Karma Royal Group – Exciting Times Ahead

Can you think of a better time to operate a Development Group with 16 Resorts, vibrant sales and marketing operations for both real estate and timeshare which is a debt free company.

Perspective Magazine interviews John Spence chairman and owner of Karma Royal Group about his business philosophy and plan to steer the Group through these recessionary times and uncovers some exciting plans for the future.

Hi John, so is it true that Karma Royal Group is a debt free company?
It is true. We started the Company in 1993. We have developed resorts in Goa, Bali, Lombok, Phuket, Chiang Mai, Koh Samui and Gold Coast of Australia but we have no debt. No borrowings of any nature, no bank commitments or guarantees, no flotation or sales of shares. The Company is privately owned, highly profitable and debt free.

How have you achieved this? Is it due to you backing the Company?
Obviously I am there to back the Company if needs be but our development programme has never involved use of shareholders loan accounts.

I have followed a very simple principle in business – we design our projects carefully, we appoint an independent trustee to secure our clients interests and we are very good at making sales. We sell our projects pre construction but we always deliver our product. Using this formula we started Royal Goan Beach Club back in 1993 – we secured the land, placed the land in Trust, appointed Hutchinson & Company to be our Trustees.

But as you went along how did you keep building and buying resorts without bank borrowing?
Acquisition Policy. We have been very careful to only enter into deals where we are able to fund the acquisition and development out of proceeds of sale. We always look for ‘keen’ deals and we start small and grow organically.

How large has your sales and marketing operation been?
Oh huge. We have had over 60 venues in over 20 countries since 1993. However, unfortunately, the markets suffered from being over competitive and timeshare consequently got itself a bad name here. So we dismantled offsites and concentrated on onsites. I believe now is the time to go into the capital cities of Asia to sell offsite once again albeit with a non timeshare and entirely different product. On that note and changing the subject to real estate tell me about Karma. It’s a big subject and one dear to my heart.
I love the Karma Product. Fundamentally what we do is source unbelievable fantastic locations to develop. These are still available in Asia (although running out fast). All our Karma Resorts have great locations. Great locations – eg. pure beachfront and cliff tops. The sort of locations not available in the more developed world.

The concept of Karma is simple. We build luxury Resorts with all of the facilities of a 5 star boutique hotel.
* Fine dining restaurant
* communal pool etc
The only thing we don’t build is hotel rooms. We construct 3 and 4 bedroom luxury villas. We find the demand comes from investors who are wanting luxury holidays, capital growth and annual returns. The vast majority of our owners lease their villas back to our management company which operates the resorts as a 5 star boutique hotel. I am proud to say all our properties are associated to “Leading Hotels of the world”.

How is the world economic crisis affecting the Group?
There are 2 answers to that.

1. We can more easily pick up Resort deals in recessionary times as there are so many people out there who cannot raise finance and are struggling to make sales. They turn to us all the time. We have possible options in Thailand, Gulf, Europe, Fiji, Malaysia, etc. which we are exploring and I am very sure that we will be closing on several of them in the next few months.

2. Sales will obviously be affected. I would be naive if I did not predict a downturn in outright villa sales.

How are you going to cope with this downturn in sales then?
We are going to create a new product, Karma Club which will offer a Fractional interest with all the benefits of outright ownership but at much lower prices and with our Finance backing it. Its an extremely attractive product giving luxury holidays and capital return and I am sure its going to be very sellable as the price can average 30 to 50,000 dollars and so I intend to reopen offsites in the large Asian cities. We start with Singapore in January and I am hoping that would be followed by HK, Jakarta, KL and Manila.

Surely such growth will require more staff?
Yes, we need good people to help in this growth curve. New venues need Managers and Sales reps. I am very keen to hear from experienced professionals anywhere in the world interested in joining us.

One last question (as I used to live there), is Asia not suffering in this economic climate like the US and UK?
I think the honest answer to that is – not to the same extent. Of course, they are affected by the stock market collapse but the general mood is not as negative as in the UK for example. I went for sunday lunch in the Four Seasons Hotel in Singapore a couple of weeks ago, its pretty expensive. I couldn’t get a table. Singaporeans are still out and about eating and spending in a way I don’t think you would see in London or New York.

Fractionals: A Breath Of Fresh Air For This Property Market?

By Fiona Klonarides

A little bit of what you fancy does you good. As a new wave of property buyers discover the delights of shared ownership, industry experts predict fractionals will replace outright sales within five years. As sales keep rising in the States, could this be the year fractionals “go mainstream” in Europe?

In the past few weeks, the rumour-mill on the French Riviera has been in overdrive. It seems Russia’s most eligible bachelor, Mikhail Prokhorov, has had second thoughts about his property buying splurge last summer. In August he reportedly offered a cool £500 million for Villa Leopolda, aka the world’s most expensive private residence, a stunning pink and cream villa fit for a king (and built by one) perched on a prime spot overlooking the Cote d’Azur.

Seven months on, after losing at least half of his £10 billion fortune in the global banking crisis, the 43-year oligarch’s feet are feeling a little chilly. Prokhorov is now trying to extricate himself from the house with the highest price tag in the world which was built by King Leopold II of Belgium in the early 1900s. Villa Leopolda, dubbed “the most expensive house on earth” has been inhabited by royalty, and visited by Sinatra, the king of swing himself. But current owner Lily Safra (widow of banking billionaire Edmond Safra, murdered by his male nurse in 1999) says she does not intend to return Prokhorov’s £37 million deposit – and
under French law she’s not obliged to – so up goes the “For Sale” sign again.

As this beautiful villa waits for a buyer in these cash-strapped times, perhaps Mrs Safra should divvy up “La Leopolda” and market her home as the world’s most exclusive fractional property. With a terrace large enough to host the Oscars and a rumoured 50 gardeners tending her idyllic 20-acre grounds of 1,200 olive and fruit trees, there’d be ample space for everyone.

Originally an American concept, fractional ownership somehow felt ahead of its time to the average property buyer in Europe a few years ago. Rewind to six years ago in Spain, and off-plan properties were as hot as the Spanish summer sun. Fractionals were uncharted territory. The idea of sharing a property with someone else seemed inconceivable – even if you did plan to only use it a couple of weeks a year. Fast forward to 2009 and the shared ownership model makes absolute sense. It’s a concept that has come of age, at just the right time.

