Hotel & Motel Management - March 3, 2008 - (Page 38) 38 Timeshare H&MM March 3, 2007 | HotelMotel.com www.HotelMotel.com/digital_edition VACATION-OWNERSHIP UPDATE Vacation-ownership still strong in 2008 IN THE details Vacation-ownership still hot Timeshare companies are continuing with plans to build additional resorts despite uncertainty in the economy. Strong demand for timeshare vacations is driving expansion in the industry. Sales are up Costs are moderating Labor costs under control ON time Marriott Vacation Club International announced the development and sales start of Marriott’s Oceana Palms The Palm Beaches on Singer Island in Riviera Beach, Fla. The resort is proposed to include 169 two-bedroom/ two-bathroom villas at build-out and slated for occupancy in early 2010. Each villa can accommodate up to 8 guests. By Christine Blank CONTRIBUTING EDITOR hile a flailing economy might hurt many industries, the vacation-ownership business continues its strong growth in 2008. Despite higher construction costs, timeshare and mixed-use developers have plans to build and open more properties over the next two years. Timeshare resorts have firm commitments to build nearly 47,000 additional units in the next few years, according to data prepared by Ernst & Young for the American Resort Development Assn.’s International Foundation. From 2001 to 2006, timeshare industry sales grew 81 percent, including a 16-percent increase in 2006, according to ARDA. Large, publicly traded hospitality companies, along with regional timeshare companies, are expanding rapidly as they experience continued strong demand. W Marriott Vacation Club International opened The Ritz-Carlton Club and Residences San Francisco [shown here] in November. “The industry is resilient, even during any dips in the economic market,” said Ed Kinney, v.p., corporate affairs and brand awareness, Marriott Vacation Club International in Orlando. MVCI offers four divisions: Marriott Vacation Club International, Horizons by Marriott Vacation Club, The Ritz-Carlton Club and Grand Residences by Marriott. The company’s properties continue their rapid growth. The Ritz-Carlton Club has five properties open and others under construction. Marriott Vacation Club is the timeshare division’s core product with 47 properties. Dave Pontius, president of Boca Raton, Fla.-based Bluegreen Resorts, predicts continued demand for timeshare vacations. “Despite the current economic conditions, we expect the pace of the vacation-ownership industry to continue to grow, but perhaps more moderately in comparison to previous years,” he said. Between 2008 and 2010, Bluegreen plans to add several new resorts and expand others in order to support its sales efforts, according to Gary Ehrlich, v.p., construction and development. Bluegreen’s sales rose 14.4 percent in its most recent quarter to a record $149.1 million for the publicly traded company. “Our sales growth leads to more need for inventory and sales locations,” Ehrlich said. Wyndham Vacation Ownership in Orlando has experienced similar rapid growth and now has 800,000 owners. “We have a number of projects currently in development,” said Alan Litwack, WVO’s senior v.p., strategic development and capital planning. “In 2008 alone, we anticipate the opening of properties in markets such as Anaheim, [Calif.]; Las Vegas; Santa Fe, [N.M.]; Taos, [N.M.]; Long Beach, [Calif.]; Washington; San Francisco; New Orleans; and Santee, S.C.” While the costs of construction materials, labor and fuel are still relatively high, timeshare developers are pushing ahead. MVCI executives keep construction costs lower through Marriott’s relationships with certain construction companies. Bluegreen Resorts saw higher costs of construction materials such as steel and concrete in 2007, but the cost of many materials decreased. In addition, labor costs did not increase dramatically in 2007, according to Ehrlich. In addition, the soft real-estate market has somewhat countered higher construction costs, according to timeshare executives. “Even though construction