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Average occupancy exceeds 80 percent; 6.5 million intervals owned

Timeshares sales totaled $10.6 billion in 2007, according to a new study of the U.S. vacation timeshare industry conducted by Ernst & Young, LLP. The survey encompasses 628 timeshare resorts throughout the country, showing sales up 66 percent since 2003 and an average resort size growth of 32 percent.

For more information on the latest State of the Industry report commissioned by AIF, click here. Copies of the full study and the executive summaries are now available for purchase online here.

ARDA's best membership pricing of the year is now available.  New corporate members should take advantage of ARDA's Sweet Deal Summer Discount membership rates of just $1,500.00 for up to 15 months of membership.  Memberships will be active until September 30, 2009. Contact ARDA's membership team via membership@arda.org or via phone at (202) 371-6700 for more details. Sweet Deal application is available 24/7 at www.arda.org/sweetdeal -Discount valid for new corporate members only and ends August 30, 2008.

ARDA-Southwest Regional Meeting
July 30-31, 2008
The Fairmont Scottsdale Princess
Scottsdale, AZ

ARDA-Rockies Regional Meeting
September 9-10, 2008
Beaver Run Resort and Conference Center
Breckenridge, CO

ARDA-Carolinas Regional Meeting
September 22-23, 2008
The Sheraton Myrtle Beach Convention Center Hotel
Myrtle Beach, SC

For more information regarding ARDA Regionals Meetings, please visit www.arda.org/regionalmeetings.

ARDA CEO Howard Nusbaum will moderate a vacation ownership development panel at the first Midwest Lodging Investment Summit being held July 14-16 at the Sheraton Chicago.

For registration details please see www.midwestlodginginvestors.com or phone 817-277-7187.

Join the latest educational training geared specifically toward suppliers of goods and services to the timeshare industry. This three hour seminar covers topics ranging from basic terminology to product definitions, refurbishment schedules to the timeshare lifecycle. The certificate program will be held July 30 at the Fairmont Scottsdale Princess. For more information or to register, please visit www.arda.org/sw.

A new Ernst & Young report shows that nearly 23 percent of the nation's timeshare resorts are in Florida, and together they garnered more than 33 percent of all sales last year. Nationwide, timeshare sales topped $10.6 billion, a 6 percent increase from 2006. In 2007, U.S. timeshare companies sold approximately 551,500 time-share intervals, with the average price paid--$19,216--up 3.7 percent from a year earlier. Meanwhile, the average occupancy rate of 80.1 percent was down only slightly on a year-to-year basis. The E&Y report was prepared on behalf of the American Resort Development Association International Foundation. ARDA chef Executive Howard Nusbaum remarks, "Timeshare continues to be the little train that could." He adds that timeshares' business model is designed to constantly draw potential customers to the product, as one in 10 who visit eventually buys. Timeshares have proven to be especially during the tough real-estate market partly because people view them more as a travel expense and not an actual property investment. Nusbaum concludes, "They buy it because they believe they get better vacationing. People don't buy timeshare for the [price] appreciation factor. They buy it for the use."

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"Thinking Up Fantasy Resorts"
Cincinnati Enquirer (07/06/08) Eckberg, John

The Group of Eight is meeting on the Japanese island of Hokkaido this week. Ohio-based Bruce D. Robinson Design Group, an international architecture and design firm, designed the hotel that is holding world media covering the G-8 forum. Robinson inked a deal this week to design the next phase of development there: a complex of timeshare units, condominiums, spas and other amenities that will form a European-style ski resort dubbed Bavaria. The firm has garnered a reputation for designing resorts and attractions for vacationers. Founder Bruce Robinson states, "People expect resort getaways to create a fantasy world for them, [and] this project will do that. It's an escape from life as visitors know it, and all aspects of the resort--from layout to decor to amenities--need to support that fantasy." Valued at between $200 million and $250 million, the new project is three years from opening. Along with the condos and timeshares, plans call for a conservatory, four restaurants and an indoor waterpark. Judy Kenninger, editor of Resort and Recreation magazine, applauds the project. She states that resorts and entertainment destinations have to reinvent attractions to stay fresh, adding, "The domestic travel market is up 3.6 percent for the year. Two other parts of the industry are also up: Timeshare expenditures have risen 6 percent over last year and fractional purchases of vacation properties are up 12 percent." (Web Link)