Europe is still playing catch-up with the States, where the fractional ownership industry was already experiencing growth, even before the all the graphs started pointing downwards. Mintel and two of the world’s largest fractional consultancies, Ragatz and Northcourse, revealed that in 2007 the industry was worth almost $2 billion (up by 20% on 2006 figures). Factor in destination club sales totalling an additional $2 billion and you have an industry that’s heading in one direction. Up.

Across the pond, though, it has taken a few years for the fractional model to come into its own. There has been the issue of consolidating mortgage financing for fractional properties, and as rules and regulations in Europe vary country by country, developers have had to find creative, but above-board, ways around restrictive legislation. In France, for example, the law states that no more than four buyers can be on one property title, but there are legal ways to resolve this, such as creating a company structure where the
purchaser is a shareholder in the company.

One main reason European fractional ownership is going mainstream is the adoption of the shared ownership model by top construction companies such as Taylor Woodrow de España, the Spanish arm of British developer Taylor Wimpey plc. It recently converted 16 unsold properties on Los Robles and Las Encinas de Los Arqueros, both located by the prestigious Los Arqueros Golf Club a few kilometres inland
from Marbella’s beaches.

Victor Sague, Director of Marketing at Taylor Woodrow de España, notes that while the credit crunch has without a doubt impacted would-be purchasers, buyers are still as intent as ever on owning a home in the sun. “House hunters are merely re-assessing their budgets and looking for cheaper alternatives,” he explains. Taylor Woodrow believes that the fractional model, particularly quality apartments in excellent locations, will help inject new life into sales in southern Spain as buyers look for an affordable way to own a
luxury property.

Like timeshare, fractional ownership is a more eco-friendly way to use holiday properties which might otherwise be sitting empty during dark winter nights, particularly on the Costa del Sol, an area saturated with two-bed, two-bath properties – which so happens to be the most requested type of property by potential buyers wanting to have a holiday home, or move to Spain permanently. That’s perfect for fractional property sales, as experts predict many of these two bed homes will sell well as shared ownership properties – especially well furnished homes close to the airport, on quality resorts with appealing amenities such as pools, tennis, golf, and perhaps a spa and concierge service.

As developers look to fractionals as a way to generate sales in a slow economy, there’s no shortage of interest in this new model, but there is a shortage of trained sales people who really understand the ins and outs of fractionals, and can explain them clearly to would-be owners.

Brad Lincoln, CEO of fractional consultancy The Best Group says his company is approached by about two developers a day, asking for advice on structuring a fractional product, but some 85% are turned down due to lack of trained sales personnel. He predicts that in five years time the only people not buying fractional will be retirees and that the fractional model will take over completely.

But you can’t take any development and slice it into a different property pie. Just like traditional outright property ownership, fractional properties need to tick all the boxes – location, quality of build, amenities, and so on. As Brad Lincoln puts it, “Fractions do not turn a poor resort into a good one.”

One advantage of being a relatively new property market, such as Dubai, is that you learn from others’
mistakes. Dubai’s glittering skyline is aglow with luxurious, contemporary apartments that make New York’s look almost outdated. Its billboards are bigger and its hotels, with their almost magical, Alice in Wonderland quality dwarf the average European hotel.

Last year, the fractional market in the Middle East was estimated at around $1.2 billion alone, and fractional
fever is starting to spread to other countries like Egypt through companies like Egypt Real, which claims to have introduced the fractional model there.

It seems a little of what you fancy does do you good. It’s lighter on consumers’ wallets, and the feel-good factor is powerful. Buyers who a couple of years thought they’d never get a foot on the property ladder can now own a slice of a home in Samos. It’s R&R meets ROI. Luxury holidays at an affordable price in a home buyers can call “their own”. So are fractionals the ray of sunshine the property market has been waiting for? If they take off in Europe like the States, they might just be the rescue remedy developers need. Instead of having their dreams rained on by the current economic climate, would-be homeowners are quickly discovering that fractional ownership “done properly” is the front door key to affordable luxury. It may
not be Villa Leopolda, but paradise feels twice as nice when you own a slice.

Perspective Magazine – February 2009

The February edition always feels like the calm before the storm to me, although it is only the second edition of the year, it is the last edition that is not linked to one or more major conventions for many months to come. Starting next month our magazine will feature and be distributed to all delegates at the Ragatz Fractional Interest Conference in San Francisco USA; TATOC – Timeshare Association Conference in Warrington England; ARDA Convention, Orlando USA; C.A.R.E Convention, Wisconsin USA; Fractional Summit, London England and that’s just March and April. We will of course be bringing you highlights of all of these events and several others that we cover later in the year.

This edition however brings you the glamour of Fractional Jet Ownership with FlexJet as well as a look at the growing fractional property market in Europe. We have our second Who’s Who feature, this time concentrating on the Asia Pacific region and featuring Absolute Group, Dial An Exchange and Karma Royal Group and we also look at the new resort offering from Disney Vacation Club due in fall of 2009.

There’s an update on the GoTimeshare.org website; operated by the Organisation for Timeshare in Europe with the aim of countering negative publicity about timeshare on the internet. Plus, both on and offline our very own Owners Perspective Magazine is firing on all cylinders as it enters into
a distribution agreement with leading supermarkets and flies past 40,000 monthly circulation and releases some interesting statistics on its readership.

Our February A-List is Ed Kinney – An exclusive live interview with the Vice President of Corporate Affairs for Marriott Vacation Club International looking back on Marriott’s entry into timesharing – as well as his own. And we introduce what will become a regular feature in the next couple of
months – “My Perspective On…” where we invite key figures in the industry to choose their own subject to talk about, whatever it may be. This month Steve Pentland, Generator Systems talks about “The Recession and The Recovery”.

EDITION HIGHLIGHTS Front Cover Sponsorship: FlexJet Fractional Jet Ownership A-List Interview With Ed Kinney, VP Corporate Affairs for Marriott Vacation Club International Developer Review: Disney Vacation Club Feature: Fractional Ownership, A Breath Of Fresh Air For This Property Market Architecture: Grupo Habita Unveils 7th Signature Property In Mexico City Who’s Who In Asia Pacific: Absolute Group Who’s Who In Asia Pacific: Dial An Exchange Who’s Who In Asia Pacific: Karma Royal Group Feature: Attracting New Owners Feature: My Perspective On…The Recession And The Recovery Feature: GoTimeshare.org View Digital Page-Turn Edition Online Download PDF Version To Hard Drive

Landmark Architecture: Grupo Habita Unveils 7th Signature Property In Mexico City

Habita, celebrated worldwide for exceeding expectations in hotel design, unveils its seventh property, Habita Monterrey, in Mexico’s international business hub and most resolutely 21st-Century metropolis. Once again, Habita carries its signature chic and service to previously unthought-of environments and transforms them into instant classics.

