other resorts. Often, it is deeded real estate.

• Properties require a minimum income, often $50,000 or more annually, to take a tour. Both members of the couple must attend. Tours last 90 minutes to two hours.

• A salesperson will discuss how ownership works. Some resorts sell a points-based system for flexible use, while others sell fixed or floating weeks.

• A finance manager will go over pricing options, which can be $7,000 to $25,000 or more.

• Prices do not include property taxes, club dues or fees for maintenance, reservations, housecleaning or exchanges.

• If you buy in Arizona, you may cancel within seven days of signing a contract. Other states have cooling-off periods of three to 14 days.

• Do some homework before taking a tour. Many clubs offer basics about their time shares on their Web sites.

• Ask for recommendations and check with the Better Business Bureau and the state Department of Real Estate, which regulates timeshares.

• Timeshares generally do not appreciate in value.

• Look for signs of good management, such as desirable amenities, friendly service and good housekeeping. Ask if the property is a member of the American Resort Development Association, which follows a code of conduct.

• Several companies, including www.extimeshare.com and the www.orlando-time-share-sales.com, specialize in timeshare rentals and resales.

• Renting may help you decide if a time share is the right choice. A recent online search found Arizona timeshares renting for $700 to $2,400 a week.

• Some timeshare resorts offer discounted accommodations for those who tour the property so they can try before they buy.

Timeshare Owners Looking For Answers

2006-08-28T04:25:00.000-07:00

Two timeshare owners at the now condemned Tyne Beach Terrace want to know what recourse they have since the vacation home club has been closed for almost two years.

The beach-front property was damaged by the twin hurricanes in September 2004 and has yet to come back on-line.

In the months that followed, the tiles began coming up, the electrical installations shorted out and the inner walls became contaminated with mould and mildew.

Salt water also destroyed the electrical components, the concrete and sheet rock walls.

Danish owner Peter Munksnaes had begun repairs on the building in excess of $200,000, but had to stop the work on the 20-unit, four-storey building in December 2004 after a Grand Bahama Port Authority inspector order condemned it.

The timeshare owners say they have been following the plight of another set of owners at the Crowne Plaza Golf Resort and Casino at the Royal Oasis.

That resort property was also shut down in September 2004 and is still closed. Convinced they had no other refuge, the timeshare owners there took legal action against the resort owners.

A group of timeshare owners at Tyne Beach Terrace say they have enjoyed coming to Grand Bahama and are asking what recourse they now have concerning their timeshare unit.

William Mooney and John Curtis both purchased timeshare in 1999 and loved coming here with their wives.

"We bought two weeks in Tyne Beach, week 51 and 52, Christmas and New Years for a total of 80 weeks," said Mooney.

"We'd use them together with our wives when we come here. We love it. We've enjoyed every time we've ever come, it's been a great experience. We love the Bahamian people."

In fact, Mooney of Atlanta and Curtis of Virginia, say they were influential in bringing over a neighbouring family for one week, who decided to purchase a home here and become winter residents.

"We're a little bit upset because we spent our money and we have nothing to show for it and as much as we would like to come back, there's a duplication," said Mooney.

"I'm retired and you have limited dollars in retirement. So when you make a plan like that, you're really upset when it falls apart."

While the men understand and appreciate that the building was damaged as a result of natural disasters, they would still like to use what's left of their 70-plus weeks and be able to come back.

The men aren't looking to get their money back, they know Tyne Beach has nothing to offer now.

Curtis says their greatest concern is that after paying for their time, all of a sudden they saw a couple things happen – their annual fees went from $275 to over $700 with additional assessments which they were told were sanctioned by the Government.

Now, they want to know what Munksnaes plans to do with the property: rebuild or settle.

They say they are not sending any more money to the club despite requests to do so because there is nothing there. And, they are having a hard time hearing anything from the government.

"I don't know who exactly to go to. There are laws that are enforced by Nassau, but they're not protecting us. We don't hear anything. What are the laws, I'm eager to find out," says Mooney.

Tyne Beach spokesman Peter Adderley says the owner is waiting to hear from the insurance company to settle their claim which carries a value of $2 million. The offer from the insurance company to date is $400,000.

"We're taking the matter to court. We're being represented by two of the finest attorneys in the country and we're confident."

According to Adderley, the members have been able to utilize the RCI exchange programme and go elsewhere as a result of being members of the resort.

"Our office has remained open to be able to facilitate all of the exchanges to our members. Needless to say, this is a popular location and they have experienced a disadvantage of not being able to stay here, he said.

"Having waited two years now on a settlement from the insurance company, we're in the process of selling one or two units to utilize those funds to rebuild the resort."

Adderley says it was thought that after providing all of the necessary and historic details, from engineers and contractors, that there would have already been a settlement.

Meanwhile, he adds that every effort is being made to maintain the site.

Less Rigid Timeshare Rules Appeal To Boomers' Kids

2006-08-25T04:46:00.000-07:00

Baby boomers love timeshares.

People born between 1946 and 1964 make up 50.5 percent of all owners and 51.1 percent of recent buyers, according to a study on timeshare ownership by the American Resort Development Association.

Now children of boomers are taking a liking to vacation ownership, too, because of the experiences of their parents.

"Children of timeshare owners almost always buy," said Neil Cumsky, chief executive officer of Princeton Resort Group, which is developing Cibola Vista Resort and Spa in Peoria.

Traveling with their parents, they enjoyed extra space and privacy without the cost of additional hotel rooms, he said.

But some young buyers have been skeptical of timeshares, said Clark Rowley, director of marketing and sales for the Scottsdale Camelback Resort. They don't like the concept of fixed weeks and worry about wasting their investment if they don't use their time. However, with the advent of flexible timeshare use, more are choosing to buy.

"The X-Generation is coming into play," Rowley said. "They are seeking more flexibility and that's why the market is changing" with timeshares that allow buyers to use points to spend as little as a day at a resort.

People younger than 40 make up 18.5 percent of recent buyers. Overall, they make up just 9.3 percent of all owners, according to the ARDA report.

Many of those buyers are single professional women ages 25 to 35, Cumsky said, who buy with the intent of traveling with their girlfriends.

Margi Maisto, 47, bought her first timeshare while single in her early 30s. After the initial purchase, she liked not having to worry about budgeting for lodging costs.

It also forced her to take time off because she purchased a specific week.

Now married with young children, Maisto bought this year her second timeshare at a property in Orlando. The key attraction was the timeshare's points-based system, which didn't lock her into a specific week. She can make several mini-visits or one long one until all her points are used up.

"There's a lot more flexibility in the new-style program," the Peoria resident said. "It accommodated our current schedules, and we're really busy."

She also loves having a kitchen, which reduces the family's restaurant budget, and a number she can call to arrange her accommodations at a nice resort.

Those 60 and older also buy in fewer numbers than boomers do. They make up 40.2 percent of all owners but only 30.4 percent of recent buyers.

"Boomers are still very much the big buyer," Rowley said, largely because of their disposable income. "Generation X is still building wealth, or are not as into luxuries."

Life experiences also play a role in boomers' decisions to buy timeshares.

"Boomers are buying the product because they are the first traveling generation," said Cumsky, who is in his 50s. "My parents' generation never traveled more than 200 miles. When we (boomers) were in our 20s and 30s, we were traveling all over the place."

That affinity for travel has helped the industry grow to more than $7.8 billion nationally in sales in 2004.

The largest timeshare market is Florida, followed by South Carolina and California. Arizona ranks No. 9 nationally with 47 resorts, according to ARDA data. Industry folks in Arizona say that number is now 52.

A new report on the economic impact of timeshares in Arizona is expected out early next year, Rowley said. The most recent state data from a 2002 ARDA report show an overall economic impact of $980 million in owners' direct and indirect purchases. Nationally, the industry has a $44.4 billion impact, according to ARDA.

New timeshare sales in Arizona in 2002 were worth $200 million. That's thought to have grown significantly as more resorts now operate time shares. Westin Kierland Resort and Spa and the JW Marriott Desert Ridge Resort have added timeshares since then. Cibola Vista opened last year, and other properties have converted casita units into timeshares.

By the numbers

53: Median age of head of household time-share owner.

$200 million: Amount spent on new timeshare units in Arizona in 2002, the most recent year in which figures are available.

6.7: Average number of nights parties spend in an Arizona timeshare.

$1,744: Average amount a timeshare user spends in Arizona.

$15,789: Average cost of a timeshare unit nationwide.

Timeshare Owners Learn Of New Deal

2006-08-23T04:26:00.000-07:00

After an almost two-year freeze on their points, timeshare owners at the Crowne Plaza Golf Resort and Casino at the Royal Oasis are learning of a deal that could break the ice and lure them back to the distressed property.

Lehman Brothers, the financiers of the resort, signed a contract last Monday with World Investments Holdings (WIH) for the purchase of the resort which has been closed since 2004.

The closure wiped out 965 rooms in the towers and country club from the island's inventory, shut down the casino, both golf courses and 98 timeshare units and pushed some 1,300 employees into the unemployment pool.

The move came days after Hurricane Frances in September 2004. The owners claimed the property sustained extensive damages.

With an inoperable property in Grand Bahama, timeshare owners say they were unable to vacation anywhere else because their points had been frozen.

But Prime Minister Perry Christie told The Freeport News during his last visit here some weeks ago that the owners had made provisions in the sale to include the timeshare owners.

Back then, there were two players – WIH, Florida-based group, and Harcourt Developments, a property construction and management company based in Dublin, Ireland – bidding on the property.

In fact, the Prime Minister revealed that Lehman Brothers had taken all of the necessary steps to ensure that the purchasing group has timesharing expertise and were "timesharing internationally respected participants."

"I am hoping that when the purchasers are selected, that we are able to announce to the Bahamian people what in fact is intended and how they will go about assuring the timeshare owners that their future is on solid ground," he said.

Now that a deal has been signed, timeshare owners are optimistic, but still have more questions than answers.

Chuck and Darlene Barber of Virginia had paid for their timeshare in full, unlike several other owners who had financed.

"We paid cash up front. All our money is already in the door," he said yesterday, pointing out that they have lost all use of their timeshare for nearly two years.

Now what the sale means for the timeshare owners he says, depends on how they are figured into the resort equation in the way forward.

But timeshare owners at Royal Oasis had filed a class action suit against the former resort owner in a Florida Federal Court and say they have not heard from the resort since November 2004.

Fed up after their attempts to reach the resort by phone, e-mails and letters have gone unanswered, the suit names Sunrise Properties Limited, Driftwood Freeport Limited and Driftwood Hospitality Management, LLC. as the defendants.

They are suing for breach of contract, breach of the implied duty of good faith and fair dealing, unjust enrichment and declaration of their ownership rights and interests in their timeshare units.

The Barbers are a part of the action and maintain the lawsuit and the sale of the resort are two independent items.

As for the suit, everything is full speed ahead.

"It's only fair. If we lost three years, are they going to give us three years back," another owner says. "They breached the contract. If any timeshare owner did, we would get a letter to say that we would get nothing.

"People have lost out on a lot of money. I'm glad that it has been sold, at least things are moving."

He questions when will they be able to use their points, what their status will be when the resort reopens, would they have to sign new contracts and whether it means that the points will be unfrozen now that the deal is signed.

What's even more frustrating, the owner points out, is that people are still paying maintenance fees on their timeshare for fear they will lose their points.

"I'm hoping that they finish that resort and they really get it up in the eight months they say because I'm dying to get back at that hotel because it could really be a good thing.

"If they do get it fixed up its really going to work out for everyone in the end," he said.

The Virgin Islands Tourism Industry Poised For A Major Jump In Timeshares

2006-08-22T04:34:00.000-07:00

The Virgin Islands tourism industry is poised for a major jump in the number of its accommodations that will be timeshares rather than hotel rooms - and industry leaders are waiting to see how the shift could change both visitors' habits and the revenues that tourism produces for the government.

The Ritz-Carlton St. Thomas in June finished converting 48 of its hotel rooms to two-bedroom luxury timeshare suites, adding the units to its 80 Ritz-Carlton Club "fractional ownership" units.

The Westin St. John Resort & Villas is changing more than 186 hotel rooms into 94 two- and three-bedroom vacation villas, adding them to the 93 villas the resort already had offered for timeshare ownership. Once the Bay Vista conversion project is finished, the resort will have just 100 regular hotel rooms left.

And the new Marriott's Frenchman's Cove, which is rising next to Marriott's Frenchman's Reef Beach Resort at the entrance to St. Thomas Harbor, will include 220 two- and three-bedroom units spread among seven buildings.

On top of those imminent developments are others:
The 48 hotel rooms that were converted to luxury timeshare units at The Ritz-Carlton Club in June include living rooms, dining areas and expansive kitchens.

The already-approved Preserve at Botany Bay calls for 31 timeshare units and 40 villas alongside its boutique hotel on St. Thomas' West End.

The Ritz-Carlton Club at Cabrita Point would offer 73 ownership units on the opposite end of the island if its plans are approved.

The numbers are adding up quickly and dramatically, V.I. Hotel and Tourism Association president Beverly Nicholson Doty said.
To an existing room count of about 4,500 on St. Thomas and St. John, Nicholson Doty estimated, around 600 timeshare units will come into service in mixed-use developments, which include traditional hotel rooms, during the next two years.

The number of overall rooms does not take into account timeshare stalwarts such as Magens Point Resort and Bluebeard's Castle because they are not hotel members of the association, she said. The tourism association's board will work on integrating timeshares into its membership and its marketing strategy within the next few months, Nicholson Doty said.

St. Croix's numbers are harder to calculate because its tourism product includes so many condominiums that are not timeshares, St. Croix Hotel and Tourism Association president Patrick Henry said. "I think there are a lot of part-time residents - people who come down more than a week at a time," he said.

Mixed-use developments like Divi Carina Bay Resort & Casino, which has set aside 20 timeshare units, also are few on St. Croix. Henry, who also works as general manager of Divi, said the resort calls those units "pre-paid accommodations" rather than timeshares. They are part of Resort Condominiums International, considered the world's largest timeshare exchange program, but have not been thoroughly marketed yet, he said.

Several proposed projects on St. Croix have pledged to be mixed-use developments. Plans for a development at Annaly Bay call for three hotels, plus European-style hilltop residential villages, estate homes and villas. Another proposal, by William and Punch, envisions a hotel, casino and both whole- and fractional-ownership condominiums.

Such plans attest to a demand for St. Croix that has grown during the last three years, Henry said. "As its occupancy rate increases, interest increases and demand increases."

Why everyone is doing It
The local shift toward mixed-use accommodations is in keeping with a Caribbeanwide trend.

A panel discussion called "The Explosion of Condos and Mixed-Use Developments in the Caribbean" attracted hundreds of regional industry players at the Caribbean Hotel Industry Conference in late June. Panelists said the mixed-use model launched on Turks and Caicos nine years ago has accelerated.

"Florida has few development opportunities and beachfront properties remaining, so the Caribbean has huge potential," panelist David Callaghan said at the conference. Callaghan is eastern region vice-president of Interval International, a vacation-ownership exchange company that has upward of 2,000 affiliated resorts in more than 75 countries.

"It is definitely the wave of the future," Nicholson Doty told The Daily News. "I suspect that any development in the region in the future will have split use as a part of the core offering."

Spokespeople for the leading companies increasing their timeshare offerings in the Virgin Islands say that brisk sales of the units here show that buyers are eager for more such development.

"Certainly it was demand," Ritz-Carlton Club spokeswoman Beth Ridenour said of the conversion of hotel rooms into luxury timeshare suites. "We were seeing a great deal of success with the Club and we saw an opportunity to expand that location." Nearly all shares in 80 previous club units had been sold by the spring of 2005, she said.

When Westin St. John Resort & Villa announced the shift in July, Graeme Davis, area managing director for property owner Starwood Hotels and Resorts, also said demand drove the resort's decision to change more hotel rooms to ownership units. An estimated 90 percent of shares in the resort's existing 93 villas have been snapped up.

Vacation ownership continues to play a larger role in the overall tourism market in St. John and throughout the Caribbean," Davis said. "We are basically doubling the size of our vacation ownership resort in St. John to meet the demand of consumers."

The appeal to developers of offering fractional ownership units is clear to tourism industry veterans like Paul Doumeng, general manager of Bolongo Bay Beach Resort on St. Thomas.

"It's liquid assets," Doumeng said. "They can pay to build rooms upfront instead of waiting - they're getting good returns on their investments now."

Doumeng's father, Dick Doumeng, started selling sixths of a unit at the family-owned resort in the 1970s. Buyers received a month's share per year along with some revenue sharing, essentially turning loyal repeat guests into limited partners. About 30 rooms once were in that early model of fractional ownership; the Doumeng family bought back most units over the years, and now a small percentage are held as timeshares.

Paul Doumeng said he has been studying the trend toward timeshares closely and believes that larger resort companies increasingly are moving toward the model also because it builds brand loyalty. Fractional owners can trade a week in the Virgin Islands for a week at another resort elsewhere - but their investment remains within the corporation.

In the Marriott's case, for instance, previous hotel guests make up a large market of those who become timeshare owners, Marriott Vacation Club International spokesman Ed Kinney said. "Historically, across all our properties that are adjacent to Marriott hotels, that has typically been the case with owners," he said. "They know they will get that outstanding Marriott level of service."

Mixed-use developments that include ownership and hotel components will be a lasting setup in the Caribbean tourism industry, Caribbean Society of Hotel Association Executives president Sue Springer believes.

On her island, Barbados, The Four Seasons will break ground within the month on such a project. Another 10 or so developments being built along the island's "platinum" western coast include condominiums or villas, she said.

"The multifaceted units are the way to go," Springer said. "People are looking at real estate because they get a quick return on their investment. Then they get a long-term investment with the operation of a hotel. We're seeing that kind of development particularly in Anguilla, Virgin Islands, St. Lucia, Grenada."

Economic impact

Where demand exists, the benefits to developers of building timeshares is clear, but the costs and benefits to the territory still are not.

With investors eager, Springer said, it will be up to each Caribbean island how much development to allow.

"It's only lasting for as long as the land is available," she said. "Eventually someone somewhere along the line has to make a decision on how much development you can take. If local people can't purchase land at an affordable price, you'll create a certain amount of social unrest."

Barbadians, Springer said, have been calling for a national land-use and tourism plan to be created. "Governments have to look closely at what is economically and socially acceptable for the society," she said.

The V.I. Bureau of Economic Research, which tracks tourism indicators such as visitor arrivals and hotel occupancy rates monthly, is casting a keen eye on the shift toward timeshares - and trying to figure out what it could mean economically, executive director Lauritz Mills said.

She said the bureau will include timeshares in its occupancy-rate calculations, and it plans to conduct a study on the financial impact of such developments to the territory - particularly on how deposits into the Tourism Revolving Fund are affected.

The primary contributor to the fund is an 8 percent occupancy tax that hotel guests pay. Deposits into the revolving fund totaled $16.6 million last fiscal year, the bureau calculated, and $14.5 million has been collected so far this fiscal year. The fund is required by law to be used exclusively for tourism promotion.

In April 2001, the V.I. Legislature amended a section of the V.I. Code to specify that timeshare owners would not be considered guests subject to occupancy tax but that one-time renters of timeshares would pay it.
A month later, another bill clarified that visitors staying in Virgin Islands accommodations because they had "swapped" their timeshare interest at a development outside the territory would not be exempted from the occupancy tax.

How an 8 percent tax would be calculated for those visitors is unclear, however, because they have paid a one-time purchase price to own a timeshare interest, so the cost of their lodging is not figured by the night.

The territory's Tourism Department also is wondering how much timeshare owners will contribute to the Tourism Revolving Fund, marketing director Steve Bornn said.

The timeshare phenomenon could lead to an increase in overnight visitors without necessarily increasing the revenues into the revolving fund if timeshare holders pay primarily property tax rather than occupancy tax, Bornn said. "How do we derive, from the tourism department's standpoint, a revenue from the fractionals and timeshares to promote the destination, and for product management as well?"

Bornn said he expects that issue to be a priority of the next gubernatorial administration if it is not taken up during the remaining several months of Gov. Charles Turnbull's term.

Owner characteristics

At the prices for which units are sold in the Virgin Islands, timeshare owners are nearly guaranteed to be highly affluent.

Marriott's Frenchman's Cove units are selling for between $14,300 and $67,500, a one-time price that allows fractional owners a stay of one week per year for life. On Marriott's other island timeshare properties, which in the region include Marriott's Aruba Ocean Club and Marriott's Aruba Surf Club, the average head-of-household income is $127,000 per year, spokesman Kinney said.

The Ritz-Carlton Club's luxury units range from $148,000 to $269,000 for a 21-day share. Club members' average total household income is at least $300,000 annually, spokeswoman Ridenour said.

For a week's interest in a vacation villa at The Westin St. John, Starwood Hotels and Resorts spokesman David Matheson said, prices start at $20,000 and soar to well more than $100,000 depending upon the size of unit and time of year. Matheson said he could not provide average income figures for owners.

Because timeshare owners pay a one-time purchase price, industry players hope they will be prepared to spend more on dining, shopping, excursions, attractions and transportation during each stay on-island.

"There's more of a discretionary income in their pockets," Bornn, the V.I. Tourism Department's marketing director, said. "They're paid for already, so they come here ready to shop."

Having a greater percentage of repeat guests has its own implications, however.

Bornn cautioned against "trying to analyze and read into" the increase in timeshare visitors and their demographics "more than it really warrants."

"It's difficult to look into the crystal ball," he said.

But Springer said Barbados already has experienced some differences between highly affluent villa and timeshare owners and other tourists.

"They're very independent. They will have car rentals and utilize restaurants, but they won't utilize what I call the 'general tours,'" she said. "The boat crews that take 100 people? They're going to rent a private catamaran instead. They will do private excursions, parties, entertaining."

Having more such visitors has opened up opportunities on Barbados for more personalized services, from private chefs to yoga instructors, Springer said.

Locally, Nicholson Doty, the V.I. Hotel and Tourism Association president, said she is looking carefully at how each segment of the tourism industry could be affected by timeshare developments - from the staffing they will need to the transportation and attractions their guests will want.

Her hunch, after talking to other industry leaders in the region, is that repeat guests will develop local favorites in stores and restaurants. Still, she said, they will want variety - and business operators can cater to that by serving up changes and variety in menus, activities and inventory.

"It's about addressing the need and offering things that are new and different to a visitor," she said.

Timeshares Are Shedding The Faint Odor Of Disrepute

2006-08-19T06:55:00.000-07:00

You have probably seen the marketing pitches in the mail promising luxury hotel accommodations or new televisions just for listening to a time-share presentation.

The resort also has swan boats available for rent. Tempting, but no, I’d say, tossing the brochure in the trash. Trapped in a room with someone giving me the hard sell is not my idea of fun. Besides, time shares always seemed to be the used-car dealerships of vacations — slightly sleazy, with a real chance of being a scheme.

But increasingly, friends and family are mentioning that they are flying to Hawaii or South Africa or France to stay in their time shares. And they brag about how it costs them almost nothing and how they can trade their time share for a vacation site practically anywhere in the world.

Maybe it’s time for a second look.

Lisa Ann Schreier, who worked in timeshare sales and is founder of Timeshare Insights, says they can be a good vacation option if you go in knowing what to expect.

“Don’t believe everything good or bad that you hear,” Ms. Schreier, author of “Timeshare Vacations for Dummies,” (Wiley, 2005) said. “There’s no such thing as ‘free, perfect, always and never.’ Nothing is free, nothing is perfect and don’t believe assurances that you can always get the time share trade you want or maintenance fees never go up.”

The negative reputation timeshares have dates to the early days, about 30 years ago, when it was not unheard-of for customers to put down money based on wild promises of beautiful resorts soon to be built.

The complexes were never constructed, the developers disappeared and the money was never seen again.

That practice is much less common now, with a flurry of laws passed by most states in the mid-1980’s regulating the industry, but the whiff of disrepute also has to do with the free offers and often high-pressure sales tactics that are still used by some developers.

“If Circuit City offered two free tickets to ‘21’ for coming to look at a TV, you’d think something is wrong with the TV,” Ms. Schreier said. “But the time share industry refuses to change.”

Nonetheless, she said, it is a good idea to look beyond the sales pitches and see the reality.

The term time share encompasses many options, but generally, in this country, it is joint ownership or lease of a vacation property that you can use for part of the year, usually one or two weeks annually.

In some cases — primarily overseas — the time share is available on a lease for a predetermined number of years.

Timeshares now include hotel rooms, yachts and castles, but the resort condominiums with pools and tennis courts still dominate; Florida has almost 28 percent of the entire United States inventory.

Another term, “fractional ownership,” pops up when discussing timeshares. These are generally more upscale properties that people buy for longer periods of time, three weeks or a month. For example, Marriott International, which owns the Ritz-Carlton, offers fractional ownership programs at the Ritz-Carlton.

Ms. Schreier’s rule of thumb is if you vacation more than five nights a year, spend $70 or more a night and enjoy knowing pretty much what kind of quality you’re going to get, time shares might be a good option.

In the universe of all timeshares, a midrange two-bedroom timeshare in a good location in a good season can cost $12,000 to $20,000.

Prices can climb up to $117,000 for a penthouse in Maui during prime time, like Christmas or New Year’s, said Ed Kinney, a spokesman for Marriott Vacation Club International.

The upfront price does not include annual maintenance fees, which can run several hundred dollars a year and up.

Then there’s the issue of exchanging your place for another. There are almost 6,000 timeshare resorts worldwide, with the majority affiliated either with Resort Condominiums International or Interval International.

These companies make money by charging fees to exchange property — $100 to $200 a transaction, depending on the company and whether the trade is domestic or international.

The big players offer more choices, but some consumers prefer to go with smaller companies that they say offer better customer service, for example, Trading Places (tradingplaces.com) and Dial an Exchange (daelive.com).

The ability to exchange your place depends on what size it is, how upscale the resort, how desirable the location (think of Orlando, Fla., or Hawaii) and the supply of time shares in the area you’re looking to go.

“If you have a time share in Mississippi, you better like it, because you’ll have a hard time trading it,” Ms. Schreier said.

The system seems byzantine to an outsider, but apparently once you get the hang of it, it’s pretty simple to figure out how to get where you want to go when you want to go.

My friend Veronica bought a three-bedroom timeshare in Orlando three years ago, five years after attending a sales presentation.

“We didn’t purchase then, but it opened our eyes to what a timeshare was,” she said. They waited until they could afford $15,000 for the property, and so far have been more than happy.

They have already been to Puerto Rico and the Dominican Republic and this year they are off to California and Hawaii.

For Veronica, one of the best things about a timeshare is that it is already paid for (minus the travel expenses), which means her workaholic husband is much more likely to actually take vacations.

