| ign="center"> | | | | with annual sales of more than $100 million. It offers |
| TACKLES TIMESHARING | | | | many travel programs for their owners, including an |
| With lower occupancy rates, a sagging economy, and | | | | excellent internal timeshare resort exchange program, |
| the changing demographics of travelers, hotel industry | | | | exchanges throughout Marriott's hotel and resort |
| officials are constantly searching for ways to fill rooms. | | | | system, exchanges through one of the large |
| One hot topic is timesharing. | | | | exchange companies, one of the largest resale |
| Long considered the bad boy of the hospitality | | | | operations in the industry. |
| business, timesharing is coming of age in both size and | | | | Marriott also recently announced that it had signed an |
| stature. The entrance of companies like Disney, | | | | agreement to manage a timeshare resort where it had |
| Marriott, and Hilton has served notice that timesharing | | | | no direct capital investment. The company expects |
| is a viable occupancy option for the hotel industry. | | | | this management contract to be the first of many. |
| THE BASICS | | | | Other hotel companies already involved in timesharing |
| Timesharing's image of past decades is quickly | | | | or considering involvement are expect to follow suit. |
| changing. Many vacationers now view it as a viable | | | | Bob Miller, MORI's executive vice president and general |
| and economical option for future vacations. | | | | manager, feels that Marriott and other hotel companies |
| The timeshare market is exploding. In the past two | | | | can bring much to timeshare resort management. The |
| years, almost 500,000 households have purchased a | | | | advantages include: volume purchases and preventive |
| total of more than 700,000 timeshare intervals. That | | | | maintenance for the property; collection of receivables |
| means there are more than 3 million owners at more | | | | and servicing of loans; a national rental program; |
| than 3,000 resorts worldwide. Contrary to popular | | | | access to the company's reservations system; owner |
| belief, a recent survey showed that most of these | | | | communications, systems support, and development; |
| owners are happy with their purchase. | | | | strong management; and much more. |
| "It is clear that timesharing is gaining in popularity, not | | | | HILTON TAKES ON TIMESHARING |
| only here in the United States, but also across Europe, | | | | In one of the most exciting timeshare industry |
| Mexico, and in South America," says Tom Franks, | | | | developments since Marriott entered the business, |
| president of the American Resort and Residential | | | | Hilton Grand Vacations Company was recently |
| Development Association, the timeshare industry body. | | | | formed. Though Hilton will probably not begin the |
| "We expect the industry to double in the next 10 years | | | | construction of new timeshare properties until later this |
| and the hotel industry will definitely be involved in a big | | | | year it is already entering into the market aggressively. |
| way." | | | | As part of HGVC's formation, it has joined as partners |
| Timesharing is the most prevalent form of vacation | | | | with a successful timeshare company in Florida, |
| ownership. Consumers typically buy one or more | | | | Mariner, and thus, already has 15 timeshare resorts and |
| weeks at a specific resort and can return to that | | | | more than 22,000 owners. In addition to excellent |
| resort every year or exchange it for a week at | | | | resort properties, Mariner also runs many rental |
| another resort. Prices currently average around $9,000, | | | | programs and a resale operation that has one of the |
| with annual maintenance fees of around $300. | | | | highest volumes of any timeshare company in the |
| Vacation timesharing generally takes one of two | | | | United States. |
| forms: "Fee" timesharing gives the purchaser | | | | As with many hotel companies entering the business, |
| permanent rights--in the form of a deed--to the | | | | Hilton's timeshare objectives include: creating a system |
| property. About 85% of timeshare resorts sell under | | | | of high-quality timeshare resorts throughout the world; |
| fee-ownership agreements. "Right-to-use" timesharing | | | | establishing property management and hospitality |
| grants the purchaser the rights to the use of the | | | | services that include reservations, resale, and rental |
| property for an established period of time, such as 30 | | | | segments; and establishing a club to provide exchange |