Habita Monterrey is the latest addition to Grupo Habita’s extraordinary record of success, a grand, yet intimate landmark asserting itself in the city’s spectacularly dramatic natural setting. All of the group’s signature triumphs are in place, but those who know Habita will be delighted that as always, no two properties are alike. Habita Monterrey represents another unmatched expression of design and comfort.

Architect Agustin Landa’s gleaming tower, with its nod to mid-century cool, becomes an oasis in the desert. As approached, it is an imposing curvilinear beacon, startling perhaps, but harmonious with the region’s dramatic topographical contrasts. Solidly erected, it defies the city’s high temperatures and fierce siroccos. Within, Habita Monterrey surrounds, embraces and shelters, but never isolates. The rooftop, the pool bar is that idea’s most prominent expression, affording 360-degree views beneath a cool concrete canopy, its terrace perennially freshened by dual infinity pools, even at 100+ Fahrenheit.

The latest, most arresting interior design trends come into their own at Habita Monterrey courtesy of Parisian interior designer Joseph Dirand. And they leave nothing to chance, from the most prominent furnishings to details like restaurant cutlery, and even in the smallest (yet significant) in-room amenities. In all spaces, rigorous horizontals and verticals are enhanced by vintage furnishings of the most impeccable minimalism. But bursts of exuberant luxury – Indian mirror mosaics; sensual, organic Serge Mouille lamps; and disarming pieces from fashion designer Rick Owens’s personal collection – add stimulation, comfort and whimsy.

Monterrey, the crossroads between Latin America, the United States and the world, is a town that means business. As such, Habita Monterrey shapes every design element – visual and structural – with an eye to enhancing the business traveler’s comfort, concentration and effectiveness. The most forward-thinking technologies are present throughout the property, in addition to a business center where real business gets done. Perhaps most importantly, the rigorously-trained staff takes care of distractions and hassles while guests close the deal.

But what’s hard work without a little pleasure? As never fails with Habita, the Monterrey property will electrify the city’s nightlife and fine dining scenes, attracting the creative, the powerful and the just plain fabulous from all over the region and all over the world. Naturally, service will be strictly five-star.
Once again Grupo Habita engages renowned Chef Enrique Olvera to create Lobby, where the finest local ingredients and recipes will be prepared according to the most innovative culinary technique. Habita Monterrey’s two bars and lounges, the terrace and the pool, with specially engineered sounds courtesy of Paris DJ Monsieur X, will be instant centers of attention. Eating, drinking and lounging in Monterrey will never be the same.

Habita Monterrey’s extraordinary public spaces will draw the crowds, the fortunate few will stay in one of 39 rooms and suites – including a truly-over-the-top penthouse – and will ascend to an even more rarefied Habita experience. Scenester buzz falls away in guest spaces whose environment is distilled down to monastic calm, the smartest design elements, and of course, the essential luxuries. Both bed and work areas are the center of the action, facing the view. Bathrooms are a private spa for one (for two?), appointed in gorgeous stone and onyx, and to smooth over the edges – come furnished with Australian-import Aesop amenities.

Like all the group’s properties, Habita Monterrey emerges from its setting, but transforms into something never seen before.

For more information visit www.hotelhabitamty.com

The Recession And The Recovery

By Steve Pentland, Generator Systems

Anyone noticed how banks are suddenly a bit short on umbrellas when it starts raining? – Or more pointedly, want the ones back that they lent when it was sunny? Which kind of begs the question – “When will the sun come out again?” – or as some people prefer – “Will it even come out again?”

My answer to the sun question is that it will come out again, clearly the question being “when?”. Now I have always been a glass half full man, although I did once hear a story about an optimist, a pessimist, and an engineer – to the optimist the glass was half full, to the pessimist it was of course, half empty, but the engineer, being a logical sort of chap, simply asked the obvious question – “why was it designed and built
to twice the capacity it needed to be in the first place?”

So some of our sense of negativeness is brought about because we tend to compare what we have now with what we had before; and we rue the difference. Maybe we should look at what we have now and compare it with nothing! Maybe we should look at what we have now and ask “how can we make it bigger and better”. Maybe we should look at the extra time we have now to focus on building positive, business generative strategies and initiatives to implement as soon as the recovery starts.

Mini Skirts
We all know what got the world into this current mess, so I don’t intend to look at this too much, – except for one very salient factor – the world media. I had the great privilege of recently being invited to a select consultation meeting with Oliver Letwin, Conservative Party Chairman of Policy Review (for those of you reading this in the US, equivalent to Michael Steele, RNC). Not that I’m necessarily nailing my colours to
the mast here as I happen to think that Tony Blair did a pretty good job in office, although Maggie still remains my favourite 20th Century leader. Still, back to Mr.Letwin, – and an intriguing commentary on miniskirts!

Oliver Letwin has been active in government for some 25 years. He held senior economic cabinet posts under Mrs.Thatcher, was part of John Major’s government and was Shadow Chancellor of the Exchequer in direct opposition to Gordon Brown in more recent years. I asked Mr.Letwin about the role of the
media in this recession; he replied “Let me talk to you about miniskirts” – he went on to say that miniskirts come into fashion and some 10 to 12 months later go out of fashion. No particular reason for them coming in and none for them going out, but while they’re in, they’re in and all women have to have one – it’s a fashion, it’s a trend, and everyone follows it. Oliver’s view is that the Press and Media follow fashions
and trends in the same way in terms of what they report and the context that they report any news in.

The Big Story
At this present time, the “big story”, the media fashion, the “trend” is “The Recession”, so it doesn’t matter what the subject matter is, it always gets reported in the context of, a contributor to, a result of, or a supportive piece of evidence for “The Recession” – and so perpetuates and grows the “big story” of “The Recession”. Even good news gets reported in, or buried in, or linked to negative context – e.g. when Subway announced the creation of 3,000 new jobs in Britain recently it was reported as “Subway creates 3,000 new jobs, but 17,000 jobs lost across swathes of the economy” – the Subway part of the article was one paragraph buried deep into the page.

Right now, the big story is still “The Recession”, and to a great extent the Press and Media are guilty of stoking the fire, fanning the flames and causing a global crisis of confidence that to a large extent is simply not warranted. To me, this in itself is hope. This says to me that when the story turns to “The Recovery”, as it surely will when the Media feel the public appetite for it has waned, there is good underlying promise and economic structure that will support perhaps a more rapid recovery than many commentators foresee at the moment.