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"World's Tallest Timeshare Tops Off in Vegas"
Commercial Property News (07/03/08) Murray, Barbra

Located at the Planet Hollywood Resort & Casino in Las Vegas, the 52-story PH Towers will rank as the tallest timeshare building in the world when completed. The 3.2 million-square-foot Westgate Resorts project will also be the first vacation ownership resort to be fully integrated with a major resort and casino complex. The 2,500-room Planet Hollywood Resort opened its doors in 2007, having been reinvented from the former Aladdin Resort & Casino thanks to a $1 billion makeover. Ultimately, PH Towers will boast nearly 1,200 luxury timeshare units, in addition to a casino, convention center, restaurant and approximately 16,000 square feet of retail space. Bovis Lend Lease Americas is in charge of construction, with completion of the initial phase on track for summer 2009. (Web Link)

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"Fractional Ownership Catching on in Europe"
Austin American-Statesman (TX) (07/05/08) Emling, Shelley

Many Americans are discovering it is possible to own a place in France via fractional ownership, a concept popular in the United States that is just recently beginning to catch on in Europe. The Paris Chamber of Notaries reports that foreigners currently make up more than 8 percent of property buyers in Paris alone, with Americans coming in a close second to Italians. It is not certain how many fractional developments have launched in France, but property professionals say the number is growing. Although most fractional ownership plans do not allow redecoration, they do handle daily maintenance. The real draw for consumers is gaining use of a luxury property in an exotic locale at an affordable price. Fractional Paris is offering an 800-square-foot, two-bedroom apartment with a terrace in Paris, starting at 120,000 euros (about US$186,000). Laura Sanders, marketing and sales director for Fractional Paris, states, "A similarly appointed apartment with a terrace would cost today's buyer well over 1.1 million euros if bought outright, plus the associated headache of purchase and closing costs, renovation and furnishings." Steve Navaro, a Colorado-based attorney who develops fractional ownership properties in Paris, notes that group ownership is a thrifty way to visit France frequently regardless of the declining dollar. Ginny Blackwell of French Property Shares, another fractional ownership company, notes that it is the "home-away-from-home" allure that makes fractionals so appealing. In general, a company owns the property and offers shares enabling fractional buyers to use the property for a few weeks to as long as three months a year. A management firm is placed in charge of maintenance, while the weeks available to each buyer rotate on an annual basis so that one person does not always get the best slots. Fractional ownership differs from a traditional timeshare because of equity in the property. Consequently, an owner can benefit from any increase in the property's value. In comparison, timeshares are contracts specifying the right to use a property certain weeks of the year. (Web Link)

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"Vacation Without Breaking The Bank"
CBS News (07/02/08)

Travelocity Editor at Large Amy Ziff says there are a number of ways Americans can still enjoy a vacation this summer without taking too much of a financial hit. She definitely recommends going with package deals to save money. Timeshares are also viable options. Ziff states, "Many major hoteliers now have some sort of program that you can buy into. Some are great. They give you a lot of flexibility, you can easily switch locations, and they're good investments" She recommends those interested in going the timeshare route to "talk to people who have been involved with the timeshare you're interested in to see what they like and don't like about that one before you commit." (Web Link)

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"Starwood Plans New Timeshare Resort for Kaanapali"
Honolulu Advertiser (HI) (06/25/08)

