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Timeshare Owners Kick The Tires Before They Purchase
23 October 2009
According to Vacation Timeshare Owners Report, 2009 Edition by the ARDA International Foundation (AIF), recent timeshare purchasers are younger, wealthier and happy with their vacation product. Overall, more than six in ten timeshare owners are age 45 or older, with Baby Boomers ranked as the largest generation of timeshare owners (45 percent). However, recent purchasers are younger than timeshare owners in general, with 58 percent under the age of 45.About half of recent purchasers rented a timeshare prior to buying (48 percent), and four out of five purchased from a developer or resort. The average household income for all owners is $92,405, and recent purchasers have an average household income of $94,933. Motivators for purchasing were the quality of accommodations, saving on future costs, and the credibility of the timeshare company. Over half say they purchased a timeshare to save money on future vacations.
“This study underscores the flexibility and value of vacation ownership products for a broad range of consumers and lifestyles. The value of timeshare that comes from its use gives people the discipline to have a better vacation year after year,” said Howard Nusbaum, ARDA president and CEO.
Other results from the study include:
• Timeshare owners spent an average of 8.18 days on timeshare vacations in 2008.
• On average, the total number of guests on a timeshare vacation was 3.71, including the owner.
• Eighty-six percent of all timeshare owners responded that owning a timeshare was an excellent, very good, or good experience.
• Sixty-nine percent of all owners would recommend their own resort or vacation club.
• On average, timeshare owners have owned their intervals for 8.26 years.
• Timeshare owners say that beaches (52 percent), attractions/entertainment (48 percent), and shopping (39 percent) are the most appealing resort characteristics.
• Eighty-one percent of all owners say that their timeshare offers a vacation home away from home.
For more information visit www.ARDA.org or download an executive summary of Vacation Timeshare Owners Report, 2009 Edition.
Man found dead in hot tub in Aspen Timeshare
22 October 2009
A 20-year-old man was found dead in a hot tub at the Prospector Condominiums late Wednesday morning, Aspen police said.
The victim's name was not available as of press time. Police were attempting to notify family victims before releasing the name.
The man had been in Aspen with a Denver firm that specializes in the installment of high-end blinds, said Aspen police detective Chris Womack, the lead investigator in the case.
Womack said, “It doesn't appear that there was anybody else involved in his death.”
A coroner's report is pending.
“We don't know if he drowned or not,” Womack said.
Police said they received a 911 call about the individual, who was reportedly unconscious and not breathing, at 11:29 a.m. Attempts to revive him with cardio-pulmonary resuscitation and automatic external defibrillation were not successful, police said.
The Aspen Police Department, Aspen Ambulance, Aspen Fire Department emergency medical personnel and the county sheriff's office all responded to the scene, at 301 E. Hyman Ave. The Prospector is a timeshare condo complex.
The victim's name was not available as of press time. Police were attempting to notify family victims before releasing the name.
The man had been in Aspen with a Denver firm that specializes in the installment of high-end blinds, said Aspen police detective Chris Womack, the lead investigator in the case.
Womack said, “It doesn't appear that there was anybody else involved in his death.”
A coroner's report is pending.
“We don't know if he drowned or not,” Womack said.
Police said they received a 911 call about the individual, who was reportedly unconscious and not breathing, at 11:29 a.m. Attempts to revive him with cardio-pulmonary resuscitation and automatic external defibrillation were not successful, police said.
The Aspen Police Department, Aspen Ambulance, Aspen Fire Department emergency medical personnel and the county sheriff's office all responded to the scene, at 301 E. Hyman Ave. The Prospector is a timeshare condo complex.
Consultant lashes back at attempt to ‘silence criticism’
20 October 2009
Since the economy turned sour last year, consumers have been more diligent with the ways in which they spend their money and timeshare owners at The Point at Po‘ipu say they are displeased with fees rising more than 50 percent in two years.
“The idea of paying an annual maintenance fee equal to what we currently pay at Marriott’s Kaua‘i Beach Villas in Lihu‘e doesn’t go down very well,” said John Palshaw, who has owned a timeshare for 11 years at The Point at Po‘ipu. “The differences in services available, in pool quality and in beach availability represent a huge disparity ... making it very hard to justify a $1,400 annual fee at The Point.”
Fees doubled from $695 in 2001 to more than $1,400 per week in 2009. Owners have been outspoken about their concerns regarding the elevated prices and feeling powerless when it comes to maintenance and management fees, as the majority of Vacation Owners Association and Association of Apartment Owners board members are employees of Diamond Resorts International.
Elizabeth Brennan, executive vice president and general counsel for the management company, DRI, sent a letter via e-mail on Oct. 6 to Janas Consulting Management Consultant Mike Givens threatening a lawsuit for making “defamatory, false and tortuously interfering” statements in an Oct. 4 article in The Garden Island.
Janas Consulting responded with a cease and desist letter sent via registered mail on Oct. 13 from Richard Pumilia of Pumilia Patel & Adamec LLP.
“I assume that you have found it profitable in the past to attempt to silence criticism of your organization by threats, harassment and intimidation,” the letter states. “With respect to Janas, these tactics may have the opposite effect from the one you seek.”
Janas Consulting “has not been retained with respect to The Point at Po‘ipu development,” even though the letter sent by Brennan claimed that they had, but would accept “an engagement ... should the opportunity arise,” the letter says.
Attempts to contact Brennan to clarify what statements or information was inaccurate in the Oct. 4 article were unanswered. In a phone interview on Oct. 9, she said the article was “completely false” but was “not in the position to provide” more information.
About 250 concerned deeded owners of some 10,000 at the South Shore resort have plunged forward in their efforts to take back control of their properties. Timeshare owner Rich Batchelder said the number would be higher if DRI would release the contact information of other owners.
“Since February we have been attempting to get a list of deeded owners,” he said Thursday, adding that he has been told by DRI employees that it is a “strict policy not to release the list.”
Hawai‘i Revised Statutes Chapter 514A states, “The resident manager or managing agent or board of directors shall keep an accurate and current list of members of the association of apartment owners and their current addresses ... The list shall be maintained at a place designated by the board of directors and a copy shall be available, at cost, to any member of the association as provided in the declaration or bylaws or rules and regulations ...”
“The questions is, ‘Is Diamond Resorts going to abide by Hawaiian statutes?’” Batchelder said.
Chapter 514A also states, “A director shall not cast any proxy vote at any board meeting, nor shall a director vote at any board meeting on any issue in which the director has a conflict of interest.”
In addition, “the number of persons constituting the board ... shall have an elected board of not less than nine members” and that no single apartment should have more than one representative.
“The idea of paying an annual maintenance fee equal to what we currently pay at Marriott’s Kaua‘i Beach Villas in Lihu‘e doesn’t go down very well,” said John Palshaw, who has owned a timeshare for 11 years at The Point at Po‘ipu. “The differences in services available, in pool quality and in beach availability represent a huge disparity ... making it very hard to justify a $1,400 annual fee at The Point.”
Fees doubled from $695 in 2001 to more than $1,400 per week in 2009. Owners have been outspoken about their concerns regarding the elevated prices and feeling powerless when it comes to maintenance and management fees, as the majority of Vacation Owners Association and Association of Apartment Owners board members are employees of Diamond Resorts International.
Elizabeth Brennan, executive vice president and general counsel for the management company, DRI, sent a letter via e-mail on Oct. 6 to Janas Consulting Management Consultant Mike Givens threatening a lawsuit for making “defamatory, false and tortuously interfering” statements in an Oct. 4 article in The Garden Island.
Janas Consulting responded with a cease and desist letter sent via registered mail on Oct. 13 from Richard Pumilia of Pumilia Patel & Adamec LLP.
“I assume that you have found it profitable in the past to attempt to silence criticism of your organization by threats, harassment and intimidation,” the letter states. “With respect to Janas, these tactics may have the opposite effect from the one you seek.”
Janas Consulting “has not been retained with respect to The Point at Po‘ipu development,” even though the letter sent by Brennan claimed that they had, but would accept “an engagement ... should the opportunity arise,” the letter says.
Attempts to contact Brennan to clarify what statements or information was inaccurate in the Oct. 4 article were unanswered. In a phone interview on Oct. 9, she said the article was “completely false” but was “not in the position to provide” more information.
About 250 concerned deeded owners of some 10,000 at the South Shore resort have plunged forward in their efforts to take back control of their properties. Timeshare owner Rich Batchelder said the number would be higher if DRI would release the contact information of other owners.
“Since February we have been attempting to get a list of deeded owners,” he said Thursday, adding that he has been told by DRI employees that it is a “strict policy not to release the list.”