“That’s what they told us at the sales pitch,” she said. “You don’t want to waste your money, so this way you’ll go on vacation — and in our experience that’s true.”

Ray Jacobs, editor of TimeSharing Today, an independent magazine devoted to the industry, said surveys showed customer satisfaction with timeshares hovered around 85 percent.

The most common complaint is an inability to exchange at a convenient time.

“Many people are unrealistic about where and when they want to go, but a lot of people also don’t have much flexibility,” Mr. Jacobs said.

A class-action suit was filed in March against RCI, asserting the company rents out empty timeshares to the general public rather than making them available in the exchange pool. RCI said it would not comment on pending litigation.

Mr. Jacobs pointed out, however, that RCI, which dominates the market, made 2.6 million timeshare exchanges last year.

According to Kenneth May, chief executive and chairman of RCI, the time share industry has grown by 12 percent to 15 percent annually over the last 15 years. It’s now even expanding to China.

“The person most likely to buy a timeshare is someone who already owns one,” he said.

But don’t buy a time share with the idea that you’re investing in something that will appreciate over time.

“It’s an emotional investment,” Mr. May said. “The resale market is not one of the strengths of timeshares yet — it still has to be developed.”

Mr. Jacobs agreed that time shares were not the place to make a real estate killing, as properties depreciate immediately, but noted that the resales were becoming more popular; he estimated they were now 15 percent of the market. If an owner sells a timeshare bought new from a developer, he or she will probably get only half the purchase price, Mr. Jacobs said; people who buy from other individuals usually break even when they sell.

Some words of advice from those who’ve seen it all before:

Make sure the timeshare is “salable, rentable and willable,” Ms. Schreier said.

Find out if you have to use the time share on a fixed week every year, or if it floats, which allows owners to pick a week to vacation, usually within a particular season. Both fixed and floating have benefits — do you have to have a place every spring break, or are you more flexible?

Does the insurance cover the replacement cost if your timeshare is wrecked by, say, a hurricane?

Is there a cap on maintenance fees? Can they be raised arbitrarily?

So, with this newfound knowledge, would we buy a timeshare? I would no longer dismiss it out of hand, but for economic reasons alone, it’s not something that’s going to happen in the near future. For now, we’re going to rely on an even older method of vacation sharing — staying free with relatives.

Jim Lewis To Run Disney World Timeshare Dept

2006-08-18T04:29:00.000-07:00

A longtime Disney executive who for years has kept a low profile was named president of Walt Disney World on Thursday, instantly becoming one of Central Florida's most powerful business leaders.

Meg Gilbert Crofton, director of human resources for all Disney parks and resorts, becomes the first woman to lead the Orlando attraction in its 35-year history.

Crofton, 52, succeeds Al Weiss, who last fall was chosen to lead Disney's worldwide stable of resorts and theme parks. She spent most of her 27 years with the company at Walt Disney World, holding key positions in personnel, operations and sales.

"I can think of no one more qualified, and I am very excited that she has this opportunity to lead Walt Disney World," said Weiss, who has worked with Crofton for more than 22 years and called her the "obvious choice."

Crofton said Thursday that she is "very much looking forward to becoming an active member of the Central Florida business and nonprofit communities."

And she alluded to her behind-the-scenes persona in her opening remarks at a news conference, calling her talk with the media Thursday "a first for me today."

As president of Walt Disney World, the region's largest employer, Crofton undoubtedly will gain greater recognition in a community where she's generally not well-known.

Many Central Florida business and civic leaders were at a loss to comment on her promotion. Several, including Universal Orlando President Bob Gault and Orange County Mayor Rich Crotty, said they didn't know her.

And though she has represented 99,000 worldwide employees -- including nearly 58,000 at Disney World -- as the global leader of human resources, few rank-and-file employees know her either.

"I have heard the name, but I honestly couldn't tell you where [which department] she came from," said Donna-Lynn Dalton, a Disney union leader.

Walt Disney's parks-and-resorts division underwent a major realignment in 2005, which included Weiss' elevation to its top job this past November. He continued overseeing the Walt Disney World Resort while searching for a successor.

Disney promoted a second executive Thursday. Jim Lewis, who was senior vice president of Disney Vacation Club, was named president of the growing timeshare division, which now has 300,000 members in 100 countries.

"Jim is not just a good choice for Disney but a good choice for the community," Crotty said.

Crofton serves on the board of advisers at Rollins College's Hamilton Holt School in Winter Park. She attended Rollins before receiving a bachelor's degree in marketing and a master's in business administration at Florida State University.

"She has been a very dynamic leader," Hamilton Holt Dean Sharon Carrier said. "She has an incredible memory for details, and she is able to inspire others."

Peter Rummell, former chairman of Walt Disney Imagineering, said he worked with Crofton during his decade at the Walt Disney Co.

"She is a smart, thoughtful person who has seen Walt Disney World evolve probably as well as anybody and has been a major part of it," said Rummell, now chairman of developer St. Joe Co.

He said her low profile isn't unusual at Disney.

"Disney can be kind of an insular place," he said. "There are a lot of very important people there who don't have a lot of outside contact. But Meg will handle that [the president's] job well. She has great poise and real presence."

Since moving to her current job four years ago, Crofton said she has spent most of her time in California, Hong Kong, Paris and Tokyo while living in Winter Park.

She said she now plans to spend time getting to know Orlando's Walt Disney World more intimately.

"In the first few months of my role, my first priority will be to listen and learn, which I believe is the responsibility of an effective leader," she said.

Crofton, the fourth executive to lead Walt Disney World since it opened in 1971, faces an assortment of challenges as the park continues to reinvent itself in a changing world.

"The maturity of the industry is important," said Steve Baker, an Orlando theme-park consultant and former Disney executive.

"She is extremely talented and very well thought of," Baker said. "She has had some important roles in the company, and I would have probably figured she was on the list. She's a good choice."

Timeshare Owners Avid Hotel Room Buyers

2006-08-17T04:17:00.000-07:00

While it may be logical to think those consumers buying into a timeshare resort would use less hotel room nights during a typical year, experts actually believe timeshare ownership doesn’t impinge on the industry’s ability to sell room nights. Turns out once timeshare owners buy into vacation ownership they become more brand loyal and continue taking trips to other locations throughout the year or extend their stay before or after utilizing their resort week.

“I don’t think the timeshare business takes away from the hotel business: It adds to it. The hotel industry and timeshare are symbiotic,” said Howard C. Nusbaum, American Resort Development Association’s (ARDA) President, noting the largest purchaser of hotel rooms in Myrtle Beach, SC, for example, is the timeshare industry. In this instance the rooms go to people interested in purchasing a timeshare and utilize the rooms during their stay. In Orlando, Nusbaum estimates the timeshare industry is responsible for selling a 200,000 room nights or more.

According to recent consumer research conducted by ARDA, the organization pinpoints that 21.5 percent of people traveling on a timeshare vacation will stay in the area beyond their allocated resort time. Additionally, timeshare is a near $8 billion a year business. At the start of 2005, ARDA research showed there are 1,668 resorts located in 47 States and more than 3.9 million U.S. households own 5.8 million timeshare weeks.

At Las Vegas based Sunterra Corporation (NASDAQ: SNRR), a vacation ownership company founded in 1996 with nearly 100 branded or affiliated vacation ownership resorts throughout the world, Chief Marketing Officer Dave Lucas is also finding timeshare owners to be strong purchasers of hotel rooms. Here, proprietary market research is suggesting the company’s target customers take a variety of trips throughout the year in addition to their annual timeshare experience. This opens up the opportunity to form synergistic relationships with hotel brands.

“Timeshare can be a very complimentary business. People will stay in hotels in an urban or business situation, then when they vacation they will be more interested in going to a resort.”

ARDA’s Nusbaum agreed. “Hotel companies wouldn’t come into [the timeshare business] if there weren’t synergies. People buy into a timeshare brand and they become more brand loyal.”

And for large companies such as Starwood Hotel & Resorts Worldwide, having a timeshare entity is helping boost brand loyalty and ensuring that when its timeshare owners need somewhere to stay overnight, its at one of the company’s branded properties. To help grease the loyalty wheels, Starwood timeshare owners automatically become Gold level members. This benefit gives those individuals special benefits such as automatic room upgrades, a 50 percent Starpoints® bonus which can be traded for free room nights, and other extras such as a 4 p.m. checkout.

“They have a vested interest in staying at other Starwood properties,” said Dave Matheson, Starwood Vacation Ownership’s VP Corporate Communications. “The typical owner of one of our products travels more than the typical hotel guest and stays longer. They will stay in their timeshare, then they do a night or two in one of our hotels. The incremental benefit of unrealized income at hotels is something that I don’t think anyone anticipated.”

Starwood’s Matheson also said timeshare is chipping away at the second home ownership market, especially at the higher levels of timeshare. He explained people would rather check in somewhere and jump right into a vacation, whereas second home owners typically have to make sometimes frustrating repairs fixing what broke since the last time they were there.

Richard L. Ragatz, President of Ragatz Associates -- an international consulting and market research firm to the resort industry founded in 1974 -- said this is especially true at the highest end of the market where consumers purchase fractional ownerships rather than a traditional timeshare product.

He said the average income of someone looking to buy a second home is $250,000, an income level that makes fractional ownership an intriguing option. In 2005, the fractional industry in North America was about $2 billion in 2005, which increased an astounding 28 percent from 2004.

“The product out there now having an impact on second home sales is fractional,” Ragatz said.

Positive Outcome For New Timeshare Regulations

2006-08-14T08:10:00.000-07:00

The new regulations issued for timeshare in Malta have generated a positive outcome, the Ministry for Tourism and Culture said in a statement released on Thursday.

These regulations aim at minimising the harassment of tourists by timeshare promoters, better known as OPCs, by properly licensing marketing companies and levying heavy fines in the eventuality of defaults.

They are the result of a series of meetings held between representatives of the timeshare industry and officials from the Ministry of Tourism and Culture and the Malta Tourism Authority (MTA).

To facilitate enforcement, greater financial and human resources have been dedicated to intensify monitoring. Marketing companies are also being requested to deposit money, in the form of bonds, from which eventual fines will be drawn.

The Regulatory Directorate of the MTA is investigating over fifteen cases of reported abuses ranging from working without a valid licence to over-aggressive selling.

Since the relatively recent establishment of the regulations, a dramatic drop in the number of complaints has been observed which is indicative that this exercise is indeed having the desired effect.

Harbor Island Timeshare Plan May Be Test Case

2006-08-08T04:41:00.000-07:00

At first glance, the latest hotel planned for Harbor Island merely adds to the growing list of high-end lodging for tourists eager to take in San Diego's stunning coastline.

There would be a pool, a full-service spa, restaurants, well-appointed rooms with million-dollar views and all the amenities vacationers need. And the locale – a small stretch of San Diego's bayfront – provides access to a harbor, ocean and everything they offer.

The proposal from Woodfin Suites Hotels LLC would be the first of its kind on California tidelands, once-submerged public property filled in the name of progress and for the people's benefit. In addition to 100 traditional hotel suites, 40 privately owned timeshare units would exist within the eight-story resort.

Proponents see the inclusion of timeshares as a way to help finance new hotels when construction costs are skyrocketing and securing loans is increasingly difficult. But critics argue allowing this hotel-hybrid on Harbor Island would spawn a development trend that further threatens access to the waterfront and turns the publicly owned real estate into a pricey and exclusive destination.

The state has long permitted development on public tidelands in the way of hotels, restaurants, parks and other attractions that draw people to the waterfront. Private residences of any kind, however, have traditionally been banned. And now the question arises, do time shares encourage or exclude the public from enjoying the coast?

A 10-year-old ruling from the state Attorney General's Office concluded that time shares on tidelands are permissible under certain circumstances. Even so, the issue remains murky and the state has kept timeshares at bay since the 1996 opinion.

The San Diego Unified Port District is determined to use the Woodfin project as a test case. Elsewhere in California, eager developers, trustees of the tidelands and environmentalists are watching this case closely.

The Port Commission pushed the project forward over objections from the state's two main regulators of the coastline, the State Lands Commission and the California Coastal Commission.

The State Lands Commission, which watches over development of tidelands and enforces the Public Trust Doctrine designed to protect them, disagrees with the 1996 ruling by then-Attorney General Dan Lundgren, said Executive Director Paul Thayer.

“The commission is very concerned about access to the coastline,” Thayer said. “Timeshares are privately owned and they exclude the general public from being able to use them.”

In a July 11 letter to the San Diego Unified Port Commission, Jennifer Lucchesi, staff counsel for the State Lands Commission, wrote that time-share developments “do not enhance the general public's enjoyment of trust lands, nor is a timeshare development necessary or incidental to accomplish or promote such uses.”
The letter went on to state that “the primary rationale leading to the promotion of timeshare development is the desire of private developers to reduce their economic risk and maximize their financial return.”

Harper Seeks At-Large Director Position For Timeshare Community

2006-08-07T06:32:00.000-07:00

A resident the past four years and a non-resident and timeshare owner at Fairfield for nearly two decades, Glenn Harper feels he can fairly represent all three important groups on the board of directors of Fairfield Glade.

According to Harper, all three groups want similar results; cost control and improved facilities. Popular amenities such as golf, tennis and the lakes are obvious winners. Residents also want police and fire protection, good roads that are well marked, completion of the new community center and the fulfillment of a promise for a new grocery store.

The non-residents would like upgraded roads to their lots, extensions of water and sewer and other consideration to ease their eventual building projects.

Timeshare owners love our amenities. They have made a tremendous contribution to Fairfield Glade. Their dollars fund many of the existing amenities and contribute to the addition of new ones. Without their contributions, the new community center probably would not contain a swimming pool. Secondly, just having them here adds to the financial welfare of not only the merchants of Fairfield Glade but all of Crossville.

Our ever growing population forces the board to reappraise its actions constantly. There are many questions to answer. Will the widening of Peavine Road get emergency crews to the hospital faster or cause fewer accidents? Have we done enough to prepare for nursing home and limited care facilities for our aged and infirm? Have we made mom and dad aware that their children can go to the Mirror Lake Fishing Derby and catch their first fish? Our issues are both big and small. They all need to be addressed.

"Let's continue the pride and hard work of the past that has made Fairfield Glade such a great place to live today."

Because of his community and civic involvement and his proven business skills Harper feels that he is qualified to seek the at-large director position of Fairfield Glade. For three years he has served on the lakes committee, two of which were as chairman. The fall issue of the "Fairfield Glade Update" will be delivered the week of August 7. In it will be the business backgrounds and qualifications of each candidate.

Timeshares Seem To Be A Money Pit With Few Returns

2006-08-04T05:04:00.000-07:00

You can't walk through the lobby of any Orlando hotel these days without seeing signs for reduced rates or free tickets to the area's amusement parks. Of course, there's a hitch: You have to hear the pitch of salespeople who want you to buy a timeshare.

The dream they're selling is having a place at a luxurious resort where you can vacation each year. You buy either a specific week or points that can be exchanged for any week. There are people who adore this system, so much so that they buy multiple weeks at various places.

They like that it forces them to take a vacation when they may not otherwise have left town. Other people love that you can buy a share in a particular place but use it like a voucher for another place anywhere in the world.

Owning a time share means having a perpetual obligation. You own it forever, and you can pass it on through your will. It's fine as long as you want it. But that's the end of the good news.

The shock sets in when people see their maintenance fees go up or get hit with assessments that leave them with no rights to appeal. When you buy a timeshare from a developer, most of what you pay for is marketing, sales, promotions and commissions. Almost none of the money goes to the value of the time share. Typically, time shares lose 80 percent of their value immediately. What other purchase would you want to make that loses that much?

Another problem arises when you want to sell. Most people find that it's almost impossible to do. I get a lot of calls and e-mails from people who want to give their timeshare away, and nobody will take it! Because they lose so much value and are so difficult to sell, I consider timeshares to be a defective purchase.

People who are still sold on the idea would do well to buy one from someone who's desperately trying to get rid of it. Some buyers have found good deals on eBay, but I'd suggest doing a lot of study on the resort before you buy.

Timeshare Real Estate Pumps Millions Into Area

2006-08-02T04:51:00.000-07:00

The timeshare industry contributes up to $343 million to greater Williamsburg's economy, according to one study.

The very nature of the service inspires something lusted after by hotels and attractions repeat customers.

“We've got 4,000 units here, and I'm told by people in the industry that we could have 12,000 units at build-out,” said Dick Schreiber, president of the Greater Williamsburg Chamber & Tourism Alliance.

That would put them ahead of the 10,000 guest rooms of the local motel and hotel industry.

Kevin Jones, CEO of King's Creek Plantation, said that's a realistic projection. “I can see that happening,” he said. “If we reached our full 1,500 and other resorts reached their build-out.”

King's Creek recently cleared 26 acres off Route 199 for another 400 timeshare units.

Jones said King's Creek has also begun construction of what will be the “highest-end” timeshare product in the area, 52 “manor homes.” An interest in those units will sell for “more than $39,000.”

An estimated 90,000 owners of timeshare units comprise a solid base of visitors who travel to Williamsburg yearly. If that number triples along with the 12,000 build-out, Williamsburg is looking at 270,000 potential timeshare customers annually.

According to a 2004 study of the timeshares in Virginia funded by the industry and prepared by PriceWaterhouseCoopers, the industry contributes nearly $1 billion to the statewide economy.

Although the study was not broken down by region or locality, rough figures for greater Williamsburg can be extrapolated. According to the Department of Professional & Occupational Regulation, 11 of the 31 timeshare developments registered in Virginia are in the Historic Triangle.

That works out to $343 million in economic impact. About $210 million is direct impact in the form of business generated by and salaries paid by the timeshare companies. The other $133 million is in indirect impact.

The study indicates that the timeshares create about 1,330 local jobs in direct sales, management and operations and another 1,120 jobs created indirectly by the increased economic activity in the area generated by the timeshares.

Jones said he thought these figures accurately portrayed the timeshares economic impact on the area.

Timeshares here generated $43 million in tax revenue for federal, state and local governments. That includes not only property taxes paid by the resorts, but income taxes paid by employees and sales tax paid on everything the timeshare companies purchase in the local economy.

Because extrapolation is ambiguous and the 2004 report is based on 2002 data, Ernest Liberatore of Vacation Time Inc., a marketer with ties to the local timeshare industry, suggests that an updated and more localized economic impact study be conducted.

Schreiber said having such a study would be helpful, but it's pricey. “To do a good economic impact study would cost about half a million dollars,” he said.

Schreiber said the importance of the timeshare industry to our tourism economy can't be overestimated.

He said a study done by the Virginia Tourism Corp. showed that 20% of the area's visitors stayed in timeshares and that they stayed about three times as long as those visitors who stayed in hotels. That translates into more money poured into local attractions and restaurants.

“I know there are people who wish they weren't here,” Schreiber said. “But they are. The timeshare operators know how to make money, they're smart and aggressive.”

That aggression is one reason that shoppers don't want them here.

Timeshares tend to buttonhole people on the street while out shopping.

“I know people don't want to be approached on the street, I don't like it either,” Schreiber said. “But while there are a few that give the industry a bad name, like in any industry, most operate in above board manner.”

Liberatore, who called the street approaches “intrusive” said, “There's a better alternative, and that's ‘vacation stores,'” he said. “Look, this is a young industry, only about 30 years old. We need to recognize the things that don't work and fix them.”

Vacations stores are self-contained shops that offer a number of vacation products.

Jones said that King's Creek already owns two vacation stores and plans to open another. He said that although the resort used “off-property contact” personnel, he's not sure that's the future of the business. “It's better when the customer come to you,” he said.

Liberatore said the timeshare industry has to “evolve to match the sophistication of our customers.” He said marketing schemes that are appropriate for Las Vegas might not be appropriate for Williamsburg and that the timeshare operations need to adapt.

“I agree with that absolutely,” Jones said, saying that Williamsburg was a more upscale market, like Hilton Head.

A big reason for opposition to timeshares here is the belief that they hurt the hotel industry. Booming attendance rates at area attractions this summer haven't translated into improved occupancy rates at motels and hotels.

Liberatore said that isn't true. “For every ten people who come into a timeshare salesroom, only one buys,” he said. “But the other nine are also exposed to information of a positive nature that encourages a return trip or extended stay even if they don't stay in a timeshare.”

Schreiber said he believes those who buy timeshares are those who are impressed enough with the destination to want to make return trips.

“I think they stay in a hotel their first time here and decide they like it so much it's worth purchasing the timeshare,” he said.

Butlins Takes Timeshare Route

2006-08-01T04:40:00.000-07:00

Holiday company Butlins has teamed up with RCI to launch a timeshare service as the group is building its first timeshare resort in Somerset.

The new resort, which is called BlueSkies and situated in Minehead, Somerset, is a vacation ownership development worth more than £4.5m.

BlueSkies members will be able to purchase points which can be used each year to buy either one big holiday or a number of small breaks in a timeshare of their choice.

Members will also be able to exchange the points with timeshare specialist RCI share owners around the world.

The entry cost for members will be £6,000 for 30 years of holidays.

Head of the BlueSkies development Mike Crowther said: “BlueSkies is holiday heaven for the growing number of people who enjoy the fun and convenience of a UK family break. Second homes and holiday apartments are an unattainable dream for many people as they can be expensive to buy, maintain and manage.”

Marriott Timeshare Vacation Club International Expands Presence in Asia

2006-07-28T04:55:00.000-07:00

MVCI Asia Pacific will introduce a new Club Points product uniquely tailored to the vacationing habits of consumers in Asia. The program offers flexibility of use such as duration of stay, timeshare size and location at Club resorts in addition to exchange at MVCI timeshare resorts around the world.

"The development of Marriott's Phuket Beach Club in 2001 was just the beginning of our long-range plans for the Asia Pacific region. We have recognized for quite some time that while timeshare is booming elsewhere in the world, Asia is still a relatively untapped market. I am excited about the opportunities that are upon us to offer exceptional vacation experiences to consumers in Asia," said Steve Weisz, president, Marriott Vacation Club International.

The regional Asia Pacific team based in Singapore is lead by Harold Derrah, senior vice president and managing director, MVCI Asia Pacific.

MVCI will continue to develop its core product of deeded or right-to-use timeshare resorts in addition to the points-based product for consumers in Asia. Current Asia Pacific plans include developing properties across the region, and utilizing inventory at the existing Marriott's Phuket Beach Club. Marriott's Grand Chateau in Las Vegas, and Marriott's Ko Olina Beach Club, Oahu, Hawaii will also provide timeshare inventory to the Club Points product.

Architectural Concepts To Transform Vegas Apartments To Timeshares

2006-07-27T04:41:00.000-07:00

Architectural Concepts Inc. (News) announced a new contract to transform the Desert Sky Las Vegas apartment complex into a equestrian style timeshare resort. Financial terms of the deal were not released.

Located south of the Las Vegas Strip, the project is inspired by the neighboring hotel/casino and equestrian center known as South Coast Casino.
“We engaged Architectural Concepts to help us develop and transform the 170 unit apartment complex into an attractive, inviting and relaxing timeshare community,” said Dan Reedy, CEO, Ocean Front Development Inc. “We were extremely impressed with the interior design staff.”

According to Jesse Gonzalez, ACI’s project director on the new retreat “the future timeshare will be a retreat from the intense stimulation and over indulgence that bombards Las Vegas visitors. It allows them to re-energize and relax.”

The conceptual development of the common areas includes a water area complete with expanded garden areas to allow for multiple hot and cold spas, a large swimming pool area with an outdoor lounge seating area with a fire pit, Yoga and Fitness facilities and casual reception building and club house.

The first phase of the project is scheduled to be completed in early fall 2006. Model units are underway and sales are slated to begin shortly.

$370M Construction Financing Closes for Maui Timeshare Resort

2006-07-25T07:38:00.000-07:00

Kapalua Bay L.L.C., an entity of Maui Land & Pineapple Co. Inc., has secured a $370 million construction loan from Lehman Brothers Holdings L.L.C. for the development of a new luxury residential condominium and fractional ownership / timeshare property at the 23,000-acre master-planned Kapalua Resort community in West Maui. Maui Land, which owns the 24-acre waterfront property on which the project will be developed, is collaborating with the Ritz-Carlton Hotel Co. L.L.C. and Exclusive Resorts to realize the endeavor.

The Kapalua Bay project will consist of The Ritz-Carlton Club Kapalua Bay, the timeshare portion of the development that will offer 62 fractional ownership residences, and the 84-unit The Residences at Kapalua Bay condominium segment.

“There’s such a high demand for fractional ownership and timeshare properties, and this will be the first one in the state,” Hospitality Advisors L.L.C. president Joseph Toy told CPN. “With regard to resort condominiums, there are signs that we may be reaching an oversupply. I think the Ritz property is better positioned for fractional ownership and the condominium segment may be able to benefit from that.”

With the closing of the financing deal, Lehman extended Kapalua Bay L.L.C. a $40 million advance to cover pre-development expenses, and provided the borrower with the option of accepting a second advance of $45 million after building permits for the project have been issued; the advances do not require a minimum amount of residential unit sales.

Timeshares Will Become Available Near The Historic Area

2006-07-24T04:47:00.000-07:00

A big timeshare company expects to invest about $150 million in its second project in Virginia - a new resort with about 500 timeshare units next to Colonial Williamsburg's Historic Area.

Officials at Bluegreen Corp. - based in Boca Raton, Fla. - said the first 76 units, going in renovated hotel space, would become available as soon as the second quarter of 2007. Then about 400 timeshare units are scheduled to go in new buildings constructed in eight phases over 12 years.

Bluegreen - whose other Virginia property is the Shenandoah Crossing resort in Gordonsville, near Charlottesville - is entering a tourism market with a low hotel occupancy rate, averaging 47 percent in 2005. But company officials are optimistic, saying occupancy rates are generally higher for timeshare resorts. The average rate across the country in 2004 was 86 percent, according to a time share industry group.

"Williamsburg has been a great market for a lot of our competitors for a long time," said Doug Kinsey, Bluegreen's senior vice president of acquisitions and development. "We think demand in our system will be very high."

The company manages about 30 resorts across the country and has about 150,000 customers in its time share network. A trade magazine said it was the nation's fifth-largest timeshare company two years ago, behind - among others - giants like Marriott and Cendant.

For its new resort, Bluegreen has bought the 4.6-acre Patrick Henry Inn property on York Street, and it's in the process of buying the 18-acre Colonial Capitol Inn property on Penniman Street. The seller in each case is hotelier Hunter Vermillion.

Bluegreen will renovate the two hotel buildings on the Patrick Henry property. City officials said the company planned to tear down the Colonial Capitol Inn and other buildings on that property to make room for the new four-story timeshare buildings housing the later 400 units.