| years. Under this type of timesharing, the purchaser | | | | services and access to its frequent guest program |
| does not receive a deed. | | | | and other hotel industry programs. |
| Rather than return to their home resort every year, | | | | Another key player in this joint venture is Ed McMullen |
| many owners opt to exchange to one of thousands | | | | Sr. of American Resorts. Mr. McMullen has been highly |
| of other timeshare properties worldwide. For a small | | | | successful in timesharing and he brings much |
| fee, companies like Resorts Condominiums International | | | | experience to Hilton. Both Mariner and McMullen have |
| or Interval International perform these exchange | | | | had great success with high-quality two-bedroom, |
| services for member resorts and owners. Many | | | | two-bath units of about 1,200-square-feet and this |
| owners say this exchange privilege was a key reason | | | | policy will continue with Hilton and future construction. |
| for buying. Many hotel chains in the timeshare industry | | | | Many resorts may be built on or near already-existing |
| form their own internal exchange system to | | | | Hilton hotels and resorts throughout the world (e.g., the |
| complement the exchange company services. | | | | Caribbean, California, Colorado, Hawaii, Hilton Head |
| Hotel companies have found that the basics of | | | | Island, and Orlando). Owners will be able to enjoy all of |
| timesharing are an ideal fit for filling rooms. They have | | | | the hotel or resort amenities and services. They will |
| accomplished this by using existing facilities and | | | | also have access to the Hilton HHonors program and |
| services, as well as developing new properties and | | | | other vacation packages offered by Hilton. |
| support structures. Their success stories tell the tale of | | | | Hilton's timeshare ownership program will be based on |
| why and how the hotel industry is tackling timesharing. | | | | a points system, which has become very popular in |
| THE MARRIOTT STORY | | | | the industry. The firm also plans to interface with |
| While timesharing has been in the United States for | | | | Conrad Vacation Ownership, Hilton's other timeshare |
| just twenty years, Marriott has been around for more | | | | program. |
| than six decades. In 1984, however, it entered the | | | | OTHER BIG NAMES IN TIMESHARING |
| timesharing business and has turned the move into a | | | | Many other hospitality companies have reviewed the |
| very successful venture. | | | | advantages of timesharing and are entering the |
| "We looked into it and in theory it was a sound idea," | | | | business. Among many, two perfect examples are |
| says Bill Marriott. "But, timesharing in practice was often | | | | Disney and Ramada. |
| not up to our standards. If we weren't able to effect | | | | Disney Vacation Club (DVC) recently opened its first |
| rigid controls on the quality of timesharing that Marriott | | | | units at Walt Disney World. As with many companies |
| offered, we weren't interested in doing it." | | | | in the industry, DVC tackled two major consumer |
| That opportunity came in 1984, when American | | | | concerns: flexibility and "hard-sell" sales techniques. |
| Resorts--which had recently opened a top-of-the-line | | | | By purchasing a real estate interest in Disney Vacation |
| timeshare project on Hilton Head Island called | | | | Club Resort, guests automatically become members |
| Monarch--initiated talks with Marriott. American | | | | of the club and are entitled to a variety of exclusive |
| Resorts' concept of timesharing matched Marriott's, but | | | | benefits and privileges. Members also receive an |
| the company's ability to carry that vision forward | | | | annual allotment of vacation points, which may be used |
| required major capital. Marriott had the capital. | | | | on vacations at the resort or at more than 100 |
| Monarch's success was an encouraging barometer | | | | worldwide resorts currently offered through a |
| and Marriott looked to new markets. Orlando was a | | | | "Member Getaways" program. |
| very logical choice, because Marriott was already | | | | "The flexibility of choosing among several different |
| constructing a 192-acre resort complex: Mariott's | | | | vacation experiences is what sets the Disney |
| Orlando World Center. | | | | Vacation Club apart from many similar plans," says |
| Construction of Sabal Palms, the first of two timeshare | | | | General Manager Mark Pacala. "The vacation points |
| resorts adjoining Marriott's Orlando World Center, | | | | system allows members to select the type of |
| began in February 1986. The resort offered Marriott's | | | | vacation best suited to their needs, particularly as |