Do I have a crystal ball? – No, – but look at the speed of the meltdown and how it was affected by global media and by globally linked computerised trading systems. The world has changed markedly in the past 10 years. We are now a global society and inextricably linked global communications and systems dictate a pace that is light years different to previous decades (and recessions). If we can descend into the depths so quickly, will the up elevator also surprise us with its alacrity?

Man in the Street
We need to look now to the man in the street, the man on the Clapham omnibus, Joe the Plumber. What does the recession mean to him? – Well, the major effects felt are falling house values with no knowledge of where the bottom is, and threat of redundancies. One makes people feel like they’re falling, and the other makes
them understandably nervous about spending anything.

Threat of redundancy though, is also actually a fear of falling without knowing where the bottom lies because until there is a perception in an economy that the bottom has been reached as a result of more jobs being created than lost for a few months, the fear will continue. Once this psychologically important point has been reached, however, moods turn, people start to relax, and once again feel confident
to spend.

It is interesting to note, although perhaps too early to draw conclusions, that on both sides of the Atlantic average house values actually rose in recent months. In the US December figures showed slight increases overall (although different on a State by State basis) and in the UK the Halifax reported a 1.9% increase in house prices in January.

Let’s look then at what happens during a recession. In many ways it’s like throwing a huge rock into a lake. The rock makes a huge splash in the middle and the waves caused ripple out in concentric circles across the lake. Now, according to where your industry sector sits in relation to the centre, you will be hit earlier or later by the effects of the recession.

The Timeshare industry, being so heavily reliant, particularly in the US, on funding and finance was very close to the centre of the lake and was hit heavily, and early. The automotive industry, being near the centre was hit next, and so on. A friend of mine runs the European arm of an aircraft maintenance company –
they are not feeling the effects yet, but expect to later in 2009 as aircraft are taken out of service and temporarily laid up in the desert somewhere as passenger numbers fall, rather than being scheduled for cyclical servicing; – his business is more towards the edge of the lake.

So, what conclusions can we draw from all this for the Timeshare Industry? – Where’s the Upside?

Marketing
Well, first we perhaps have to look geographically for signs and clues. – Where were the first areas to be hit by falling house prices and rising lay-offs? – Could these be areas for us to look at now and start to apply new marketing programs, as they are likely to be first out of recession as the “ripples” subside
and confidence returns?

We could also look at industry sectors and target our marketing towards people that work in sectors that were first affected, as again these are likely to be first into the recovery phase.

Finance
How do we deal with finance institutions? – Undoubtedly a trickier question, but there are some things that I know a number of developers are doing now, one of those being to improve the average credit score (or
FICO score) of potential purchasers by being more selective about tours qualifying based on pre-scoring such tours, or targeting higher average scoring demographics. This will at least put your company in best position to access credit as lending institutions gradually relax and respond to global governmental fiscal measures to restimulate lending.

Sales
Recessions come, and recessions go, but a timeshare is for life. People don’t stop taking vacations in a recession; they just spend less on them. By building these two salient facts into our sales presentations we can both diminish resistance by viewing the decision as a long term one and actually turn thrift into a positive reason to buy timeshare – more for your money, guaranteed standards, safe place to spend your money, wonderful memories when this downturn is long gone, great time to buy!

Let’s also look to where we need to be as Recovery approaches. Timeshare has grown up in recent years, standards have become more professional, prospect’s tour expectations have risen and legislation now clearly separates the good from the bad. Salesforces should ideally be properly trained, messages
should be powerful and consistent, tours should be entertaining, exciting, compelling and informative, and ideally 21st century technology should be used to power your marketing and sales.

Green shoots?
So, back to the umbrellas, the half full glass and the sunshine. We’re not allowed to say we can see green shoots are we? – But what I do know, having been part of this fascinating, colourful industry for nineteen years now, is that ours is one business that is always resilient, that always bounces back.
Many parts of the business may be down on one leg, some even down on their knees, but now is the time for us to rally, now is the time for us to find our positive voice, now is the time for us to dig deep and innovate.

Out of challenges come surprising successes, out of the unknown comes opportunity, out of adversity comes triumph, out of the night comes the day. Let’s stop looking at the rain and bemoaning the loss of umbrellas; – let’s look to the sunshine that will surely come. Let’s be the industry we know
we once were, and will be again – but this time more so than ever before!

Company Profile
Generator Systems Ltd is a Sales Improvement Company. Offering a unique blend of 21st Century Sales concepts, powerful interactive systems, and expert people based services; Generator delivers strong
sales revenue and bottom line profitability improvements to a wide base of customers across the world. The Generator Persuader interactive sales system typically delivers a sales improvement of
20% to clients.

Awards received include the 2007 ARDA Circle of Excellence (ACE) award for Innovation, and the 2006 OTE Palm d’Ors for both Innovation and Change Management.

During the downturn, Generator is working with its clients to maximise close rates on tours, increase quality of tours through an innovative marketing initiative and provide significantly enhanced levels of
salesforce control, motivation and training.

Contact Details
Steve Pentland
Generator Systems Ltd
+44 780 233 3733
stpentland@msn.com
www.generator-systems.com

Perspective’s A LIST – Edward Kinney

An exclusive live interview with Edward Kinney, vice president of corporate affairs for Marriott Vacation Club International on Marriott’s entry into timesharing – as well as his own. Interviewed by Matt McDaniel in
Orlando, Florida in January 2009.

Ed, thanks for taking the time to talk with us today. Why don’t we start with you telling us how MVC got started?

Dating back to 1984, it was an idea by the combination of Bob Miller and Ed McMullen, who had American Resorts, getting together with the Marriott company to see how we could leverage the lodging business and integrate it with the timeshare industry. It had never been done before, and it looked like it would have a lot of synergies. There was a bit of a leap of faith, but they felt it was a viable extension to what they currently offered.

At the general manager and hotel owner level,there was apprehension that the timeshare customer would displace hotel customers: “Why would we partner with those guys if they’re just going to take away our customers that come back here year after year?” That was a valid question; it actually took five or 10 years to prove that it wasn’t displacing the customer. From there the business continued to grow, we got more cooperation from the individual hotels, and it did prove itself to be a nice fit, that one element complemented the other.