Residents Tired of Timeshare Rentals

2006-07-21T05:21:00.000-07:00

Residents of a Valley community are tired of not knowing who their neighbors are going to be from week-to-week or what kind of noise they're going to make. There are several people in the Massanutten area who are fed-up with homes in their neighborhood being rented to out-of-towner timeshare owners.

They say they're dealing with partying, property damage, littering, and cars lined up along the street. One Valley man is taking the issue to the Rockingham County Board of Supervisors to try and put a stop to what he calls "the cross between a fraternity house and a bed and breakfast."

Gene Hauze lives in a residential neighborhood in Massanutten. He says about two years ago he found out the hard way about timeshare renting. "I was sleeping at night and there was partying going on in the home behind my house about 100 yards away and there was loud noise and carrying on until about three o'clock in the morning," says Gene Hauze, a resident in Massanutten. He says he called the police and three people were arrested that night.

Hauze has now filed a formal complaint to the Rockingham County Board of Supervisors regarding what he believes is a zoning violation. "They're renting these out on a nightly basis for up to $600 a night and a weekly basis, some of the homes up to $3500 a night, they're packing 20, 30 people into the homes and it's a business," says Hauze.

Hauze says in Massanutten there are timeshare units allowed, but only in designated areas. "This is not a Massanutten problem, this is a problem for all of Rockingham County because it affects all the residential zoning areas," says Hauze. He hopes the board will clarify what is meant by single-family private dwellings and whether or not that includes weekly rentals.

Officials at the Massanutten Property Owners Association say this is definitely an issue that they are looking at. It's also under review by the Rockingham County Board of Supervisors and they plan to propose a solution to the timeshare problem in the next month or two.

Ground Breaks On $300M Ritz Timeshare Resort In Lake Tahoe

2006-07-20T04:35:00.000-07:00

A groundbreaking today kicked off development of the Ritz-Carlton Highlands, an timeshare and residential destination at Lake Tahoe, Calif.'s Northstar-at-Tahoe ski resort. East West Partners of Lake Tahoe is teaming with Crescent Real Estate Equities Co. on the $300 million project, which will mark The Ritz-Carlton Hotel Co.'s entree into the Northern California ski resort market.

Located on an on-mountain site, Ritz-Carlton Highlands (pictured) is a multifaceted ski-in/ski-out project that will bring the first five-star hotel to the town. The lodging segment will feature 174 guestrooms, as well as 11,000 square feet of meeting space and a 14,000-square-foot spa. The full-ownership residential portion of the development, the Ritz-Carlton Residences, will offer 82 condominiums, while The Ritz-Carlton Club, the deeded fractional ownership or timeshare segment, will consist of 78 units. A bevy of other developments will surround the property, including East West's and Crescent's new Highlands condominium and townhome community and the mixed-use Village at Northstar, to which Ritz-Carlton Highlands will be linked via gondola.

Timeshare Real Estate Tax Boost

2006-07-19T04:50:00.000-07:00

Orange County Commissioners have passed an increase to Orange County's tourist tax rate. The rate will increase one penny, from five to six percent.

The tax will draw mainly from hotel and timeshare rentals and is expected to generate more than $900 million over the next 25 years.

Half of that money is earmarked for a new sports arena, a renovated Citrus Bowl and a new performing arts center; the rest will be for new tourism advertising.

County Commissioners are in the middle of a three-day budget workshop, deciding where to spend this timeshare tax and other money over the next year.

Lake County is looking at a similar increase. Commissioners are considering a 1-cent increase in tourist taxes that could help pay for a proposed performing arts center.

Right now, the county's bed tax is 4 percent.

Lake-Sumter Community College and the nonprofit Performing Arts of Lake & Sumter are the driving forces behind the 80,000 square-foot facility.

The increase is expected to bring in over $500,000 dollars a year.

Other groups, including the cities of Leesburg, Mount Dora and Minneola are also hoping to get a share of that timeshare real estate money.

Construction At St. Regis, Westin And Sheraton Properties Will Include More Than 1,600 New Timeshare Units

2006-07-18T04:39:00.000-07:00

"Starwood Vacation Ownership continues its robust growth under ourSheraton, Westin, and St. Regis brands, driving our aggressiveexpansion plans in new and existing domestic and internationalmarkets," said Raymond L. "Rip" Gellein, Jr., chief executive officerof Starwood Vacation Ownership, Inc. "With new timeshare projects launching in New York City, Aruba, Mexico, and Hawaii, expansion projects at several existing resorts, and sales underway or planned for all theselocations combined, 2006 is sure to be another record-breaking yearfor us."

Starwood Vacation Ownership's 2006 expansion plans include the following timeshare resorts:

St. Regis Residence Club

-- St. Regis Residence Club, New York, NY: Sales began earlier this year at the first hotel-affiliated fractional property in New York within one of the world's most acclaimed hotels, the St. Regis New York. The mixed-use hotel and fractional ownership development will include 22 luxury residences at build-out, slated for occupancy in July 2006.

-- St. Regis Residence Club, Punta Mita, Mexico: Construction recently began on the latest St. Regis mixed-use project which will include a hotel, whole ownership residences, and a St. Regis Residence Club fractional resort. The residence club will feature 36 free-standing villas scheduled to begin sales in mid-2007 with occupancy expected in late 2007.

Westin

-- Westin Princeville Ocean Resort Villas, Kauai, HI: This new property, the first Westin-branded timeshare resort in Kauai, is under construction, and sales commenced in February. The mixed-use resort includes a two-story clubhouse and seven two- and three-story guest buildings with 179 two-bedroom lock-off units and six hotel units. The first units are scheduled to open in early 2008.

-- Westin Ka'anapali Ocean Resort Villas North, Maui, HI: Located next door to the award-winning Westin Ka'anapali Ocean Resort in Maui, this new beachfront timeshare resort will feature 258 two-bedroom lock-off units upon completion. The resort is currently in sales, and occupancy of the first phase is expected in mid 2007.

-- Westin Ka'anapali Ocean Resort Villas North II, Maui, HI: This resort, which will be SVO's third resort on Maui, is now in the entitlement process. This new property is in the early development phase and will consist of a mix of one-, two-, and three-bedroom units upon completion.

-- Westin St. John Resort & Villas, St. John, Virgin Islands: Construction continues this year, with the addition of 54 loft, two-, and three-bedroom units scheduled to open in late 2007.

-- Westin Aruba Resort & Spa, Aruba: This mixed-use Westin-branded resort will include 154 two-bedroom lock-off timeshare units located next to the Westin hotel. The resort is scheduled to be in sales by early 2007.

-- Westin Lagunamar Ocean Resort, Cancun, Mexico: Construction on SVO's first vacation ownership resort in Latin America is on schedule, with the first phase to be completed in 2008. It will be the first vacation ownership resort in Cancun, Mexico developed by a major U.S. lodging company, with 296 two-bedroom lock-off villas at build-out.

-- Westin Kierland Villas, Phoenix, Arizona: Construction on the resort's final phase will be completed this year, with 54 two-bedroom lock-off units. Opened in 2004, the timeshare resort will have a total of 158 villas upon completion.

-- Westin Desert Willow Villas, Palm Springs, California: SVO recently acquired 30 acres in the established Desert Willow development of Palm Desert, where it will build a new Westin-branded vacation ownership resort. Construction is scheduled to begin on the new villas in early 2008 with preconstruction sales set to begin later this year.

Sheraton

-- Sheraton Kauai, Kauai, HI: This resort will be the first Sheraton-branded vacation ownership resort on the island of Kauai. Located adjacent to the existing Sheraton Kauai, the resort will feature roughly 388 one-, two- and three-bedroom timeshare units. The resort is currently in the pre-development entitlement process.

-- Sheraton Broadway Plantation, Myrtle Beach, South Carolina: The latest phase of this resort's expansion includes 22 new units to be completed in mid-2006. The resort has a potential expansion up to 504 vacation timeshare ownership villas upon final build out.

-- Sheraton Vistana Villages, Orlando, Florida: The successor to the company's flagship resort, Sheraton Vistana Resort, will add an additional 195 units encompassing seven buildings in 2006 and 2007. Upon completion of this phase, the resort will have 615 villas and has a potential final build out of 1,415 timeshare villas.

AHG Gets Clearance For De Vere Timeshare Takeover

2006-07-17T04:59:00.000-07:00

Hotel and leisure group De Vere has been given the green light by the Pensions Regulator for its proposed takeover by the Alternative Hotel Group (AHG).

As a result, the De Vere directors will unanimously urge shareholders to accept AHG’s third bid of 875p per share at an extraordinary general meeting to be held shortly.

AHG will take over De Vere (which operates 19 De Vere hotels, 155 timeshare lodges and 16 Village hotels and leisure clubs) through a court-approved scheme of arrangement.

The dates of the court meeting and the shareholders’ meeting will be outlined in the details of the scheme that will be posted to De Vere shareholders by next Monday (24 July).

AHG, which also owns Verve Venues (formerly Initial Style Conferences), was set up by the directors of Marylebone Warwick Balfour, owner of the Malmaison and Hotel du Vin boutique hotel brands.

Timeshare Mogul Sunterra Considers Sale As It Seeks To Boost Value

2006-07-14T04:43:00.000-07:00

International timeshare operator Sunterra Corp. said Thursday it will hire an investment banker to explore alternatives for the company, including a possible sale.

Sunterra, which moved its headquarters from Orlando to Las Vegas in 2002, didn't say which firm it planned to hire. The company recently retained Chanin Capital to evaluate the potential sale of its European business.

"We are interviewing different firms," Sunterra spokeswoman Marilyn Windsor said. "There are alternatives other than a sale of the timeshare company, but a sale is possible."

Windsor said the Sunterra's board thinks it is undervalued.

"We are essentially looking for ways to unlock shareholder value," Windsor said. She said no deadline has been set for a decision.

In April, Sunterra fired its accountant, Grant Thornton LLP, and launched a probe into allegations of accounting irregularities in its European division. In late June, the company board put Sunterra President and Chief Executive Officer Nicholas Benson on paid administrative leave pending the results of the investigation.

Sunterra has more than 100 timeshare resorts worldwide, including six in Central Florida. The company was founded in 1990 as Signature Resorts and changed its name to Sunterra in 1998. Just another timeshare name change.

Westin Resort and Villas Joins Time Share Trend, Converting 108 Rooms

2006-07-12T04:55:00.000-07:00

Since owning real estate on St. John today has become cost-prohibitive for most people, timeshare ownership is becoming the latest Love City trend.

The Westin Resort and Villas’ vacation ownership villas have been so popular, management is now offering more than 100 additional guest rooms at the resort as time shares, according to the Area Managing Director Graeme Davis.

“We are taking 108 of our guest rooms and turning them into vacation ownership villas,” Davis said. “We’ve had extremely successful sales over the past five years with our vacation villas sold in weekly intervals.”

“We decided to add more because we’ve had such great success and such great demand,” he added.

108 Rooms To Be TimeShare Units

Although 108 rooms will be used for the timeshare conversion, two or three of the rooms will be converted into one timeshare unit, Davis explained.

“We will gut out the interior of the rooms and cut through the walls,” he said. “The rooms will then be joined together to create the time share unit. We’ll also be adding kitchens to the units.”

“If you take three hotel rooms you create one two-bedroom villa,” Davis continued. “The middle becomes the living and kitchen areas and the two bedrooms are on the sides.”

$20,000 to $140,000 Price Tag

Prices for the timeshares vary greatly depending on the size of the unit and the time of year.

“The current pricing ranges from $20,000 to $140,000 for lifetime deeded ownership for a week,” said Davis. “The pricing is for the new and the old — it’s a combination. To buy a week in a studio in the off-peak season will run about $20,000.”

“A three-bedroom villa during Christmas week will probably cost about $140,000,” Davis continued.

The hotel rooms slated for conversion are currently in buildings 24 through 27, located on the main hotel side of the Westin property. The rooms are on the hillside above the pool and restaurant.

Rising real estate prices on the island are contributing to the increased popularity of vacation ownerships, according to Davis.

“I think it’s popular because if you look at the home prices on St. John they average around $1.2 or $1.3 million,” he said. “People who want a second home usually won’t use it all year. What better way to own a property on St. John than to just buy one week or two weeks, and be able to walk away?”

The Westin’s amenities and reputation contribute to the strong time share sales as well, Davis added.

Guaranteed Electricity, Water

“People feel good knowing that they have a strong brand like the Westin looking after their property,” he said. “When they come down they are guaranteed electricity because we have our own power plant, and guaranteed water, because we have our own desalination plant.”

Timeshare sales enhance the property and buffer any economic downfalls that might occur, Davis explained.

“First of all, you have guaranteed return visitors,” he said. “Even if there is a down-turn in the economy, it won’t affect us. We’ll always have the occupancy numbers up here at the Westin.”

“We’ll always have people who have an affinity for St. John,” Davis continued. Timeshare owners have the ability to trade their week at the Westin St. John for a week at any of the Westin’s timeshares throughout the world, or at a differnt company’s properties across the globe.

Saddleback Timeshare Decision Due

2006-07-12T04:52:00.000-07:00

The proposed creation of house lots and timeshare condominiums on Saddleback Mountain is only the beginning of much more extensive development at the ski resort.

The Land Use Regulation Commission is due to hand down a decision today on the creation of five private house lots and 18 timeshare condominium units, along with associated roadwork, parking and utilities at the ski resort.

The plan also calls for the extension of two skiing trails, the expansion of snowmaking facilities and the construction of a water storage facility. If approved, construction on the new facilities could start as soon as this summer.

According to a Land Use Regulation Commission memo dated July 3, the staff of the commission has recommended that the commission approve the plan. That makes final approval likely but not definite.

Bill Berry of Farmington, who bought Saddleback Mountain in 2003 when the resort was facing closure, said the proposal is the first step in a much larger 10-year plan to expand housing and associated amenities on the mountain.

An application for that long-term plan has been submitted to the commission but is in the very early stages of the process.

Berry said it is clear that the timeshare resort needs more housing, although he said that even when it is complete, the development will be relatively modest compared to larger resorts, such as Sugarloaf/USA.

"Originally, when we bought the resort we knew that bedrooms on the mountain were a critical issue" said Berry. "Rangeley does not have the facilities to house people, particularly when the town is full of snowmobilers."

By creating more places to stay on the mountain, Berry said Saddleback hopes to not only make a profit through its real estate enterprises, but also expand weekday skiing.

He said the expansion is necessary to help support overall operations on the mountain because most of the profits related to skiing come only on winter weekends and holiday weeks.

"Most ski operations throughout the country, at least the large ones, tend to be real estate operations with the skiing a prime amenity," he said.

Eventually, he said, plans call for turning the ski mountain into a four-season resort, although using a different model than used at many other ski resorts. The idea at Saddleback will be to create a resort based not just on Saddleback, but the entire Rangeley area, he said.

Those long-term plans call for the creation of a number of amenities associated with the timeshare condominiums, including an indoor pool, tennis courts. A water tubing facility is also planned.

The creation of more amenities will also help the resort keep more key employees and create jobs year-round, although Berry said he is not sure yet how many new jobs would be created.

Developing other profit centers will also make the resort less dependent on ski tickets, which is important because low ticket prices have been a goal since Berry bought the resort.

"We are trying to keep our rates down so the people in Maine have a place to ski," Berry said.

Since 2003, Berry has spent over $15 million on improvements, the most visible being a three-level, 36,000-square-foot timeshare lodge, with a food court capable of seating more than 500 people.

Condo Conversion Planned For Ski Side Timeshares

2006-07-11T04:48:00.000-07:00

Ski Side Village, a timeshare project on Camelback Mountain, will be partially converted to condominiums and used as collateral to clear debt and pay for renovations.

The timeshare project is headed by Alan and Adam Luckner of Bridge Associates of Pocono Township. They will transfer some timeshares to existing three-bedroom units, in order to free up 26 two-bedroom units so they could be sold as condominiums.

The two-bedroom units each have two stories, and measure approximately 1,300 square feet.

Funding for the project — $1.65 million — is coming from Kennedy Funding of Hackensack, N.J.

Sunterra's Accounting Probe Of The Timeshare Operator's European Division Sunterra Leads To A Delisting.

2006-07-07T04:45:00.000-07:00

Considering the fragile state of affairs that timeshare operator Sunterra(Nasdaq: SNRR) is facing these days, its executives may end up having to stay at one of their competitors' resorts instead of their own when they go on vacation. Teetering on the edge of a Nasdaq delisting amid an accounting probe of its European division, Sunterra is facing a very cloudy future, one that could result in the entire company being sold off.

Sunterra timeshare emerged from bankruptcy in 2002 and has been busy trying to recover the lost glory of the timeshare industry. Since filing for bankruptcy in 2000, the resort operator has nearly doubled vacation-interest annual sales and increased the number of families owning timeshares from 260,000 to more than 300,000 over the same period. While Cendant(NYSE: CD) is the largest timeshare operator, with more than 3,700 resorts located in more than 100 countries around the globe, ILX Resorts(NYSE: ILX) and Bluegreen(NYSE: BXG) remain the two pure plays in the industry.

High Court Favors Subdivsion With Timeshares In Scenic Meadow

2006-07-06T04:57:00.000-07:00

The Nevada Supreme Court on Wednesday overturned a lower court judge's order against a subdivision with timeshares to be built on about 1,600 acres of scenic forest and meadow land in the Clear Creek Canyon area, south of Carson City.

The high court decision favored developer John Serpa and Douglas County, whose lawyers challenged a decision by Douglas County District Judge Dave Gamble. Gamble had held that the commission's approval of the timeshare project, on part of the old Schneider ranch, was arbitrary.

The Supreme Court ruling went against the Alpine View Estates Property Owners' Association, whose lawsuit led to Gamble's ruling.

Serpa has proposed developing 221 1-acre lots and 155 8,000-square-foot lots. The development would consist of 366 single-family homes, 18 timeshare or guest lodges and a private golf course.

Gamble said commissioners failed to make all the findings required to amend the Douglas County master plan. He also rejected the argument that the timeshare development had to be approved in order to obtain infrastructure needed to support the project.

The judge also said that if the project faltered, the developer could return and ask for another change, saying the approved project is still not feasible until more building sites are approved.

Justices added that information provided to commissioners proved that the timeshare project, "although not perfect, was worthy of the requested amendments and development approvals."

Timeshare Revenue Soars For Accor

2006-07-05T04:23:00.000-07:00

ACCOR Premiere Vacation Club had gross revenue of more than $100 million in the past year as the holiday timeshare industry rode the crest of a wave.

The company spent $60 million buying property around Australia and New Zealand in the same period, APVC's chief operating officer Jim Sabot said.

This brought the portfolio to 15 resorts and timeshare properties, and three more deals were due to be announced soon.

Club membership was growing by 6000 per year, Mr Sabot said, and the organisation - based on Queensland's Gold Coast - would have more than 1000 employees by year's end.

APVC is a joint venture between the Paris-based Accor Hotels and Melbourne developer Becton Group.

Industry insiders say that from Accor's point of view, the Australian-based timeshare venture is an experiment that will be rolled out elsewhere in the world if successful.

Under the tarnished 1970s model, owners bought a specific week in a specific apartment or resort in mostly inflexible deals, but the latest schemes offer membership of clubs that own multiple timeshare properties.

The industry body, the Australian Timeshare and Holiday Ownership Council, says the sector has undergone a "clear resurgence" in the past six years and is now the fastest-growing segment of Australia's tourism industry.

A soon-to-be released ATHOC report on the sector's economic significance says there are 73 timeshare resorts around Australia, and more than 125,000 owners.

Average annual net sales of timeshare property have grown to $173 million and the industry is expanding at an average 10 per cent annually.

APVC's portfolio now covers every Australian state except South Australia, and the company has taken on development projects as well as purchases and leases of completed product.

It has a focus on luxury, boutique-style properties, many brand new but some also in historic, character properties, such as Basildean Manor in Western Australia's Margaret River district, which it bought early last year for $4.5 million.

The company is expecting to spend a similar amount for renovating the National Trust and Heritage Council classified guesthouse.

In May, APVC took over a lease on a group of upmarket apartments at The Vintage estate at Rothbury in NSW's Hunter Valley, which are run under Accor's 4 1/2 star Grand Mercure brand.

Late last year, APVC announced its first deal outside Australia and New Zealand, and said it would spend $5.3 million developing 23 apartments in Bali.

Last month, it announced the $10 million-plus purchase of the Grand Mercure Puka Park on the Coromandel Coast, on the New Zealand North Island.

The timeshare resort has 48 chalets and covers 10ha near Pauanui.

In Victoria, APVC has upmarket villas in the Forest Resort at Creswick near Ballarat, and at Mt Buller on the snowfields.

Starwood Timeshare In California On Move Again

2006-07-03T04:47:00.000-07:00

Starwood Vacation Ownership, the Orlando timeshare division of Starwood Hotels & Resorts Worldwide, has completed acquisition of nearly 29 acres in the Desert Willow development in Palm Desert, Calif.

Starwood plans to build a Westin Vacation Ownership timeshare resort on the property, with construction expected to begin in 2007. Starwood sold out its first vacation ownership project in the area, called the Westin Mission Hills Resort & Villas, in 2005.

This will be the eighth Westin Vacation Ownership project. Others are located in Hawaii, California, Arizona, Mexico, the U.S. Virgin Islands and Aruba. More timeshare for your money.

James Monroe Capital Timeshare Resort Inspection: 'Go'

2006-06-29T04:41:00.000-07:00

James Monroe Capital Corporation (Pink Sheets:JMCP) has completed due diligence on a property in Guanacosta, Costa Rica, for a timeshare resort.

The effort in Guanacosta was subject to a property inspection, and after having inspected the property, JMCP execs say the project is a go. The company reports that some other oceanfront timeshare resorts in Guanacosta were sold out. One exec said, "We couldn't get a tour while we were there. This is good news for a company considering building a timeshare resort in the area. We also found that the frenzy of development on the West coast of Costa Rica is largely American, and the new international airport (LIR) already has more and more flights per day coming in to the growing area." The property is in an undisclosed location on the Pacific coastline.

JMCP also brought in independent timeshare experts from the Cayman Islands for an opinion. They said, "It is secluded and breathtaking, with hills, trees, sand, and big ocean views everywhere. This is the type of development that ought to have a helicopter to go with its elegant front gates and its high-end clientele. The fact that other timeshare resorts were sold out really impressed us."

Total costs for the project have not been finalized, but the attorney for the project commented that total costs to build may be in the neighborhood of $40,000,000, plus land. JMCP is presently slated to own 9% of the project, which it has conservatively projected to net the company $5,000,000 over a two year period. Low cost local labor help keep the costs down, and the deal is to be aggressively leveraged. According to collected data about comparable sales of condos in the area, the entire completed development would be worth around $90,000,000 if sold as condos--however, timeshare is preferred, which is more profitable and provides residual income from maintenance fees.

Starwood Enlarges Timeshare Portfolio Plan

2006-06-28T04:38:00.000-07:00

Starwood Vacation Ownership, which has timeshare properties on Maui and Kauai, has finalized the acquisition of 29 acres in Palm Desert, Calif.

The Orlando, Fla.-based company is the vacation ownership and timeshare division of New York-based Starwood Hotels & Resorts Worldwide (NYSE: HOT), the parent company of the Sheraton and Westin hotel brands.

The land, in the established Desert Willow development, has been bought from Intrawest Corp. (NYSE: IDR) and will be developed as a Westin-branded timeshare resort. Construction is scheduled to begin on new villas in 2007.

This will be the eighth Westin timeshare resort either completed or in development including resorts on Maui and Kauai, and in California, Arizona, Cancun, St. John, U.S. Virgin Islands and Aruba.

Timeshare Industry Answers Rising Demand

2006-06-27T04:38:00.000-07:00

They pay up front, sometimes $500 to $50,000, for a piece of real estate shared with 51 other people throughout the year.

Instead of renting hotel rooms, nearly 4 million U.S. households opt to pay annual fees to a timeshare management company instead.

Undeterred by the price or concept of sharing, timeshare owners are members of a growing group fueling investments in an industry once characterized by hard sells and schemers, now dominated by familiar hotel brand names.

They also contribute hundreds of dollars in annual fees to the resort's timeshare owners association, and those fees increase each year.

They can trade weeks or sell them, but several hundred a year just stop paying for their Riverside County vacations. One such person is Isabel Long, of Gardena, who bought a Lawrence Welk's Desert Oasis timeshare in 1991 that foreclosed this year.

"They have a maintenance fee and then they had extra maintenance fees," she said. "You have the property all paid for, but the maintenance fees were higher than the property fees."

As her children grew up, she used it less and less and eventually opted to stop paying when the fees became unbearable.

Lawrence Welk's Desert Oasis bought back 173 time shares in foreclosure sales during just the past 10 months through April, county property records show. But the number didn't faze the Cathedral City resort.

"We're basically getting fresh blood," said General Manager Bill Palmer. "While (the foreclosures) may look like a large amount, as a percentage it's small," he said, referring to the 8,000 total owners at Lawrence Welk's Desert Oasis. He said maintenance fees are usually raised 3 percent to 5 percent annually.

Joe Takacs, president of Vacation Resorts International, which manages the Sands in Indian Wells, said the industry still faces misperceptions from buyers who expect their time share's value to appreciate. When it can't be resold for the owners' asking price, sometimes they give up, stop paying fees and let it foreclose, he said.

"You have a timeshare owner who wants $20,000 for a $10,000 timeshare ... the second they drove off the lot, it's worth half of what they bought it for," he said.

Despite regular foreclosures and the growing popularity of condo/hotels, where vacationers buy the whole unit the way they would a second home, the industry is growing faster and filling more rooms than hotels, the timeshare industry's main lobbying group said. Timeshares boast occupancy rates above 80 percent nationwide and $7.8 billion worth of sales, according to the American Resort Development Association.

It's difficult to compare the industry to hotels because the transaction involves buying real estate, not just renting a room for the night.

Hotels had a 63.1 percent occupancy rate nationwide last year, according to hospitality tracking firm Smith Travel Research, earning much more than timeshares, $22.6 billion in sheer profit and $122 billion in total revenue.

According to the American Resort Developers Association, 3.8 million U.S. households owned one or more timeshares in 2005. The number rose when 466,801 signed up in 2004.

Despite the industry's colorful past, characterized by promotional ploys involving free drinks or a vacation in return for listening to a pitch for a few hours, ownership has increased steadily since 1975. At least 20 timeshare companies still operate in the Coachella Valley and Inland Southern California, out of at least 126 statewide

Alan Reay, president of Costa Mesa-based hotel-brokerage firm Atlas Hospitality Group, said the timeshare industry is still going strong, thanks largely to famous hotel brand names.

"The people who are looking to buy these are going with companies they're familiar with: Hyatt, Marriott, Embassy Suites," Reay said.

Marriott, which built its largest timeshare, the 352-villa Shadow Ridge in Palm Desert, plans to eventually make it a 972-unit location.