| customarily luxurious surroundings and by the summer | | | | those needs change from year to year." Each year, |
| of 1987 the resort had sold all available weeks. | | | | members choose how to use their vacation points, |
| Construction of Sabal Palms' sister resort, Royal | | | | either for one long vacation or a series of short |
| Palms, began a year later and recently sold out ahead | | | | getaways. |
| of schedule. | | | | For a one-time purchase price and annual dues, guests |
| Marriott's fourth timeshare project was at Hilton Head | | | | may purchase a real estate interest in the resort, |
| Island's signature location: Harbour Town. Construction | | | | which expires after 50 years. The minimum purchase |
| began in 1987 and was completed in less than a year. | | | | price is currently $11,730. |
| Marriott's Heritage Club at Harbour Town is keyed to | | | | According to Mr. Pacala, the Disney timeshare project |
| the island's exceptional sports facilities. Ownership | | | | is substantially ahead of projections. The entrance and |
| includes special privileges at three golf courses and the | | | | success of Disney serves as more proof that |
| Sea Pines Racquet Club. | | | | timesharing is a viable option for many hotel |
| The 30-villa resort's 1,500-week inventory sold out in | | | | companies. |
| July 1988, just nine months after its initial offering. On | | | | This past spring, Ramada International also entered into |
| the heels of this success, Marriott decided to build its | | | | the timeshare business in the Bahamas. Through the |
| third Hilton Head Island timeshare resort, Harbour Club | | | | purchase of a Divi timeshare resort near Nassau, |
| at Harbour Town. | | | | Ramada is testing the waters to see if timesharing |
| Marriott's newest resort on Hilton Head Island is Sunset | | | | should be a part of a larger program for them. Divi |
| Pointe at Shelter Cove Harbour, which has already | | | | recently emerged from Chapter 11 bankruptcy, with |
| sold out. The resort features 25 timeshare residences, | | | | plans to concentrate on its five Caribbean resorts and |
| in addition to 86 existing luxury villas. Marriott is also | | | | ten timeshare locations. |
| developing a 25-acre oceanfront site for a new | | | | With 50 units, the Ramada International timesharing |
| timeshare property, which is currently the Hilton Head | | | | project is part of the 295-suite Ramada South Ocean. |
| Inn. The 288-unit property is called Grande Ocean | | | | They offer both floating-time and fixed-week units. |
| Resort and started with brisk sales in April. | | | | With this kind of company, the timeshare industry is |
| Marriott's third Orlando timeshare resort, Cypress | | | | really coming of age. Hotel officials obviously consider it |
| Harbour, is a 500-villa property near Sea World. It has | | | | an excellent way to fill rooms with happy vacationers. |
| carried forward Marriott's successful Orlando | | | | Kevin Co writes for where you can find out more |
| timeshare vision and is experiencing brisk sales. | | | | about timeshare and other topics. |
| Marriott's first resort in the west was Desert Springs | | | | Kevin Co writes for where you can find out more |
| Villas at Palm Desert, Arizona. The 236-villa resort is | | | | about timeshare and other topics. |
| adjacent to Marriott's Desert Springs Resort & Spa. | | | | Report this article |
| Streamside at Vail in Colorado features 150 villas within | | | | This article is free for republishing |
| two miles of Vail Village and North America's largest | | | | Source: |
| ski mountain. | | | | Republish this article |
| Its Paradise Island Beach Club in the Bahamas was | | | | |
| Marriott's first venture outside the U.S. The property | | | | Ask a Question About this Article |
| offers 44 two-bedroom villas with an oceanfront | | | | >> Air canada launched daily flights from |
| location. Additional villas are planned. Marriott also | | | | Toronto-Ottawa to Delhi(India) via Zurich? May I know |
| recently announced that it plans a new timeshare | | | | which travel agen? |
| resort on Barbados, next to Marriott's Sam Lord's | | | | >> Road Trip From NEW YORK - Los Angeles |
| Castle. It is called the Barbados Beach Club and | | | | in a Camper van ??‎ |
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| With so many successful timeshare properties, Marriott | | | | boston?‎ |
| serves as an ideal example of hoteliers involved in | | | | >> Are there any hotels in NYC that are close to |
| timesharing. Marriott now has over 40,000 owners, | | | | the thanksgiving parade route? |