The Latest in Luxury Resort & Real Estate News

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Timeshare Industry Proving to be Resilient in Tough Economy

(WASHINGTON, D.C.) -- Despite tighter credit markets and high unemployment rates, the U.S. timeshare industry continues to demonstrate its resilience.

Although overall sales continue to reflect the national trend of lower consumer spending, timeshare owners continue to enjoy their pre-paid timeshare vacations, with an 80 percent occupancy rate and an 86 percent product approval rate. This compares with a 60.4 percent hotel occupancy rate, according to Smith Travel Research.

"The downturn in our economy has hit the tourism industry particularly hard; the timeshare segment, however, due in part to its pre-paid nature, is better equipped than most to weather a downturn," said Howard Nusbaum, president and CEO of the American Resort Development Association (ARDA). "The good news is that timeshare owners are still vacationing, and occupancy remains strong. Coupled with our industry's emphasis on new efficiencies and improvements to our business model, we will come through the current downturn and be ready to meet the expectations of customers."

Preliminary 2009 second quarter research indicates that nine out of 10 owners were current on monthly payments, a .2 percent increase over the preceding quarter. Sales efficiencies have improved as well, measured by Volume Per Guest (VPG) of $2,043, which is a two percent increase from the previous quarter level.

Additionally, use of exchange options that offer timeshare owners the ability to trade resort destinations other than those of their "home resort" location are also strong, demonstrating that owners continue to enjoy their timeshares.

Several leading timeshare developers agree with Nusbaum's outlook.

"We've had the best summer on record, and sales continue to be robust," said Don Harrill, president and CEO of Holiday Inn Club Vacations. "Just because the economy has slowed doesn't mean we have stopped doing what we do; we've taken a closer look at how we can refine our processes and products to deliver memorable vacations that families want to come back to year after year."

"At Disney, we have confidence in vacation ownership," added James M. Lewis, president of Disney Vacation Club. "In fact, we're enlarging our footprint outside of the Orlando area by the opening of our newest resort in California and developing one in Hawaii."

At Starwood Vacation Ownership chief executive Sergio Rivera said his company's closing rates have "held up better than expected given the discretionary nature of the product. This supports our belief that consumer dynamics will be strong over the long run."

This comes as no surprise to David Palmer, chief financial officer for Diamond Resorts International.

"Our closing rates this year are identical to those last year, and our collections remain strong," Palmer added. "Additionally, our diversified cash flow business model has allowed us to substantially decrease our reliance on the capital markets."

Most developers report that decreased sales, in part, are a result of purposely slowed sales and marketing efforts to maintain a healthy cash flow during the tightened credit market environment. In addition, the industry expects to limit new construction until inventory levels are reduced.

"An increase in volume aided by improving consumer sentiment and recovering capital markets will accelerate absorption," said Nusbaum. "Most of all, demographics are on our side, with baby boomers and succeeding generations eager to purchase a piece of flexible vacation real estate, allowing them the better vacationing and the undeniable value proposition that timeshare offers. Our industry is primed to fulfill the increased consumer demand for quality vacation experiences."  

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Waldorf Astoria Orlando and Hilton Orlando Bonnet Creek Open

(ORLANDO, FL) -- This entertainment capital of the world just added a new luxurious resort destination with the opening of Hilton Worldwide's Waldorf Astoria Orlando and Hilton Orlando Bonnet Creek.

The resort project's October 1 opening  holds historical significance by marking the debut of the original Waldorf Astoria property, The Waldorf-Astoria in New York, 78 years ago to the day.

Florida Governor Charlie Crist, Orange County Mayor Richard Crotty, City of Orlando Mayor Buddy Dyer and famed golf course architect Rees Jones were among the dignitaries leading ribbon-cutting events.  Known as Bonnet Creek, the 482-acre vacation destination is conveniently surrounded by Walt Disney World on three sides, yet secluded by a private nature preserve.

"We are delighted to introduce the Waldorf Astoria Orlando and the Hilton Orlando Bonnet Creek into our global portfolio," said Paul Brown, President of Global Brands and Commercial Services, Hilton Worldwide. "Orlando has a rich history with our company; we thank the entire Central Florida community for its hospitality and look forward to continuing to contribute to this dynamic destination."

Themed "A Day of Firsts," the ceremony celebrated the opening of the first property to share the name Waldorf Astoria with the original New York hotel, which remains the only property with the unique equal sign in its name, The Waldorf-Astoria.  The New York and Orlando properties are joined by 18 other hotels that have their own distinct names but are included in The Waldorf Astoria Collection.

Florida native Sergeant Joshua Stephen Cope, who earned the Army Commendation Medal and two Purple Hearts for his military service in Iraq, was named the first guest of the Waldorf Astoria Orlando.  The inspirational Lalita Booth, recipient of the H. Truman Scholarship and current Harvard graduate student, was welcomed as the first guest at the Hilton Orlando Bonnet Creek.

The "first ladies of Orlando," a group of Central Florida women, were recognized and honored by Managing Director Peter Kacheris. The first female Mayor of Orlando Glenda Hood, the city's first African American female Police Chief Val Demings and the first female Dean of the University of Central Florida Medical School Deborah German were among the pioneers honored.  

"It is an honor for the 700 employees, including myself, to welcome our first guests today and continue the vision of Conrad Hilton by filling the earth with the light and warmth of hospitality," said Bonnet Creek Managing Director Peter Kacheris.

The Waldorf Astoria Orlando infuses the Jazz Age-elegance of Art Deco from The Waldorf-Astoria in New York, including a stunning lobby clock, with the vibrant ambiance of Florida.  Comprised of 497 deluxe rooms and suites, the hotel features signature Waldorf Astoria food and beverage establishments such as Peacock Alley and Bull & Bear Steakhouse as well as 28,000 square feet of exclusive flexible meeting space. The hotel's outdoor facilities feature a formal signature pool, encircled by chic private cabanas and complemented by lush tropical landscaping.

The Hilton Orlando Bonnet Creek transcends the hotel experience with 1,000 elegantly-appointed rooms and suites, six distinct dining options including La Luce by Napa Valley Chef Donna Scala, a two-acre lagoon-style pool with a lazy river and 122,000 square feet of meeting space.  Its outdoor venues include Bonnet Creek Island, a private retreat ideal for drinks or storybook weddings.

The centerpiece of the Waldorf Astoria Golf Club is the 18-hole 7,113-yard championship course designed by Jones.  One of the few golf courses in the Orlando area to be free of real estate dotting its greens, the first course under the Waldorf Astoria brand is open to all players - those staying at the Waldorf Astoria Orlando or the Hilton Orlando Bonnet Creek and those who want to experience a piece of history.

Guests of both properties can also take advantage of exclusive theme-park transportation, the first WA Kids children's program, the 24,000-square-foot Waldorf Astoria Spa by Guerlain and the 4,000-square-foot fitness center.

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