A-List: Alain J.A. Grangé, Chief Executive of Sol Meliá Vacation Club
May 30, 2009 by Perspective Magazine | Timeshare & Fractional Reviews
An interview with Alain J.A. Grangé, Chief Executive of Sol Meliá Vacation Club and President & CEO of Luxury Leisure Properties International and Grangé Group. Grangé has an extensive background in developing and operating international developments across the globe.
What steps did you take in your career to become an expert and specialist in international shared ownership and leisure properties?
I came to this industry in a way that is much different than most people, having worked in the luxury palaces of Europe, luxury branded hotel companies worldwide, country clubs, real estate and mixed use communities. In the early 80s in Europe, I worked with hotel owners to help them maximize their assets, recover capital and continue healthy hotel operations. It appealed to my marketing sense to combine hotel expertise with that of the membership and real estate industries to create a very unique, global niche.
In my endeavors, I have long followed the mantra of “Glocalization,” or a global vision and strategy with local knowledge and execution. One should always remember that in one part of the world one thing has a certain meaning, but in another part of the world, it might mean something entirely different, or in other words, “the same is the same, until it’s not the same.” When playing on an international field, it’s important to know which game you are in, as well as how it is played, just as in the vast differences between US football and international football. Developing internationally not only requires specific research and planning, but also international skills, a special mindset and patience.
I’ve always used the formula of international development taking twice as long to implement as in the U.S., and that is after having the right leadership and people in place, in the right positions. It’s key to rely on local experts for guidance to establish realistic timeframes for all the necessary legal, financial and regulatory aspects of doing business in a destination. I’ve learned that success abroad is ultimately only as good as one’s roadmap and the team in place to implement it.
When you became Chief Executive of Sol Meliá Vacation Club three years ago, did you envision this branded product and vacation experience to achieve so much in such a short time? What do you think were the catalysts to drive these results?
Yes, I knew that when I selected Sol Meliá as the company with which to execute this very targeted business model that it had the ability to exceed expectations. As one of the very few globally branded vacation clubs, we started off very strongly with the name, organization and clear responsibility to develop and execute a product that exceeded high standards of service and quality. The key was that the company was committed to support the project. The breadth of the company and its hotels on an international scale also provided the perfect place to take club membership to a level so that it becomes a leisure lifestyle, rich with experience and options that can adapt and be enjoyed by members for a lifetime.
Solid financial results have built a strong foundation. We’ve been profitable since our first quarter of business in 2004 from vacation club sales, member and network operations, rental and Club portfolio. Since that time we have opened 12 international home resorts in Europe, Mexico, the Caribbean and Central America, opening 3 to 4 resorts every year, and we have consistently achieved record sales and some of the highest operating margins within the vacation ownership industry. Sol Meliá Vacation Club achieved a revenue increase in 2006 of 86 percent over 2005, while also reporting a 2007 increase of 44 percent over the 2006 revenue number. At the end of 2007, we celebrated a banner year with total revenue of $130 million, an EBITDA of over $50 million and more than 23,000 members worldwide. We’re extremely proud of the fact that The CLUB has made a net contribution of more than $400 million to Sol Meliá’s Hotel Division during its short time in business.
Our tremendous success is owed, in part,to widespread success of new projects in Mexico, Puerto Rico, Spain, the Dominican Republic and Central America, and the launch of a new deluxe 4-bedroom villa product which is marketed and sold as a multiple weeks product. In 2007, The CLUB opened new projects at ME by Meliá in Cancun, Gran Meliá in Puerto Rico, the Paradisus Punta Cana in the Dominican Republic and Meliá Gorriones in Fuerteventura, Canary Islands, Spain. Additional successful satellite preview centers were also opened in Europe and the Americas.
Why are you so passionate about the global shared ownership and leisure properties market?
I have always been very passionate about creating a quality product that is a perfect fit for the consumer, with the right destination and the right markets. Delivering a quality experience from day one is a big part of it. I’ve been very fortunate to have had tremendous success in creating teams with a willingness to venture forward with passion, dedication and focus on a global vision. I’ve seen the difference it makes in conducting business internationally in a fashion that makes others respect and want to work with you. With an entrepreneurial spirit embracing culture, language and local traditions all along the way, it’s always an exciting and profitable adventure.
Additionally, for hotel and hospitality companies, this business creates the best long-term loyalty program for them. It enhances the natural synergies between the businesses while increasing the growth and profits of many of the hotels’ operations. It’s a great win-win situation for both the company and the consumer.
An example of a passion for cultural understanding can be found with Sol Meliá’s Vacation Club in Puerto Rico. Even though the destination is geographically located in the Caribbean, the local residents, who make up the majority of the main membership base, demand a product that is sophisticated and conservative in appearance. They look for a certain interior feel, quality of furnishing and décor in their accommodations. While on the neighboring island of the Dominican Republic, the product is much different and has more of a tropical beach-like appeal and a membership base that is from both the US and Europe. The expectation from this group is that the product should look and feel like a Caribbean fantasy. It was our understanding of local heritage that quickly brought the cultural differences to the forefront, making sure that the right product was provided for the right destination and the right consumer. This has been one of the keys to SMVC’s strong start and ongoing success in these and other locations.
What are the goals for Sol Meliá Vacation Club in the next five years?
Sol Meliá Vacation Club continues to focus on its vision to be a pre-eminent global provider of exceptional leisure lifestyle experiences for its members, while moving to the next stage of development with The CLUB by Sol Meliá. Objectives are to achieve further success in brand penetration and expansion, as well as maximization of occupancy levels. The mission is to build a Global Club that will be a leader in its field for brand quality, customer satisfaction and employee pride, which will be delivered through customer focus, ethic, integrity, teamwork, communication and continuous improvement. Latin America, the Caribbean and Europe will continue to be growing areas for Club Member resorts. We currently have three large exciting projects in development in Tenerife, Canary Islands, Spain, the Riviera Maya area in Mexico and the Dominican Republic. My hope is that The CLUB will keep growing and evolving from its original foundation
of success.
What are your expectations for the international shared ownership and leisure properties market within the next five years?
The international shared ownership industry is poised precariously between those looking for short-term profits and those with ethics and integrity, seeking long-term benefit for all, including long-term relationship with its members. I strongly believe that if outside the USA the mistreatment of the consumer and the non availability of product backing the memberships continues, and if the international industry organizations do not start policing it, stronger punishing legislation will take place.
I am hopeful that international developers will seek the true benefit of building long-term relationships with their customers and members, rather than having a short-term view of that relationship. Short term strategies do not work. The formation of these long-term relationships with consumers is the catalyst to providing an experience of a lifetime. Members and developers alike reap the benefits of true mutual long-term loyalty for all.
Making a true difference lies in a well laid plan, which generates long-term financial stability and loyal customers. In conclusion, our industry needs to create a menu of “experiential” moments for its members based on a well-working system backed by quality real estate and product, for the benefit of all involved.
For information on advertising and editorial opportunities with Perspective Magazine & Owners Perspective Magazine; the leading independent B2B & B2C magazines for the timeshare and fractional ownership industries visit www.perspectiverates.com