Where’s MVC today and how has Marriott changed over the years?
Where we are today obviously is dramatically different from the beginning. From a customer standpoint, we now have over 390,000 families that own with us. We’ve diversified to have different brands catering to different segments. From a sales standpoint, the first year we were in business we did $5 million in sales. We do that in roughly 24 to 30 hours these days. From an operations standpoint, we have properties all over the world now. We have our urban product up in Boston. We have large properties in Orlando and California
which have or are proposed to have over 900 villas; no one would have even fathomed to have a resort that size back in the early days.

Tell us about the different brands and the markets they serve.
Marriott Vacation Club is our core brand. The name used to be Marriott Ownership Resorts and we changed it back in ‘96 to be more consumer focused. Marriott Ownership Resorts seemed institutional. We wanted to have a brand identity that was much more leisure oriented.

Having vacation in it was important. We felt we had a club environment, although not a traditional club – but people felt like they belonged to something unique – so club worked. We have 49 properties underneath the MVC brand in Asia, Europe, through the Caribbean, and obviously, throughout the United States.

Next would be the fractional product, in which we have actually two brands operating. We have the Ritz-Carlton Club, which is our luxury fractional ownership product, where the ownership interest varies between 14 and 35 days, depending on the resort. It allows us to tap into the customer that was more traditionally buying a second home but maybe not using it the whole time, and gave them an option to buy something that had all the services of Ritz-Carlton associated with it – in exclusive destinations. The brand has grown tremendously. and it’s going to have its 10th anniversary in ’09, just as MVC is going to have
its 25th anniversary.

Where Ritz-Carlton is an exclusive, private residence club where you can’t access it unless you’re a member or owner, Grand Residences by Marriott offers kind of a blend between timesharing and where you can own larger slices of the pie. There are also flexible usage options. You can exchange or rent your time, and you have benefits like the Marriott Rewards program add more choices for you. We have Grand Residences in London and Tahoe, and in full-ownership form in Panama City Beach, Florida. We’ll also have it in Hawaii
at the Kauai Lagoons property.

The fourth that we have is Horizons, which was created for the moderate-tier customer. Conceptually, it was developed to offer a vacation experience at a lower price point. Market conditions and land and product costs have made it challenging to grow this brand. We’ll continue to keep it underneath the umbrella of Marriott Vacation Club.

What lessons would you say you learned from that experience?
That although things look good in strategy form, sometimes market conventions change, and you can’t always change the product for the market. We were able to do two test sites and realize that it was not as viable as we originally anticipated. Ultimately, we have to consider whether we are providing a great experience for the customers and shareholder value. That ultimately drives the ability to grow.

What are the company’s latest projects?
We’re going to continue to focus on taking advantage of any opportunities to grow the Asia-Pacific market because it has tremendous potential. It’s already proved itself to be very fast growing. It did require us to step away from our traditional deeded ownership and go to a points-based product, because that’s what the customer wanted. But certain markets are going to be more successful if we adapt our way of thinking to their needs rather than trying to force what we have onto somebody.

We also have three new properties in Florida alone. Everyone says that Florida is the timeshare capital of the world, and we’re continuing to reinforce that.

How many projects are in the pipeline right now?
The three in Florida are yet to be opened. We will have another property in Hawaii in Kauai Lagoons that will actually have all three of our brands. We’ll probably add more inventory in Asia, but markets are yet to be determined. We have not formally announced, but it is public knowledge, that we have acquired a property in Surfers Paradise, Australia. We purchased the property, which is actually a Courtyard hotel, and we’ll continue to run it as a Courtyard as we evaluate what our options are and how we can adapt it for timesharing. We did acquire a property in Dubai but we don’t have a schedule on it yet because of the hyper-inflation of construction. So we’re holding back on that until we see the construction costs in that market stabilize.

So tell me how did you personally get started in the business? When was it, and what was your background before coming to the company?
I got started on Hilton Head about 26 years ago. I was really a graphic designer, but I was working for the Chart House chain of restaurants, training bartenders and also was in food and beverage management. On Hilton Head you either did resort real estate, which included timeshare, food and beverage, or you were probably doing something on the beach with suntan lotion. It was just by being so exposed to the growth of timesharing at the early stages that I got involved. My entry point was in sales, and then went to running
an agency that specialized in timeshare and fractional ownership. From there I was responsible for the marketing at MVCI’s first international property in Paradise Island, Bahamas. This was followed by various corporate marketing positions and now Corporate Affairs, which includes public relations, crisis management and brand awareness..

Did you expect career you ended up having?
I never expect anything to the next day! I’ve said time and again, I’m embarrassed by my good fortune – it seems like I’ve been in the right place at the right time and to be involved in an industry and a company that has continued to grow over such a long period of time has been just amazing. So to watch it evolve and grow, see new milestones – you can’t imagine how good of a feeling it is to have people look at you and equate you with being a part of the best in what you do. It’s flattering in one sense, and challenging in that
you have to maintain that level all the time.

But no, I never expected to be where I am today.

Tell me about your involvement with the trade association.
I was chairman of the PR and communications committee for five or six years. I succeeded [Starwood’s] David Matheson after he served on it. That is kind of a funny thing: Many people look at our industry as highly competitive; it’s actually so much more collaborative amongst the different key stakeholders than people realize. Like our relationship with the Starwood, Disney and Hilton folks. Because our corporate offices are in the same market, we talk all the time. We learn from one another.

What do you like best about your position?
Getting to interact with every facet of the business and to meet and talk with owners. I also actually thrive on chaos. Being responsible for crisis-management communications,and how you need to immediately react to complicated situations, is an amazing  challenge. It means though that you never know what’s going to happen moment to moment. For me that’s the time that I feel I’m at my best.

Robb & Stucky Expands Internationally To Hospitality & Resort Industries

by Marge Lennon

No matter where they are located around the world, all hotels, timeshare and fractional resorts have one important thing in common: their interiors must contain quality furnishings that convey a genuine
“Welcome!” feeling … the minute the guest opens the door. These same interiors must also provide comfort for the guest along with durability and minimum maintenance to the property owner.

In today’s economic environment of decreasing guests and reduced budgets, how can this be accomplished?

It has been proven that interior furnishings that are well engineered and designed will long outlast those that are not. Products considered “affordable” tend to lose their looks faster and become easily disposable, requiring refurbishments sooner than scheduled. Adding fuel to the “buy quality” mantra: research has indicated that people have an innate ability to sense the use of quality furnishings. It makes them feel better
about their surroundings and enhances their vacation experience.

Until recently, the process that involves the selection, manufacturing, purchasing and installation of furnishings for these properties has been accomplished through the use of many specialists. Today, one company, Robb & Stucky Interiors, is helping its hotel, timeshare and fractional clients make wise interior and refurbishing decisions with their ability to provide all of these services with just one phone call.