Hawai‘i Revised Statutes Chapter 514A states, “The resident manager or managing agent or board of directors shall keep an accurate and current list of members of the association of apartment owners and their current addresses ... The list shall be maintained at a place designated by the board of directors and a copy shall be available, at cost, to any member of the association as provided in the declaration or bylaws or rules and regulations ...”
“The questions is, ‘Is Diamond Resorts going to abide by Hawaiian statutes?’” Batchelder said.
Chapter 514A also states, “A director shall not cast any proxy vote at any board meeting, nor shall a director vote at any board meeting on any issue in which the director has a conflict of interest.”
In addition, “the number of persons constituting the board ... shall have an elected board of not less than nine members” and that no single apartment should have more than one representative.
Timeshare Owners Speak Out
20 October 2009
With the economy improving, albeit slowly, consumers are continuing to look for ways to stretch their vacation dollars. For budget-minded families, timeshare remains one of the best vacation values.
Four new high-quality videos released by Holiday Resales, one of the nation’s oldest and largest timeshare resellers, illustrate the real world convenience and value of timesharing, as well as the advantages of vacation ownership versus traditional hotel-based vacations. The "Timeshare vs. Hotels" videos average about 3 minutes in length and can be viewed at http://timeshare.holidaygroup.com/2009/timeshare-vs-hotels.
"We invited timeshare owners to talk to us about what they liked about their timeshares," said Geoff Klein, Holiday’s Marketing Director. "In the videos, which were unscripted, the owners were quite enthusiastic about their experiences, and especially about the price point that timeshare resales provides."
As over 4 million Americans already know, one of the most wallet-friendly vacation options is timesharing. But the vacation industry’s best-kept secret, timeshare resales, remains relatively unknown to most travelers. Timeshare resales typically sell for 60% to 80% below retail prices and require no high-pressure presentations to purchase. In fact, most resale timeshares can be purchased by consumers via the Internet.
Klein noted that, "Many of the buyers we interviewed stated that if it hadn’t been for the low resale prices and extra amenities that timeshare provides, such as kitchens and a larger living space, they wouldn’t have been able to vacation as much as a family."
Studies conducted by the American Resort Development Association ( http://www.arda.com ) show that nearly 85% of the 4.3 million US timeshare owners are satisfied with their purchase. It is also clear that, as with other leisure lifestyle products, the more information consumers have before purchasing a timeshare, the more satisfied they are afterwards.
"Holiday has always placed a high value on educating buyers about the timeshare product," Klein said. "We’ve sold more than 32,000 timeshares over the last 16 years, not just because of our low prices, but also because of our strong consumer approach, which is reflected in the fact that 25 percent of our business comes from repeat buyers."
Four new high-quality videos released by Holiday Resales, one of the nation’s oldest and largest timeshare resellers, illustrate the real world convenience and value of timesharing, as well as the advantages of vacation ownership versus traditional hotel-based vacations. The "Timeshare vs. Hotels" videos average about 3 minutes in length and can be viewed at http://timeshare.holidaygroup.com/2009/timeshare-vs-hotels.
"We invited timeshare owners to talk to us about what they liked about their timeshares," said Geoff Klein, Holiday’s Marketing Director. "In the videos, which were unscripted, the owners were quite enthusiastic about their experiences, and especially about the price point that timeshare resales provides."
As over 4 million Americans already know, one of the most wallet-friendly vacation options is timesharing. But the vacation industry’s best-kept secret, timeshare resales, remains relatively unknown to most travelers. Timeshare resales typically sell for 60% to 80% below retail prices and require no high-pressure presentations to purchase. In fact, most resale timeshares can be purchased by consumers via the Internet.
Klein noted that, "Many of the buyers we interviewed stated that if it hadn’t been for the low resale prices and extra amenities that timeshare provides, such as kitchens and a larger living space, they wouldn’t have been able to vacation as much as a family."
Studies conducted by the American Resort Development Association ( http://www.arda.com ) show that nearly 85% of the 4.3 million US timeshare owners are satisfied with their purchase. It is also clear that, as with other leisure lifestyle products, the more information consumers have before purchasing a timeshare, the more satisfied they are afterwards.
"Holiday has always placed a high value on educating buyers about the timeshare product," Klein said. "We’ve sold more than 32,000 timeshares over the last 16 years, not just because of our low prices, but also because of our strong consumer approach, which is reflected in the fact that 25 percent of our business comes from repeat buyers."
Fractionals, timeshares make sense in down economy
19 October 2009
In a recessionary economy where cash is said to be king, purchases of fractional and timeshare vacation homes are gaining traction. However, the two should not be confused with each other.
Through August, timeshare and fractional ownership transactions in Routt County had totaled $11.28 million, a little more than 5 percent of the total of $200 million in dollar volume through the first eight months of the year.
Consumers may regard the term fractional as a euphemism for timeshare. However, Dave Irish, of Steamboat Ski & Resort Realty, said the two products are distinctly different. Timeshare sales are based on vacation periods and the flexibility they offer for owners to vacation at many destinations within the company’s network. They often involve purchasing points that can be spent throughout a network of resorts, Irish said.
“Fractional is an ownership product for people who want the security and comfort of real estate that doesn’t require the same amount of capital investment” as whole ownership.
Often, fractional owners have the ability to swap their unit with another owner in another destination. But the system doesn’t offer the same flexibility as a timeshare.
“In ski resorts like Steamboat, fractional buyers typically have formed a strong connection to the area and desire to return repeatedly,” Irish said.
One timeshare project, the Steamboat Villas in the Morningside Tower at the Sheraton Steamboat Resort, was dominating dollar and transaction volume with 185 sales totaling $7.3 million.
The condominiums there enjoy some of the most direct ski-in, ski-out access in Steamboat, immediately adjacent to the Steamboat Gondola. They have been extensively remodeled in the past two years and represent the height of luxury finishes in a timeshare resort here.
A company spokesman for Starwood Vacation Ownership declined to discuss details of the resort’s performance here but acknowledged that 2009 has been a successful year thus far.
A Sheraton Steamboat spokesperson said in December 2008 that the ability to remodel Morningside Tower and convert it to timeshares was a key factor in Starwood’s decision to buy the hotel and its affiliated golf course for $57 million in 2007.
Starwood began refurbishing the condos in April 2008 and completed the first 21 two- and three-bedroom units of the eventual 45 within seven months. They began hosting vacationers last ski season.
One way to describe them is to compare the Steamboat Villas to some of Steamboat’s best ski-in/ski-out condominiums with all of the luxuries of a full-service hotel, including room service and concierge service.
Sales at the Villas have been
steady throughout the fall – on Oct. 8, the project closed four transactions including a pair at $55,900, another at $29,900 and one at $19,900, for an aggregate value of $161,600.
Also tracking consistent transactions this autumn are timeshare sales at the Village at Steamboat managed by Wyndham Vacation Ownership.
The Village, with brand-new product and lower price points, saw days in September when 14 unrelated buyers bought a large number of vacation periods in 38 condominiums with a combined value of $1.13 million. On another day, there were seven sales, again tying up a substantial number of vacation periods with transactions ranging from $42,500 to $176,000.
Company spokeswoman Liz Hutchinson said her company offers a point-based product that allows buyers to vacation at resorts throughout its portfolio. Wyndham resorts span Australia, the South Pacific, Hawaii (seven to choose from), California, Arizona and destinations on the East Coast. Steamboat is the company’s most significant ski destination.
Wyndham/The Village at Steamboat had been quiet during August. The biggest expense of timeshare companies is their sales and marketing effort, and Hutchinson said her company spent part of the summer refocusing those efforts to fit the economy.
“We purposely retracted our revenue goals from $2 billion to $1.2 billion, and we looked at our marketing program and decided to target better customers. At the same time, we limited the development pipeline.”
The result of the two strategies in concert was a 40 percent reduction in sales, but that was expected.
“We’re very much on target to reach the $1.2 billion by Dec. 31,” she said.
One quarter-share at a time
Irish said there are 50 to 100 fractional units on the market in Steamboat this month, spread among the Steamboat Grand Resort Hotel, Christie Club and the Porches of Steamboat.
Intrawest owns Steamboat Ski & Resort Realty, the Steamboat Grand and Steamboat Ski Area.
The Steamboat Grand had seen 22 transactions valued at $1.55 million through August, and Irish said he played a role in all of them. There have been just two transactions in the past six weeks with a typical sale of $120,000 for a quarter-share.
Fractional purchases are made on the basis of frequency of use,” Irish said. “With the high cost of whole ownership, people often look at how often they plan to use a condominium. Many people can’t justify the capital outlay. If they only expect to use it two or three times a year, fractionals look very attractive. You get very high quality and great locations for an amount that makes sense.”