Hilton Timeshares Attract Japanese

2006-06-26T05:01:00.000-07:00

Hilton Hawaiin Village, building a 274-unit timeshare tower, finds it is not attracting only the usual California buyers for such offerings.

More than 60 percent of buyers for the Waikiki product are from Japan, according to Mark Wang, senior vice president for the Asia-Pacific region of Hilton Grand Vacations.

"We made a decision to go after the Japanese market," Wang said. "It's been a great investment for us."

Hilton Grand Vacations has a sales office in Tokyo and is opening one this year in Osaka.

Since the international Hilton hotel chain was a separate company until it was acquired and reabsorbed by Hilton Hotels Corp. in March, the Japanese offices are selling timeshares in the United States.

Hilton already has timeshare units in the Lagoon and Kalia Towers at its Waikiki campus, the largest Hilton in the world. But its timeshare unit count will double with the completion of the 38-story Grand Waikikian Tower, which had its groundbreaking a week ago.

Wang said the Grand Waikikian will be the first "purpose-built" timeshare structure in Waikiki.

For Hawaii Visitors: Almost 73,000 Timeshare And FRactional Units

2006-06-23T04:56:00.000-07:00

The latest Hawaii visitor plant inventory by the state counts 72,889 visitor accommodation units, including hotel rooms, rentable condos, timeshares, bed-and-breakfasts and even hostels.

The share of units held by hotels has fallen below the two-thirds mark: 63 percent of visitor accommodations are hotel rooms and suites, followed by 20.7 percent for condo/hotel properties, 9.6 percent for timeshares, 3.3 percent for individual vacation units, and less than 1 percent apiece for B&Bs and hostels.

"There has been a shift in conventional hotel rooms to condo/hotel and timeshare real estate," said Marsha Wienert, tourism liaison to Gov. Lingle. "But for the most part the room inventory is stable."

There was also a shift toward better-appointed and more expensive accommodations: units classified as "luxury" increased 2.2 percent. "Standard" units decreased 3.5 percent.

The inventory, which covered the year 2005, was up 0.4 percent from 2004, the Hawaii Department of Business, Economic Development & Tourism reported Thursday.

There were 6,839 timeshare units in operation last year -- that figure will top 7,000 this year -- and there are more of them on Kauai, more than 2,000, than on any other island.

Around the islands:

Oahu: Inventory dropped 5.1 percent to 34,167 units, 46.9 percent of state inventory. Timeshare units increased about 26 percent and condo/hotel units increased 11 percent. Hotel units decreased 8.5 percent.

Maui: Inventory grew 4.4 percent, 25.3 percent of state inventory. Maui's condo/hotel inventory increased 6 percent and timeshare units rose 22.5 percent. Hotel units on Maui decreased 1.1 percent.

Kauai: Inventory dropped 0.3 percent, 11.1 percent of state inventory. Kauai condo/hotel units decreased 1.1 percent; timeshare units increased 4 percent; hotel units decreased 6.1 percent.

Big Island: Inventory grew 13.1 percent, 15.6 percent of state inventory. Big Island condo/hotel units increased 27.5 percent; timeshare units rose 19 percent; hotel units increased 7.1 percent.

Developers To Present Plan For Resort, Timeshares And Villas At Botany Bay

2006-06-21T04:45:00.000-07:00

Botany Bay Partners is once again seeking major Coastal Zone Permits to build a timeshare resort development on its 360-acre West End property.

Several years ago, the owners ignited public controversy over how such a development would affect the largely pristine environment.

The developer will present its latest plans at a St. Thomas Coastal Zone Management Committee public hearing at 6 p.m. Wednesday at the Palms Court Harborview Hotel.

Botany Bay Partners' timeshare resort plans comprise nine buildings that are two-stories tall. The buildings would have 48 rental units and 18 suites.

Since the suites can be divided in half so each becomes two units, there will be 84 total rooms available at the timeshare resort, according to the owner's CZM application.

Major permits also are needed for a reverse osmosis facility because of its intake and discharge lines into the bay.

Farther inland on the property, the owners plan to build 16 two-story buildings that would house 31 timeshare units. Five more two-story buildings would be divided into 40 villas. The villa units would have 80 parking spaces.

Other structures planned to support the development include a market, health club, clubhouse, swim-up bar, a reception building, manager's residence, 500,000-gallon potable water storage tank, two 1.5-megawatt emergency generators, a water treatment plant, a reverse osmosis facility, a restaurant and a 186-space parking lot.

St. John Real Estate is also marketing 42 estate lots, ranging between 3 and 15 acres in size, for the owners.

Botany Bay Partners' original plans submitted to CZM in 2002 called for a greater density of development on the property. It consisted of a 125-room hotel, 80 time share units, 80 vacation villas, a number of commercial buildings to support the project and 40 estate lots for private residences.

The owners first attempt to build a timeshare resort on the property ignited public outrage and triggered legal action from a local environmental group.

In 2000, the owners bought the property for $11 million.

In late 2001, both the V.I. Legislature and Gov. Charles Turnbull approved Botany Bay Partners' request to rezone 68 acres of its property to allow construction of the resort and timeshares.

The Environmental Association of St. Thomas-St. John then filed an unsuccessful lawsuit in Territorial Court seeking to overturn Turnbull's decision. EAST's concerns ranged from the project's erosion control mechanisms and sewage treatment plant to archaeological preservation.

In September 2002, the St. Thomas Coastal Zone Management Committee approved Botany Bay Partners' request for a major CZM permit to build the resort and timeshares part of the project. CZM staff had recommended that members reject the application, saying developers submitted inadequate analysis of the project's environmental impact.

In March 2003, EAST filed an appeal with Board of Land Use Appeals to override the committee's approval of the permit. The appeal was never heard because Botany Bay Partners voluntarily relinquished its major CZM permit last March.

In December of 2004, developers started installing infrastructure to the area, and they said at the time that their plans no longer involved a hotel or timeshare complex and would just sell residential lots and build light commercial services to support the new neighborhood.

Condo Hotels Are Not Your Parents’ Timeshare

2006-06-20T04:46:00.000-07:00

As hybrid properties, condo hotels differ from timeshares in a number of ways. With timeshares, buyers pay only for the right to use the property for a set amount of time each year, usually a single week. They don’t own the title to the property, and they do not receive any rent revenue for the weeks they’re not in residence.

Condo hotel owners can use their condos when they want throughout the year, within the guidelines of the individual development timeshare owners cannot. They receive a percentage of any revenue their unit generates when they’re not there and the unit is rented out to hotel guests, not timeshare owners.

Timeshares traditionally diminish in value over time, rather than appreciate. While the history of condo hotel resales is rather limited, they are seen as an appreciating asset.

Timeshare is still more dominant in the real estate vacation world.

Exclusive Club Plans Luxury Timeshare Vacations

2006-06-19T04:49:00.000-07:00

One might not necessarily imagine that multi-millionaires confront limited options in planning their vacations.

But a company chaired by former America Online co-founder Steve Case is growing rapidly by offering a menu of luxury timeshare vacation options as part of a club that requires members to pony up $200,000 US or more to access its $750-million portfolio of vacation properties throughout North America, the Caribbean and Europe.

The club, Exclusive Resorts, has just added its 2,000th member, which makes it by far the largest company in the fledgling destination club industry.

They will also announce a partnership with golfing legend Jack Nicklaus to expand their golf amenities, and a $72-million investment that will allow them to expand their current roster of nearly 300 vacation timeshare homes in 35 destinations.

Case, who bought the club in its infancy in 2003 when it had fewer than 50 members, said he knew the idea was a winner from the start. He bought the company over breakfast after an initial presentation.

"I thought it was brilliant. It was one of those why-didn't-I-think-of-that moments,'' Case said.

Here's how it works: members pay a one-time upfront free ranging from $195,000 to $395,000, which gets them between 15 and 45 days at any of the club's destinations, including the Virgin Islands, Costa Rica, Lake Tahoe, the French Alps and Tuscany. They also pay annual dues ranging from $9,500 to $25,000, again depending on how many vacation days they want.

When a member leaves the timeshare club, he gets back 80 per cent of his membership fee.

While the figures sound steep, Case says it's affordable when compared to buying a vacation home.

And the club allows people to vacation in different places every year, rather than being locked into one spot with a vacation home or a timeshare.

And for those who vacation with children or in large groups, the club's vacation homes offer size and more of a family atmosphere than you get at a hotel suite, Case said.

Jamie Cheng, co-founder of the Helium Report, which provides research and analysis for the wealthy on various products, including destination clubs, said Exclusive Resorts is the industry leader in a rapidly growing niche of the travel sector.

The industry as a whole has perhaps 4,000 or so members, Cheng said, but there are easily a million Americans or more who could afford a timeshare membership.

"As people get more comfortable with the idea, and as the clubs do a better job of explaining it, we think there's a lot of growth potential,'' he said.

Case said his own experiences convinced him of the market for such a product. He recalled renting a vacation home in his native Hawaii for his family, including his young children.

He was upset to find out on arrival that the bedrooms for the young children were essentially isolated from the rest of the house and required you to go outside and down a flight of steps -- a poor option for his five-year-old.

Case acknowledged that people often return to the same vacation spots year after year because they like familiarity.

But he also believes people sometimes lock themselves into the same timeshare location because they worry about the hassle of dealing with a new location.

Exclusive Resorts counters that by trying to offer some consistency at all of its sites. For instance, every home has the same model of plasma screen TV and the same remote control.

The company keeps a list of its members' preferred groceries and makes sure the refrigerator and pantry are stocked with the right variety of wine for the grown-ups and the right breakfast cereal for the kids.

Concierge service makes sure that ski lift tickets are waiting for families on arrival. Tee times are already made. Chefs and masseuses are available.

Perhaps the best indication of the timeshare club's success is that the average member books nearly seven separate reservations a year through the club, often taking vacations of only two or three days.

The timeshare club's chief executive, Donn Davis, said many members take more frequent vacations than they initially anticipated because the hassles of vacationing have been eliminated.

67 Defaults On Timeshare Mortgages Raise Questions

2006-06-19T04:45:00.000-07:00

67 defaults on timeshare mortgages raise questions about Sunterra Villas de Santa Fe resort

After Barry Dunlevy became sick with cancer and back problems, his $100,000-a-year income in the aerospace industry dropped by half. He could no longer afford to make the $178.12-per-month payments on his timeshare at Sunterra Villas de Santa Fe. And he couldn't sell the investment.

In 2005, the company foreclosed on his property.

Dunlevy is one of 67 buyers who defaulted on their Sunterra mortgages in the past two years, according to state District Court documents in Santa Fe. Many of the defendants attributed failure to make the payments to bankruptcies, divorces or death, but some didn't cite a reason.

The high number raises questions about whether some buyers could afford the timeshares -- as well as whether they knew what they were getting into.

Sunterra, now one of the biggest timeshare companies in the world, was founded in 1996. It owns almost 100 resorts in Hawaii, Canada, Europe, Mexico and the continental United States, including Santa Fe. The Santa Fe resort, which has 105 suites, is located at 400 Griffin St., on the corner of Paseo de Peralta near downtown. It opened in 1998.

Customers who buy a timeshare from Sunterra are guaranteed a vacation, usually one week, each year. The cost ranges from $8,000 to $150,000, but most are about $15,000. The price depends on the location of the resort, amenities and the time of year. A summer week on Cape Cod, for example, costs more than an October respite.

Sunterra uses a points system. The owner has a certain number of points that can be used either at the "home resort" or traded for different accomodations at different times at one of the company's other resorts.

Most of the people who defaulted on their Sunterra loan payments owed between $6,000 and $12,000, according to court documents. Interest rates on the loans were commonly 14.9 percent.

The foreclosed timeshares are auctioned off on the steps of the state District Court in Santa Fe. In February, Sunterra was the only bidder for a timeshare owned by José and Mary Gonzales. The company agreed to pay $12,077.36 for the property.

Since 1999, the year after Sunterra came to Santa Fe, the state Attorney General's Office has received 10 complaints about the company, and complaints are also mentioned in the foreclosure files.

In legal documents filed in Sunterra's case against Lawrence and Wendy Fendall of Albuquerque, for example, the couple alleged Sunterra officials misrepresented their product, based the mortgage on a fraudulent purchase contract and made false and misleading statements to get them to attend a sales presentation.

"Our difficulties with the Sunterra purchase started almost immediately," Wendy Fendall wrote in a 2000 letter to the company. The couple told company representatives they wanted to use the timeshare for a particular week in 1999, and sales staff told them they could, but after the sale, they learned they couldn't.

"Three weeks later there was no record of our timeshare purchase in any systems associated with the 800 numbers given to us in our timeshare owner documents," Wendy Fendall wrote, "and our temporary membership card was useless."

The couple had hoped to go to Sedona, Ariz., or South Beach, Fla., but ended up having to come to Santa Fe, an hour up the road. "This experience left us anxious, upset and fearful that we had not only been bamboozled, but deceived and taken advantage of as well," Wendy Fendall wrote.

After a series of other problems, the couple decided not to make payments on the timeshare, Wendy Fendall's letter states. Eventually the company started foreclosure proceedings against them.

Sunterra and the Fendalls reached an agreement this spring, and the case is no longer set for foreclosure, but the couple experienced almost seven years of problems with the company, court records show.

Local Sunterra officials referred all questions to the company's headquarters in Las Vegas, Nev.

Amanda Deveaux, a public-relations official at PJ Inc., a New York City public-relations firm hired by Sunterra, said she was unable to get anyone from the company to comment for this story.

The company asks people a series of 11 questions that start with, "Do you want ... "

All of the questions mention positive aspects of owning a Sunterra timeshare, such as, "Do you want ... A guaranteed vacation every year," and "Do you want ... A spacious suite that is all yours -- every time and everywhere you travel."

Most people would reply "yes" to all of the company's questions, but the Federal Trade Commission recommends people ask themselves some tougher questions when buying a timeshare.

For example, an FTC fact sheet advises that people should add up all the costs, including mortgage payments and expenses, travel costs, maintenance fees and taxes, closing costs, broker commissions and finance charges before making a decision to buy.

It's also important to ask whether the company has a cap on maintenance fees, according to the FTC. Those fees -- which can add up to $500 to $600 a year at Sunterra -- can rise at rates that equal or exceed inflation, and you have to pay them even if you don't use the timeshare.

Prospective buyers should compare the cost of owning a timeshare to the cost of renting similar accommodations in the same location for the same period of time, the FTC suggests.

When comparison shopping, prospective buyers should talk to real-estate agents and people who own timeshare units at the resort, and check complaints with the state attorney general and the Better Business Bureau, according to the FTC.

In New Mexico, most of the complaints lodged against Sunterra were dated around the time the company filed for bankruptcy in May 2000. The company emerged from Chapter 11 bankruptcy in July 2002, according to news reports.

Larry and Catherine Werbelow complained that they drove from their home in Socorro to Santa Fe to attend a four-hour sales presentation in July 1999, but when they tried to redeem their travel coupon for a vacation in San Diego, they were told the company was going through bankruptcy and the coupon was worthless.

The most recent complaint was in 2003, from Julian and Gertrude Leyba of Los Lunas. They wrote the AG's office to say that Sunterra told them their timeshare had been paid off in 1999, then, out of the blue, they received a letter from the company saying they had defaulted.

The Better Business Bureau in New Mexico gives Sunterra a "B" rating, which means the nonprofit considers the company reputable. The rating also means the BBB believes company officials would respond to any complaints against it.

The BBB has a record of only one complaint against the company filed since 1998. But Sunterra did not respond to the complaint.

In May, Sunterra announced in a press release that it didn't file its first-quarter earnings with the federal Securities and Exchange Commission because it had not yet hired an accounting firm. As of last week, the company still hadn't filed the report.

Sunterra lost $34 million last year in net income and $70 million in 2004, according to the company's 2005 report.

Nationally, however, the timeshare industry is thriving, according to the American Resort Development Association.

The association cited an October 2005 PricewaterhouseCoopers study that focused on 47 companies that owned 280 timeshare resorts. The study showed sales of $5.6 billion in 2004, an increase of 15.4 percent over the year before.

"Timeshare continues its spectacular growth with no signs of slowing down," said Howard Nusbaum, president and chief executive officer of ARDA, in a press release. "The growth is occurring across the U.S. and around the globe with developments by public and private companies."

Most timeshares cost about $15,000, according to the organization.

Carol Rose, a former verification loan officer at Sunterra in Santa Fe, said timeshares are popular because owners can pass the investment on to their children. But it's important for people to do their homework, she stressed.

Salespeople tell potential buyers that all they have to do is put a few hundred dollars down and they can go to Hawaii, Mexico and other places they've always wanted to visit, according to Rose. "And then reality sets in. They find that space is very limited. They thought that six months was enough time to book in advance when they need to book a year in advance -- for a place like Hawaii."

"A lot of people are mad at themselves because they're spending all this money and they're not using the timeshare," she added.

Rose, who now owns Amanda's Flowers in Santa Fe, said she worked for Sunterra for more than four years and enjoyed her job.

Sunterra closed its Santa Fe sales office September 1, 2004, Rose said, but if the company ever reopened it, she'd love to go back. "It was a great company to work for," she said.

Now the nearest Sunterra sales office is in Sedona, Ariz., Rose said. Since Sunterra timeshare owners purchase points that can be used anywhere, it doesn't necessarily matter if someone's home resort is in Santa Fe or Sedona. The Sedona resort is also much larger, with 416 suites, according to the company's 2005 annual report.

Rose said she never knew of any dishonest sales practices at the company, and Sunterra officials did their best to educate customers about their purchase.

Customers who have claimed they were misled probably hadn't done enough research on timeshares, Rose said. Filing a complaint against Sunterra "was an easy way for them to (try to) get out of something they shouldn't have done in the first place," she said.

North Carolina Experiencing Explosion In Coastal Condos And Timeshares.

2006-06-16T04:47:00.000-07:00

Cruising up the Intra-coastal Waterway from Charleston to Baltimore this past week, I saw expanses of grassy wetlands intermingled with expanding clusters of high-rise condos and timeshares. I also saw multi-level multi-family complexes that weren’t there last year — timeshares built so close to the ocean that the waves seem to break at the foot of their garages. Both natural and man-made habitats glistened in the sun. Shorebirds waded in the shallows and rode the breeze. In view of this landscape, my thoughts turned, naturally enough, to my kitchen floor.

For those who don’t know about it, the Intracoastal Waterway is a network of connected rivers, creeks and canals that parallels the Atlantic coast from Maine to Florida. Like the Blue Ridge Parkway, the waterway was part of the federal government’s efforts in the 1930s to use plentiful labor to pump life into a depressed economy. Judging from what I saw last week, they overshot the mark. There were more pleasure craft than commercial fishing boats and plenty of economic activity along the waterway, most of it in timeshare real estate.

You can’t go far in this area without seeing evidence of the real estate boom. North Carolina ranks among the top states in housing construction, home sales and population growth. While Florida and Massachusetts experienced recent double-digit drops in home sales, North Carolina just keeps growing.

What’s the big attraction? In a word: waterfront. “If you can smell the water, you can command a pretty good price for the land,” states an editor of the North Carolina Coastal Federation’s annual State of the Coast report. This year’s report documents a continuing transition from cottages to McMansions, from fishing piers to condos, from long-established rural communities to timeshares and rentals.

Last year, when my husband and I traveled the Intracoastal Waterway, we stood on the dock at Oriental admiring the harbor. This year we met a man from New York there. He just bought property in the area, attracted, as we were, by the sense of community among local residents.

According to the local newspaper, those residents are now debating how to adapt their building regulations, written for single-family-dwellings in an age of slow growth, to accommodate an onslaught of timeshare. The minimalist approach that worked for a small, stable population is proving inadequate for the kinds of projects developers have in mind.

Some residents welcome developers. Others do not. The one thing residents agree on is they should have started thinking about the consequences of growth a lot sooner.

Likewise, during last year’s stop in Beaufort, S.C., across from Morehead City, I enjoyed seeing waterfront buildings dating back to the colonial era. This year I picked up a flyer in front of one of those buildings as workmen put in new interior walls: $1 million asking price for each apartment, boat slip included, flood insurance extra.

As much expansion as I observed on my trip, I missed the place in Brunswick County where the state wants to build a new $1 billion international port. I don’t know if that figure includes flood insurance or not.

Which brings me to my kitchen floor. Before retiring to Asheville, taking care of the kitchen floor was always last on my to-do list. I didn’t like doing it. It was such low priority I almost never got to it.

Like my kitchen floor, waterway maintenance is unappealing work.

There’s dredging, bridge repairs, equipment replacement, erosion prevention, rebuilding where erosion occurs. I sympathize with those who prefer to start a new highly-visible timeshare project rather than do repairs. I just hope someone is thinking about what maintenance is required to support growth along the waterway, not to mention the consequences of replacing wetlands with population centers.

Someone should have been thinking about those things in New Orleans before Katrina. Someone should be thinking about them now.

As for my kitchen floor, eventually I had to replace it at higher cost and more effort than taking care of it would have required. That’s the price of neglect.

On a beautiful June day, it’s hard to imagine neglect of the Waterway or overburdening it with expansion, but thinking about those things needs to be a priority. If not, we risk destroying the very landscape and communities that inspired growth in the first place. We are gambling that we will not face down the road — or in this case the waterway — tougher, costlier problems that might have been prevented if we had just started thinking about them sooner. Is a timeshare worth the hassles?

New Timeshare Tower To Go Up At Hawaiian Village

2006-06-15T04:37:00.000-07:00

The 38-story, 331-unit Grand Waikikian will be Hilton's fourth timeshare development in Hawaii and the third at the Hawaiian Village, which has the largest agglomeration of hotel rooms in Waikiki and is the largest Hilton campus in the world.

The tower will go up near the Kalia Tower, which has 72 timeshare units, and not far from the older Lagoon Tower, which has 236 timeshare units. The other Hilton timeshare operation, with 120 units, is at the Waikoloa Beach Resort.

"The Grand Waikikian will include a retail shopping arcade, beachside restaurant and super pool with three slides and a 'lazy river' theme designed especially for families," said Elena Norman, the senior spokeswoman for the Grand Vacations division, who flew in from division headquarters in Orlando for the timeshare groundbreaking.

The top five floors of The Grand Waikikian will be designed as exclusive penthouse timeshare units with a private check-in area, concierge and lounge.

Ritz Says It Sold $106M In S.F. Timeshare Units

2006-06-13T04:30:00.000-07:00

The company has not actually collected $106 million but instead accepted "sales reservations" totalling that amount. Such reservations typically involve a deposit of a fraction of the total cost of the timeshare.

San Francisco is the first urban location for the Ritz-Carlton Club. It is located in the former Chronicle building at 690 Market St. and developed by Jim Hunter's Hunter Group of Alameda. The $90 million timeshare renovation and expansion project will result in 49 shared fractional ownerships and timeshares, which have attracted initial commitments from 57 buyers so far, and 52 individual residences, which have attracted reservations from 45 buyers.

The individual timeshare units cost from $1.2 million to $5 million, while hee fractional ownership interests start at $200,000 for a one-twelveth share of one unit.

Timeshare Owners Launch Petition

2006-06-12T04:52:00.000-07:00

Several Pelican Resort timeshare owners have posted an on-line petition collecting signatures for a campaign intended to block the construction of a new high-rise marina at Pelican Timeshare Resort.

The timeshare owners contend that the new structure is going to block visibility from “many C and D units whose owners were told, when buying, that their views would never be blocked.”

According to the petition organisers, the on-line petition has been posted to stop the construction as it is now planned and to compel the developers to adhere to their commitment to timeshare owners.

The petition, which has been posted at petitiononline.com/MARINA/petition.html , is addressed to the Island Government of St. Maarten and Board of Directors, Tenants Association, Pelican Resort Club.

It reads: “We, the undersigned, hereby petition the Board of Directors of the Tenants Association Pelican Timeshare Resort Club to cease and desist the building of the new Marina Complex at Pelican Resort Club at Billy Folly Road, Simpson Bay, Sint Maarten, Netherlands Antilles, as it is currently planned.

“The design of this complex directly contradicts specific promises made to buyers of the C and D Buildings at Pelican, who were told that views from thier timeshares would never be compromised.

“On that basis thousands of timeshare owners bought in good faith, only to see their investments devalued in their view by the construction of a high-rise directly in front of their units.

“The undersigned also petition the Island Government of St. Maarten to intervene and stop this project or require its developers to fully respect and act upon the specific promises made to current timeshare owners by altering the building plans so new construction will not affect any views from any existing Pelican buildings.”

Fairmont Hotels To Run Timeshare Resort At Ghirardelli Square

2006-06-09T04:35:00.000-07:00

Ghirardelli Square owner JMA Ventures has selected Fairmont Hotels & Resorts to run a luxury timeshare resort on the upper floors of the Fisherman's Wharf landmark in San Francisco.

JMA had been considering a timeshare development at Ghirardelli Square since acquiring it last year.

Fairmont is putting money into the cost of the timeshare development along with JMA and Pacific Coast Capital Partners of San Francisco.

The property is Fairmont's first urban timeshare.

JMA said in a statement that the timeshare development part is part of a "vision for renewing and reenergizing Ghirardelli Square," including adding spa facilities.

James Monroe Capital Announces New $5mm Timeshare Real Estate Project

2006-06-08T04:28:00.000-07:00

James Monroe Capital Corporation (Pink Sheets:JMCP), has announced that they are working on a second timeshare real estate resort development in Costa Rica.

James Monroe Capital will be working on a timeshare resort, on the already popular West coast of Costa Rica, in Guanacoste. Dr. Vinton J. Lewis, independent deal maker, has commented, "Timeshare allows us to sell the same condo 50 times, one week at a time. The profits that can be obtained are substantially higher than a typical development."

Dr. Lewis has brought timeshare expert Bob Johnson to the team, who will head up the development as president of the subsidiary. Johnson said, "We have been approached by multiple land owners who would like us to develop their land. This places us in such a good position, with so many choices. I'm sending one of my guys, Richard Smith, another timeshare expert, down there in mid-June to do some final due diligence on the property which is by far our favorite. We have that property tied up for now."

James Monroe Capital CEO Chris McGovern commented, "The two resorts will be different from each other, but the timeshare resort will be a quicker profit center. We can also use the two of them to help add stability to the company. We also hope, in the future, to have the timeshare real estate profit from each other, sharing ideas for long-term success and earnings."

Ernst & Young Laptop Loss Exposes 243,000 Hotels.com Customers

2006-06-06T04:58:00.000-07:00

Ernst & Young's laptop loss unit continues to be one of the company's more productive divisions. We learn this week that the accounting firm lost a system containing data on 243,000 Hotels.com customers. Hotels.com joins the likes of Sun Microsystems, IBM, Cisco, BP and Nokia, which have all had their employees' data exposed by Ernst & Young, as revealed here in a series of exclusive stories.

