Hotel & Motel Management - March 2009 - (Page 20) H&MM March 2009 | HotelWorldNetwork.com 20 Timeshare SALES “What’s in the hands of companies is how you handle your cash and the programs you implement.” HOWARD NUSBAUM, ARDA BRIEFS Two vacation clubs recently opened additions to their resorts. Sol Melià Vacation Club opened the second phase of the Gran Melià Puerto Rico in Rio Grande, Puerto Rico. The addition included 63 one-, two- and three-bedroom oceanfront suites. Marriott Vacation Club International opened the third phase of Marriott’s St. Kitts Beach Club in the West Indies with 22 additional two- and threebedroom villas. Group RCI added new affiliations with five properties: Whitewater Village resort in Ontario, Canada; The Mimosa hotel in Miami Beach, Fla.; Betsie River Club and Lodge in Traverse City, Mich.; Gull Lake Residence Club in Nisswa, Minn.; and Salmon Falls Resort in Ketichikan, Ala. The five join Group RCI’s more than 67,000 properties. Interval International added three properties to its global vacation exchange network: Grande Luxxe Residence Club Nuevo Vallarta in the Riviera Nayarit in Mexico; the Royal Club Hotel in Visegard, Hungary; and Thailand’s Stoney Monday Oasis Golf Resort. Interval also renewed its master affiliation with Starwood Vacation Ownership in a multiyear agreement that includes 20 existing resorts as well as those added during the term. Timeshare takes hit from banking crisis Those adjustments included reducing WVO’s projected sales pace by one-third, or 40 percent of what it was in 2008, to $1.2 billion in 2009. Holmes said the move would let the company eliminate its need to access the securitization market. In Q4 2008, Starwood Vacation Ownership announced it also was scaling back overhead and closed nine sales centers and three call centers, according to Starwood Hotels & Resorts Worldwide’s Q4 financial report. Furthermore, Starwood announced that no new projects would be initiated and some in early planning stages would be Marriott’s Shadow Ridge in Palm Desert, Calif., reveals Marriott Vacation Club International’s latest innovation in discontinued. villa design. Throughout 2008, MVCI resorts across the United States continued to boast average occupancy rates of “It’s just that, right now, giv91 percent. en everything going on and the importance of preserving capital, By Jennifer Kovacs from being unable to monetize dles those notes and sewe’re not building any SENIOR EDITOR debt, but also be more careful in curitizes them to sell off new resorts,” said Starhe optimism that was choosing to whom they will sell, for additional revenue. wood Vacation Ownheard just months ago re- meaning only buyers with good “Those markets are very ership spokesman Dagarding timeshare’s abili- credit are likely to be pursued. soft right now,” Kinney vid Matheson, noting ty to perform robustly even in a Ed Kinney, VP of corporate said. that the company still downturn is beginning to wear affairs and brand awareness for Marriott’s Q4 report has plenty of inventory thin. Marriott Vacation Club Interna- stated timeshare financavailable that is actively That’s not because the prod- tional, said the current economy ing revenue declined selling. Kinney uct has lost its popularity, but be- has served as impetus for MVCI largely as a result of the MVCI Otherwise, Nusbaum cause developers who generally to scale back some of its call cen- absence of a note sale in said efficiencies will have saw a substantial revenue flow in ters, at least for the near term. the fourth quarter comto be pursued in other the past by monetizing the conMarriott International’s fourth pared to a $36-million note sale in ways: “Resort operations is king.” sumer debt used to purchase their quarter 2008 financial report stat- Q4 2007. And better operations may units are seeing that reved the company’s timeAnd MVCI isn’t alone, as mean that current timeshare cusenue dwindle, or disapshare segment posted a company after company has an- tomers will be more likely to buy pear all together. $2-million loss in Q4 nounced similar blows to busi- additional units down the road or Howard Nusbaum, compared to income ness due to the current economic suggest to friends and family that president of the Ameriof $116 million in Q4 conditions. they do the same. can Resort Development 2007. In 2008, Wyndham Vacation Holmes touched upon that Assn., said while he reMarriott provides its Ownership saw 12 of its sales cen- tactic during the Wyndham call: mains confident in timeown financing to time- ters close and marketing programs “We will focus sales efforts on curshare’s business model share purchasers and isn’t reduced before Stephen Holmes, rent owners, our most efficient and and product in the marquite as affected by the chairman and CEO of Wyndham reliable marketing channel.” Nusbaum ketplace, he’s saddened ARDA tightening of the credit Worldwide, told investors in DeKinney said MVCI is making by the effect the banking markets as those who de- cember that even more cuts would sure its product is as appealing as crisis has had on it. pend on third-party back- be made. possible and that its programs are “In the past, we’ve always been ing. That financial leverage also al“The credit markets continue as flexible as possible in order to the little engine that could,” he