Irish has been involved in the Steamboat Grand since before it was built in 2000, and he saw it finally sell out in 2006. And although there were unexpected twists along the way, “it’s turned out exactly as we originally intended,” he said.
A burst of fractional sales can be expected late this year or early in 2010, when the portion of the condominiums at One Steamboat Place that offer fractional ownership begin to close.
Through August, timeshare and fractional ownership transactions in Routt County had totaled $11.28 million, a little more than 5 percent of the total of $200 million in dollar volume through the first eight months of the year.
Consumers may regard the term fractional as a euphemism for timeshare. However, Dave Irish, of Steamboat Ski & Resort Realty, said the two products are distinctly different. Timeshare sales are based on vacation periods and the flexibility they offer for owners to vacation at many destinations within the company’s network. They often involve purchasing points that can be spent throughout a network of resorts, Irish said.
“Fractional is an ownership product for people who want the security and comfort of real estate that doesn’t require the same amount of capital investment” as whole ownership.
Often, fractional owners have the ability to swap their unit with another owner in another destination. But the system doesn’t offer the same flexibility as a timeshare.
“In ski resorts like Steamboat, fractional buyers typically have formed a strong connection to the area and desire to return repeatedly,” Irish said.
One timeshare project, the Steamboat Villas in the Morningside Tower at the Sheraton Steamboat Resort, was dominating dollar and transaction volume with 185 sales totaling $7.3 million.
The condominiums there enjoy some of the most direct ski-in, ski-out access in Steamboat, immediately adjacent to the Steamboat Gondola. They have been extensively remodeled in the past two years and represent the height of luxury finishes in a timeshare resort here.
A company spokesman for Starwood Vacation Ownership declined to discuss details of the resort’s performance here but acknowledged that 2009 has been a successful year thus far.
A Sheraton Steamboat spokesperson said in December 2008 that the ability to remodel Morningside Tower and convert it to timeshares was a key factor in Starwood’s decision to buy the hotel and its affiliated golf course for $57 million in 2007.
Starwood began refurbishing the condos in April 2008 and completed the first 21 two- and three-bedroom units of the eventual 45 within seven months. They began hosting vacationers last ski season.
One way to describe them is to compare the Steamboat Villas to some of Steamboat’s best ski-in/ski-out condominiums with all of the luxuries of a full-service hotel, including room service and concierge service.
Sales at the Villas have been
steady throughout the fall – on Oct. 8, the project closed four transactions including a pair at $55,900, another at $29,900 and one at $19,900, for an aggregate value of $161,600.
Also tracking consistent transactions this autumn are timeshare sales at the Village at Steamboat managed by Wyndham Vacation Ownership.
The Village, with brand-new product and lower price points, saw days in September when 14 unrelated buyers bought a large number of vacation periods in 38 condominiums with a combined value of $1.13 million. On another day, there were seven sales, again tying up a substantial number of vacation periods with transactions ranging from $42,500 to $176,000.
Company spokeswoman Liz Hutchinson said her company offers a point-based product that allows buyers to vacation at resorts throughout its portfolio. Wyndham resorts span Australia, the South Pacific, Hawaii (seven to choose from), California, Arizona and destinations on the East Coast. Steamboat is the company’s most significant ski destination.
Wyndham/The Village at Steamboat had been quiet during August. The biggest expense of timeshare companies is their sales and marketing effort, and Hutchinson said her company spent part of the summer refocusing those efforts to fit the economy.
“We purposely retracted our revenue goals from $2 billion to $1.2 billion, and we looked at our marketing program and decided to target better customers. At the same time, we limited the development pipeline.”
The result of the two strategies in concert was a 40 percent reduction in sales, but that was expected.
“We’re very much on target to reach the $1.2 billion by Dec. 31,” she said.
One quarter-share at a time
Irish said there are 50 to 100 fractional units on the market in Steamboat this month, spread among the Steamboat Grand Resort Hotel, Christie Club and the Porches of Steamboat.
Intrawest owns Steamboat Ski & Resort Realty, the Steamboat Grand and Steamboat Ski Area.
The Steamboat Grand had seen 22 transactions valued at $1.55 million through August, and Irish said he played a role in all of them. There have been just two transactions in the past six weeks with a typical sale of $120,000 for a quarter-share.
Fractional purchases are made on the basis of frequency of use,” Irish said. “With the high cost of whole ownership, people often look at how often they plan to use a condominium. Many people can’t justify the capital outlay. If they only expect to use it two or three times a year, fractionals look very attractive. You get very high quality and great locations for an amount that makes sense.”
Irish has been involved in the Steamboat Grand since before it was built in 2000, and he saw it finally sell out in 2006. And although there were unexpected twists along the way, “it’s turned out exactly as we originally intended,” he said.
A burst of fractional sales can be expected late this year or early in 2010, when the portion of the condominiums at One Steamboat Place that offer fractional ownership begin to close.
Timeshare Resorts Show Resilience Through Downturn
19 October 2009
Because of its pre-paid nature, the timeshare industry is better equipped to stand against the downturn, explains Howard Nusbaum, president and chief executive officer of the American Resort Development Association (ARDA).
The industry will survive the recession, he continued, as succeeding generations remain eager to purchase a piece of flexible timeshare resorts.
Disney Vacation Club president James M Lewis added that his company also has confidence in timeshare ownership and is opening new timeshare resorts in California and Hawaii.
It was announced earlier this month that club members will be invited to take part in a volunteering campaign to complement the company's community projects.
Timeshare owners who give their time to help others will receive free one-day admission to Walt Disney World Resort or Disneyland Resort theme parks.
Timeshare veterans launch Trident Business Management
13 October 2009
Two of the timeshare and lodging industry’s most respected senior level operating executives have collaborated to launch a new business management organization, created to aide companies in need of highly specialized operational expertise and management services.
Utilizing their four decades of combined operations management expertise, Managing Partners James (Jimmy) Danz RRP and William (Bill) Tsao, founded Trident Business Management, an implementation-based business solutions group, based in Scottsdale, Arizona.
Trident Business Management was created to provide management services for companies in need of corporate, financial, or operational improvement. This includes short-term crisis management, longer-term stabilization, repositioning and growth management.
Explains Bill Tsao, “We recognize that the timeshare industry is in the midst of an evolutionary phase. The sudden vanishing of capital can be both destructive and cathartic. After hundreds of hours of discussions with top developers, lenders, strategists, lawyers, and respected industry-operating executives, we have identified a huge void in terms of a solid solution to the crisis. We formed Trident Business Management to help bring positive change to our industry at this critical time. Our past experiences, our contacts and strategic resources have positioned us well to participate in some much-needed change to the outdated and under-performing 30-year-old business model of timeshare.”
How will this be accomplished? “Instead of just focusing on cost containment and expense renegotiation,” adds Jimmy Danz, “we provide the operational experience and intimate understanding of a business that is critical in knowing how to open new revenue channels from existing assets that have not been properly leveraged. For some consulting companies or global rescue firms, it’s all about business plans. For us, it’s all about execution and differentiation from past practices. We back this philosophy by scaling our compensation toward performance and execution … without the cost of global overhead. While many companies espouse theory, at Trident, we believe in the principal of performance, not plans and stake the majority of our compensation on a success model with performance-based success fees instead of guaranteed fees with no guarantee of success.”
Trident Business Management is an operationally centric “all-inclusive” business solution company that has assembled a best-in-class group of professionals (the Trident Advisory Partners) who are widely respected authorities in their areas of expertise within the lodging and timeshare sectors of the leisure industry. Since every client has a unique set of challenges, these Advisory Partners will work with Trident leadership as a collaborative team to customize solutions, matching the right experts and specific talent to each client’s needs.
The two managing partners have spent their careers as senior operating executives, not as consultants, and have a solid reputation for integrity, ethics and sound business practices. In their previous executive positions as senior strategists and tacticians, the programming and implementation guidance provided by Danz and Tsao were key drivers in the procurement of nearly $1.5 billion dollars in net sales volume for some of the country’s largest vacation ownership companies.
Danz is internationally recognized as an expert in partnering corporate alliances with enterprise strategies, initiatives and objectives. His professional experience has also included equity partnerships, senior-level executive and consultancy roles for Diamond Resorts International®, Princeton Resorts Group, Starwood Hotels, Conrad Hilton International, Vistana Resorts, ACCOR Vacation Club and Success Marketing. The five-time Gold ARDY winner has held Board of Director seats for the American Resort Development Association (ARDA) and is the current Chairman of the ARDA Meetings Council and the ARDA Sales and Marketing Forum. He also sits on the Board of the American Tele-Services Association (ATA) and is the current Chairman of the ATA Political Action Committee.