Since their beginnings in 1915 in Fort Myers, Florida, Robb & Stucky has evolved to become one of the largest high-end furniture retailers in North America. Although the world around them has dramatically changed since they were founded 93 years ago, quality, service and total customer satisfaction have remained the hallmarks of the company’s distinctive style. By 2009, the company had expanded both domestically and internationally with its 15 interior showrooms and eight patio stores located in
Florida, Arizona, Nevada, Texas and Costa Rica.

During the past three decades, Robb & Stucky has enjoyed success in the Florida residential market. With their corporate headquarters in the heart of Florida’s tourism mecca, their expansion into the hospitality and timeshare industry was a natural evolution. “We had always furnished Florida hotels and timeshare resorts, including South Seas Plantation and the Southwest Florida properties that are now a part of Hilton Grand Vacations Company,” said Dan Lubner, President Robb & Stucky Resorts Division, “so we were comfortable with providing design services to this market.”

About five years ago, Robb & Stucky decided to increase their service capabilities by manufacturing what they design, creating customized product lines for each commercial and hospitality application and sharing their highly specialized knowledge with worldwide management companies and developers of condominiums, hotels, timeshare and fractional properties. Their reception from hospitality giants to timeshare developers has been highly positive.

As a testament to their service to hoteliers, Robb & Stucky was recently named the newest Alliance Partner for the internationally respected Preferred Hotel Group. Under the arrangement, Robb & Stucky will be available to provide interior design services for Preferred Hotel Group’s more than 700 member hotels, resorts and fractional ownership properties located in over 70 countries. Preferred Hotel Group is a 40-
year-old multi-brand global organization that delivers sales, marketing, and service solutions to independent luxury hotels and resorts around the world through its five brands.

“We are pleased to have a quality company like Robb & Stucky Interiors join our prestigious group of Alliance Partners,” added Thom Nulty, Senior Vice President of Business Relations for the Preferred Hotel Group, “and look forward to recommending them to our members. We are impressed with their scope of interior design and vertical integration capabilities and dedication to exceptional service.”

Said Lubner, “We are honored to be affiliated with Preferred Hotel Group. The properties they represent are some of the finest in the world and their reputation is impeccable within the hotel industry. Our extensive resort/hotel experience, combined with our unique design capabilities and worldwide logistical reach, make for a perfect partnership. Although we may be headquartered in Florida, getting furniture to every corner of the globe is not a problem. We’ve shipped to every Continent except Antarctica.”

Deliveries To Every Corner of the Globe
According to Ken Fitzgerald, Vice President of Logistics and Operations for Robb & Stucky, “We distribute our products from over 700,000 square feet of combined space in our Distribution Center in North Carolina and our three Customer Service Centers in Florida, Arizona and Texas.

Customers in North America receive shipments from our Customer Service Centers, where items are opened/
unboxed, inspected, prepped/deluxed, blanket-wrapped, loaded into delivery trucks and delivered to customers with ‘white-glove’ service.”

Overseas shipments are assembled at the distribution center and loaded into containers in their original carton or protective packaging. “Because of the long transit times typically involved and the potential hazards of water movement,” adds Fitzgerald, it is best to leave products in their original packaging, allowing them to be loaded into the container ‘tighter’, helping prevent movement and minimizing the potential for damage.” At the receiving end, Robb & Stucky sends several quality control experts to the site to monitor and oversee the final preparations and delivery process to ensure it meets their standards.

“With our international shipments, we first conduct exhaustive due diligence with our partner companies, working only with experienced international freight forwarders who provide the best in both value and service. They accept the booking of the cargo, move the container to port, assign the vessel, guarantee the
departure and arrival dates, and handle customs clearance and arrival to the client’s door. None of this is left to the customer to handle. We do it all. The systems and tracking capabilities used by these ocean freight forwarders is much like Fed Ex in that we know where a shipment is every step of the way. Frequently, we
work with a client’s shipping agent or forwarder and can coordinate hand-off of containers to their preferred freight forwarder anywhere within the supply chain pipeline.”

Robb & Stucky Design Services
Robb & Stucky does much more than select furniture and ship it to the client in a timely manner. They also have the capabilities of manufacturing furnishings specifically for each property, often at a surprisingly affordable cost. In addition to interior design and product development, they direct the purchasing, delivery, installation and servicing, frequently working with homeowners’ associations and boards of directors at timeshare properties. The size and buying power of such a large retailer and their bundling of services enables Robb & Stucky to provide furnishings and design work at highly competitive prices,
whether the client is in Denver or Dubai.

As a full-service interior design house, Robb & Stucky is equipped provide many additional services, such as creating custom-designed furnishings to fit tight spaces at affordable prices. They also select appropriate flooring and window treatments and handle the maintenance of furniture after it has been installed.

While resort and hotel refurbishments have been a Robb & Stucky specialty for many years, Dan Lubner has met recently with dozens of developers who have unsold condominiums and are considering converting them to rental or lease units. The “just right” furnishings package can have a positive impact on generating positive cash flow for the owners of these properties. For Lubner’s team, this is a relatively easy assignment … one that they have completed many times and with highly positive results.

In comparing the services of Robb & Stucky to those of a designer or purchasing agent, Mary Turschmann, Director of Business Development explains, “In the typical developer-designer relationship, a major portion of the budget goes toward design, installation, warehousing of furniture and coordination fees. When we are given a ‘key rate’ or total budget, we put all of our efforts into the creation of the product – not for commissionable services, providing these ancillary services without charge. The customer pays only for the actual products they purchase.”

Purchasing agents are generally remunerated based on the total dollar volume of items purchased, which is often not in the client’s best interest. “Instead,” she says, “we take the existing project and offer the best possible solution, creating the perfect piece for that location. We like to feel that we are an integral part of every project we take on and don’t have to rely on what someone has put into their catalog.”

By providing true “turn-key” solutions to design issues, Robb & Stucky is equipped to handle all facets of the required work without the need for outsourcing or paying the middleman’s markup or designers’ commissions. This allows for the maximum percentage of the developers’ furniture, fixture and equipment budget to actually be spent on FF&E.

With their immense warehousing capabilities, Robb & Stucky also provides storage for extra pieces of furniture, carrying “attic stock” and delivering it within days to U.S. locations, and internationally a few days longer, eliminating the concern for discontinued pieces of furniture. If someone breaks a chair in a unit, it won’t take six months to receive a new one.