In late June, Starwood Vacation Ownership announced plans for a 390-unit timeshare at Ka'anapali on Maui. A fall 2011 grand opening is planned. The resort, which will include one-, two- and three-bedroom units, will be built adjacent to an existing Starwood timeshare resort. The new resort has been designed to meet the standards to receive certification under the U.S. Green Building Council's Leadership in Energy and Environmental Design rating system. (Web Link)

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"Polo Retreat Developers Confident About Project"
Schenectady Daily Gazette (06/25/08) Coleman, Lee

Developers of the $80 million Saratoga Polo Retreat in Greenfield, N.Y., originally planned to break ground on the project last fall. However, delays in obtaining the necessary approvals have prevented work from starting on the project. Marketing expert James Rossi and Rochester businessman Michael Bucci bought the Saratoga Polo property four years ago and have been planning the project on 42 acres around the historic William Collins Whitney polo field for nearly three years. The Greenfield Town Board and town Planning Board signed off on the resort in 2007 following a lengthy review. The hold-up has been obtaining state approval for the fractionals, which has taken significantly longer than anticipated. Approval must be granted before Rossi and Bucci can begin to actively market and sell the apartments along with the retreat's various "club" amenities. The complex will include several "fractional ownership" apartment buildings, along with a lodge with a dozen residential units, a conference center, fitness facility and event hall. Fractional ownership means that people acquire ownership in the two- and three-bedroom apartments for periods of time ranging from three weeks to a year. Rossi expects to obtain final approval from the New York Attorney General's office within the next few weeks, stating, "There is no question that we are going to get it." The Saratoga Polo Retreat will hold the distinction of being the first private residence club built around the sport of polo and horses. (Web Link)

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"Diamond Resorts International Hires Business Development and Operations Expert as Vice President, Operations, Latin America"
PRWeb (06/25/08)

Bill Tsao has been named vice president of operations, Latin America, at Diamond Resorts International (DRI). Tsao will initially be in charge of developing, implementing and managing the company's growth and operations strategy in Latin America. He will report directly to DRI President and COO Simon Crawford-Welch. Tsao has more than 16 years of experience in the timeshare industry, including positions as vice president of North and Latin American business development for International Cruise & Excursions (ICE) and senior vice president of sales and marketing for Raintree Resorts. During his tenure at Raintree, Tsao designed and implemented a consumer affairs department strategy that included targeted products and programs for the Latin American consumer marketplace. Headquartered in Las Vegas, DRI ranks as one of the world's largest vacation ownership companies, with over 110 branded and affiliated resorts in 14 countries. (Web Link)

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"Trading Places"
New York Times (06/20/08) Bailey, Steve

Timeshares are usually tied to specific resorts and specific unit types, but they are also used as a form of currency to let vacationers visit a wide variety of vacation spots. A two-bedroom, two-weeks-in-July timeshare in Hilton Head, S.C., for example, might be exchanged for two weeks in Orlando or Hawaii. Timeshare exchange services make it easy to trade a timeshare for weeks elsewhere. The better a timeshare--if it is an oceanfront unit in peak season, for instance--the more desirable the place you can get in return. RedWeek.com assigns timeshares a certain number of exchange points. If a customer turns a week over to RedWeek, he/she can use those points to choose someone else's timeshare from the pool. Yearly dues for RedWeek are $14.99, and there is a fee of $125 per exchange. Interval International and RCI offer similar services. Resales, meanwhile, can be found on eBay and at the Timeshare Users Group. For those buying a timeshare with the intent of using it themselves each year, the best rule of thumb is to purchase in a desirable vacation locale. If buying with an eye toward future trades, it's smart to go for the most desirable location, time and amenities. Finally, another tip is to avoid areas that have a lot of timeshares because you would not have much trading leverage. (Web Link)

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"Are Timeshares Worthwhile?"
CNN (06/13/08)