Bill Tsao is a results-driven executive with a broad range of senior-level experience encompassing both domestic and international business operations. His background features a successful track record in driving revenue growth and winning market share, primarily in turnaround, start-up and high growth situations. His 18-year industry experience includes equity partnerships, senior-level executive and consultancy roles for Casablanca Express, Sunterra Resorts, Pacific Resorts International Inc., International Cruise & Excursions, Vacation Marketing Systems Inc., Raintree Resorts International and Diamond Resorts International®. Tsao has a proven career track record in driving multi-national and multi-site projects. He has been a frequent guest speaker at the ARDA National Convention and is a past board member for the Arizona Muscular Dystrophy Association (MDA) Annual Golf Tournament, which was the largest MDA Golf Tournament in the nation.
Utilizing their four decades of combined operations management expertise, Managing Partners James (Jimmy) Danz RRP and William (Bill) Tsao, founded Trident Business Management, an implementation-based business solutions group, based in Scottsdale, Arizona.
Trident Business Management was created to provide management services for companies in need of corporate, financial, or operational improvement. This includes short-term crisis management, longer-term stabilization, repositioning and growth management.
Explains Bill Tsao, “We recognize that the timeshare industry is in the midst of an evolutionary phase. The sudden vanishing of capital can be both destructive and cathartic. After hundreds of hours of discussions with top developers, lenders, strategists, lawyers, and respected industry-operating executives, we have identified a huge void in terms of a solid solution to the crisis. We formed Trident Business Management to help bring positive change to our industry at this critical time. Our past experiences, our contacts and strategic resources have positioned us well to participate in some much-needed change to the outdated and under-performing 30-year-old business model of timeshare.”
How will this be accomplished? “Instead of just focusing on cost containment and expense renegotiation,” adds Jimmy Danz, “we provide the operational experience and intimate understanding of a business that is critical in knowing how to open new revenue channels from existing assets that have not been properly leveraged. For some consulting companies or global rescue firms, it’s all about business plans. For us, it’s all about execution and differentiation from past practices. We back this philosophy by scaling our compensation toward performance and execution … without the cost of global overhead. While many companies espouse theory, at Trident, we believe in the principal of performance, not plans and stake the majority of our compensation on a success model with performance-based success fees instead of guaranteed fees with no guarantee of success.”
Trident Business Management is an operationally centric “all-inclusive” business solution company that has assembled a best-in-class group of professionals (the Trident Advisory Partners) who are widely respected authorities in their areas of expertise within the lodging and timeshare sectors of the leisure industry. Since every client has a unique set of challenges, these Advisory Partners will work with Trident leadership as a collaborative team to customize solutions, matching the right experts and specific talent to each client’s needs.
The two managing partners have spent their careers as senior operating executives, not as consultants, and have a solid reputation for integrity, ethics and sound business practices. In their previous executive positions as senior strategists and tacticians, the programming and implementation guidance provided by Danz and Tsao were key drivers in the procurement of nearly $1.5 billion dollars in net sales volume for some of the country’s largest vacation ownership companies.
Danz is internationally recognized as an expert in partnering corporate alliances with enterprise strategies, initiatives and objectives. His professional experience has also included equity partnerships, senior-level executive and consultancy roles for Diamond Resorts International®, Princeton Resorts Group, Starwood Hotels, Conrad Hilton International, Vistana Resorts, ACCOR Vacation Club and Success Marketing. The five-time Gold ARDY winner has held Board of Director seats for the American Resort Development Association (ARDA) and is the current Chairman of the ARDA Meetings Council and the ARDA Sales and Marketing Forum. He also sits on the Board of the American Tele-Services Association (ATA) and is the current Chairman of the ATA Political Action Committee.
Bill Tsao is a results-driven executive with a broad range of senior-level experience encompassing both domestic and international business operations. His background features a successful track record in driving revenue growth and winning market share, primarily in turnaround, start-up and high growth situations. His 18-year industry experience includes equity partnerships, senior-level executive and consultancy roles for Casablanca Express, Sunterra Resorts, Pacific Resorts International Inc., International Cruise & Excursions, Vacation Marketing Systems Inc., Raintree Resorts International and Diamond Resorts International®. Tsao has a proven career track record in driving multi-national and multi-site projects. He has been a frequent guest speaker at the ARDA National Convention and is a past board member for the Arizona Muscular Dystrophy Association (MDA) Annual Golf Tournament, which was the largest MDA Golf Tournament in the nation.
Diamond Resorts threatens legal action
12 October 2009
A timeshare management company has threatened a lawsuit against a consultant for making defamatory, false and “tortuously interfering” statements, but timeshare owners continue to push for reform.
Diamond Resorts International Executive Vice President and General Counsel Elizabeth Brennan threatened a lawsuit against Janas Consulting Management Consultant Mike Givens via e-mail last week, taking issue with statements made in the Oct. 4 The Garden Island article “Point at Po‘ipu timeshare owners struggling with management.”
Las Vegas-based DRI is demanding that Givens and “his clients” immediately cease and desist from making any further comments regarding their company.
“The truth hurts,” Givens said Thursday. “In a court of law, justice will be done. I guess the judge will decide who’s right or wrong.
“You just tell the truth and it will never backfire,” Givens said.
Brennan countered that Givens and vocal owners are “interfering” with business, also confirming reports that all newspapers delivered to the Point at Po‘ipu Oct. 4 were “purchased by the sales team” to conceal the “inaccurate information.”
In that story, owners complained fees doubled from $695 per week in 2001 to over $1,400 in 2009 and that they have little to no say when it comes to maintenance and management fees, as the majority of Vacation Owners Association and Association of Apartment Owners board members are also employees of DRI.
Brennan said last week the board members were “duly elected” by owners and the election was in accordance with Hawai‘i law. There are three “developer reps” on the five-member board and the reason they unanimously voted to up maintenance fees, she said, was largely due to high operational costs and the need for the budget to cover expenses.
State law does contain rules pertaining to the management of condominium property regimes.
Chapter 514A of the Hawai‘i Revised Statutes states, “A director shall not cast any proxy vote at any board meeting, nor shall a director vote at any board meeting on any issue in which the director has a conflict of interest.”
The Hawai‘i Revised Statutes also states that “the number of persons constituting the board ... shall have an elected board of not less than nine members” and that no single apartment should have more than one representative.
Brennan was “not in a position to provide” further information Friday.
Maintenance woes
“There’s nothing I can do but report the honest truth,” said Barry Smith, a former sales representative for the Point at Po‘ipu, when he expressed concern about owners Friday.
“I’ve got a heart because I had hundreds of owners I’ve sold to,” he said.
People are “intoxicated” with the beauty of the island when they’re here and are “promised a beautiful place” at a certain rate.
“Then all of a sudden things go up and up and they’re stuck in something they can’t afford, especially right now,” Smith said.
Owners have complained about the maintenance of the property, and while Smith said the resort is in “pretty nice shape overall” and “well-maintained,” he said furniture has not been updated on the inside of the rooms in about “13 years” and flat screen TVs have not yet been installed.
The silent majority
“Since Diamond took the reins, there has been a marked improvement in the condition and maintenance,” Kalaheo resident James Thompson wrote in an e-mail last week. Thompson is a DRI employee but specified that he was not authorized to speak on behalf of the company.
“Moreover, roughly 70 percent of sales currently being generated at The Point are to existing owners there. This is hardly indicative of an impending owner’s revolt, and more probably is a case of owners at The Point quietly endorsing DRI with their pocketbooks.
“To suggest that 250 owners out of 10,000 somehow represents a tidal wave of opposition may be a bit of an exaggeration,” Thompson said. “It might be interesting to know how many of those same owners were among the most vociferous in decrying (justifiably) the deteriorating conditions prior to Diamond’s arrival. A case, perhaps, of wanting to ‘have your cake and eat it, too’?”
Diamond Resorts International Executive Vice President and General Counsel Elizabeth Brennan threatened a lawsuit against Janas Consulting Management Consultant Mike Givens via e-mail last week, taking issue with statements made in the Oct. 4 The Garden Island article “Point at Po‘ipu timeshare owners struggling with management.”
Las Vegas-based DRI is demanding that Givens and “his clients” immediately cease and desist from making any further comments regarding their company.
“The truth hurts,” Givens said Thursday. “In a court of law, justice will be done. I guess the judge will decide who’s right or wrong.
“You just tell the truth and it will never backfire,” Givens said.
Brennan countered that Givens and vocal owners are “interfering” with business, also confirming reports that all newspapers delivered to the Point at Po‘ipu Oct. 4 were “purchased by the sales team” to conceal the “inaccurate information.”
In that story, owners complained fees doubled from $695 per week in 2001 to over $1,400 in 2009 and that they have little to no say when it comes to maintenance and management fees, as the majority of Vacation Owners Association and Association of Apartment Owners board members are also employees of DRI.