costs are higher, land costs have declined somewhat,” Pontius said. “With the real-estate market trending down, the reduced values on properties are helping offset higher costs.” hmm@questex.com MARRIOTT VACATION CLUB INTERNATIONAL The first phase of the only hotel-branded vacation ownership resort in Cancun, Mexico, is to be ready for occupancy in summer of 2008, according to Starwood Vacation Ownership. The first phase of the Westin Lagunamar Ocean Resort Villas consists of four eightstory buildings, a reception building, sales gallery and various amenities including a swimming pool and Westin WORKOUT fitness facility. This phase will include 78 two-bedroom lockoff villas. Upon completion, the resort will have a total of 296 two-bedroom lockoff villas. The company has three vacation-ownership and fractional resorts under development in Mexico. Wyndham Vacation Ownership acquired The Royal Garden Hotel and Spa in Waikiki, Hawaii, from The Royal Hotel & Spa LLC. Terms of the deal were not disclosed. The 140-room hotel will remain operating until renovations begin in November. Once renovations are complete, the property will operate within the company’s FairShare Plus by Wyndham resort portfolio. Through a two-phase conversion process, the hotel will be converted to a mix of studio, one- and twobedroom units. Amenities will include restaurants, a swimming pool, a sauna and a fitness center. Compiled by Elaine Simon, esimon@questex.com Shell Vacations makes moves for future Northbrook, Ill.—Shell Vacations announced the signing of two properties of American Leisure Holdings of Orlando. The first, slated to begin sales this year, is The Boulevard, a landmark Art Deco hotel located in the heart of South Beach, Miami. Upon completion of a major renovation, the entire property will become a Shell Vacations Club destination resort. The Boulevard will be followed by Tierra del Sol, a short drive from the Disney theme park in the Orlando area. American Leisure plans to dedicate over 200 purpose-built units to Shell Vacations Club. Tierra del Sol will have more than 900 units, a $30-million waterpark and many additional amenities. Upon completion, the hotel will be the largest Sonesta in the world. Other corporate news and recent achievements include: The company has created a new relationship with Liberty Bank/ Wellington Financial Group, resulting in the closing of three loans since September 2007. Shell Vacations Hospitality was honored with the Gold Award in the Web marketing category of the Adrian Awards, held annually by the Hospitality Sales & Marketing Association International. The Shell Web site was selected as one of the best for a hotel chain, affiliated group or franchise system. After enhancing its Web site, rental revenues generated through the site in 2007 were five times what they were in the previous year. Face 2 Face Marketing LLC signed an agreement to operate as a broker to sell the points-based Shell Vacations Club product in Denver. In December, resort general managers and their regional directors gathered for the annual Shell Vacations Hospitality g.m. conference in Scottsdale, Ariz., at the Orange Tree Resort. Team members from Shell Vacations Club, human resources and the finance/accounting department lent their expertise as trainers for several educational sessions at the four-day conference. The event culminated with a dinner and awards presentation. hmm@questex.com http://HotelMotel.com http://www.HotelMotel.com/digital_edition