lows MVCI the capital to continue to be virtually closed to issuers of keep customers happy with the insaid. development, Kinney said. asset-backed securities and, there- vestments they’ve made. But in order to keep moving “That is a huge plus for us, no fore, we have decided to make “Revisit, retrain and reemphanow, Nusbaum said it will be im- doubt,” he said. further adjustments to our oper- size service, service, service. That is perative for companies to not only Though MVCI handles its ations,” Holmes said during a con- critical,” Kinney said. slow sales to lighten the burden own consumer financing, it bun- ference call. jkovacs@questex.com T MARRIOTT VACATION CLUB INTERNATIONAL A donation was made by Interval International and its member resorts of $30,000 to the Caribbean Hotel & Tourism Assn.’s Education Foundation during the Caribbean Marketplace in St. Lucia. The donation was double that given in 2007. Compiled by Jennifer Kovacs, jkovacs@questex.com ONLINE EXTRA: For more timeshare news, visit www.HotelWorldNetwork.com, keyword “timeshare.” http://www.HotelWorldNetwork.com http://www.HotelWorldNetwork.com
Table of Contents Feed for the Digital Edition of Hotel & Motel Management - March 2009 Hotel & Motel Management - March 2009 Contents News Perspective Green Focus Legally Speaking Franchise Law Sales Clinic Legal FAQ Trends & Stats Timeshare On Finance Management Companies Stuggle to Cut Costs While Keeping Guest Satisfaction Up Top Third-Party Management Companies Chart Hot Products Technology Marketplace Ad/Editorial Index Checking Out Hotel & Motel Management - March 2009 Hotel & Motel Management - March 2009 - Hotel & Motel Management - March 2009 (Page Cover1) Hotel & Motel Management - March 2009 - Hotel & Motel Management - March 2009 (Page Cover2) Hotel & Motel Management - March 2009 - Contents (Page 3) Hotel & Motel Management - March 2009 - News (Page 4) Hotel & Motel Management - March 2009 - News (Page 5) Hotel & Motel Management - March 2009 - Perspective (Page 6) Hotel & Motel Management - March 2009 - Perspective (Page 7) Hotel & Motel Management - March 2009 - Green Focus (Page 8) Hotel & Motel Management - March 2009 - Green Focus (Page 9) Hotel & Motel Management - March 2009 - Legally Speaking (Page 10) Hotel & Motel Management - March 2009 - Legally Speaking (Page 11) Hotel & Motel Management - March 2009 - Franchise Law (Page 12) Hotel & Motel Management - March 2009 - Franchise Law (Page 13) Hotel & Motel Management - March 2009 - Sales Clinic (Page 14) Hotel & Motel Management - March 2009 - Sales Clinic (Page 15) Hotel & Motel Management - March 2009 - Legal FAQ (Page 16) Hotel & Motel Management - March 2009 - Legal FAQ (Page 17) Hotel & Motel Management - March 2009 - Trends & Stats (Page 18) Hotel & Motel Management - March 2009 - Trends & Stats (Page 19) Hotel & Motel Management - March 2009 - Timeshare (Page 20) Hotel & Motel Management - March 2009 - Timeshare (Page 21) Hotel & Motel Management - March 2009 - On Finance (Page 22) Hotel & Motel Management - March 2009 - On Finance (Page 23) Hotel & Motel Management - March 2009 - Management Companies Stuggle to Cut Costs While Keeping Guest Satisfaction Up (Page 24) Hotel & Motel Management - March 2009 - Management Companies Stuggle to Cut Costs While Keeping Guest Satisfaction Up (Page 25) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 26) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 27) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 28) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 29) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 30) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 31) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 32) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 33) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 34) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 35) Hotel & Motel Management - March 2009 - Top Third-Party Management Companies Chart (Page 36) Hotel & Motel Management - March 2009 - Hot Products (Page 37) Hotel & Motel Management - March 2009 - Technology (Page 38) Hotel & Motel Management - March 2009 - Technology (Page 39) Hotel & Motel Management - March 2009 - Technology (Page 40) Hotel & Motel Management - March 2009 - Technology (Page 41) Hotel & Motel Management - March 2009 - Technology (Page 42) Hotel & Motel Management - March 2009 - Technology (Page 43) Hotel & Motel Management - March 2009 - Marketplace (Page 44) Hotel & Motel Management - March 2009 - Marketplace (Page 45) Hotel & Motel Management - March 2009 - Marketplace (Page 46) Hotel & Motel Management - March 2009 - Marketplace (Page 47) Hotel & Motel Management - March 2009 - Ad/Editorial Index (Page 48) Hotel & Motel Management - March 2009 - Ad/Editorial Index (Page 49) Hotel & Motel Management - March 2009 - Ad/Editorial Index (Page 50) Hotel & Motel Management - March 2009 - Ad/Editorial Index (Page 51) Hotel & Motel Management - March 2009 - Ad/Editorial Index (Page 52) Hotel & Motel Management - March 2009 - Ad/Editorial Index (Page 53) Hotel & Motel Management - March 2009 - Checking Out (Page 54) Hotel & Motel Management - March 2009 - Checking Out (Page Cover3) Hotel & Motel Management - March 2009 - Checking Out (Page Cover4)
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