Brennan said last week the board members were “duly elected” by owners and the election was in accordance with Hawai‘i law. There are three “developer reps” on the five-member board and the reason they unanimously voted to up maintenance fees, she said, was largely due to high operational costs and the need for the budget to cover expenses.
State law does contain rules pertaining to the management of condominium property regimes.
Chapter 514A of the Hawai‘i Revised Statutes states, “A director shall not cast any proxy vote at any board meeting, nor shall a director vote at any board meeting on any issue in which the director has a conflict of interest.”
The Hawai‘i Revised Statutes also states that “the number of persons constituting the board ... shall have an elected board of not less than nine members” and that no single apartment should have more than one representative.
Brennan was “not in a position to provide” further information Friday.
Maintenance woes
“There’s nothing I can do but report the honest truth,” said Barry Smith, a former sales representative for the Point at Po‘ipu, when he expressed concern about owners Friday.
“I’ve got a heart because I had hundreds of owners I’ve sold to,” he said.
People are “intoxicated” with the beauty of the island when they’re here and are “promised a beautiful place” at a certain rate.
“Then all of a sudden things go up and up and they’re stuck in something they can’t afford, especially right now,” Smith said.
Owners have complained about the maintenance of the property, and while Smith said the resort is in “pretty nice shape overall” and “well-maintained,” he said furniture has not been updated on the inside of the rooms in about “13 years” and flat screen TVs have not yet been installed.
The silent majority
“Since Diamond took the reins, there has been a marked improvement in the condition and maintenance,” Kalaheo resident James Thompson wrote in an e-mail last week. Thompson is a DRI employee but specified that he was not authorized to speak on behalf of the company.
“Moreover, roughly 70 percent of sales currently being generated at The Point are to existing owners there. This is hardly indicative of an impending owner’s revolt, and more probably is a case of owners at The Point quietly endorsing DRI with their pocketbooks.
“To suggest that 250 owners out of 10,000 somehow represents a tidal wave of opposition may be a bit of an exaggeration,” Thompson said. “It might be interesting to know how many of those same owners were among the most vociferous in decrying (justifiably) the deteriorating conditions prior to Diamond’s arrival. A case, perhaps, of wanting to ‘have your cake and eat it, too’?”
Time-share scam salesman: 'We were victims, too'
9 October 2009
One of four Central Oregonians who sold investments in a fraudulent time-share investment scheme that raised more than $428 million from investors across the country told NewsChannel 21 Thursday, "We were as deceived as anyone."
The Oregon Department of Consumer and Business Services announced Thursday it has levied fines in excess of $2 million against American-, Mexican-, and Panamanian-based companies and 10 individuals for unlawfully soliciting funds from Oregon residents in a complex investment scheme that raised more than $428 million from investors nationwide.
Oregon residents, many of them elderly, alone lost more than $5 million.
The parties sold unregistered securities using numerous fraudulent misrepresentations. The securities involved the sale of time shares in Mexico's Yucatan Peninsula that would be rented by related or affiliated companies, and were described as universal leases, in exchange for a supposed high yearly return.
In reality, there were few properties and almost no rental income, and funds obtained from the timeshare "purchases" were used to pay already-established investors, until the entire scheme collapsed under its own weight, according to final cease-and-desist orders issued by the department's Division of Finance and Corporate Securities.
"It's unfortunate that many elderly Oregonians lost their hard-earned retirement funds by unwittingly investing in this scheme," said David Tatman, division administrator.
Named in the orders, among others, are Yucatan Resorts, Resorts Holdings International, and World Phantasy Tours. The division also took action against the scheme's founder, Michael E. Kelly of Indiana, as well as Ruttenberg and Associates Financial Marketing, based in Illinois, the firm that spearheaded the unlawful sales efforts in the Pacific Northwest. Each were assessed a $300,000 fine.
The Oregon-based independent salespersons, who reaped lucrative commissions from their sales activities, include Stephen Monroe, Portland; Dale Lauder, Wilsonville; Roger Stewart, Douglas Laird, and Bill Boedeker (aka Billy Lynn Boedeker), North Bend; Lawrence Beard and Joel Whaley, Prineville; Kenneth Christensen, Bend; Royal Edwards, Redmond; and James Theeler, Salem.
In total, salespersons were assessed fines in the amount of $738,525. The division's orders strictly prohibit them from raising capital, formally or informally, from other individuals for use or investment on their behalf.
Because eight of the salespersons were insurance agents, the department's Insurance Division is also investigating.
Oregon is not the only government entity to take action against some of those involved: at least 10 state securities regulators have filed or concluded civil action; the U.S. Securities and Exchange Commission has a pending civil case, and the U.S. Department of Justice has a pending criminal case.
"We were very small players in this whole thing," Royal Edwards of Redmond told NewsChannel 21. "We checked it out as thoroughly as we could," but didn't check with the Securities and Exchange Commission.
"It's our fault we didn't think of that," Edwards said.
Kevin Anselm of the state Department of Consumer and Business Services said none of the Oregon salespeople face federal charges, but payment plans were worked out with those 10 individuals.
"It's more complicated with the companies," due to their location, she told NewsChannel 21 and KTVZ.COM. "Some are in bankruptcy, so some are not collectible, but we have it (the orders) out there, if it ever becomes collectible."
Anselm said the companies held national-level training sessions between 1999 and 2004.
"Unfortunately, local agents got involved," she said, and it all began to unravel when "people stopped getting payments" that they expected.
"Just like any other Ponzi scheme, the money ran out," and complaints arose, Anselm said, so states began comparing notes with federal regulators.
Anselm said the local salespersons "didn't necessarily know" what they were selling was shady, "but they weren't licensed to sell local securities. They didn't know much about the securities at issue."
"But that's part of what goes into the training of licensed securities agents," she said. "I'm not saying there aren't licensed security agents who do the wrong thing - we have a lot of that, too. But you need to check to see if they are licensed to really sell what they are selling."
"These kinds of things are happening to people who consider themselves savvy investors - and are savvy investors," Anselm added. "They just need to check out what they are buying."
And selling, in the case of folks like Edwards.
"They sent us down to Mexico ... We saw all the assets and everything," he said. "There were probably 25 people when we went."
The Redmond man called it "a little bit annoying" that the state had announced the conclusion of the case by news release and "tarnished" the reputation of long-time residents.
"The unfortunate part is, we were deceived the same way," Edwards said. "They held out money we never got paid for. Money was taken and not returned. We never got paid commission, so we were victims, too."
"It's one of those things you regret," he said. "We've done everything to get returns for these people (investors), but it's in the hands of a conservator."
Edwards said "I honestly don't remember" the total sum of his settlement with the state and would have to look it up, but added, "Most of the fine was deferred. It was a ‘cease and desist' kind of thing."
Tatman encouraged investors to contact the division before making any type of investment to determine if the salesperson is licensed.
"While the subject of the fraudulent investments can be diverse - from timeshares to technology to commodities like silver and gold - the one characteristic they share is that they are sold by agents who are not licensed to sell securities," Tatman said. "State licenses are not 'one-size-fits-all.' For example, an insurance agent is by no means automatically authorized to sell investments."
Investors should look for "red flags" such as the lack of meaningful information on a potential investment opportunity. "In this case, investors received almost no information about the company involved, especially their capitalization and operating histories," Tatman said.
DFCS advises consumers to do their homework before doing business with any financial professional. To check an individual's credentials and licensing history, call DFCS toll-free in Oregon at 1-866-814-9710, 503-378-4140, or go to www.dfcs.oregon.gov.
The Oregon Department of Consumer and Business Services announced Thursday it has levied fines in excess of $2 million against American-, Mexican-, and Panamanian-based companies and 10 individuals for unlawfully soliciting funds from Oregon residents in a complex investment scheme that raised more than $428 million from investors nationwide.
Oregon residents, many of them elderly, alone lost more than $5 million.
The parties sold unregistered securities using numerous fraudulent misrepresentations. The securities involved the sale of time shares in Mexico's Yucatan Peninsula that would be rented by related or affiliated companies, and were described as universal leases, in exchange for a supposed high yearly return.
In reality, there were few properties and almost no rental income, and funds obtained from the timeshare "purchases" were used to pay already-established investors, until the entire scheme collapsed under its own weight, according to final cease-and-desist orders issued by the department's Division of Finance and Corporate Securities.
"It's unfortunate that many elderly Oregonians lost their hard-earned retirement funds by unwittingly investing in this scheme," said David Tatman, division administrator.
Named in the orders, among others, are Yucatan Resorts, Resorts Holdings International, and World Phantasy Tours. The division also took action against the scheme's founder, Michael E. Kelly of Indiana, as well as Ruttenberg and Associates Financial Marketing, based in Illinois, the firm that spearheaded the unlawful sales efforts in the Pacific Northwest. Each were assessed a $300,000 fine.