After receiving many requests for quality bedding, the company also manufactures its own line of high-end bedding and related accessories and also supplies appliances and televisions at competitive prices. After units have been installed, the company offers what it calls “triage services” by providing five service calls during the first year to customers to repair any minor scratches on legs and tops or spruce up the furniture.

Adds Turschmann, “With one of North America’s largest teams of licensed interior designers, many with extensive hospitality experience, these professionals understand that there can be dramatic differences in furnishings and styles from one geographic area to another. This ability to regionalize designs along with our buying power and comfort level in the hospitality industry has enabled us to provide interiors that please
both the developer and the owners … and at highly competitive prices.”

Robb & Stucky designers no longer use old-fashioned “color boards” with tiny chips of paint and small pieces of material to show a client their proposed interiors. Instead, they utilize computer-generated images that embrace today’s 3-D CAD technology, showing owners exactly what the final product will look like, where it will be placed, and how each element blends together.

With approximately 1,170 employees in the design field, these professionals can be mobilized from any part of the globe. They have recently served clients from Miami to Mazatlan and the Middle East.

Some hints from Robb & Stucky designers: A well-defined space is intended to invoke an emotional response from the user. Instead of a guest saying “what a great looking sofa,” they should be saying “I loved staying there.” When the designer partners with the developer, architect, and contractor team from conception, amazing results will be achieved. By working together on finishes and background colors, the result is an environment that enhances the furnishings and provides a fluid transition from one interior space to another. What you don’t actually see but feel is often the most important aspect of your stay.

For Perspective readers considering the refurbishment of a resort property or seeking advice on furnishing a new one, Robb & Stucky Interiors is well qualified to help guide you through the challenges of all of your interior design needs. Concludes Lubner, “We understand the importance of interior design and quality furnishings in today’s shared-use property and strive to become a significant partner with our developer clients, working diligently to play a key role in their sales success.”

To reach Dan Lubner, call 239-292-3717 or write to Dan.Lubner@RobbStucky.net www.RobbStucky.com

Marge Lennon, of Lennon Communications, is celebrating 31 years as a writer for the vacation ownership industry. She can be reached by calling 239-482-3891 or by writing to her at Marge@LennonCommunications.com.

Dial An Exchange In Asia Pacific Thinking Globally – Working Locally

Dial An Exchange is justifiably proud of its pioneering history in the Timeshare industry in the Asia Pacific region.

Founded in Australia over a decade ago, Dial An Exchange (DAE) has grown an impressive membership base, and established locations to service all corners of the globe with offices located in the USA, Europe, South Africa, Australia, and New Zealand.

In July 2007 the launch of DAE Asia, with offices in Thailand, India and China, saw the last piece of the jigsaw complete. With multilingual staff that have many years of industry experience within Asia, the company now services the entire region including the Middle East.

Whilst growth in Australia and New Zealand has been steady, the success achieved in the challenging Asian market has been beyond all expectations and continues at a rapid pace.

The company identified very early on that there was substantial scope for a more customer-focused exchange provider within the timeshare industry throughout Asia, and has successfully transported their business model into the region.

“Simplicity, transparency and customer service and satisfaction are at the heart of our success and always will be” said co-founder and CEO, Francis Taylor.

“Our leading edge technology plays a significant role in our ability to deliver a simple and effective exchange system, but it’s the personal attention to our customer and partner relationships that will continue to make us a ‘stand-out’ in this industry” he said.

One of DAE’s most significant achievements is their early development of a world class, real-time online Exchange Management System.The purpose-designed integrated reservation and online exchange system allows the display of real-time information and availability while employing an easy to use website front end interface for members and corporate partners. This online technology is certainly one of the contributing factors in cementing their unique position in the exchange business, and forms the basis for evolutionary advances currently being developed for future release.

“What the industry has needed for some time is for a more simplified approach to the exchange process that helps owners understand what they own and how to get more out of their vacation ownership investment” said Francis.

By offering a no cost membership option, low exchange fees and a “pay when you book” policy, DAE is a viable alternative in the exchange marketplace. The paradigm shift DAE has created is similar to the airline industry’s transformation which saw their market share expand as a result of the customer’s appreciation of excellent service at a low cost.

Basic membership includes a ‘feature set’ that truly adds more value to vacation ownership, including:

- A fee membership Option
- Low exchange fees
- Online worldwide availability
- Online browsing and booking
- A 24 hour online “hold” function
- A three year credit for every banked week
- A cancellation protection program
- An online resort directory
- Offices located globally

Above all, DAE’s members receive personal service. As much as online transactions are important, there are always exchange consultants available to help with any questions members have. Members can still make requests online or simply call the closest DAE office when they don’t see the particular requirements online.

The company never stops looking for additional ways to ensure their member benefits and customer service levels remain first class, and while DAE’s free membership option has always been an advantage to their members, they identified that their members recognize the benefits of paying a small premium for some substantial added value.

This has lead to the development of one of the company’s most recent and important initiatives – Gold
Advantage membership. For a nominal fee, Gold Advantage members will have access to a set of premium benefits in addition to those included in the Basic membership. This includes services such as:

Priority Request: a request for a destination not available online is automatically placed on a priority request list.

Advance Notice: when new inventory becomes available on www.daelive.com it is offered to Gold Advantage members on an exclusive basis for a period of 14 days before regular members are able to confirm those weeks.

Price Advantage: pricing advantages specific to each region which includes discounts on transaction fees.

On a regional basis further and even more exciting benefits are currently being developed. Asia was one of the first DAE regions to offer Gold Advantage memberships, and as it is rolled-out throughout 2009, other DAE offices will be offering their own version of Gold Advantage specifically tailored to suit the requirements of their member bases.

As part of the regional benefits being introduced with Gold Advantage Membership in Australia and New Zealand, and one of their most significant new offerings in this particular region, DAE is adding additional value to their members, through their partnerships with some of the very best Escorted Coach Tour Operators in the industry. Members can take advantage of an exclusive exchange subsidy of $1,000 per couple when exchanging their week for an escorted coach tour.

In Australia and New Zealand, their partner AAT Kings is recognized as one of the industry’s very best and offers tours from Perth to Kakadu, from New Zealand to Tasmania and everywhere in between.

Covering the northern hemisphere, Insight Vacations offers escorted tours or cruises in Europe, Britain, the Eastern Mediterranean or America and Canada, and offer unequalled value and a level of personalized service second to none.

Completing the picture, Travel Indochina specialize Small Group vacations to Asia, offering more genuine experiences with local people and their environments.