Table of Contents Feed for the Digital Edition of Hotel & Motel Management - March 3, 2008 Hotel & Motel Management - March 3, 2008 Contents Embassy Suites Refreshes Look, Service F&B Concept Set to Take Off Conference Promises Perspective Letter to the Editor Legally Speaking Guest Column HSMAI Consultant's Corner On Finance Travel Trends Energy Star Update Trends & Stats Transactions Property Management Systems Carpet: Mixed Media Planting Greener Greens Transportation Vacation-Ownership Update Ad/Editorial Index Marketplace Classifieds Checking Out Hotel & Motel Management - March 3, 2008 Hotel & Motel Management - March 3, 2008 - Hotel & Motel Management - March 3, 2008 (Page 1) Hotel & Motel Management - March 3, 2008 - Hotel & Motel Management - March 3, 2008 (Page 2) Hotel & Motel Management - March 3, 2008 - Contents (Page 3) Hotel & Motel Management - March 3, 2008 - Conference Promises (Page 4) Hotel & Motel Management - March 3, 2008 - Conference Promises (Page 5) Hotel & Motel Management - March 3, 2008 - Letter to the Editor (Page 6) Hotel & Motel Management - March 3, 2008 - Letter to the Editor (Page 7) Hotel & Motel Management - March 3, 2008 - Guest Column (Page 8) Hotel & Motel Management - March 3, 2008 - Guest Column (Page 9) Hotel & Motel Management - March 3, 2008 - HSMAI (Page 10) Hotel & Motel Management - March 3, 2008 - HSMAI (Page 11) Hotel & Motel Management - March 3, 2008 - Consultant's Corner (Page 12) Hotel & Motel Management - March 3, 2008 - Consultant's Corner (Page 13) Hotel & Motel Management - March 3, 2008 - On Finance (Page 14) Hotel & Motel Management - March 3, 2008 - On Finance (Page 15) Hotel & Motel Management - March 3, 2008 - Travel Trends (Page 16) Hotel & Motel Management - March 3, 2008 - Travel Trends (Page 17) Hotel & Motel Management - March 3, 2008 - Energy Star Update (Page 18) Hotel & Motel Management - March 3, 2008 - Energy Star Update (Page 19) Hotel & Motel Management - March 3, 2008 - Trends & Stats (Page 20) Hotel & Motel Management - March 3, 2008 - Trends & Stats (Page 21) Hotel & Motel Management - March 3, 2008 - Trends & Stats (Page 22) Hotel & Motel Management - March 3, 2008 - Trends & Stats (Page 23) Hotel & Motel Management - March 3, 2008 - Trends & Stats (Page 24) Hotel & Motel Management - March 3, 2008 - Transactions (Page 25) Hotel & Motel Management - March 3, 2008 - Transactions (Page 26) Hotel & Motel Management - March 3, 2008 - Transactions (Page 27) Hotel & Motel Management - March 3, 2008 - Property Management Systems (Page 28) Hotel & Motel Management - March 3, 2008 - Property Management Systems (Page 29) Hotel & Motel Management - March 3, 2008 - Property Management Systems (Page 30) Hotel & Motel Management - March 3, 2008 - Property Management Systems (Page 31) Hotel & Motel Management - March 3, 2008 - Carpet: Mixed Media (Page 32) Hotel & Motel Management - March 3, 2008 - Carpet: Mixed Media (Page 33) Hotel & Motel Management - March 3, 2008 - Planting Greener Greens (Page 34) Hotel & Motel Management - March 3, 2008 - Planting Greener Greens (Page 35) Hotel & Motel Management - March 3, 2008 - Transportation (Page 36) Hotel & Motel Management - March 3, 2008 - Transportation (Page 37) Hotel & Motel Management - March 3, 2008 - Vacation-Ownership Update (Page 38) Hotel & Motel Management - March 3, 2008 - Vacation-Ownership Update (Page 39) Hotel & Motel Management - March 3, 2008 - Vacation-Ownership Update (Page 40) Hotel & Motel Management - March 3, 2008 - Vacation-Ownership Update (Page 41) Hotel & Motel Management - March 3, 2008 - Vacation-Ownership Update (Page 42) Hotel & Motel Management - March 3, 2008 - Vacation-Ownership Update (Page 43) Hotel & Motel Management - March 3, 2008 - Vacation-Ownership Update (Page 44) Hotel & Motel Management - March 3, 2008 - Vacation-Ownership Update (Page 45) Hotel & Motel Management - March 3, 2008 - Ad/Editorial Index (Page 46) Hotel & Motel Management - March 3, 2008 - Ad/Editorial Index (Page 47) Hotel & Motel Management - March 3, 2008 - Marketplace (Page 48) Hotel & Motel Management - March 3, 2008 - Classifieds (Page 49) Hotel & Motel Management - March 3, 2008 - Classifieds (Page 50) Hotel & Motel Management - March 3, 2008 - Classifieds (Page 51) Hotel & Motel Management - March 3, 2008 - Classifieds (Page 52) Hotel & Motel Management - March 3, 2008 - Classifieds (Page 53) Hotel & Motel Management - March 3, 2008 - Checking Out (Page 54) Hotel & Motel Management - March 3, 2008 - Checking Out (Page 55) Hotel & Motel Management - March 3, 2008 - Checking Out (Page 56)
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