The Oregon-based independent salespersons, who reaped lucrative commissions from their sales activities, include Stephen Monroe, Portland; Dale Lauder, Wilsonville; Roger Stewart, Douglas Laird, and Bill Boedeker (aka Billy Lynn Boedeker), North Bend; Lawrence Beard and Joel Whaley, Prineville; Kenneth Christensen, Bend; Royal Edwards, Redmond; and James Theeler, Salem.
In total, salespersons were assessed fines in the amount of $738,525. The division's orders strictly prohibit them from raising capital, formally or informally, from other individuals for use or investment on their behalf.
Because eight of the salespersons were insurance agents, the department's Insurance Division is also investigating.
Oregon is not the only government entity to take action against some of those involved: at least 10 state securities regulators have filed or concluded civil action; the U.S. Securities and Exchange Commission has a pending civil case, and the U.S. Department of Justice has a pending criminal case.
"We were very small players in this whole thing," Royal Edwards of Redmond told NewsChannel 21. "We checked it out as thoroughly as we could," but didn't check with the Securities and Exchange Commission.
"It's our fault we didn't think of that," Edwards said.
Kevin Anselm of the state Department of Consumer and Business Services said none of the Oregon salespeople face federal charges, but payment plans were worked out with those 10 individuals.
"It's more complicated with the companies," due to their location, she told NewsChannel 21 and KTVZ.COM. "Some are in bankruptcy, so some are not collectible, but we have it (the orders) out there, if it ever becomes collectible."
Anselm said the companies held national-level training sessions between 1999 and 2004.
"Unfortunately, local agents got involved," she said, and it all began to unravel when "people stopped getting payments" that they expected.
"Just like any other Ponzi scheme, the money ran out," and complaints arose, Anselm said, so states began comparing notes with federal regulators.
Anselm said the local salespersons "didn't necessarily know" what they were selling was shady, "but they weren't licensed to sell local securities. They didn't know much about the securities at issue."
"But that's part of what goes into the training of licensed securities agents," she said. "I'm not saying there aren't licensed security agents who do the wrong thing - we have a lot of that, too. But you need to check to see if they are licensed to really sell what they are selling."
"These kinds of things are happening to people who consider themselves savvy investors - and are savvy investors," Anselm added. "They just need to check out what they are buying."
And selling, in the case of folks like Edwards.
"They sent us down to Mexico ... We saw all the assets and everything," he said. "There were probably 25 people when we went."
The Redmond man called it "a little bit annoying" that the state had announced the conclusion of the case by news release and "tarnished" the reputation of long-time residents.
"The unfortunate part is, we were deceived the same way," Edwards said. "They held out money we never got paid for. Money was taken and not returned. We never got paid commission, so we were victims, too."
"It's one of those things you regret," he said. "We've done everything to get returns for these people (investors), but it's in the hands of a conservator."
Edwards said "I honestly don't remember" the total sum of his settlement with the state and would have to look it up, but added, "Most of the fine was deferred. It was a ‘cease and desist' kind of thing."
Tatman encouraged investors to contact the division before making any type of investment to determine if the salesperson is licensed.
"While the subject of the fraudulent investments can be diverse - from timeshares to technology to commodities like silver and gold - the one characteristic they share is that they are sold by agents who are not licensed to sell securities," Tatman said. "State licenses are not 'one-size-fits-all.' For example, an insurance agent is by no means automatically authorized to sell investments."
Investors should look for "red flags" such as the lack of meaningful information on a potential investment opportunity. "In this case, investors received almost no information about the company involved, especially their capitalization and operating histories," Tatman said.
DFCS advises consumers to do their homework before doing business with any financial professional. To check an individual's credentials and licensing history, call DFCS toll-free in Oregon at 1-866-814-9710, 503-378-4140, or go to www.dfcs.oregon.gov.
Diamond Point developers alter timeshare plans
9 October 2009
Residents continued voicing opposition to a timeshare development in Diamond Point this week, even after developers said changes to the project were being made to accommodate concerns.
The town’s Planning Board kept the public hearing open after project leaders promised to come back with new maps and designs for Lake Shore Lodges, which proposes building 45 timeshare units along Route 9N at what is now the Family Suites Motel and a single-family home across the street.
Meanwhile, those who would be neighbors of the development are still opposed.
"It’s a lot of people right by the lake," neighbor Christine McKenna said, "but it’s what the town wants."
McKenna said her long strip of land neighbors 13 other properties, and all of those residents are also opposed.
However, only four residents spoke at Tuesday’s public hearing.
"I think its terribly important that this project meet code," Melissa Vito said. "We can wait till a project comes along that meets code. There’s no reason we have to approve this project."
Vito said the board should protect the lake, and implied that approving this project does not do so.
Neighbor Mike Seguljic told the board to carefully assess the project’s density, and echoed Vito’s concerns about the lake’s water quality.
"If we don’t start getting a handle on the quality of Lake George’s water," he said, "it might be changed forever."
Tom Wessling, who owns the Blue Lagoon Resort, north of the proposed development, urged the board to issue restrictions to construction during tourist season.
John Lemery, attorney and spokesman for the project, said developers are moving the proposed pool and restaurant away from the lakeside parcel after some 10 residents spoke at last month’s public hearing. Moving the pool to the other side of the street means construction crews won’t have to blast near the lake.
Developers need full approval from the Planning Board before they can move forward with the project.
Lemery reiterated plans for a state-of-the-art wastewater treatment plant and said some neighbors, including McKenna, will hook up to the development’s water pipes and sewer system. He also spoke of a shuttle that would move tourists back and forth between buildings to avoid them having to cross busy Route 9N.
"As a result of our moving the pool and the restaurant, the height of the lakeside building will come down considerably," he said.
Developers still did not disclose the total proposed square footage of the buildings, since they said they are still working that out.
But residents were left with questions about wetlands on the property.
Zoning Enforcement Officer Robert Hickey said the Adirondack Park Agency only found wetlands on the south side of the upland parcel.
APA spokesman Keith McKeever confirmed that, and said wetlands were found in May 2008.
When engineer Tom Suozzo was about to pull out a map, Lemery whispered something inaudible into the engineer’s ear, rousing a collective groan from the crowd.
At first, Suozzo said he was not sure how much of the land is considered wetlands, but after being pushed by the board, he estimated 0.8 acres.
Kathleen Bozony of the Lake George Waterkeeper said the proposed changes are headed in the right direction, but she is hesitant to form an opinion until she sees the plans on paper.
"Until I see them down as changes, it’s hard to comment," she said.
The town’s Planning Board kept the public hearing open after project leaders promised to come back with new maps and designs for Lake Shore Lodges, which proposes building 45 timeshare units along Route 9N at what is now the Family Suites Motel and a single-family home across the street.
Meanwhile, those who would be neighbors of the development are still opposed.
"It’s a lot of people right by the lake," neighbor Christine McKenna said, "but it’s what the town wants."
McKenna said her long strip of land neighbors 13 other properties, and all of those residents are also opposed.
However, only four residents spoke at Tuesday’s public hearing.
"I think its terribly important that this project meet code," Melissa Vito said. "We can wait till a project comes along that meets code. There’s no reason we have to approve this project."
Vito said the board should protect the lake, and implied that approving this project does not do so.
Neighbor Mike Seguljic told the board to carefully assess the project’s density, and echoed Vito’s concerns about the lake’s water quality.
"If we don’t start getting a handle on the quality of Lake George’s water," he said, "it might be changed forever."
Tom Wessling, who owns the Blue Lagoon Resort, north of the proposed development, urged the board to issue restrictions to construction during tourist season.
John Lemery, attorney and spokesman for the project, said developers are moving the proposed pool and restaurant away from the lakeside parcel after some 10 residents spoke at last month’s public hearing. Moving the pool to the other side of the street means construction crews won’t have to blast near the lake.
Developers need full approval from the Planning Board before they can move forward with the project.
Lemery reiterated plans for a state-of-the-art wastewater treatment plant and said some neighbors, including McKenna, will hook up to the development’s water pipes and sewer system. He also spoke of a shuttle that would move tourists back and forth between buildings to avoid them having to cross busy Route 9N.
"As a result of our moving the pool and the restaurant, the height of the lakeside building will come down considerably," he said.
Developers still did not disclose the total proposed square footage of the buildings, since they said they are still working that out.
But residents were left with questions about wetlands on the property.
Zoning Enforcement Officer Robert Hickey said the Adirondack Park Agency only found wetlands on the south side of the upland parcel.
APA spokesman Keith McKeever confirmed that, and said wetlands were found in May 2008.