The Register can again exclusively confirm the loss of the Hotels.com customer information after having received a copy of a letter mailed out jointly by the web site and Ernst & Young. A Hotels.com spokesman also confirmed the data breach, saying Ernst & Young notified the company of the laptop loss on May 3. The laptop in question was stolen from an Ernst & Young worker's car in Texas and did have some basic data protection mechanisms such as, erm, the need for a password.

"Recently, Hotels.com was informed by its outside auditor, Ernst & Young, that one of Ernst & Young's employees had his laptop computer stolen," Hotels.com told its customers in the letter. "Unfortunately, the computer contained certain information about customer transactions with Hotels.com, and other sites through which we provide booking services directly to customers, from 2002 through 2004.

"This information may have included your name, address and some credit or debit card information you provided at that time."

Ernst & Young in February lost one laptop that held information on what's believed to be tens of thousands of Sun, IBM, Cisco, BP and Nokia employees. It's not clear if this was the same system in the Hotels.com incident. Ernst & Young has not returned our calls seeking comment and has been reluctant to provide information on these incidents in the past.

Ernst & Young in February also lost four laptops in Miami when its workers decided to leave their systems in a hotel conference room while they went out for lunch.

Major media outlets have so far ignored the Ernst & Young laptop incidents, although they were quick to follow on our confirmation of a Fidelity data breach that saw 200,000 HP workers have their information exposed.

Ernst & Young offers a variety of security services to customers, and encourages clients to be transparent with their policies around customer data issues. The company, however, has not exactly been proactive with regard to its own issues.

Weighing The Pros And Cons Of The Booming Timeshare Trend

2006-06-05T05:06:00.000-07:00

Mickey, Goofy and Cinderella are only 15 minutes away.

And when we undergo theme park overload, we can unwind on the screened-in porch of this timeshare, swim in one of three beach-motif pools, paddle around with our daughter on duck boats. Or we can tee off on a Nick Faldo golf course or wander onto a nearby bird sanctuary.

Here at the Marriott Cypress Harbour, life is easy. The hotel chain has dangled a bargain-basement deal -- a four-night/five-day stay for only $400 -- in hopes that we will bite on a $19,400 one-week timeshare, a booming form of vacationing.

The activity center of this "vacation club" serves up enough sand art games, ice cream socials and kiddie crafts to stave off the most dreaded words on a vacation ("I'm bored") and the most expensive words ("I want to go to Disney World another day"). An excellent Thai restaurant down the street feeds us on the nights when our cooking resolve melts.

Every day, a housekeeper makes up the two-bedroom furnished unit that sleeps six with the help of a fold-out couch. Even our active 4-year-old daughter, who bounces off the walls of most hotel rooms, has room to roam.

And we are handed $100 in Disney money.

So what's not to like?

There is one catch.

On the fourth day, just as my husband and I get into the rhythm of the vacation and our work-world defenses are dissolving, we attend a 1 1/2-hour sales presentation, where an earnest young man tells us why channeling money into this time share would create decades of wonderful family vacations. (Failure to show up means we will be charged the retail rate, which can be $300 or so a night, depending on the week.)

Such sales pitches by timeshare companies have helped build the national time share market into a $7.87 billion industry in 2004, up more than 40 percent from 2002, according to the American Resort Development Association. Marriott, the dominant time share company, posted sales of more than $1.5 billion last year, propelled by 10 consecutive years of growth of 20 percent or more.

But does it make good vacation sense to buy one? After all, we have heard from financial consultants that we would be better off investing in a mutual fund. They warn that a time share is not a good financial investment because you can lose money trying to sell it on the secondary market. Plus there are all those negative stereotypes of timeshares.

As if to dispel our worst fears, the salesman brings up the horror stories -- You get stuck going to the same place the same time every year. You can smell the stench of the cigar of the man there the previous week. The company that owns it goes bankrupt.

But this timeshare is different, he tells us. The Marriott name stands behind it. You can trade for different times and destinations, including about 50 Marriott vacation clubs and 2,800 motels worldwide. Or you pay a fee to the exchange company Interval International and trade for 1,900 properties worldwide.

And you don't have to keep returning to see Mickey. A time share in Orlando is in demand 52 weeks a year, he tells us, because of brilliant marketing, the very reason we are here. "If you don't bring your child to Disney World, you are a horrible parent," he quips.

He says this isn't a hard sell, which it isn't. But it is a seductive sell as he shows us photos of five-star resorts in Marbella, Spain and Park City, Utah, and despite our best don't-buy resolve, we start lusting for travel. After ascertaining that we are hikers who went to the Great Smoky Mountains last year, he whips out various mountain destinations, and we can just feel ourselves soaking in the hot tub after a long hike.

Every other year, time share owners can trade in their week of usage for Marriott rewards points to be used for hotels, air fares or cruises.

The salesman gives us a tour of the neighboring complex, Grande Vista, the unit that is up for sale. It has an elegant deep red and green decor, granite counter tops in the kitchen and a guest suite with a kitchenette, which can be partitioned off from the main unit with a wall and a separate entrance. This gives you the option of renting out half while you use half.

The sprawling grounds have a Nick Faldo golf course, five swimming pools, an 80-acre bird sanctuary, and an indoor play area with mazes, climbing ladders and obstacle courses.

Then he starts spitting out figures on how we could own a week for $19,400 -- a $1,940 down payment, $774 closing costs and monthly payments of $289 if you signed up for their 13.9 percent financing (but less if you secured a better rate). Plus there is an annual maintenance fee of $600, which could go up.

That doesn't sound like such an outrageous big stretch.

But financial consultants such as Bob Nusbaum, president of Middle America Planning in Mt. Lebanon, caution that you might do better earmarking a certain portion of your portfolio for vacations, and using the investment returns for a vacation of your choice.

A timeshare is a "long-term commitment. I don't see why you would want to do that." Your vacation needs, he says, may evolve as your children grow up. A vacation fund, he says, lets you take advantage of travel deals.

Ed Kinney, vice president of corporate affairs for Marriott Vacation Clubs International, counters that with a timeshare, "You are buying a lifetime of vacations in advance in today's dollars. It is committing you to a vacationing lifestyle that shifts from "if" and "when" to "when" and "where." Without a timeshare, he says, some people miss vacationing opportunities because it gets so complicated to plan a trip.

The Marriott salesman offers hefty incentives to sign up on the spot. You get 125,000 bonus Marriott points -- roughly equivalent to a one-week trip for two -- or free closing costs and free first-year-maintenance fee.

But Mr. Nusbaum advised people not to sign on the spot, and to let an attorney review a contract before they sign it.

"People get swept off their feet, wined and dined," he says. "They sign up for it when they are very vulnerable to a sales pitch."

One out of three people who attend these Marriott sales presentations buys a timeshare.

Among them are the young Pennsylvania couple next to us, Laura and Matt Brennan of Exeter, Luzerne County, who came to Orlando with their four boys ages 2 to 9.

"We never planned vacations," Mrs. Brennan says. "I was always pregnant. It was too much to plan it. Vacations were not on our radar."

The two-week timeshare will enable her family to take a nice trip to Florida or Ireland or Spain conveniently, she said. She said the family will save hundreds of dollars just eating breakfast in the timeshare, as opposed to going out to a restaurant.

Our salesman says we can pass on the timeshare, which comes with a deed, to our daughter.

Handing down a timeshare through the generations was part of the lure for Penny Costanzo of Toronto, who was vacationing in Orlando, having traded in her Bay Beach, Fla. timeshare. She has four grown children and can't wait to be a grandmother.

"All my grandchildren are going to see Mickey. I promised my son he would see Mickey when he was 5." But he's now 28 and has never been to Disney World.

Her friend, a hotel executive, told her a timeshare was a bad investment.

"I didn't make it as a financial investment," she said. "This is an investment in my health, my holiday and my happiness, the three H's." She makes it sound appealing.

Even if you sign a contract, you have three days to get out of it in the state of Florida.

For a second, I hesitate. Even though I am not a Disney-freak, I like the idea of trading it in for timeshares in Spain and Italy.

As a parting sales pitch, he says, "The worst thing that can happen is that you have a beautiful timeshare and you go on wonderful vacations and you can always sell it."

My husband shoots me THE LOOK. Remember, his eyes says, this was supposed to be a cheap vacation.

I decline to sign a piece of paper that day. Walking out, I feel the same sense of relief I feel when I resist an impulse buy on an expensive piece of clothing.

A flash of disappointment registers in the salesman's eyes before he gamely gives us his cell phone number. But he doesn't call and pester us to reconsider this timeshare -- the one that we let get away.

Weighing The Pros And Cons Of The Booming Timeshare Trend

2006-06-05T05:00:00.000-07:00

Tea And Timeshare: Just £1.9m For 10 Weeks

2006-06-02T04:48:00.000-07:00

Billionaires have been invited to buy some of the world's most expensive timeshares on the edge of St Andrews, the windswept home of golf on Scotland's east coast.

A US developer is set to restore the former Grand Hotel, a red sandstone Victorian building that overlooks the first tee and final hole of the legendary course. Until recently it was a student hall where youngsters paid just £4,000 a year for a single room. Next year, however, the building will be turned into 23 timeshare units with asking prices of up to £1.9m for 10 weeks a year - the yearly equivalent of £10m. Residents will also have to pay annual fees of £15,000 to £20,000.

Mike DiCarlo, of Wasserman Real Estate Capital, the Boston-based private developer, said: "There is only one St Andrews course."

The company hopes there will be enough golf and timeshare fanatics with deep pockets to sign up to its project despite the ambitious asking prices, which are on a par with central London, Hong Kong or New York. To put this into context, it is possible to pick up a three-bedroomed house in the town of St Andrews for less than £150,000. The proposed scheme marks the convergence of two distinct trends. On the one hand, tycoons are prepared to pay ever higher sums for luxury homes across the world. A handful of apartments in Mayfair and Manhattan have sold for more than £20m in the past year.

On the other, developers have been building ever more homes on the edge of golf clubs, mostly to appeal to retired executives.

The Royal Bank of Scotland and Guggenheim Partners have funded a roll-out of Jack Nicklaus-themed golf courses around the globe. The St Andrews Grand was built 100 years ago as a hotel where the likes of Rudyard Kipling and King Edward VII once stayed. In 1949 it was sold to St Andrews University, which converted it into Hamilton Hall, a residence for undergraduates. Wasserman bought the building last year for $40m and plans to finish the development by the summer of 2008. There will be 23 flats, each of three or four bedrooms, ranging from 1,400 sq ft to 1,930 sq ft. The most expensive, a timeshare penthouse, will have 360-degree views over the course and across to the North Sea beach.

Timeshare owners will have access to the golf course and a range of luxury facilities including a concierge service, gourmet chefs, spas, and the use of a helicopter.

Timeshare Plans For Top Hotel

2006-05-31T05:08:00.000-07:00

A Luxury £20 million development plan for a North-east country house hotel has moved a step closer. Timeshare and golf development plans for Pittodrie House Hotel have been in the pipeline for about a decade. The latest application focuses on the hotel's commitment to build 79 timeshare cottages, an 18-hole golf course and four luxury homes.

The golf course would cover most of the estate, near Chapel of Garioch, to the south and east of the hotel, while the timeshare units would be built in five blocks to the east and north. The development comes as US businessman Donald Trump makes plans for a multi-million-pound golf resort at Balmedie.

The Trump Organisation is expected to submit its proposals for the Menie Estate by the end of the month.

Community leaders in villages near the Pittodrie House Hotel welcomed the latest resort plans but adopted a wait-and-see attitude over their environmental impact.
The scheme hit a hurdle in 2004 when Aberdeenshire Council knocked back a proposal to convert 30 of the proposed timeshare properties into permanent homes.

The owner, Macdonald Hotels, also ran into opposition from residents near the estate.
Macdonald Hotels has now turned its attention back to the original scheme to create a "significant tourism project" at the proposed golf resort.

East Garioch Community Council chairman Graeme Sutherland said: "I can't see there being a problem if this application is basically the same again - but it remains to be seen what the final application will look like."

The application was lodged with Aberdeenshire Council yesterday.

Bluegreen Grabs 10 Acres For Vegas Timeshare Development

2006-05-30T05:08:00.000-07:00

Bluegreen Corp., the Boca Raton, Fla.-based timeshare property owner and developer, just acquired an approximately 10-acre parcel in Las Vegas that will become the home of an upscale timeshare resort featuring 240 two-bedroom timeshare units, a preview center and a retail complex. Bluegreen expects to kick off construction of the development--which carries a price tag of more than $100 million, including the purchase of the land--in the third quarter of this year.

Bluegreen did not reveal the specific purchase price of the land near the intersection of E. Tropicana Ave. and Paradise Rd., or the identity of the seller. According to the office of the Clark County Assessor, the transaction has yet to be documented in public record; however, a parcel of about 10 acres at the same intersection as Bluegreen’s newly acquired land has a current assessed value of nearly $6 million. Alternatively, Bluegreen is forthcoming about its corporate goals. “This is a strategic move for our company because it continues our westward expansion,” Lisa Thornhill, Bluegreen director of Corporate Communications, told CPN. “It also delivers an exciting product to our owners and guests that they’ve been wanting. We do annual surveys and Las Vegas is at the top of the list.” According to the 2005 State of the Vacation Ownership Industry report, Nevada ranks number seven in the nation with a timeshare market share of 3.5 percent; Florida is No. 1 with 22.7 percent.

In addition to the 48,000 square feet of retail and restaurant space and the 18,000-square-foot preview center, the seven-story timeshare structure that will sprout up near the University of Nevada-Las Vegas and McCarran International Airport, will also feature a swimming pool, spa, game room, pool bar and fitness facility. “Our residents have expressed that they like to have these amenities onsite,” Thornhill said of the retail and restaurant offerings, which will be accessible to the public, as well. Timeshare units in the new resort will become available in the fourth quarter of 2007.

Timeshare Is Big And Booming

2006-05-24T04:51:00.000-07:00

Participating in the world of timeshare ownership has certainly taught me how big the world is and how many wonderful destinations are out there to discover. As president of ARDA, even though I travel so much, there are still hundreds of timeshare resort destinations I look forward to visiting one day. And where I realize that, in my current professional role, perhaps I’m not supposed to have a favorite destination, I must admit that I do have a particular soft spot for one great area: Puerto Vallarta, Mexico. I love it there!

The people, the weather, the beaches, the mountains, the food, and just the overall ambiance—it all complements the welcoming nature of the culture. I’ve been timesharing annually in Mexico for the past 20 years, and I never tire of it. That is why I am so pleased that the feature of this special convention issue of Developments spotlights its tourism development.

The lines have crossed in the most positive way for Americans wishing to visit Mexico and developers wanting to meet that demand. And, Americans visiting Mexico do buy timeshares and fractionals while they are there! The post-September 11th times have in some ways made the world from the tourism perspective seem smaller, in terms of destinations that Americans feel comfortable visiting in the midst of terrorist threats and global political uncertainties.

But Mexico offers a different pattern, a new hope for the American tourist. In fact, now more than ever, tourism grows strong for the following reasons: its geographic proximity, the strength of the U.S. dollar in this hemisphere, a sense of personal security, and the vast improvement in Mexican tourism infrastructure. Many of these same reasons are also true of the tourist outlook for the Caribbean and Central America, areas that have also grown their cache of timeshare destinations over the past few years.

All of this good fortune for Mexican timeshare resort development didn’t just happen by accident, however. It took a well thoughtout, executed plan. The work of FONATUR, Mexico’s impressive federal government partnership, has been instrumental in creating opportunities for the private sector to develop because of the Mexican government’s understanding and funding of infrastructure needs, tourism zones, resources, and promotion.

Destinations like Cabo San Lucas and Cancun are now household names that carry major tourism brand-equity weight in the American traveling public’s mind. This was not the case just 10 years ago— Cancun and Cabo have experienced planned smart growth because of FONATUR’s role (with the Mexican government), as well as the investment of good developers and a real commitment by Mexico to create destinations attractive to Americans with supportive services for developers. Future household name destinations are being born in the Sea of Cortez for the very same reasons. Actually, in my humble opinion, the U.S. government would benefit from having an organization like FONATUR to help create tourism infrastructure and development opportunities in the United States.

There is another factor that bears a positive impact on tourism in Mexico, as well as on tourism at-large and the timesharen industry. This year, the first group of baby boomers turns 60, which is great news for timeshare, fractional, and second- home development. People reaching their 50’s and 60’s, as they begin to transition into retirement, have a natural desire for vacation homes that include alternatives like timeshare and fractionals. These healthy affluent baby boomers have a pent-up wanderlust that needs channeling, after 30-40 years of denying the desire to see the world because of busy careers, family life, and financial restraints. Now these boomers want to experience the world, and Mexico is high on the list.

I recently attended a tourism summit, where I heard a respected economist discussing realities for the future of travel and tourism. He touched upon the fear that we have entered a period of flattening (or worse) of the recent exuberant housing price growth, which might make Americans feel less wealthy. He noted that one segment of the housing market, however, will be insulated from this fear because of the demographics of the retiring baby boomers—the vacation home segment and their alternatives, including timeshare and fractionals.

Mexico will benefit directly from this timeshare phenomena of American boomers (many very affluent), who are retiring with a desire to travel and experience resort living for the first time.

Unloading That Timeshare Can Take Some Time, Too

2006-05-23T04:59:00.000-07:00

Although some people are happy owners of timeshares, millions of others regret having bought theirs and would like to get rid of them. When you buy a timeshare, you're buying the right to vacation at a resort for the same one or two weeks every year. It might sound attractive when you buy it but, for many, the novelty soon wears off and the drudgery of visiting the same place at the same time each year proves boring. Or perhaps because of your lifestyle changes, it is impractical for you to continue using your timeshare.

Some people pay cash for their timeshare, but most finance their purchase and force themselves to make monthly payments. Timeshare owners also incur annual expenses for maintenance and taxes. Most buyers paid too much for their timeshares.

Many have discovered that the location has declined in quality, reducing its appeal as a vacation destination. Many developers have increased the annual fees that timeshare owners must pay. All this has caused millions of timeshare owners to want out. But few people are interested in buying, especially at the price that the current owners had paid. Indeed, selling a timeshare can be difficult, even downright impossible.

What to do? First, understand that you are legally obligated to repay the loan. Even if you paid cash, you are still legally required to pay the annual operating cost. If you don't, your credit record will reflect your failure to pay. This could hurt your ability to get a mortgage or car loan. It could also affect an employer's decision to hire you. If you want out, see if the developer is still selling timeshares at your vacation location; ask senior management if they might be willing to buy yours. It's a long shot, but perhaps they might, albeit at a steep discount. If they are not willing to repurchase it, perhaps they'd be willing to try to sell it for you. You might need to offer them compensation for doing so.

But beware of con artists. Timeshare owners are known to be a desperate lot, and as soon as you make it known that you're interested in selling yours, thieves will come calling. They'll offer to buy your timeshare, or they'll say they can sell it for you. In both cases, they'll demand up-front payments or personal financial information, such as your bank account number (purportedly so they can wire money to you). Timeshares give con men terrific opportunities to scam people twice -- first in selling them nearly worthless timeshares, and again as they promise to help hapless victims get rid of them. Be wary of promises, and guard your money, your identity and personal data.

If you cannot find a buyer, and if your loan is fully repaid, try donating your timeshare to charity. The charity is likely to auction off your time-share, which could provide you with a small tax deduction for the charitable contribution. Many charities refuse to accept donations of time-shares. Explore the Internet for entities that offer to handle this process for you.

As a last resort, try to give it away. Maybe you can find someone who will take it off your hands by assuming your financial obligations. When you do manage to unload it, the loss is not tax-deductible. That's because the IRS considers timeshares to be personal property, not investments. Hope the guy who sold you yours didn't claim otherwise.

Timeshares Leading Rebound In Construction For Big Island

2006-05-22T05:07:00.000-07:00

After a 2 percent decline in the number of visitor accommodation units in Hawai'i last year, the industry is working to increase its inventory in step with a slow but accelerating tourism recovery.

Construction scheduled to begin or be completed this year or next year would add at least 1,700 hotel and timeshare units to the market, overcoming the 1,421-unit loss last year that represented the second biggest decline in more than 30 years.

Beyond 2004, another 1,700 or so hotel and timeshare units are scheduled for construction, though given the unpredictable nature of the state's tourism business, such projects may not move forward as envisioned today.

Leading the rebuilding are timeshare operators who continue a vacation-ownership trend driven by giant hotel chains during the past few years in Hawai'i.

The restoration of the state's visitor plant in the next year is expected to include the reopening of a couple of shuttered hotels and the start of construction on at least two new hotels.

More hotel and timeshare construction plans are in the works but are further off and could change, depending on world events, shifts in Hawai'i visitor arrival trends and financing markets.

"Obviously, as the economy picks up and people become more optimistic, you see increased opportunity," said Murray Towill, president of the Hawai'i Hotel Association. "I think we are going to see some increase, but I don't think we're going to see dramatic increases at all."

Hotel owners and developers are looking at a market where overall visitor arrivals this year are expected to be near flat, with the second half of the year showing better growth, followed by a projected 8.4 percent increase, according to the University of Hawai'i Economic Research Organization.

Last year, the number of Hawai'i visitors rebounded slightly, by nearly 1 percent, after a 9 percent drop in 2001.

The industry slump resulted in the closing of some visitor accommodations, while other vacation rentals were converted to long-term residential use, according to a report by the state Department of Business, Economic Development & Tourism.

The report said the number of visitor accommodation units fell last year from 72,204 to 70,783, a loss of 1,421 units representing a 2 percent drop.

The budding rebound will primarily fill niches, such as the growing timeshare market statewide. In addition, there will be a business-oriented hotel near Kahului airport on Maui.

Development momentum also is accelerating at Ko Olina Resort & Marina where a tax-creditifinanced aquarium is being used to attract hotel and timeshare developers.

Jeff Stone, master developer of Ko Olina, said he expects to have permits to build the $75 million aquarium in January. Then he expects construction of hotel and residential project by Ritz-Carlton to follow within six months, roughly in the second or third quarter of next year.

"Everybody wants to be certain that the attraction goes in," Stone said. "It's a huge component."

Marriott Vacation Club also plans to build new timeshare accommodations at the West O'ahu resort, with work on a 90-unit second phase scheduled to begin in November 2004. Its 103-unit first phase opened earlier this year.

On the downside, Outrigger Hotels & Resorts may actually reduce the number of hotel rooms next year with plans to raze 436 rooms, some of which are not in use, to build a complex with retail, entertainment, ballroom and meeting space.

The company, which announced its plan two years ago and has since assembled property required for the massive redevelopment that would include the addition of a 890-room high-rise hotel, has been reassessing its plans and development schedule in light of the expiration of a state hotel construction tax credit.

Outrigger officials did not respond to requests for an updated development timetable, though the company has suggested the project could be delayed and modified.

Bruce Coppa, managing director of Pacific Resource Partnership, an alliance between contractors and Carpenters Union Local 745, said that while the hotel construction tax credit might have expedited more building, competitive pressures will be forcing hotel owners to upgrade properties.

Joe Toy, president of industry consulting firm Hospitality Advisors, said the economics for building large, stand-alone, full-service hotels haven't been good for about 10 years.

Timeshare developments, on the other hand, are much more attractive because of the large up-front returns generated by sales and the flexibility to use unsold units as hotel rentals, he said.

San Diego Area Hotel Market Heats Up For Timeshare Real Estate

2006-05-19T10:03:00.000-07:00

The San Diego hotel market is bustling with activity as the Embassy Suites Hotel in La Jolla sells for $100 million. Hotel REIT Sunstone Hotel Investors Inc. acquired the property, adding to its 62-hotel portfolio.

Alan X. Reay, president of Costa Mesa-based Atlas Hospitality Group, tells GlobeSt.com that because of increased tourism and an upswing in the business sector, competition for hotel property to turn into timeshare real estate is stiff. “The asset is a great buy for Sunstone,” he says. “La Jolla is a hard market to get into, even at the $100 million pric

Other recent hospitality deals include the sale of the 68-room StayBridge Suites Hotel to Trendwest Resorts Inc, a timeshare company. Financial considerations of the sale were not available, but Trendwest says the hotel will be converted into a timeshare property.

The 68-room hotel opened in 2004 and was sold by an affiliate of Shapery Enterprises. Shapery will maintain a presence in the area however, with plans to build a 40-story high rise condominium on what is now the hotel’s parking lot. Once complete, the two properties will share parking and amenities.

Neptune Hospitality Advisors arranged the sale of the building, representing one of two deals involving Neptune and Cendant, says Neptune president Michael Armstrong. The real estate investment bank also completed financing for the Hotel Prava for Cendant in 2005. The StayBridge acquisition comes from increased demand for timeshare units, Armstrong notes.

The StayBridge is a 78-year old building, formerly the Riviera Apartments/Hotel. It was renovated and converted to the StayBridge in 2003, keeping its original façade.

Earlier this month, GlobeSt.com reported that Neptune arranged a $25 million rehabbing deal for the Radisson Hotel Harbor in the Marina/Little Italy quarter of San Diego. The hotel stands 23 stories and is comprised of 333 rooms. Neptune also recently arranged $30 million in refinancing for two Hansji hotels in Costa Mesa.

The heated hotel activity is not exclusive to San Diego County, however. The Marriott Ventura Beach, located one mile north of Los Angeles, was sold for $34 million to Integrated Capital. The 286-room hotel was recently renovated into timeshare real estate and consists of 9,000-sf of meeting space and amenities.

Time To Tend To Business And Stop Timeshare Real Estate

2006-05-18T08:00:00.000-07:00

Friday's edition of the Packet revealed an above-the-fold story about town leaders speaking out against House of Representatives incumbent, Richard Chalk, who represents Hilton Head Island.

How interesting it was to read of the mayor and five council members throwing in their very verbal support behind Tom Herbkersman. Mind you this is the "nonpolitical government body" we elected supporting a candidate who is without credentials, except those of being a local developer. Do we see any connection here? The mayor's wife, who is Herbkersman's campaign manager, said town officials will be watching Herbkersman very carefully if elected. I have a feeling that might be an understatement. The mayor's wife also said that Councilman Bill Ferguson, although not present for the press conference, also supports Herbkerson. Isn't that just so cozy. I would hope a little too cozy for Hilton Head voters.

Time better spent would have been to keep our $1.5 million here on Hilton Head rather then send it to Bluffton. Those dollars could have been used toward the purchase of land on Squire Pope Road to prevent the construction of timeshare condos. Just what the voters of Hilton Head needed -- more timeshares, people and traffic on the Island!

Exclusive Country Club With Timeshares Now Open To All

2006-05-17T04:38:00.000-07:00

A restaurant in the shadow of Cromer's landmark lighthouse has opened its doors to the public, as an exclusive country club lifts its barriers to locals.