Industry professionals say timeshares can bring their owners significant savings in time and money when planning vacations. These same experts, though, caution that timeshares are not for everybody. Lisa Ann Schreier, author of "Timeshare Vacations for Dummies," suggests a formula for determining if a timeshare makes sense financially. If you are paying $100 for hotel rooms 10 nights per year, breaking even would take 13 years if a timeshare was bought for $13,500. American Resort Development Association President Howard Nusbaum reports that the average cost of a two-bedroom timeshare is $18,000, in addition to about $500 a year in maintenance fees. He further notes that timeshare resorts offer amenities that many hotels do not, such as a full kitchen or screened-in porch. Nusbaum concludes, "Basically, if you take at least a week of vacation each year and don't like sleeping on grandma's couch, then this is a great deal. But if you're not a vacationer, then I wouldn't recommend this, just as I wouldn't recommend you buy a car if you don't drive." (Web Link)

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"Timeshare Reps Hear Climate Change Warning"
Foster's Daily Democrat (NH) (06/11/08)

In early June, more than 120 representatives of the timeshare sales and resales industry convened in Portsmouth, N.H., to learn how they can play a greater role in protecting and preserving the environment. Ray Sirois, IT Director for the Wright-Pierce civil engineering firm, was the featured speaker at the American Resort Development Association New England Regional Meeting. He began the conference with a program titled, "The Convenient Solution: Learn to Be Green." Among the facts presented: Nine of the past 10 years have been the hottest on record. At the current rate of carbon emissions into the atmosphere, Massachusetts will have the same climate as present-day South Carolina and sea level will rise by two feet by the end of the century. Princeton University researchers estimate that carbon emissions can be reduced 50 percent by 2050 using technologies that already exist but that need to be put into place. The solution includes a combination of technologies--solar, wind power and so forth. Some of the simple, but most effective, changes discussed at the event were based on case study policies put in place at the Inn by the Sea in Cape Elizabeth, Maine. These ranged from switching to more drought-tolerant landscaping to installing aerators on water faucets to conserve water. Among those attending was Sell My Timeshare Now President and CEO Jason Tremblay, who stated, "Timeshare companies are learning to do what all industries must do--make the effort, and make the changes. The future depends on it." (Web Link)

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"Analyst Says Timeshare Sales Goal Is Achievable"
Associated Press (06/19/08)

Goldman Sachs analyst Steven Kent says 10 percent timeshare sales growth is achievable for the industry this year. He believes that such improvement is possible despite the current credit crisis. According to Kent, roughly 412,000 new buyers are needed for sales to top 10 percent for 2008. That is only slightly more than the 400,000 achieved in 2007. He notes that the goal is more difficult for some companies to achieve than it is for others. For example, he estimates that Marriott International needs 28,100 new buyers this year to achieve the goal. Wyndham, however, needs new buyers to increase 13 percent to reach the low double-digit forecast. (Web Link)

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"Resorts Eye Livermore for Timeshares"
East Bay Business Times (06/06/08) Saunders, Jessica

A couple of developers are reportedly considering Livermore, Calif., for new timeshare resorts that would cater to wine enthusiasts. Rob White, the city's economic development director, would not name the companies nor would he say where in Livermore the resorts might be built. Timeshare resorts have been increasing in popularity throughout Napa Valley, and the same trend is expected to be seen in nearby Livermore Valley where dozens of vineyards and wineries are situated near major highways and regional airports. City officials have held a number of meetings with timeshare operators about possibly locating resorts near or within the city limits. White says the two companies are now narrowing down locations. The American Resort Development Association (ARDA), meanwhile, reports that wine country timeshares are an emerging niche market. There are currently three such resorts in Napa and Sonoma counties: Riverpointe Napa Valley Resort and Vino Bello Resort, both in Napa; and the Worldmark Windsor in Windsor. ARDA President and CEO Howard Nusbaum states that timeshare developers routinely seek destinations that people will want to visit more than once. He adds, "I believe that Northern California's wine country offers timeshare developers a compelling destination as there is a large population base with a short drive, the weather is spectacular, and consumers' continued growing interest in wine and food makes this a perfect time share and/or fractional destination." (Web Link)

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