When engineer Tom Suozzo was about to pull out a map, Lemery whispered something inaudible into the engineer’s ear, rousing a collective groan from the crowd.
At first, Suozzo said he was not sure how much of the land is considered wetlands, but after being pushed by the board, he estimated 0.8 acres.
Kathleen Bozony of the Lake George Waterkeeper said the proposed changes are headed in the right direction, but she is hesitant to form an opinion until she sees the plans on paper.
"Until I see them down as changes, it’s hard to comment," she said.
Timeshare Resilient
7 October 2009
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 measured by Volume Per Guest (VPG) of $2,043 that was up by two percent from the previous quarter level.
In addition, 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. 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," said Don Harrill, president and CEO of Holiday Inn Club Vacations.
"At Disney, we have confidence in vacation ownership. 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," added James M. Lewis, president of Disney Vacation Club.
Sergio Rivera, CEO for Starwood Vacation Ownership said, "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, CFO of Diamond Resorts International. "Our closing rates this year are identical to those last year, and our collections remain strong. 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 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."
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 measured by Volume Per Guest (VPG) of $2,043 that was up by two percent from the previous quarter level.
In addition, 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. 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," said Don Harrill, president and CEO of Holiday Inn Club Vacations.
"At Disney, we have confidence in vacation ownership. 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," added James M. Lewis, president of Disney Vacation Club.
Sergio Rivera, CEO for Starwood Vacation Ownership said, "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, CFO of Diamond Resorts International. "Our closing rates this year are identical to those last year, and our collections remain strong. 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 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."
Point at Po‘ipu timeshare owners struggling with management
5 October 2009
When weekly maintenance fees for The Point at Po‘ipu on the South Shore grew over 50 percent in just two years, timeshare owner Myra Orta became livid.
“They’re going to bleed us dry,” she said, directing her ire to the property’s management company, Las Vegas-based Diamond Resorts International.
Not only did fees double from $695 in 2001 to over $1,400 per week in 2009, owners complain they have little to no say when it comes to maintenance and management fees, as the majority of Vacation Owners Association and Association of Apartment Owners board members are also employees of DRI.
“With that, they effectively control all economic decisions of The Point at Po‘ipu,” three-week deeded timeshare owner Richard Batchelder said Friday.
The board members were “duly elected” by owners and the election was in accordance with Hawai‘i law, said DRI Executive Vice President and General Counsel Elizabeth Brennan in a phone interview last week. There are three “developer reps” on the five-member board and the reason they unanimously voted to up maintenance fees, she said, was largely due to high operational costs and the need for the budget to cover expenses.
“The increase is because the cost of doing business in Hawai‘i has increased tremendously,” Brennan said.
Expenses include electricity, freight, employee wages and benefits, taxes and other operating costs.
Batchelder disagrees.
“The high cost of living has nothing to do with the administrative cost,” he said.
There was some $1.5 million in “pure profit” based on “management or administrative fees” in 2008 and 2009, said Batchelder, who attended the Aug. 21 board meeting in Las Vegas.
“And they’ll do the same thing in 2010,” he said.
Batchelder and Orta are part of a group of “concerned deeded owners” who “mean business” and are united in an attempt to take back control of their properties, Orta said.
Less than 10 percent of the property is actually owned by DRI, they said.
“It’s a matter of the owners taking legal steps to bring the management company to the table to get something done,” said Janas Consulting Management Consultant Mike Givens, who touts over 35 years experience in the visitor industry. “As long as the majority of owners desire to do so, they can remove management.”
With a sold-out resort and some 10,000 owners sharing over 90 percent of the property, the coup is definitely feasible, he said, acknowledging the “spitfire” group of some 230 owners that has already formed.
“We have to kick out the management company,” said Orta, secretary of the newly formed organization.
Brennan said all money is accounted for and that DRI is following all relevant laws.
“We take our customer service seriously; it is very important to us,” she said. “We want to make people happy.”
When asked to specify what maintenance fees were being used for, Brennan said employee salaries are largely the reason for the major increases.
For example, salaries and benefits in 2006 cost some $3.5 million, but in 2010 they are expected to cost approximately $5.5 million.
“We have to keep in competition with other resorts and hotels,” she said.
Prior to 2006, staffing was lower, which caused check-in time to be slower than what timeshare owners expected, she added.
“Staffing levels increased due to owner demand,” she said. “We had to accommodate check-in times.”
In addition, as the property continues to age, more maintenance staff is required which, in turn, boosts fees even higher, she said, leading to a department which costs roughly $1.8 million per year.
Brennan said over the past five years there was a 31 percent increase in utility costs, which are projected to come in at some $1.9 million in 2010. New flat screen TVs, small appliance replacements, new carpet and upgraded fire alarms are just a few other reasons she cited for growing fees.
The total operating expense are approximately $15 million a year, Batchelder said.
“We are attempting to get other management companies on Kaua‘i to give us bids, but the board will not approve this,” he said.
The bottom line, however, is the “management or administrative fee” which the owners do have a say about, Givens said.
“We’re getting a black eye from a management company that doesn’t even come from the island and lacks the ‘ohana,” he said. “It’s a growing problem. They’re raiding the piggy bank and not being fair.”
Hanalei Bay Resort, whose management company is Florida-based Celebrity Resorts, and Ka‘anapali Beach Club, managed by DRI, are enduring similar complications.
The good news, Givens said, is that it “can be nipped in the bud,” but will take progressive efforts from owners.
“We have a full customer service department here to ensure that the Po‘ipu owners concerns are met,” Brennan said.
A phone number has been set up specifically for The Point at Po‘ipu owners, according to Brennan. The number is 800-332-3120 and information can also be obtained online at www.diamondresortshoa.com.
“You hate to see this,” Givens said. “You don’t want to treat people this way.”
“They’re going to bleed us dry,” she said, directing her ire to the property’s management company, Las Vegas-based Diamond Resorts International.
Not only did fees double from $695 in 2001 to over $1,400 per week in 2009, owners complain they have little to no say when it comes to maintenance and management fees, as the majority of Vacation Owners Association and Association of Apartment Owners board members are also employees of DRI.
“With that, they effectively control all economic decisions of The Point at Po‘ipu,” three-week deeded timeshare owner Richard Batchelder said Friday.
The board members were “duly elected” by owners and the election was in accordance with Hawai‘i law, said DRI Executive Vice President and General Counsel Elizabeth Brennan in a phone interview last week. There are three “developer reps” on the five-member board and the reason they unanimously voted to up maintenance fees, she said, was largely due to high operational costs and the need for the budget to cover expenses.
“The increase is because the cost of doing business in Hawai‘i has increased tremendously,” Brennan said.
Expenses include electricity, freight, employee wages and benefits, taxes and other operating costs.
Batchelder disagrees.
“The high cost of living has nothing to do with the administrative cost,” he said.
There was some $1.5 million in “pure profit” based on “management or administrative fees” in 2008 and 2009, said Batchelder, who attended the Aug. 21 board meeting in Las Vegas.
“And they’ll do the same thing in 2010,” he said.
Batchelder and Orta are part of a group of “concerned deeded owners” who “mean business” and are united in an attempt to take back control of their properties, Orta said.
Less than 10 percent of the property is actually owned by DRI, they said.
“It’s a matter of the owners taking legal steps to bring the management company to the table to get something done,” said Janas Consulting Management Consultant Mike Givens, who touts over 35 years experience in the visitor industry. “As long as the majority of owners desire to do so, they can remove management.”
With a sold-out resort and some 10,000 owners sharing over 90 percent of the property, the coup is definitely feasible, he said, acknowledging the “spitfire” group of some 230 owners that has already formed.
“We have to kick out the management company,” said Orta, secretary of the newly formed organization.
Brennan said all money is accounted for and that DRI is following all relevant laws.
“We take our customer service seriously; it is very important to us,” she said. “We want to make people happy.”
When asked to specify what maintenance fees were being used for, Brennan said employee salaries are largely the reason for the major increases.
For example, salaries and benefits in 2006 cost some $3.5 million, but in 2010 they are expected to cost approximately $5.5 million.
“We have to keep in competition with other resorts and hotels,” she said.
Prior to 2006, staffing was lower, which caused check-in time to be slower than what timeshare owners expected, she added.
“Staffing levels increased due to owner demand,” she said. “We had to accommodate check-in times.”
In addition, as the property continues to age, more maintenance staff is required which, in turn, boosts fees even higher, she said, leading to a department which costs roughly $1.8 million per year.
Brennan said over the past five years there was a 31 percent increase in utility costs, which are projected to come in at some $1.9 million in 2010. New flat screen TVs, small appliance replacements, new carpet and upgraded fire alarms are just a few other reasons she cited for growing fees.