The town's Country Club is part of the worldwide empire of timeshare company Sunterra, which has almost 100 resorts around the globe, including nine in the UK.

While many of the facilities on its wooded hillside campus are exclusive to owners of the 105 apartments, the restaurant, bar and meeting and conference facilities have now been opened to the public.

Timeshare resort manager Margaret McNicol said it was possible due to a removal of licence restrictions, which previously meant non-members could not use the complex.

The club was built in 1979 and was run by Hoseasons until it switched to timeshares in 1995, at first under private ownership and then Thurnham Vacations, before being taken into the global Sunterra empire in 2004.

Sunterra, founded in the 1990s, has offices in Las Vegas and Lancaster, with timeshare resorts as far flung as Hawaii, Florida, the Canary Islands, Mexico, the Caribbean, France, Malta and the Austrian Alps.

Mrs McNicol said they were pleased to welcome locals to the site, with its eating and meeting facilities, complete with panoramic views.

The man in charge of the Cromer restaurant is 27-year-old Mark Shortt, who had an earlier two-year spell there under different ownership, having cut his catering teeth at the Assembly House, Norwich, and Cromer's Cliftonville Hotel.

Most recently he was general manager at Lenwade Country House Hotel, before he was head-hunted back to Cromer by Sunterra.

Mr Shortt, who has a 20-strong team of full and part-time catering staff, led by head chef Andrew Carr, said local people were already enjoying dining at the club,

A timber-beamed bar area, with comfortable chairs, provides bar meals for up to 90 people from 11am to 9.30pm, with the bar staying open until 11pm.

The lighter, adjoining Windjammer restaurant area serves a table d'hote menu on Saturdays, Sunday lunches and themed nights during the week, which range from steak and seafood evenings to Italian nights and a Wednesday focus on Norfolk produce.

The complex with timeshare real estate also has function rooms, for small and large gatherings, which can be used by local organisations, and a games room which is due to be converted into conference facilities.

Vacation Club Wants Tower, Hotel Density With Timeshare

2006-05-16T04:44:00.000-07:00

The potential new owners of the Marco Radisson Suites Resort want Marco Island city officials to allow them to build a 200-foot-tall tower and allow timeshare units to be treated to the same density requirements as hotel rooms.

Representatives of Marriott Vacation Club International of Orlando (MVCI), which signed a contract to purchase the Marco Radisson eight days ago, hope to close the purchase sometime in July, according to David E. Holton, senior vice president of Resort Development.

Holton, along with MVCI director of project planning Mike Elliott and Marco attorney Craig Woodward, who represents MVCI in its purchase contract, announced its preliminary redevelopment plans to the Marco Island City Council on Monday during the council's review of proposed land use development amendments.

Holton said it's normal for the firm to begin development planning prior to closing on a property.

Holton and Woodward asked the city to fast-track the zoning changes they'll need to achieve the timeshare development they seek for the property.

They may have some trouble getting the 200-foot height they want for a new tower of timeshare rooms that would be built onto a remodeled development by MVCI.

But they might not have nearly as much trouble getting the city to increase density limits for timeshare units as compared to hotel room units.

Currently city zoning in the Residential Tourist district along South Collier Boulevard, where the majority of the city's resort hotels and vacation resorts operate, allows for 120 condominium units in a 100-foot tall building, with a conditional use permit available for a maximum height of 125 feet.

MVCI wants the city to allow 26 timeshare units per acre above the 16 units per acre allowed now for multi-family units in the RT district. The 26 units per acre allowance currently applies to hotel room units.

Holton and Woodward explained their contention that a timeshare unit, more or less, is a hotel room, occupied by owners for a week or more at a time, but also available for daily rentals when owners aren't in occupancy.

Elliott explained plans for the property, which include a new swimming pool, a fully remodeled parking area, the new timeshare tower, new balconies, remodeled outer walls, and more, to create a whole new visual appeal to a facility that has been considered by some to have become an eyesore.

Marco Island Community Development Director Vince Cautero said the city would have to amend its comprehensive land use plan because timeshares in the plan limit them to 16 timeshare units per acre.

A comp plan amendment would take months to pass through state channels, and MVCI's representatives want a faster track. Marco Council Vice Chairman Glenn Tucker suggested redefining timeshares in city zoning law.

"I have a little trouble with them coming in for a 200-foot height, but we have the opportunity before us to have a real world-class structure go up on the beach, rather than the current eyesore," Tucker said.

The council voted 7-0 to send the land-use amendments back to the city Planning Board for further review, taking into considerations MVCI's requests. The council would reconsider the land-use amendments for timeshares at its June 19 meeting.

Middle East Tourism - The New Timeshare Real Estate Maker

2006-05-15T13:01:00.000-07:00

New Horizons in Shared Ownership, a symposium held April 28-29, at the Burj Al Arab in Dubai, offered startling statistics on the profile, demographics and implications for mixed-use real estate in the timeshare and self-catered market. Conducted by RCI Middle East, part of RCI Global Vacation Network, and specialized industry consultant, Ragatz Associates, the Symposium portrayed the opinions of a sample of nationals from Saudi Arabia, Kuwait, the United Arab Emirates, Iran and Egypt.

Complemented by fieldwork in face-to-face interviews by Pan Arab Research Centre (PARC) across 1,000 high-earning nationals in Dubai, Abu Dhabi, Fujairah, Ras Al Kaimah, Oman, Qatar, Egypt, Lebanon, Jordan, MacKay and Madinah, results were analyzed and evaluated by NorthCourse Advisory Services.

RCI wanted to advise developers before the design process begins on issues pertaining to likely market sources, types and size of preferred accommodations, range of amenities and acceptable pricing ranges. In combination with the original data, syndicated and secondary research, Vivienne Noyes-Thomas, managing director of RCI Middle East, states: "The main purpose of the research is to quantify the potential pan-Arab market for luxury timeshare, fractional ownership and other types of shared ownership in leisure developments in the region. There are numerous superb projects in the planning stages, but now we can qualify what the consumer is really looking for and what this product can deliver in increased returns for developers and operators."

The following results were publicly announced at the Symposium:

The entire sample travels regularly

Destinations chosen for leisure travel are selected for choice as a "family solution" rather than activity or adventure travel.

Shopping is the principal activity.

Food and dining are high on the list, with dining preferable in the vacation home and prepared by a Halal certified purveyor.

40% of Saudi Arabians take household staff with them on trips; 46% of UAE travelers take their parents.

Length of stay is two-three months three times per year.

Travel is definitely a "group" experience.

Dubai and UAE are most popular destinations for timeshare purchase at this time.

The Middle Eastern market can support USD$540 million in timeshare sales while the fractional market is a preference for Dubai, Sharm El Sheikh and Makkah

There's a new trend of religious timeshare in the Islamic centers of Makkah and Madinah as these destinations are popular for Muslim pilgrims.

Fractional ownership embraces exclusive villas, yachts and luxury apartments.

There is a regional preference for "staying close to home", i.e., within "the kingdom".

Shared ownership is compatible with the Muslim concept of "Sukok" (a property document or deed which is transferable and entirely conforms with the Islamic laws of Saudi Arabia and the Gulf). Vivienne Noyes-Thomas, managing director for RCI Middle East, states: "Sukok gives Muslims complete confidence in the knowledge that what they're buying into is safe and acceptable. The new Le Meridien Towers, an RCI affiliate, and the Zamzam Towers projects are positioning their marketing around this concept."

Parallel with the demographic and psychographic profiles illustrated in the Symposium, regulations are being developed to address investor and owner concerns. Dubai's Department of Economic Development (DED) is expected to announce detailed regulations in the near future. RCI has been instrumental in establishing a Regulatory Working Group to provide input and commentary on the draft laws from the perspective of timeshare industry experts. Included among the Group's work is a compilation of "best practices" from the American Resort Development Association (ARDA), Organisation for Timeshare in Europe (OTE) and the Timeshare Industry of South Africa (TISA).

Outside of the UAE, Egypt and Lebanon also have regulations that govern how shared ownership is structured and there are regulations in place in Kuwait and Saudi Arabia governing sales practices. RCI predicts once the UAE Law is enacted, it will be adopted as a minimum standard through the GCC. Implementing regulations and a sound Code of Ethics will eliminate some of the negative experiences associated with the industry outside the Gulf.

Dubai International Airport handles over 20 million passengers annually. This number is expected to increase to 50 million + upon completion of the new terminal. The climate, atmosphere and great shopping are all attractive to visitors from within the Middle East and internationally. To date, with the Gulf region, construction exceeds USD$1 trillion according to MEED reports. Within Saudi Arabia, the value of new projects has doubled to more than USD$200 billion in the last 12 months.
Stephen Holmes, Vice Chairman of Cendant Corporation talking with Awadh Al Ketbhi, Director of Conventions at Dubai's Department of Tourism and Commerce Marketing.

More than 30,000 owners of timeshares are from this region with the majority of these owners from Egypt. Out of the 30,000 timeshare owners, over 20% of Gulf Arabs own property outside the region, with popular destinations including Marbella, Orlando and London.

Kuwaitis based IFA Hotels and Resorts are developing projects in Dubai, including a site on the prestigious The Palm Jumeirah and a condo-hotel project managed by Movenpick that offers an opportunity to buy a hotel suite with personal use and future rental income offers another alternative. A large resort is planned in Festival City and other projects are being developed in Dubailand with mixed-use developments in Oman and Qatar.

Around the world, the shared ownership business has recently enjoyed the endorsement by major brands, and global luxury chains such as Hilton, Sol Melia, Marriott, Ritz Carlton, Sheraton and Four Seasons. These brands have embraced the timeshare opportunity which, until recently, had been driven by individual resort developers. This global trend-embracing properties in the USA, Mexico, Egypt and the Caribbean across the world to the Far East-assures continued momentum.

This Symposium is viewed as having accomplished twin goals: assisting market entry for developers by sharing studies and supporting legislation, which will minimize current obstacles while addressing the current lack of consumer information.

Experts believe that Dubai possess most of the key drivers to make shared ownership and the self-catering holiday industry a guaranteed triumph. Noyes-Thomas concludes: "Excellent infrastructure, sophisticated tourist attractions and quality property developments are great foundations for success."

TV, Parks, Timeshares Lift Disney Profit To 12% Gain

2006-05-10T04:58:00.000-07:00

The success of ABC-TV shows such as Desperate Housewives and the unexpected hit High School Musical on the Disney Channel helped hike Walt Disney Co. profit by 12 percent during the first three months of 2006.

Disney's theme parks helped too -- despite troubled performances in Paris and Hong Kong -- according to the second-quarter financial report Disney filed Tuesday.

Also, the Disney Vacation Club timeshare business has seen what Staggs called "incredible growth" and has sold its 2,000th unit.

And Staggs said Disney expects no drop-off in attendance due to high gas prices.

Staggs and Iger both blamed the drop in movie profit -- down 39 percent compared with the second quarter of 2005 -- on the fact that Disney had ridden high in 2005 on the strong video and DVD sales of The Incredibles. This year, during the second quarter, Disney had nothing comparable on the video shelves or in the theaters, they said.

Disney closed its deal to buy Pixar Animation, its former operating partner, only last week and Iger said that should strengthen Disney's animation production and creativity, starting with Pixar's next film -- now Disney's next film -- Cars. The movie, which Iger said has a level of animation "unlike anything audiences have experienced," has the potential for the cross-division promotions that Disney relies on: theme park rides, shows, merchandise, TV spinoffs and sequels.

"This film has tremendous potential to become a classic franchise for our company over the long term," Iger said.

Movies and timeshare real estate keep Disney on the move.

Aruba Wyndham Hotel Becomes Westin Timeshare Resort

2006-05-09T04:43:00.000-07:00

The ownership of the Wyndham Hotel has been transferred to Belfonti Capital Partners LLC from the United States, who entered into a partnership with Starwood Vacation Club. The latter has the rights to build timeshare units on the property immediately next to the Wyndham Hotel. They have decided to start immediately with the build of the new timeshare units.

It was rumored for weeks already that the hotel was going to be sold, but the involved parties didn’t want to give any comment as long as the acquisition was not really done. That was the case yesterday. They also announced that Starwood Hotels & Resorts Worldwide will exploit the hotel. Also the name Wyndham will disappear as per immediate. 20 Million dollars will be used to improve the surrounding buildings and properties before the end of this year. One of the reasons is that the new owner wants to turn the complex into a Westin Resort, one of the leading timeshare chains in the tourist industry. Meanwhile they will use the name Aruba Resort, Spa & Casino.

Manager Rob Smith is pleased with the investment. “The new owners are planning to convert the resort into one of the most prominent timeshare resorts in Aruba and a leader in the Caribbean”, says Smith. Alfonso Riveroll, top executive of Aruba Hotel Enterprises will keep his job.

How Much Timeshare Growth Is Too Much?

2006-05-08T04:22:00.000-07:00

After Hurricane Iniki demolished the Kaua'i economy in 1992, it took a decade before the island was mostly recovered. But now the development climate is so hot that many residents are calling for a halt.

There is increasing talk of moratoriums on new growth. The County Council is considering a bill to block all new timeshare development permits in the Koloa-Po'ipu area pending a complete traffic study. And yesterday, Mayor Bryan Baptiste said he wants progress on two proposed Waipouli timeshare resorts stopped "until they make us an offer we can't refuse."

Much of the island's infrastructure, such as water and sewer systems, is near or at capacity. For example, in several communities, the issuance of new water meters has been blocked because of lack of capacity in either source or storage of drinking water.

But congested streets are the biggest issue for many residents.

"It all boils down to traffic. Traffic congestion, traffic safety, pedestrian safety. That's basically the long and the short of it," said Koloa resident Ted Blake, who is helping organize discussions with county officials and timeshare developers in his part of the island to find solutions to the problem.

The mayor, as well as people who have had his job before and those who want it, are generally in agreement.

County Councilwoman and former Mayor JoAnn Yukimura is sponsoring a bill to place a moratorium on new permits in the area until the existing development plan for the area — which requires a complete traffic study — is enforced.

"We're doing this in response to the community's concerns. The community is advocating good planning, and they're up in arms because it's not happening," Yukimura said.

Mayoral candidate and former Councilman Jesse Fukushima said the county clearly has a excessive backlog of capital-improvements needs, and there's a sense that developers are adding to the congestion without paying enough in impact fees to make up for the increased demand they create.

"We all know that the impact fees are very much lacking," Fukushima said.

Baptiste yesterday announced that he has informed the Kaua'i Planning Commission of his opposition to two new timeshare resorts in the Coconut Plantation at Waipouli, because he feels their $12 million offer for water, sewer and traffic improvements is far short of what is appropriate.

The Coconut Beach Development, on 21 acres of beachfront, is proposed as a 343-unit timeshare project with 6 hotel rooms. The Coconut Plantation Village on 12 acres is designed as a 192-unit apartment hotel with 6 hotel rooms.

Baptiste said residents are frustrated by continued development, particularly in the Wailua-Kapa'a area, where traffic congestion is the worst on the island.

"I'm caught in a dilemma of catchup. Hundred of millions of dollars of catchup," he said. Besides water, sewer and roads, there's a need for housing, something county officials cannot legally ask the developers to contribute, he said.

"We cannot ask these developers for affordable housing, yet they will have to import employees to the island, which would put a burden on our housing inventory," the mayor said.

Mitch Heller, manager of the Coconut Beach Resort, said his timeshare project would provide roughly $8 million toward county needs.

"We are disappointed that the mayor has not recognized the many benefits our project will bring to the community in terms of traffic improvements, water storage and sewer upgrades," he said. "Our commitment to improve Kaua'i's infrastructure goes well beyond our statutory requirements and is unprecedented in scope."

He said the timeshare project would allow the completion of some traffic improvements.

"The traffic problem exists today and will exist tomorrow even if nothing else is built in Waipouli or as far north as Princeville," Heller said. "Clearly, if our project is not approved, it is unlikely that the county will be able to fund the road and other improvements that the community said it so badly needs."

For Baptiste, the Waipouli developers' offer is not enough to make a significant difference to residents.

"Projects must provide benefit to the 64,000 people who live here," the mayor said.

Raising The Bar With Addition Of Timeshare Units To Woodmore

2006-05-05T05:12:00.000-07:00

Without disclosing names, Walt Petrie, chairman of Petrie Ross Ventures, said he is in negotiations with other retailers to come to Woodmore. Officials are going to the International Council of Shopping Centers convention in Las Vegas this month, and will have further announcements ‘‘within 30 days” of their return, Petrie said.

Woodmore Towne Centre will have about 700,000 square feet of retail, 1 million square feet of office space, 922 residential units, two hotels with timeshare units and a conference center, according to Petrie Ross.

The Wegmans announcement is the latest in a series of upscale developments in Prince George’s. In late February, Gaylord Hotels announced it would add 500 rooms to its 1,500-room Gaylord National Resort and Convention Center at the National Harbor project along the Potomac. In mid-April, the Peterson Cos. of Fairfax, Va., which is developing National Harbor, announced that five more hotel and timeshare chains were joining the project, bumping the total number of rooms to nearly 3,000.

Arthur Turner, chairman of the Prince George’s Chamber of Commerce’s economic development committee, said Wegmans’ presence may prompt high-end retailers — the Nieman Marcus types some county residents have sought — to give the county a second look.

‘‘Wegmans really raises the bar in terms of the type of retail options that are available to ... the county,” Turner said. Retail and timeshare are hand in hand at Wegmans.

Interval International Signs Up Torino 2006 Olympic Village For Timeshare Resort

2006-05-04T06:19:00.000-07:00

What happens to an Olympic Village after the 2,500 athletes from 85 participant nations have left? For the Torino 2006 Winter Olympics the answer was simple – start work on turning the village into a timeshare resort.

The result is Villaggio Olimpico, an Interval International-affiliated timeshare resort situated in the town of Sestriere on Italy’s north-western border with France. This Alpine resort, owned by Olimpico Villagio Srl., will open in June 2006, when more than 280 timeshare units will be available for exchange.

Planned with the features of the surrounding landscape in mind, the village at Sestriere is a complex formed by seven buildings. The facilities are directly linked to the ski lifts through a hall area protected by a large window, which overlooks the ski slopes themselves.

David Clifton, Interval International’s managing director, Europe, Middle East, Africa and Asia, said: “For two weeks in February 2006, the region around Torino in northern Italy was the centre of the sporting world. “Hosting the Olympics is a great honour and not only a showcase of sporting excellence, but also a chance for the host nation to revitalise local infrastructure and economies. By turning to timeshare, the Olympic Village has really looked to an innovative and profitable alternative use.”

As its name suggests, Villaggio Olimpico is an ideal base for visitors wishing to take advantage of the world-class ski and snowboarding slopes. Built in 1934, Sestriere is one of the earliest and still one of the highest purpose-built ski stations.

Sitting on a sunny plateau, snow cover is guaranteed thanks to both altitude and one of the world's most extensive snow-making operations, a combination which made the Winter Olympics in 2006, such a success. The timeshare resort will not only be a winter destination but provides year-round facilities including Europe’s highest golf course.

Timeshare Resort Planned Near Colonial Williamsburg

2006-05-03T05:26:00.000-07:00

A hotel with a prime location near Colonial Williamsburg will be renovated and turned into timeshares as part of a plan to build around 500 timeshares next to the Historic Area.

The Patrick Henry Inn and open land next to the Historic Area would become a timeshare resort in a project planned by a new development company.

Colonial Penniman LLC plans to build 400 timeshares on 18 acres at the corner of Page and Penniman Streets, according to site plans the company submitted to the city this week. The Colonial Capitol Inn, which is on that land, would be replaced by six four-story buildings. The group also plans to renovate the Patrick Henry Inn on York Street, converting the two hotel buildings to timeshare suites. That will add about 90 or 100 more timeshares to the resort, group spokesman Jim Bennett said Thursday.

The project will attract visitors throughout the year who will stay longer than they might if they were in a hotel, Bennett said. The location will be the timeshares' biggest selling point, he said. "You're right across the street from the restored area."

Hotelier Hunter Vermillion will sell the land and hotels to Colonial Penniman, Bennett said. Colonial Penniman is made up of local business owners and real estate developers, he said. The 2- and 3-bedroom timeshares would also have access to a spa, exercise equipment and indoor and outdoor pools.

How soon the timeshares would be built depends on the city's approval process. The land is already zoned for business use, but the Architectural Review Board must OK designs for the timeshares, since the project is near the Historic Area. The Planning Commission is slated to review the plans in June.

South Napa Timeshare Resort Nears Completion

2006-05-02T04:26:00.000-07:00

Napa's seemingly endless March and April rains turned hillsides lush and lawns green, but they played havoc with construction of the south county's newest luxury timeshare resort and conference center.

The Meritage Resort, in the Napa Valley Corporate Park, was slated to open by month's end. While buckets of rain put a damper on those plans, crews work furiously to finish the $60 million timeshare project.

"We're about 90 percent done," said General Manager Michael Lennon.

"We just have some site work and exterior work to be done," he said, in addition to completing a perimeter access road. "We're shooting to open by Memorial Day weekend," he said.

Guests who'd planned to use the hotel or facilities in May have been rescheduled or moved to other locations, said Lennon.

"We're helping them make new plans," he said.

The Napa Chamber of Commerce originally planned to host its annual Business Expo in Meritage's 10,500 square foot ballroom in May.

"The Expo moved to June, which is fantastic," said Lennon. "We really want to have (the event) at the hotel."

"We were of course disappointed to have to delay the Business Expo, but we're still excited to be having our event at the Meritage," said Chamber President Kate King. "The public and business community can look forward to a great Business Expo on June 14."

Even with the delays, interest remains strong in the timeshare resort.

"We're opening with over a million dollars of group business on the books," said Lennon. "It's fantastic."

Management staff for the facility has been hired and front office personnel are currently undergoing training, said Lennon.

Here comes the bride

Brides-to-be are already planning to have their wedding bells ring at the resort.

"We are getting a tremendous about of interest with our timeshare property for weddings," said Sharon Burns, director of catering. "The brides are very excited about having a winery experience at a resort."

Hotel facilities offer a private vineyard and a multitude of indoor and outdoor event spaces for receptions and other gatherings. An indoor chapel, dubbed "Our Lady of the Grapes," accommodates 60 guests.

How do you sell brides-to-be on an unfinished resort?

"We have storyboards we can show them. I go though all the details," said Burns. "The brides see it and they feel it.

"I booked today a September wedding for 150," said Burns. That particular group comes from out of town, she said.

"The majority of our interest is from the Bay Area, East Coast, New York and Chicago," she said.

Burns expects to host up to 15 weddings for the rest of 2006 and 50 to 60 weddings yearly thereafter. An average nuptial at the Meritage costs between $25,000 and $30,000, not including lodging, said Burns.

"One of the things our clients love is the option of using our four and five bedroom timeshare suites. That way the wedding party can stay together," said Burns.

A grand opening and ribbon cutting is scheduled at the Meritage for July 11.

Vino Bello timeshare property

Promising to "charm your imagination," Meritage sister property Vino Bello expects to debut 116 timeshare units in June.

The privately-held Shell Vacations Club owns the "timeshare ownership resort" Vino Bello.

Shell Regional Director of Sales and Marketing Perry Bergelt said he expects 30,000 Vino Bello visitors within the first 12 months.

The club hopes to sign new owners by offering free "mini-vacations" and product previews to select guests. 110,000 existing Shell Vacation Club "timeshare owners" are also potential visitors, said Bergelt.

After completing construction and the proper state registration processes, the Vino Bello "inventory" officially becomes part of the Shell Vacations Club and available for purchase.

Mindful of sales regulations, Bergelt was careful to point out that the timeshare resort has not done any pre-selling.

The vacation club pricing varies depending on destination resort, season, location, size of unit and length of stay, said Bergelt. Shell lifetime memberships begin at approximately $8,000 with average membership around $15,000.

Early indications are that Vino Bello will be sold in the $40,000 price range, said Bergelt.

"We anticipate an overwhelming demand," said Bergelt. "We expect to sell out our inventory; we do in all our properties."

While exact timeshare real estate buyers remain unknown, their demographics aren't. According to John Carter, Shell regional director of marketing, Shell Vacations Club owners are mostly married, ages 35 to 55 with household incomes of $80,000 a year and up.

You don't have to be an owner to enjoy a night or two at the Vino Bello. Shell spokeswoman Lynn Davis pointed out that available Vino Bello units can be rented via the Meritage Resort reservation system.

"It's a hidden secret of sorts," said Davis. "What you get is a real nice timeshare for the price of a hotel room."

A preview center at the Vino Bello site showcases the studio, one and two bedroom luxury units. Rooms include full stainless steel kitchens, granite counter tops, custom furniture, fireplaces and private balconies.

Huge Potential For Timeshare Ownership Products In Middle East

2006-05-01T04:38:00.000-07:00

Potential demand for timeshare ownership products in the Middle East is enough to support $1.2 billion of annual sales, according to a report commissioned by RCI Middle East. It is part of the world's largest holiday exchange and rental travel group, RCI Global Vacation Network. The research was presented at a symposium, "New horizons in shared ownership," held at the Burj Al Arab in Dubai yesterday.

Demand from the Middle Eastern market alone is enough to support $540 million in annual timeshare sales, and the potential for fractional sales on an annual basis is estimated to be much higher at $642 million. However, demand for fractional interest ownership is harder to quantify because the market is relatively young, says the report. Fractional ownership, which typically involves a share of a larger number of weeks rather than just one or two, were a major preference, especially amongst Kuwaitis and Egyptians. Fractional interest ownership is usually located in an upscale resort destination where whole ownership prices are extremely high and such properties are scarce.

The research shows that the concept of timeshare real estate is ideally suited to the higher income Middle Eastern national and, that many Saudi Arabian and UAE nationals are more inclined to consider buying a timeshare property over and above other options.

The study demonstrated that the entire sample — nearly 1,000 high earning nationals from Saudi Arabia, Kuwait, Iran, Egypt and the UAE — travels regularly and that holiday choices are largely based upon destinations that offer good family solutions and shopping rather than activity and adventure tourism. Food and fine dining is definitely high on the agenda for all respondents in the survey.

The research focused on four leisure travel options — family holidays, religious travel, big trips and festive travels — and family holidays was the clear leader. Since many families travel in larger groups, with extended family, friends and household staff, the larger, luxurious type of accommodation found within shared ownership developments, is well suited to their requirements, stated the report. Notably, 40 per cent of Saudi nationals take household staff away with them, and 46 per cent of UAE nationals take their parents.

Dubai and the UAE as a whole are the most popular destinations for all nationalities, especially when considering a timeshare purchase. With regard to fractional ownership, the most attractive locations were Dubai, Sharm El Shaikh and Makkah. There is also a gap in the market for religious timeshare. Although not a top tier location for timeshare, Makkah shows consistent strength among other nationalities and has considerable potential as a religious timeshare destination. The research also shows that Egyptians show a preference for staying local, in the Alexandria area as well as Sharm El Shaikh. Dubai, Makkah and Sharm El Shaikh are also the top three locations of interest for timeshare real estate.

Timeshare Resort Planned Near CW

2006-04-28T04:43:00.000-07:00

Unraveling A Bad Timeshare Purchase Is Possible

2006-04-26T09:23:00.000-07:00

Spending money wisely is important, but it's also important to undo money mistakes. Timeshare vacation properties are a good example.

Timeshares are the right to use a vacation home, often a condo at a resort, usually during a specific week each year.

We've previously examined why timeshares are a complicated purchase and are bad as real estate investments, especially if purchased new from a resort.

But what if you succumbed to the hard-sell pitch from a timeshare sales representative and bought one, then regretted it? Getting out is difficult, as many readers have found. Here's a sampling:

"Please send me anything that may be helpful to sell these timeshares. I would be happy to get my initial investment back."

"Do you have any suggestions after the damage has been done, as far as unloading this beast?"

"Help! We have a timeshare and don't know how to get rid of it. We know that we will not get our money back, but we don't know where to turn."

"I simply want out of this time share, even if it means forfeiting my initial investment and assessments paid to date."

Jeffrey Strain, operator of the Timeshare Trap Web site (www.timesharetrap.com), said he hears about those situations all the time.

"Unless the timeshare owner is in an extremely unique situation, they are going to lose a lot of money," Strain said.

There are no perfect ways to get out of a timeshare. But here are some do's and don'ts that might help.

Don't pay an upfront listing fee. If you pay an upfront commission or fee, often $400 to $700, to someone promising to sell your timeshare, you'll probably get no results.

"More often than not, these companies are in the business of taking your listing fee and nothing more," said Lisa Ann Schreier, founder of Timeshare Insights, which guides consumers through timeshare arrangements, and author of "Surviving a Timeshare Presentation ... Confessions From the Sales Table" and "Timeshare Vacations for Dummies."

Do try to sell it back. Check with your home resort to see if it will buy back the timeshare. "Resorts that are sold out or close to being sold out may make you a reasonable offer," Schreier said.

Do try renting your timeshare week. In a few years, you could make more than if you'd dumped it on the resale market at a fire-sale price. And renting it should more than make up for your annual fees, which can run about $500 per year.

Do try to sell it online. Use eBay and other timeshare listing Web sites that don't charge upfront fees but take commissions on the sale. Just realize you'll rarely get all your money back on a resale, and eBay shoppers are looking for timeshares at huge discounts.

Do try selling it yourself. Advertise in local newspapers and vacation magazines. "If you want to get the best price, you're going to have to sell it yourself and do a lot of leg work on your own," Strain said.

Don't abandon it. If you owe money on the timeshare, stopping payments probably will damage your credit rating.

Don't ask too much. Listing a timeshare above the cheapest comparable timeshare will mean it will sit unsold.

Do consider using a pro. "You can use a reseller or commissioned real estate agent that only gets paid for the sale, but you'll have to price it under market value or give a bigger commission to get rid of it fast," Strain said.

Do your homework on resellers. Check out the reseller by contacting the Better Business Bureau, state attorney general's office and consumer protection agencies in the state where the reseller is located. "If there are any complaints against the seller, walk away," Strain said.

Do try to transfer payments. If you financed the timeshare, just turn it over to someone willing to take over the remaining payments. Whatever you paid will be lost, but you will avoid any future payments and monthly fees.

In getting rid of a timeshare, you'll have to fight human nature, which wants to at least get even on a bad deal before abandoning it. Realize that won't happen on a timeshare you don't want. Dump it, take the loss and be rid of it. Holding onto it while waiting for a good price offer that may never come just makes a bad spending decision worse.

Partial Ownership & Timeshare Real Estate Financial Realities

2006-04-25T04:42:00.000-07:00

Timeshares, fractional residences, and destination clubs offer the chance to spend time in a coastal home without the responsibility of maintenance. But do they make sense financially?

Before making a decision, answering the following questions can help you choose the best second-home or timeshare option.

Do you want to make a real estate investment, or an investment in your lifestyle? If you want a real estate investment, individually purchasing a second home not a timeshare is probably your best bet.

How much time do you spend in your coastal home each year? It depends on what you’re willing to pay, but you generally get one to two weeks with a timeshare, four to 13 weeks with a fractional residence, and four to eight weeks with a club membership. (Some clubs do offer unlimited stays.)

Do you like returning to the same place, or would you rather join a destination club and try different locales each year? If you decide on a fractional or timeshare, make sure you really love the area because—unless you can swap weeks at a different timeshare through an exchange company—it’s where you’ll be vacationing forever. When choosing a destination club, look for one that offers amenities you’ll use. If you’re an avid golfer, research clubs that specialize in locations with the best courses.

How much money do you want to spend? Timeshares typically cost the least, and club memberships, the most. All three most likely require annual dues, property upkeep fees, and other charges.

As with any property, resale prices for fractionals and timeshares depend on market conditions. However, real estate values are not comparable to those of a second home. Historically, timeshare resale values have been low. Many timeshare contracts require owners to offer the unit to the resort company before trying to sell it on the open market. This helps developers protect property values for all units, new and old. Fractional residences, which have fewer owners, can often compete more directly with the second-home market. Destination club memberships cannot be resold, though most are refundable at about 80 percent of the purchase price.

The bottom line:
Average timeshare: $12,000–$14,000 per week
Fractional: $300,000–$500,000 for four to 13 weeks
Destination club: $75,000–$500,000 or more; some offer unlimited stays

Arab Timeshare Real Estate Market 'Is Worth $1BN'

2006-04-24T10:35:00.000-07:00

The timeshare research was commissioned by RCI Middle East, part of the global RCI Global Vacation Network, the largest vacation exchange and vacation timeshare organization in the world and conducted across a sample of nationalities including Saudi Arabians, Kuwaitis, Emiratis, Iranians and Egyptians.

A preview of the findings said Arab nationals purchasing various types of shared ownership, is conservatively estimated at well over $1 billion. The research will be unveiled at a major leisure real estate industry symposium in Dubai on April 29.

Vivienne Noyes-Thomas, managing director of RCI Middle East: "The main purpose of the research is to quantify the potential pan-Arab market for luxury timeshare, fractional ownership and other types of shared ownership in leisure developments in the region. There are numerous superb timeshare projects in the planning stages, but now we can qualify what the consumer is really looking for and what this product can deliver in increased returns for developers and operators."

"The research is still being finalised so it's too early to be fully precise at this stage. But this news will be welcomed by the many industry delegates already signed up for our Symposium, 'New Horizons in Shared Ownership', taking place at the Burj Al Arab," added Noyes-Thomas.

Possibly one of the most exciting of these is the new trend for what is known as religious timeshare. A number of major projects are already underway in the Islamic centres of Makkah and Madinah and the research indicates these are likely to be highly popular amongst Muslim pilgrims.

Another timeshare pattern that the study has quantified is the regional preference to holiday close to home. The domestic tourism market in Saudi Arabia is understandably vast, with nearly half the Saudi respondents expressing a preference to timeshare holiday within the Kingdom.

Marriott Profits Hit By New Timeshare Accounting Charge

2006-04-21T04:19:00.000-07:00

Marriott International, the world's largest hotel operator by revenue, on Thursday said first-quarter profits were hit by an accounting charge for timeshares, but adjusted earnings beat expectations as hotels raise room rates.

With business and leisure travel surging and hotel supply limited, Marriott boosted room rates 8 per cent in first quarter and continued to improve margins.

Few new hotels are being built in the US because of the high cost of commodities due to feverish construction in emerging markets such as China.

Marriott, whose brands include Ritz-Carlton and Renaissance, said demand for timeshare resorts continues to be robust, particularly at its properties in Las Vegas, Maui, Phuket, and St Thomas.

Timeshares have been an engine for growth for large US hotel chains in the past few years as families and the swelling population of baby boomers devote more time to leisure.

Many of Marriott's projects are sold-out or selling faster than expected, which will result in a 2 per cent decline this year in total revenue from timeshares and vacation products as inventory shrinks.

However, the company will begin selling units at Ritz-Carlton Clubs in Miami Beach, San Francisco and Kapalua, Hawaii with more projects to come in Kauai, Hawaii and Thailand.

Timeshares, part of the fast-growing "vacation ownership" business, have come under more regulatory scrutiny as the industry swells.

New accounting rules for the timeshare industry took effect in first quarter, changing the way revenues, sales costs and maintenance fees for unsold timeshare inventory are recorded.

As a result, Marriott booked a $105m non-cash charge, which dragged down first-quarter net income 55 per cent to $65m compared to last year.

Excluding charges, adjusted net income jumped 31 per cent to $167m. Quarterly revenues rose 7 per cent to $2.7bn.

Marriott projects continued strength through the year with operating income from lodging expected to rise between 31 to 35 per cent to reach $915m-$945m in 2006.

It estimates revenue per available room , or "Revpar" - a key industry indicator - will grow 8-10 per cent this year.

But insurance costs for US hotel properties have at least trebled, especially in regions with high risk of natural disaster.

Insurance for New Orleans hotels has jumped at least 10 times, yet 90 per cent of Marriott's hotel rooms in the city are open ahead of big business conventions starting in June.

Looks like timeshare real estate is on the rise again.

Georgi Bohrod & Associates Marketing Helps Timeshare Industry

2006-04-18T04:36:00.000-07:00

Georgi Bohrod’s role in changing the public perception of the timeshare industry is widely acknowledged. She has received awards for collateral material design, interactive media design and public relations campaigns. Most recently she received an ARDA (American Resort Development Association) Silver Award for Villa La Estancia (Cabo San Lucas) Home Owners Materials.

A graduate of Northwestern University, Bohrod has spent most of her professional life as a writer, and public relations and marketing professional. Her primary focus is on the travel, timeshare resort, fractional ownership, and real estate industries.

Most recently, after piloting her own company for a decade, she left to become director of marketing and public relations of Timeshare Resort Communications where she spearheaded the marketing, design and public relations campaign for the merger of Resort Communications and International Resort Management into ResortCom International, a leading financial and management services entity in San Diego. She returned to the helm of her own organization in June 2004.

Georgi Bohrod & Associates are credited with the industry brand positioning and consumer public relations campaign for the World’s Finest Timeshare Resorts, an exchange organization for fractional and private residence clubs which was recently sold to Cendant as the hub of its Registry Collection.

“We are proud of our consortium of writers, designers and creative people who can bring fresh thoughts and new looks into the timeshare industry,” said Bohrod. “Our work focuses primarily on marketing strategies, collateral materials and public relations campaigns in both the Business to Business and Consumer markets.”

Hyatt Plans To Swap Golfing For Timeshare Units

2006-04-17T10:56:00.000-07:00

Newport Beach hotel is putting down its sand wedge and picking up its timeshare shoes.

Hyatt Newport Beach's owners have submitted plans to convert the nine-hole Back Bay Golf course into a time-share development and build a 24,387-square-foot ballroom on the hotel's southwest parking lot.

The expansion will require approval from the City Council and the California Coastal Commission because the project will require an exemption from the city's coastal height-limitation code.

The proposal has been submitted to a Costa Mesa environmental consulting firm that will draft an environmental report on the project.

The city of Newport Beach's senior planner, James Campbell, said the changes could present some traffic and aesthetic concerns, but he expects the process to run smoothly.

"I don't necessarily think there is going to be any impacts, but that's why we're studying it," he said.

The timeshare resort's owner, Sunstone Hotel Investors, is hoping to construct 88 timeshare units on the space currently used for the 31-year-old golf course, with buildings of three and four stories.

The proposed 45-foot structures are 10 feet higher than what is allowed in the city's coastal zone, and Sunstone is asking the city and the Coastal Commission to change the coastal zone's boundaries to exclude part of the hotel property.

The developer also hopes to build a large ballroom facility with an 11,000-square-foot master ballroom and a two-story parking center. A new 10,000-square-foot health and beauty spa is planned for the hotel.

National Harbor To Get More Hotels, Condos, And Timeshare Units

2006-04-17T10:47:00.000-07:00

Developer Milton V. Peterson revved the engine of his silver Mercedes through the thick red mud and gravel of his $2 billion National Harbor project on the banks of the Potomac River in Prince George's County.

"Some view, huh?" Peterson said, as he extricated the car from the muck of the construction site. He pointed from a hillside of sycamore and cherry trees down to the sun sparkling on the water with the District and Alexandria skylines in the background.

After 11 years of planning and design for the largest economic development project ever in Prince George's, the first phase of National Harbor -- 4 million square feet of hotels, restaurants, retail stores and timeshare condominiums -- is under construction.

Today, Peterson, accompanied by County Executive Jack B. Johnson, plans to announce that five major hotel chains will open properties at National Harbor, in addition to the 2,000-room hotel and convention center that is already being built by Gaylord Hotels.

Peterson said the additional hotels and timeshares being announced today will include a Hampton Inn, a Residence Inn by Marriott, a 195-room Westin, a boutique hotel called Aloft run by Starwood Hotels & Resorts Worldwide Inc., and a 246-unit Fairfield Resorts timeshare property. They will bring the total number of hotel rooms at the 350-acre complex to just under 3,000.

"We want to draw the tourist, the conventioneer and the business traveler," Peterson said as he showed off the mounds of dirt, cranes and bulldozers on the site where the hotels will go. "We want to give each of those kinds of travelers something more than a bed, a bureau and a bathroom, as in a timeshare."

That prospect is causing increasing concern in the District's hospitality industry, which is already starting to feel the effects of a new, nearby competitor in Peterson's project.

Over the past three decades, Peterson, 70, has built some of the largest timeshare developments in the Washington area, including Fair Lakes and Fairfax Corner in Northern Virginia and the Washingtonian Center in Gaithersburg. He also played a major role in the revitalization of downtown Silver Spring.

The state and county have provided more than $300 million for roadway interchanges and infrastructure near the National Harbor project, just south of the new Woodrow Wilson Bridge. Peterson designed it after seeing Las Ramblas, a popular street in central Barcelona.

"I just fell in love with the feeling of Las Ramblas because it was so active and it has a center plaza," Peterson said as he showed off a 12-by-10-foot model of the project, which about 30 consultants are helping him design and build.

The model in the lobby of an office he rents on Oxon Hill Road, overlooking the project, is complete with little people walking along wide sidewalks and sitting at outdoor cafes, a maritime museum, water taxis docking at piers, condominiums with balconies, the large atrium at the Gaylord hotel, and trees that he wants to line the main avenue.

"We'll have that with kiosks where you can buy something to eat, and we'll have art shows and entertainment," Peterson said as he fussed with the miniature trees. "We're creating a city" -- a city that will compete directly with the District for hotel guests and business meetings.

Gaylord, which expects to open its hotel in March 2008, already has booked almost 600,000 room nights -- the total number of rooms booked, multiplied by the number of nights they are reserved -- Peterson said. Many groups that hold large-scale meetings book hotel rooms and convention space years in advance. Gaylord owns complexes at Opryland in Nashville, near Disney World in Kissimmee, Fla., and at the Lake Grapevine resort in Texas.

The District's largest hotel, the 1,300-room Marriott Wardman Park on Connecticut Avenue NW, has lost three events to the Gaylord -- two military-related shows and a major computer software company's meeting, according to Ed Rudzinski, the general manager at the Wardman Park. He said losing the three annual shows cost him $6 million a year in room revenue, food and beverages, and banquets.

"They're not to be taken lightly," said Joe Stern, sales director for the Grand Hyatt Washington, referring to National Harbor. The National Harbor has not had any "dramatic effect" on his hotel at this point, he said. But, as its opening gets closer, he expects to compete with the Gaylord hotel for shows that need 1,000 to 2,000 rooms. "Every dollar lost to Prince George's can be directly linked to lost tax revenue to the city," Stern said.

Luxury Residence Clubs & Timeshare Ownership Take Hold On Strip

2006-04-14T09:00:00.000-07:00

What some call the "ownership society" appears to be one characterized by home ownership, often several homes at once -- and that is what timeshare developers like Marriott Vacation Club International are banking upon. The number of multiple-home-owning families in the U.S. has doubled since 1994, and properties such as Marriott's Grand Chateau are positioned to capitalize on that trend.

Located a stone's throw from the Strip (75 E. Harmon Ave.), the Grand Chateau is still in quasi-embryonic condition. That hasn't held back demand. Since the first wing of an eventual X-form tower opened last October, some 9,000 timeshare owners have signed on for 200 available units.

When the Grand Chateau reaches 895-unit capacity (projected in 2016), Marriott will be able to accommodate approximately 46,000 timeshare owners every 51.5 weeks. Currently, the first tower is running at 90 percent occupany midweek and 98 percent on weekends. Construction on the second tower begins in March.

Timeshare properties like Grand Chateau are part of a growing trend, the so-called "luxury-residence club," whereby the affluent can divide their year between multiple residences in various chi-chi locales. Marriott's grasp extends from Bailly-Romainvilliers, near Euro-Disney, in France, to Oahu.

One competitor, Exclusive Resorts, boasts exotic getaway holdings in Costa Rica and Fiji ... and even aboard ocean liners, for those who take the phrase "a moveable feast" literally.

20 PERCENT GROWTH

Marriott has been in the vacation-timeshare game since 1984, when it opened Marriott's Monarch, on Hilton Head Island, S.C. Business was evidently so good that five other Marriott Vacation Club resorts have since sprung up on Hilton Head alone. In the last decade, Marriott Vacation Clubs has seen year upon year of 20 percent growth. Half of that business comes from extant Vacation Club timeshare owners adding additional properties or referring friends. Some Vacation Club members own at least four timeshares apiece.

Vegas proved a tough nut to crack, however. According to Edward Kinney, Marriott's vice president for corporate affairs and brand awareness, it took the company 10 years to find the right location. The eventual site, just around the corner from the Aladdin Resort & Casino, "was a home run for us," leading the company's portfolio for sales by a considerable margin, Kinney said. It's also one of the first high-rise vacation clubs, a decision mandated by the Grand Chateau's 3.2-acre footprint.

Stays at the Grand Chateau can be "floated" throughout the year, depending on demand. (Translation: Unless you're already a member with multiple timeshares to your name, don't expect to get dibs on New Year's Eve.) During a slow period, $16,000 buys you a week in a one-bedroom condo, while $75,000 nabs you a three-bedroom. That fee also purchases bellman service and valet parking for one of the tower's 900 garage spaces.

Although the units tend to be long and narrow, and tightly packed with furniture, they do not lack for amenities. Sony supplies alarm clocks, DVD players and multiple TV sets -- including 42-inch, wall-mounted plasma displays -- for each condo. Granite countertops and stainless-steel appliances are becoming standard, and Marriott is in the process of upgrading the bedding over the next year and a half. "We have essentially taken over every textile factory there is," said Kinney of the 800,000 sheet-set order.

Hilton Grand Vacations Company Announces Official Grand Opening of Hilton Grand Vacations Club at Waikoloa Beach Timeshare Resort

2006-04-14T08:52:00.000-07:00

Hilton Grand Vacations Company, LLC (HGVC) today announced the official grand opening of the 120 timeshare unit Hilton Grand Vacations Club at Waikoloa Beach Resort in Waikoloa, Hawaii. A spectacular celebration marked the debut of the 30th vacation timeshare ownership property in the HGVC resort portfolio.

Incorporating a "Taste of the Big Island" theme throughout the gala event, the HGVClub opened in grand style as the newest addition to the renowned Waikoloa Beach Resort. More than 200 invited guests and local dignitaries joined Hilton executives and management team members for the celebration. Featured speakers included Antoine Dagot, President and CEO of HGVC; Mark Wang, HGVC Senior Vice President - Hawaii; and T.J. Oesterling, Regional Director of HGVC Resort Operations, Hawaii.

This project has been met with an enthusiastic response from customers throughout the world, and our sales of timeshare intervals remain on target."

Mr. Dagot further emphasized the significance of the new timeshare resort as he noted, "Today, the HGVC collection of timeshare resorts has been enhanced with an extraordinary new property in Hawaii. The Big Island provides an ideal location for the newest Hilton Grand Vacations Club resort. Throughout the past six years, we have progressively strengthened Hilton's leadership presence in luxury timeshare development in Hawaii. With the debut of this spectacular new resort, the tremendous success of two thriving HGV Club destinations at the Hilton we truly regard Hawaii as one of our mega-markets. We look forward to fulfilling our Club Members' expectations of returning to this magnificent region for generations to come."

The new HGVClub property is superbly situated within the Waikoloa Beach Resort, near the Hilton Waikoloa Village and is adjacent to the HGVClub-affiliated Bay Club resort. Panoramic views of two championship golf courses complement the spacious two-bedroom condominium-style accommodations. Upscale tropical decor is incorporated throughout each casually elegant suite. In addition to two private bedrooms, each unit (accommodating up to six guests) is complete with living and dining areas, and a full kitchen equipped with refrigerator, microwave, range/oven, blender, toaster, rice cooker, coffee maker, dishwasher, and a selection of cookware, glassware, and dinnerware. Color televisions with cable/DVD are located in both bedrooms and the living room; additional amenities include high-speed, wireless Internet access; a CD player, AM/FM clock radio; washer and dryer, iron and ironing board.

On-property amenities include a heated swimming pool with children's area; whirlpool spa; a pool bar; and picnic areas with barbeque grills. Additionally, timeshare owners, HGVClub Members, and guests staying at the resort have access to the extensive recreational amenities at the neighboring Hilton Waikoloa Village. Complimentary shuttle service is also provided to the Waikoloa Beach Resort, offering abundant facilities and amenities including an enticing array of restaurants, boutiques, beaches, and water recreation. Another great opportunity for some timeshare real estate.

Hyatt Timeshare Resorts and Cranium(R) Announce Exclusive Partnership

2006-04-13T09:17:00.000-07:00

Hyatt Timeshare Resorts today launched the newest addition to its portfolio of family-friendly offerings with an exclusive partnership with Cranium, Inc., the company that reinvented the board game category in 1998 with the launch of Cranium® and a pledge to give everybody the chance to shine. Together, Hyatt and Cranium are partnering to offer Hyatt guests full access to a Cranium Game Library plus the time to play together during "Fun Family Hour" at Hyatt's 18 stunning resort properties in the continental U.S., Hawaii and the Caribbean. Cranium games also will be available for advanced purchase through the new Hyatt E-Concierge, a service that allows families to plan vacation itineraries weeks in advance of their stay. Additionally, families will be greeted with a signature Cranium welcome gift throughout the summer months.

The Cranium partnership complements Hyatt Timeshare Resorts' already established menu of family-friendly amenities such as extraordinarily designed pools, Camp Hyatt and action-packed activities indigenous to each timeshare resort area. In an increasingly digital age, this partnership emphasizes opportunities for families to take the time to unplug, unwind and engage in fun together.

"At every Hyatt Timeshare Resort families can participate in creative, fun and culturally relevant activities such as etching silver jewelry with the Hopi Tribe at the Hyatt Regency Scottsdale Resort & Spa or surfing lessons in Hyatt Regency Huntington Beach," explains Jeff Flater, assistant vice president, Hyatt Timeshare Resort Marketing. "Cranium's emphasis on laughter and togetherness blends well with Hyatt Resorts goal of encouraging family interaction on vacation."

Timeshare Development Proposed

2006-04-12T06:50:00.000-07:00

Bluegreen Corporation wants to build a 76-unit timeshare development at Treasure Island resort, the Lake Delton plan commission and village board heard Monday.

Village engineer John Langhans recommended approving the conceptual plans for the development, provided issues with watermains, easements, new roads, and parking and internal signage are taken care of.

"We are recommending that the water main shall be extended along Clara Avenue to serve this development. So an extension of the Clara Avenue water main is to extend to the east of the proposed access drive to the property line. The developers have proposed the interconnection of the private Treasure Island main to the existing private main to connect that to this proposed Bluegreen system," Langhans said.

However, due to differing interpretations of municipal codes, Langhans said connecting the private main to the proposed development is not allowed.

"Both myself and the developer's consultants are trying to work with the regulatory agencies Department of Commerce and PSC, as well as DNR to find out if this is actually a legal situation," Langhans said. "Future determination on the feasibility of this shall be made pending code clarification from the regulators."

Langhans told the board the shared water main issue may not be a problem at all because the Bluegreen parcel could use a separate main. "Then this issue goes away," Langhans said.

The existing 40 foot access easement off Clara Avenue has been looked at, and Langhans said it would need to be expanded to 66 feet so that the easement could connect Clara Avenue and Highway 12. "All of that would be on currently Mattei-owned property," he said.

The easement would allow for shared access and possibly a future right of way between Clara Avenue and Highway 12, Langhans said.

Langhans also recommended a new roadway be installed from the existing Treasure Island parking lot to the proposed shared access for Bluegreen off Clara Avenue.

Internal signs will need to be developed by Bluegreen and Treasure Island to instruct guests where and how to exit the property on Clara Avenue. The main exit for the proposed development would be off Clara Avenue, so as to not further congest Highway 12.

Langhans asked that the proposed Bluegreen parking lot be revised so it would not encroach onto the proposed easement. "It looks like that can be easily accommodated," he said.

A three-party development agreement will be necessary to address development issues with the project, Langhans said.

Since this project is only at the conceptual stage, further plans would need to be submitted for final approval.

Carter Arndt, an architect with ADCI also spoke at the plan commission meeting. He told the commission Bluegreen, which is a vacation timeshare company, was looking forward to coming to Lake Delton. Bluegreen is not new to the area, as one of its timeshare developments, Christmas Mountain Village, is off County H in Dellona.

Arndt told the commission he feels the plans submitted to the village are consistent with Langhans' recommendations and concerns.

Village trustee and commission member Jeff Hynum asked Langhans about the impact of the traffic on Clara Avenue. Langhans said right now, Clara Avenue already gets quite a bit of traffic from Treasure Island, and he doesn't think an exit on Clara Avenue would be a problem. Down the road, Langhans said, traffic issues on Clara Avenue may need to be revisited.

Hynum said, "If we recommend it to them (Bluegreen) that we would like them going out the back rather than out the front because it would impact Highway 12, that same impact could have an impact on Clara Avenue - not necessarily traffic wise but road widths, road quality-wise."

Village trustee and commission member Tom Diehl said it was like Noah's Ark, with one entrance on Highway 12 and two exits not on Highway 12. Internal signs, Diehl said, would direct traffic to where it needed to be.

Langhans said he did not recommend a traffic impact analysis for this particular development.

Hynum asked Langhans if he had ever driven on Clara Avenue at night, to which Langhans said he didn't think he had.

The commission approved recommendation to the village board.