The total operating expense are approximately $15 million a year, Batchelder said.
“We are attempting to get other management companies on Kaua‘i to give us bids, but the board will not approve this,” he said.
The bottom line, however, is the “management or administrative fee” which the owners do have a say about, Givens said.
“We’re getting a black eye from a management company that doesn’t even come from the island and lacks the ‘ohana,” he said. “It’s a growing problem. They’re raiding the piggy bank and not being fair.”
Hanalei Bay Resort, whose management company is Florida-based Celebrity Resorts, and Ka‘anapali Beach Club, managed by DRI, are enduring similar complications.
The good news, Givens said, is that it “can be nipped in the bud,” but will take progressive efforts from owners.
“We have a full customer service department here to ensure that the Po‘ipu owners concerns are met,” Brennan said.
A phone number has been set up specifically for The Point at Po‘ipu owners, according to Brennan. The number is 800-332-3120 and information can also be obtained online at www.diamondresortshoa.com.
“You hate to see this,” Givens said. “You don’t want to treat people this way.”
TATOC Launches Sister Website
2 October 2009
We are happy to announce the launch of a new website which provides impartial, free of charge help and information for Timeshare consumers.
Over the years there have been a number of questions and issues that seem to be raised time and time again. The idea of this website is to bring together a body of information that will provide answers to these questions in a clear and understandable format.
Moreover, if the consumer is unable to find the information they require from the website, we have formed a dedicated Consumer Assistance Team who will be able to answer consumer questions either via email or the telephone.
Whilst the website is still in its infancy, there is already a large amount of content dealing with the most pertinent aspects of the Timeshare and holiday industry. This information will be constantly updated and we hope it will soon become the most comprehensive source of Timeshare knowledge anywhere on the internet.
Over the years there have been a number of questions and issues that seem to be raised time and time again. The idea of this website is to bring together a body of information that will provide answers to these questions in a clear and understandable format.
Moreover, if the consumer is unable to find the information they require from the website, we have formed a dedicated Consumer Assistance Team who will be able to answer consumer questions either via email or the telephone.
Whilst the website is still in its infancy, there is already a large amount of content dealing with the most pertinent aspects of the Timeshare and holiday industry. This information will be constantly updated and we hope it will soon become the most comprehensive source of Timeshare knowledge anywhere on the internet.
Timeshare property sales dive in US as they are no longer seen as a good buy
2 October 2009
Property timeshare purchases in the US have fallen the most this year since the industry first became popular in the 1970s as buyers desert the sector.
Sales are expected to be down 30% by the end of the year compared with 2008, according to the American Resort Development Association (ARDA).
Howard Nusbaum, president of the Washington based trade group said that the market will remain challenging for the next 18 months as research shows that timeshare has lost its appeal.
‘Timeshares are just very, very discretionary items. It’s the perpetual vacation. Buyers are pre-paying for the ability to take a vacation every year. Under current economic circumstances people are more reluctant to pay for that,’ said Chris Woronka, an analyst at Deutsche Bank Securities in New York.
US timeshare sales dropped 8.5% last year to $9.7 billion from a peak of $10.6 billion in 2007, excluding the luxury fractional business and private residence clubs, according to a study by Ernst & Young for ARDA.
The decline was the industry’s first since 1975 and is being driven by tighter credit, a higher personal savings rate and the loss of 6.9 million jobs since the recession started in December 2007.
Last month Marriott International, the largest US hotel chain, said it will cut prices, halt development at some residential resorts and at some luxury fractional ownership properties, and sell some undeveloped land.
‘We have enough inventory to last a few years.
Prices are not likely to turn around in the near term. Given the development risk, we plan to complete the inventory we have under way, but not develop any more,’ said Laura Paugh, senior vice president of investor relations at Marriott.
Wyndham Worldwide, the largest seller of timeshare vacation units, said it expects sales in 2009 to be down as much as 40%.
There is much debate as to whether the sector can weather the downturn sufficiently to attract investors back.
‘The main obstacle for the industry is that there will be a semi-permanent reduction in demand because developers would sell to people with relatively low credit scores,’ explained Woronka.
‘That won’t be possible anymore.
Your pool of buyers will be much smaller from now on,’ he added.
Starwood Hotels & Resorts Worldwide saw timeshare sales fall 48% in the fourth quarter of 2008. It has closed nine sales centres and cut 900 jobs.
‘Our sense is that the timeshare industry is less optimistic about any near-term recovery than is the hotel industry, as the timeshare industry’s hands are tied by the availability or lack of financing,’ said Patrick Scholes, senior equity research analyst at FBR Capital Markets.
However Paugh is confident that the good times will return.
‘I don’t think timeshares are out of style. Customers really do like it,’ she said.
Sales are expected to be down 30% by the end of the year compared with 2008, according to the American Resort Development Association (ARDA).
Howard Nusbaum, president of the Washington based trade group said that the market will remain challenging for the next 18 months as research shows that timeshare has lost its appeal.
‘Timeshares are just very, very discretionary items. It’s the perpetual vacation. Buyers are pre-paying for the ability to take a vacation every year. Under current economic circumstances people are more reluctant to pay for that,’ said Chris Woronka, an analyst at Deutsche Bank Securities in New York.
US timeshare sales dropped 8.5% last year to $9.7 billion from a peak of $10.6 billion in 2007, excluding the luxury fractional business and private residence clubs, according to a study by Ernst & Young for ARDA.
The decline was the industry’s first since 1975 and is being driven by tighter credit, a higher personal savings rate and the loss of 6.9 million jobs since the recession started in December 2007.
Last month Marriott International, the largest US hotel chain, said it will cut prices, halt development at some residential resorts and at some luxury fractional ownership properties, and sell some undeveloped land.
‘We have enough inventory to last a few years.
Prices are not likely to turn around in the near term. Given the development risk, we plan to complete the inventory we have under way, but not develop any more,’ said Laura Paugh, senior vice president of investor relations at Marriott.
Wyndham Worldwide, the largest seller of timeshare vacation units, said it expects sales in 2009 to be down as much as 40%.
There is much debate as to whether the sector can weather the downturn sufficiently to attract investors back.
‘The main obstacle for the industry is that there will be a semi-permanent reduction in demand because developers would sell to people with relatively low credit scores,’ explained Woronka.
‘That won’t be possible anymore.
Your pool of buyers will be much smaller from now on,’ he added.
Starwood Hotels & Resorts Worldwide saw timeshare sales fall 48% in the fourth quarter of 2008. It has closed nine sales centres and cut 900 jobs.
‘Our sense is that the timeshare industry is less optimistic about any near-term recovery than is the hotel industry, as the timeshare industry’s hands are tied by the availability or lack of financing,’ said Patrick Scholes, senior equity research analyst at FBR Capital Markets.
However Paugh is confident that the good times will return.
‘I don’t think timeshares are out of style. Customers really do like it,’ she said.
Timeshare owners keen to lower their carbon footprint should travel by train during their holidays, according to Eurostar.
1 October 2009
Timeshare owners have been urged to travel by train on their holidays to improve their carbon footprint.
Eurostar's head of environment and energy Louisa Bell has followed up the aviation industry's commitment to reduce carbon emissions by 50 per cent by 2050 by reminding travellers of the benefits of high-speed rail services in Europe.
The company has already made the commitment to reduce its own per passenger journey emissions by 35 per cent by 2012, from a 2007 baseline.
Ms Bell explained that high speed rail offers a 90 per cent cut in journey emissions, with a Eurostar trip generating just ten per cent of the CO2 emissions of an equivalent flight.
She added that more than half the market in Europe prefers rail to air for journeys of up to four hours.
The market share is greater over shorter journeys, such as between Britain and timeshare properties in France, Ms Bell continued.
Eurostar recorded its 100 millionth customer journey on August 28th. The rail company is collaborating with Friends of the Earth to reduce its carbon emissions under its Tread Lightly environmental plan.
Eurostar's head of environment and energy Louisa Bell has followed up the aviation industry's commitment to reduce carbon emissions by 50 per cent by 2050 by reminding travellers of the benefits of high-speed rail services in Europe.
The company has already made the commitment to reduce its own per passenger journey emissions by 35 per cent by 2012, from a 2007 baseline.
Ms Bell explained that high speed rail offers a 90 per cent cut in journey emissions, with a Eurostar trip generating just ten per cent of the CO2 emissions of an equivalent flight.
She added that more than half the market in Europe prefers rail to air for journeys of up to four hours.
The market share is greater over shorter journeys, such as between Britain and timeshare properties in France, Ms Bell continued.
Eurostar recorded its 100 millionth customer journey on August 28th. The rail company is collaborating with Friends of the Earth to reduce its carbon emissions under its Tread Lightly environmental plan.
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