Siegel's Vegas Timeshare Affiliates With Interval International

2006-04-11T07:18:00.000-07:00

Orlando timeshare developer David Siegel's Las Vegas project, the Planet Hollywood Towers by Westgate, has come to an exclusive agreement with Interval International to provide accommodation exchanges at other timeshare resorts.

The 50-story condominium tower will include more than 1,200 units ranging in size from one to four bedrooms. It is expected to open in late 2007. Meeting and convention space will total 35,000 square feet.

The Towers will be connected to the Planet Hollywood Resort & Casino, which includes 12 restaurants and a full-service mall with more than 140 stores.

Westgate Resorts is a subsidiary of Orlando-based Central Florida Investments Inc., which operates and manages timeshare properties in Central Florida and other parts of the United States. The company is the third-largest timeshare company in the world with more than 350,000 owners.

Interval International services nearly 1.8 million members with a global network of more than 2,000 affiliated resorts in more than 75 countries, and has 28 offices in 19 countries. Headquartered in Miami, Interval is part of IAC/InterActive Corp., which also owns Ask.com, Citysearch, Entertainment Publications, HSN, LendingTree and Ticketmaster.

Timeshare Ordinance OK’d

2006-04-10T04:32:00.000-07:00

There aren’t any timeshares at Richland Chambers Reservoir yet, but members of the Navarro County Lake Planning and Zoning Commission weren’t waiting.

The commission approved a new ordinance governing timeshares and other fractional uses, during their monthly meeting Thursday at the courthouse.

P&Z vice-chair Barbara Moe, leading the meeting in the absence of chairman Terry Jacobson, said there is nothing to stop four or five people from going together and jointly purchasing a home and mapping out when each could use it “and if we did anything about that we ... could be infringing on their rights.”

But when it comes to a timeshare situation where it is for commercial use, it’s another story, she said.

P&Z member David Martin noted that there is a key difference between the two situations, the group buy and timeshares.

“In a timeshare you are purchasing time not a real estate interest,” Martin said. “In the other case it’s a real estate deal ... there’s a property interest.”

Moe said the ordinance passed at the meeting spells out what can and cannot be done, like actually having a timeshare project. The ordinance prevents that type of business from being in a residential area, for example.

With the ordinance in place, if a situation arises that is out of line, it gives a neighborhood or a homeowners association a leg to stand on. They can also pursue civil litigation in regards to deed restriction violations, Moe said.

Lake area developer Jerry Jackson said he had never considered the timeshare situation rising, but was glad the commission had.

“It seems like a good place to start,” Jackson said of the ordinance. “I’m glad there’s enough timeshare interest (in the lake) that we’re having to talk about this.”

Timeshare Roads Point To Wolf Creek Ski Development

2006-04-06T04:55:00.000-07:00

It would be the largest ski resort development in Colorado, and it just inched closer to becoming a reality, despite the outcries from environmentalists and even the timeshare owners of the nearby ski area.

The Denver Post reports that on Monday, the Forest Service approved two short access roads to reach the proposed Village at Wolf Creek. The massive timeshare development is planned for southwest Colorado near the slopes of the no-frills Wolf Creek Ski Area, whose owners have joined a chorus of environmentalists in blasting the project.

Texas billionaire Billy Joe “Red” McCombs and business partner Bob Honts are planning a resort village that could bring 10,000 new (occasional) residents to this quiet area on the eastern flank of the Continental Divide. The Village at Wolf Creek would have up to 2,172 residential or timeshare units and 222,100 square feet of commercial space. Now, the Post reports, Mineral County has fewer than 1,000 residents.

Rio Grande National Forest Supervisor Peter Clark said the law required his agency to allow the timeshare owners access to their private inholdings surrounded by National Forest.

“It was never an option for me to determine not to do it,” he said.

Opponents are crying foul. The conservation group Colorado Wild is calling for an investigation of the approval process by the Agriculture Department’s inspector general. A state senator and state representative are calling for an investigation, too. They’ve accused the timeshare developers of using political influence to sway the deal.

Clark said he hadn’t had any attempts from above to influence his decision, despite documents that show Agriculture Undersecretary Mark Rey, who oversees the Forest Service, met frequently with proponents, and that his deputy, David Tenny, followed the progress of the development.

The Forest Service has given the green light to a new road connecting the timeshare site to the highway, and an extension of a road through the ski area for emergency vehicles. Developers say the new roads will cost upwards of $8 million. Developers are suing the ski area to determine who will pay for them.

“We have always acknowledged the private landowners' need to access their property,” Wolf Creek Ski Area spokeswoman Michelle Ames said in a statement. “We continue to be disappointed with the timeshare developer's constant attacks on the ski area and (its owners) the Pitcher family. This includes the well-funded Texas developers' continued attempts to try and force the ski area to foot the bill for their massive timeshare project.”

Verscace Mansion To Add Timeshares

2006-04-04T04:37:00.000-07:00

The late Gianni Versace's mansion along Miami's South Beach may be converted to include luxury timeshare units, it was reported Friday.

Peter Loftin bought the property for $19 million in 2000, three years after the fashion icon was shot to death on the front stairs by Andrew Cunanan.

Loftin turned the 20,000-square-foot mansion into a luxury hotel that costs $35,000 -- or $1,000 a night -- to join.

Kevin Osterhaus manages the mansion for Destination Club Management, which is considering a plan to build timeshare suites near the pool and courtyard, the Miami Herald reported.

Osterhaus said the plan would not alter Versace's original design of the estate. Although the mansion is along Miami Beach's historic district, that particular building is not considered to be historic.

The 12-bedroom, 13-bath home was built in 1930 to look like the 1510 residence of a son of Christopher Columbus, The Herald said. Versace bought the rundown building in 1992 and gutted it. Do you think it is time for Verscace Timeshare Real Estate?

Morritt’s Timeshare Resort & Lloyds In Arbitration

2006-04-03T04:26:00.000-07:00

Morritt’s Tortuga Timeshare Club is in arbitration with Lloyds of London in an attempt to finally settle the resort’s Hurricane Ivan insurance claim.

It’s a last–ditch attempt to collect money its management says is owed so that rebuilding can be completed.

The timeshare resort suffered $20 million in damages in the 2004 storm. Insurer Lloyd’s has already paid out about $3 million, but Morritt’s wants the remainder of the settlement, which will amount to less than the full $20 million.

“We’re trying to firm up and assess the full extent of the timeshare resort damage,” said Steve Minotakis, chairman of the board of Morritt’s Tortuga Club and the resort.

The club’s website gives timeshare owners an update of the arbitration process.

At issue is “our estimates versus the insurance company’s on the extent of damage and what cost was assigned in arriving at the figures of our claim. As we have previously stated, we are confident we have done a diligent task of documenting the damage and are moving along with the process of arbitration and look to do so timely,” the website states.

In the meantime, timeshare owners at Morritt’s can be assured that the property is insured and will continue to be insured, Mr. Minotakis said.

“There is continued coverage and there will be renewed coverage in the future. We’re looking to resolve this settlement in a timely manner.

“Our goal is to get the people back down here and enjoy their piece of paradise.”

There are 10,000 people with 99–year leases at Morritt’s. Additional units being built on site mean that more timeshares will be available for sale.

The absence of an insurance settlement hasn’t stopped redevelopment at the East End resort.

The Grand and Tortuga Club units opened in September and the Oceanfront Wood Building (4002) will be ready for bookings by mid–April.

The foundation of the 4001 building, which is the smaller seaside building, is in process, footings have been placed and concrete is being poured. It is slated to be completed in early 2007.

Mr. Minotakis said the resort is working around turtle season while building the dock.

“We’re working with the Department of Environment to ensure we have the right amount of protection for the turtles,” he said.

While guests are waiting for the restaurant and bar to be rebuilt and opened, they can dine at Ivan’s.

“Once the restaurant opens we’ll turn Ivan’s into something else like a disco, lounge or club,” Mr. Minotakis said. It was timeshare resort owner David Morritt’s idea to name the room Ivan’s.

Occupancy at the resort is running at about 95 per cent, which is close to the occupancy rates before Hurricane Ivan. There are 137 units available. Some owners lost their timeshare units in the storm and are being assigned to other, similar units.

Most of the timeshare owners appear happy with the rebuilding, Mr. Minotakis said.

Only two have hired lawyers to request certain information from the timeshare resort.

They are asking for financial statements, an opportunity to inspect books, a copy of management services agreements, a copy of the insurance policy at the time of Ivan and details of construction plans.

While he can’t comment on possible pending litigation, Mr. Minotakis said the resort is making an effort to answer all questions.

Many timeshare owners have questioned why unspent maintenance fees from the prior years of 2005 and 2004, when the resort was partially closed, were not used to offset any maintenance fee increases estimated for the 2006 operating year.

Mr. Minotakis explained that although prior year maintenance fees were not fully expended and the by–laws call for application of any remaining funds to the subsequent year budget, the 2006 budgets were prepared as if no excess funds were available for application to be conservative pending the settlement of the insurance claim and resolution of some related items (i.e. expected reimbursement).

The excess funds from the prior years are being held in operating, reserve and special assessment accounts. It is most likely that the preparation of the 2007 budget, which will be concluded in mid to late September of this year, will also be prepared similarly, not assuming any excess funds from prior years until the insurance claim is resolved.

Freeport Workers Faring Well After Taking Over Timeshare Hotel

2006-03-31T04:47:00.000-08:00

Twelve employees of the Coral Beach Hotel in Freeport are said to be doing well since taking over the day-to-day operations of the small timeshare resort almost six months ago.

Second Vice president of the Bahamas Hotel Catering and Allied Workers Union, Lloyd Cooper, told The Bahama Journal on Wednesday that the employees, who were initially in danger of losing their jobs but are now their own bosses, have proven they can do the job for themselves.

"They are doing well…They are in charge of the timeshare grounds, they are in charge of the rooms and they have housemen and security guards," Mr. Cooper said.

"The former employees of Coral Beach, who are now owners of the timeshare resort, now have their own destiny; they have their own bank account and everything else. They are the first so far [to] lead the way which I think is a major accomplishment."

Mr. Cooper said all that remains is for the heads of agreement to be signed by the employees and the timeshare resort’s Chairman of the Board of Directors, Bruno Rufa. Mr. Cooper said Mr. Rufa, who resides in Canada, is expected to be in Grand Bahama next month for the signing.

According to Mr. Cooper, when he and Mr. Rufa last communicated, the chairman was very pleased with the way the employees were managing the timeshare resort.

Mr. Cooper said this unique situation "puts the responsibility on the employees" and "it shows that they can do for themselves… and do it better [than anyone else]."

Owners of the timeshare hotel were able to avoid a potentially explosive situation in September 2005 by reaching what hotel union members called, "a very good settlement."

The workers had been laid off after management claimed the timeshare hotel was losing money. At the time, employees were awarded their severance pay based on their years of service in accordance with the 2001 Industrial Relations Act, according to Mr. Cooper.

But after union leaders met with Mr. Rufa, the employees were able to retain their severance pay, in addition to getting their jobs back.

According to the agreement, the company would not replace the employees either by new employees or by sub-contractors and the agreement also provided for the employees to be able to get salaries in line with what they previously received.

Most of the employees have worked for the timeshare hotel for a minimum of eight to 24 years. Presently, David Bain, a security guard, acts as a manger for the timeshare resort.

UnderSea Resort Sells The First 100 Weeks Of Timeshare Ownership

2006-03-30T04:45:00.000-08:00

The Cala Corporation (Pink Sheets:CCAA), dba UnderSea Resort is pleased to announce that the first 100 weeks of timeshare ownership have been reserved by prospective buyers. The Company must sell an additional 2,900 weeks before lenders commit to funding the $400 million project.

The average life price per week is $50,000 for a 1,000 square foot timeshare unit, and $100,000 for a 2,000 or 3,000 square foot unit. Therefore, each location has an inventory of approximate 14,500 or about $725 million. The company is in discussions with world class destinations such as San Francisco, Miami, Cancun, Cozumel, Cabo San Lucas, Hawaii, Monte Carlo, Monaco and Venice, Italy.

The Company believes that pre-selling the mandatory 3,000 timeshare weeks, which will translate into $150M, is feasible because most of the buyers will purchase several weeks or the entire 52 weeks. The reservation funds will be deposited into escrow with Chicago Title in Escondido, California. It is important to point out that The Chicago Title Escondido location processes approximately 50,000 such transactions per month. This office specializes in closing such escrows.
Here comes a new timeshare real estate event.

Sale Of Royal Oasis A Timeshare Resort Again Reported To Be Imminent

2006-03-29T04:43:00.000-08:00

The sale of the Crowne Plaza Golf and timeshare Resort and Casino at Royal Oasis again is reported to be imminent, but government remains tight-lipped as negotiations move forward.

But according to a reliable source, the only thing standing in the way of the sale is a difference of $4 million between the proposed offer of $25 million and the $29 million that the owners of the resort are requesting.

The sale of the resort to Harcourt Developments, a property construction and management company bas-ed in Dublin, Ireland, was pending nearly a year ago; however, that deal fell through some weeks later. The source said the Irish-based group is still reported to be the timeshare resort buyer.

Also according to the source, the plan is to have Westgate Resorts, the third-largest timeshare company in the world and the largest privately held corporation in the Central Florida area, operate the resort property while Planet Hollywood Resort and Casino will run the casino.

The Royal Oasis, the second largest timeshare resort in Grand Bahama, shut down in September of 2004 and government has been looking for a buyer for almost that long.

Driftwood Freeport Limited, owners of the resort, said the closure and the lay offs of some 1,200 employees were due to heavy losses incurred from Hurricane Frances.

The sale of the resort to Harcourt Developments, a property construction and management company based in Dublin, Ireland, was pending nearly a year ago; however, that deal fell through some weeks later.

The source said the Irish-based group is still reported to be the buyer, but Westgate will run the property.

In May 2005, the government paid out an unprecedented $5 million of the $6.12 million to 900 displaced workers owed by the resort.

The remaining $1.12 million, which government said needs the approval of Parliament, was expected to have been paid "in short order," but is still outstanding.

Meanwhile, scores of resort timeshare owners, who fear their monies are lost, are up in arms over the dead silence they say they have been receiving from both the timeshare owners and government regarding their assets. Several timeshare owners are looking into the likelihood of a class action suit.

But, according to the source, Westgate has agreed to pick up the disgruntled timeshare owners' outstanding points and include them in its portfolio.

David A. Siegel is founder, president and CEO of Westgate Resorts, which is based in Florida and has over 350,000 timeshare owners.

Mr. Siegel and Robert Earl, co-chairman of Planet Hollywood Resort and Casino, announced last April they were partnering to develop a 52-storey luxury vacation timeshare ownership tower directly connected to the Planet Hollywood Resort and Casino complex on the world famous Las Vegas Strip.

The closure of the Royal Oasis resort has had a spiralling effect on the unemployment rate, the economy and the tourism market in the nation's second city.

In an exclusive interview with The Freeport News three weeks ago, Tourism Minister Obie Wilchcombe confirmed government is in negotiation with "new players" and that the new group has an international reputation.

While he declined to name the new players before the deal was sealed, the minister added that government was looking for players with "stickability" and one who could build Grand Bahama much like Atlantis did for Paradise Island.

If the deal for the Royal Oasis timeshare Resort goes through, the source noted, it will mean a huge win-win situation for everyone involved.

Tennessee-Based Company To Bring Timeshare and Fractionals to People’s Republic of China

2006-03-28T04:01:00.000-08:00

Grandview of China, LLC (McMinnville, TN) has announced it has entered into an exclusive agreement with Shenyang Sing Feng Da Tour Consultation and Service Ltd. (Shenyang, Liaoning Province, People’s Republic of China) to provide its expertise in the establishment and development of timesharing and fractional property laws, oversight, enforcement, licensing, training as well as selling, managing and developing vacation exchange trade to Liaoning Province.

The agreement includes 422 timeshare resorts located in Beijing, Dalin, Dandong, Benxi City, Shenyang, Shanghai and other cities in Southern China. More than half are Five and Four-Star Resorts. All in all there are 75,000 Exchange Weeks covered in the exclusive agreement. Beijing is the site of the 2008 Olympics. Shenyang is host to the International Horticulture Expo from May until October 2006.

In addition to providing all training and continuing education necessary to assure that Chinese personnel meet or exceed United States and international standards, Grandview of China will also offer timeshare travel packages under the name Grandview Dream Packages.

Brian Kemp, COO, Grandview, with the counsel of Gray Sasser (son of the former U.S. Ambassador to China, Jim Sasser) and Joe Looney (former Legal Council for Fairfield Communities), drafted the laws enacted on March 20 throughout China for the purpose of regulating timeshare fractional and vacation club offerings for all provinces in the People’s Republic of China.

“Although China had enacted Real Property Law recently, nothing had been codified in the timesharing/fractional sector. Now that it has our industry may move forward with providing the best vacation products possible to the Chinese public as well as tourists and visitors from abroad,” said Kemp. “During my recent visit it was clear that the people of China are open for travel from all nations; they are resolute in their desire to share the beauty and hospitality found only in China. Grandview of China is extremely proud to be the exclusive provider of timeshare, fractional and exchange services for this exotic and wonderful destination.”

Sen. Donna Kim Does the Unthinkable To Timeshare Owners

2006-03-27T04:19:00.000-08:00

History was made at the state Senate Tourism committee yesterday, when the committee chair Donna Mercado Kim held a hearing on HB 1026, which sought to raise the current TAT on timeshare owners by as much as 4 times the present rate.

More than 1,400 emails in opposition from mainland owners of Hawaii timeshares, 49 testimonies of local owners of timeshares in opposition and several individual timeshare owners who showed up, all testified against the bill and the timeshare increase.

The only support for the measure came from testimony of two unions -- the ILWU and the HGEA, whose representatives did not show up. They were instrumental in the bill’s movement because of their continuing opposition to major hotel chains in Hawaii who continue to market and expand timeshare units along with their hotel units.

What made the hearing unusual was that Lowell Kalapa of the Tax Foundation of Hawaii and committee member Sen. Sam Slom, R-Hawaii Kai, reviewed the origin in 1998 of the TAT tax being applied to timeshare owners in the first place. Since the TAT is the tax applied to rentals, the argument then was that it was unfair, illogical and unconstitutional to apply to timeshare owners.

These property owners already pay real property taxes, General Excise Tax and maintenance fees, and since 1998, they have had to pay the TAT as well as if they were renting the property that they own. By increasing this tax, the situation would be made worse, affecting predominantly local owners of Hawaii properties who were in fact investing for themselves and their families in Hawaii.

After the lengthy discussion, Kim said had she been in the Senate in 1998, she would have joined Slom in opposition to this as an unfair tax. She then discussed the committee options: to hold the bill, to amend the bill, to pass the bill with a blank amount as it was presented, or to reduce the amount of the current tax. But instead, she led the effort to do the unthinkable -- repeal the tax and the bad law altogether.

The TAT would not apply to timeshare ownership -- and the committee voted 4 to 0 to do just that, including Senators Kim, Slom, Clarence Nishihara and Wil Espero.

The amended bill next goes to the Senate Ways and Means Committee, and if approved, goes to the Senate floor. The actual tax repeal faces an uncertain future if it returns to the state House, but it was a noteworthy event and an achievement for taxpayers rarely seen in the state Legislature.

Peter Kugler Timeshare Real Estate Developer Dies in US Unexpectedly

2006-03-26T06:17:00.000-08:00

Paradise Island timeshare developer of the award-winning, luxury timeshare properties, the Paradise Harbour Club and Marina and the Paradise Island Beach Club, Hans Peter Kugler, died unexpectedly Monday, March 20, during a business trip to North Carolina at age 65.

A leader in the timeshare industry in The Bahamas for decades, Mr Kugler was also the developer of the luxury condominiums Shangri-La, Noble House and The Residence Club all located on Paradise Island.

He was a distinguished member of the business community and sat on the board of the Bahamas Timeshare Council, The Nassau/Paradise Island Promotion Board, the Paradise Island Tourism Association, and was a member of the Bahamas Hotel Association and a honorary member of the East Nassau Rotary Club. Born on July 5th, 1940 in Hildesheim, Germany, Peter Kugler began his career in the early sixties in Public Relations and Marketing in Hamburg. After two years, he began his own advertising company, K&K Werbeagentur, which he later sold to an associate and still exists today.

Mr Kugler, began his long association with the boating world by representing a German company that sold German Coastguard patrol boats to the governments of Kuwait, Bahrain and Abudabi.

In 1978, Peter Kugler came to the Bahamas for the first time. He bought a condominium on Paradise Island and made the island his permanent home.

Mr. Kugler began buying properties on the south-eastern end of the island in the early 1980's.

Together with several local businessmen, he developed the Paradise Island Beach Club timeshare resort in 1983. He was also one of the lead investors in Vacations in Paradise (VIP) the timeshare marketing and management company for the Paradise Island Beach Club which was established the same year.

After the success of the Paradise Island Beach Club, Mr. Kugler began developing a succession of landmark properties - Shangri- La in 1986 and 1987, Noble House in 1988 and 1989, and the Residence Club in 1998 and 1999.

In 1991, he developed the Paradise Harbour Club and Marina, one of the few timeshare resorts on Paradise Island to offer a 22-slip, well-protected marina as well as The Columbus Tavern, which serves Bahamian and continental food to both guests and the general public. Say good bye to a great timeshare real estate developer.

Investor Looks For Help In Dumping Timeshares

2006-03-24T04:21:00.000-08:00

Q: I invested $5,000 each in two resort timeshare units some years back. Maintenance cost has gradually increased. This year it is $539 per unit. I have invested more than $1,000 with several companies during the past years to try to sell the units, to no avail. When I was younger, I got good use from the units by family members or renting. Now I have to try to rent on my own, which I'm not so good at. I'm nearing retirement, and I must get this off my shoulders. Do I forfeit? If so, how? Or is there another alternative?

A: Ask the developer or the management company if they'll take the timeshares back. Advertise online at EZ Timeshare or in newspapers down there, perhaps a classified ad that says "cost $5,000, will sell for $500." And as a last resort (no pun intended), consult your own lawyer about what would happen if you simply stopped paying the management fees, property taxes, or whatever is required with your particular setup. Often there are not really any consequences.

The timeshare Real Estate Industry Has Supported Regulatory Measures

2006-03-23T04:28:00.000-08:00

The timeshare industry has supported regulatory measures on both the state and federal level that enforce proper sales standards and practices. ARDA takes a hard line with members who do not comply with our industry’s stringent marketing standards or those who fail to comply with state and federal laws that are in place.

The National Do Not Call Registry, which opened for consumer registrations in June 2003, initially created much discussion and some concern within our industry. For decades, timeshare companies had used phone sales as an integral element of their sales strategy.

In recent years, however, many companies have broadened their marketing mix, incorporating a sophisticated blend of modern tools that require less emphasis on traditional telemarketing.

That was in June 2003—today, some 85 million Americans are on the National Do Not Call Registry that bars unsolicited phone calls. Although initially concerned with this new federal law, the industry immediately complied and found better, more creative, consumer-friendly methods of reaching prospective owners. Savvy entrepreneurs also developed award-winning tools for helping timeshare industry players adhere to the regulatory requirements.

Innovative timeshare marketing practices (including exposure in retail outlets and the Internet), advertising, and public relations have also proven to be highly successful. Consumers value messages received in a welcoming manner rather than through unsolicited phone calls to their homes.

But most importantly, the value of timeshare sells itself, making it one of the fastest-growing sectors of the hospitality industry. Vacation ownership is offered through valuable and flexible products, meeting the needs of all demographics. And timeshare sales have never been stronger.

In the nearly three years since Do Not Call went into effect, the timeshare industry has grown by leaps and bounds. In 2004, the first full year, U.S. timeshare sales totaled $7.8 billion, which is a dramatic increase above the 2003 sales of $6.48 billion. As of January 1, 2005, there were 1,688 vacation ownership resorts in the United States, and more than 3.87 million families who own a U.S. timeshare, up from 3.4 million in 2003 and 3 million in 2002.

The timeshare industry has evolved and adapted to comply with regulation and meet the needs of consumers—further testament to the ingenuity, flexibility, drive, and focus that is bred into the professionals we cultivate.

The value of vacation timeshare ownership is now well known, and I am confident that thanks to our know-how and determination, our timeshare industry’s growth will only continue at the rapid pace we have enjoyed.

Silverleaf Resorts, Inc. Opens Its First Off-Site Sales Showroom; Second Sales Showroom Scheduled to Open in August 2006

2006-03-22T03:28:00.000-08:00

Silverleaf Resorts, Inc. (AMEX:SVL) today announced it has opened its first off-site timeshare sales showroom. This facility is centrally located in the Dallas/Fort Worth Metroplex in Irving, Texas.

Silverleaf President Sharon K. Brayfield commented, "We have received a very positive initial response to the opening of our Dallas/Fort Worth off-site sales showroom. Our sales have been historically conducted primarily through the on-site sales centers located at our resorts. This process required potential new members to visit one of our resorts to learn the benefits of our timeshare vacation ownership products. Our new Dallas/Fort Worth showroom allows us to offer new prospects in this marketplace a convenient off-site alternative to experience the amenities each of our 13 resorts affords without leaving their own community. We believe that we will also see an increase in our current Friends Plus member referral program in Dallas/Fort Worth because of the access and convenience a visit to the showroom provides."

In addition to the opening of its Dallas/Fort Worth sales showroom, Silverleaf announced plans to open a second off-site sales showroom in Lombard, Illinois, a suburb of Chicago. The anticipated opening for this showroom is August 2006. Silverleaf has been serving the Illinois market since 1998, when its Fox River Resort was opened 75 miles west of Chicago. "By placing our second off-site sales showroom in Chicago, we can more efficiently expose the greater Chicago market -- with a population of over 10 million -- to the quality and services of our vacation resorts," Ms. Brayfield noted.

The sales showrooms in Dallas/Fort Worth and Chicago will each be operated under the name of "Silverleaf Vacation Store." Each will offer prospective members an interactive experience of Silverleaf's resorts, including a photo gallery and film presentation profiling each of Silverleaf's 13 current timeshare resorts. The two showrooms, which range from 15,000 to 16,000 square feet in size are estimated to cost approximately $1.2 million each to construct and will each employ approximately 30 to 40 sales personnel.

Ms. Brayfield said, "We view off-site timeshare sales showrooms as a key part of our strategic growth plan for the future. According to our projections, following an initial start-up period each showroom can generate between $10 million to $12 million in annual timeshare sales to new members."

Based in Dallas, Texas, Silverleaf Resorts, Inc. currently owns and operates 13 timeshare resorts in various stages of development. Silverleaf resorts offer a wide array of country club-like amenities, such as golf, swimming, horseback riding, boating, and many organized activities for children and adults.