Split Weeks
With a goal of understanding its Asian members better than its competitors, DAE Asia identified a demand for short multi-destination holidays for travel within Asia. In direct response to these preferences the company has announced the launch of split week exchanges in late 2008, providing its members the option to take only a three or four day break.

The split week offer comes to DAE members at the very reasonable price of USD65 per exchange. It allows members to bank their one entitlement week and enjoy two different destinations either during the same week or at two different times.

Local Language
In another major initiative, DAE is in the final stages of developing its website in local languages to facilitate better communication with its non-English speaking members.

Mandarin Chinese is the most spoken language in the world and is now available, while the Thai language is scheduled to be launched during the first quarter in 2009. Arabic is also planned in the future to assist the many members living in the Middle East. Printed Resort Directories are now also available in both English and Chinese.

Condo Units
Condo Hotel Projects (Resort Investment Projects) have sprung up in many parts of Asia, especially in China where there are about 600 completed projects and a further 1,000 projects in the pipeline. The quality and location of Condo Hotel units is generally very high, and in accepting Condo Hotel weeks into the exchange pool, DAE Asia is adding to the growing list of destinations enjoyed by their members.

Looking forward the company believes that this hybrid product of real estate and leisure will become very popular, not just in China but in many other tourist destinations such as Phuket and Bali, and is working aggressively to become one of the leading providers of Condo Hotel weeks for exchange.

DAE Asia is proud to have been the major sponsor of the last three Annual Conferences organized by the Chinese Asia-Pacific Condo Hotel Management Association, and will continue to provide consultancy and exchange services to Condo Hotel projects throughout Asia.

In April 2008, DAE invited a number of potential developers with interests in either timeshare or Condo Hotel projects in China to the first seminar organized by DAE Asia in Shanghai. DAE’s Chairman, Ramy Filo and Chief Executive Officer, Francis Taylor were two of the guest speakers at the event, sharing their views on timeshare development outside of China and explaining current and future developments by DAE globally.

New Resorts
Since the operation was launched in Asia, DAE has been striving to unearth new resorts in popular destinations, and works closely with local multi-resort vacation clubs. Of note, Tianlun Vacation Club, is one of largest multi-destination vacation clubs in China, with several resorts spreading from Qinghuangdao in northern China to Hainan, the most highly demanded holiday destination at the southern tip of China. Mr Ai-Di Ding, Chairman of Tianlun Vacation Club, is also one of the founders of the China Oriental
Vacation Association.

Many of these resort destinations, despite being little known in the western world, are fascinating. For example, one of Tianlun’s resorts is located in Lijiang, a World Heritage site which attracts millions of tourists from all over the world.

During 2008 DAE Asia also signed up dozens of new resorts in India and other countries throughout Southeast Asia. Apart from relaxing on beaches, DAE members can now enjoy superb urban resorts in locations which are heaven for shoppers. These include superb quality resorts such as Palace of Golden Horses, the Legend Hotel in Kuala Lumpur, Jin Qiao International Gardens in Beijing, and the Hong Kong Gold Coast Residence. They have even arranged for DAE members to be able to share a Maharajah’s palace with him!

“We are focused on looking at each of our core global markets and developing initiatives for each that take cultural and market-place differences into account” said Francis Taylor.

“We’ve seen first hand how valuable this approach can be. Before our arrival in South Africa, there wasn’t a lot of choice in that region for owners to compare exchange providers and gauge for themselves who could provide the level of service that best matched their particular circumstances and needs”.

“Since opening in July 2007 and providing a real alternative to owners who reside in South Africa, we not only benefit ourselves but the growth of the industry as a whole in what is one of the world’s most exciting timeshare destinations” he said .

“Each market has its own unique way of doing business and rather than adopting a one-size-fits-all approach, we look for at the specific needs of each region on its own merits and develop initiatives to suit” he said.

Either by leveraging their own brand, or by simply referring timeshare owners to give DAE a try directly, resorts, management companies and HOA’s alike are benefiting from the simplicity and customer satisfaction that comes from a nimble, customer oriented company like DAE.

Disney Vacation Club Expands on an Icon

Newly announced Bay Lake Tower complements themes of beloved icon, Disney’s Contemporary Resort

When Disney Vacation Club began scouting locations for its next resort, it turned to one of Walt Disney World Resort’s first and most iconic resorts for inspiration. The result is the development of the 15-story Bay Lake Tower at Disney’s Contemporary Resort, scheduled to join the Disney Vacation Club family of properties in fall 2009.

“Our founder, Walt Disney, was well known for having one foot in the past and one in the future,” said Disney Vacation Club President Jim Lewis. “Bay Lake Tower shares that dynamic sensibility, as it will blend modern luxury and design with the nostalgic spirit of one of the most storied resorts in Walt Disney World history.”

The announcement of Bay Lake Tower comes during an unprecedented era of growth for Disney Vacation Club, established in 1991 to give families decades of affordable vacations at Disney destinations and beyond. Disney Vacation Club membership has more than doubled since 2004, expanding to include more than 350,000 individuals from approximately 100 countries and every U.S. state.

That membership growth has also driven Disney Vacation Club expansion, inspiring Walt Disney Imagineers to dream up new vacation home opportunities. In addition to Bay Lake Tower, development continues on Disney’s Animal Kingdom Villas at the Walt Disney World Resort in Florida and The Villas at Disney’s Grand Californian Hotel & Spa at the Disneyland Resort in California, as well as the recently announced resort at Ko Olina on the island of Oahu and the newly announced room category at Disney’s Saratoga Springs Resort & Spa, the Treehouse Villas.

“What excites me most about this tremendous growth is that we’re not only creating new accommodations, but new experiences,” Lewis said. “Each of the projects we’ve undertaken at Disney Vacation Club is unlike anything previously available in our resort portfolio, and Bay Lake Tower proudly builds on our previous successes.”

Bay Lake Tower’s Architectural Homage and Unparalleled Views
The new, curvilinear Bay Lake Tower at Disney’s Contemporary Resort is designed to complement the fabled styling of the original building, which opened with the Magic Kingdom Park on Oct. 1, 1971, and featured comedian Bob Hope as master of ceremonies.

“You don’t need formal architectural training to see the similarities in the two buildings,” said Disney Imagineer Brian McFarland. “From the exterior color palette to the strong horizontal lines to the angular rooftop lounge that mimics the original resort’s A-frame structure, the new building is designed to feel right at home in this space.” The tower’s crescent shape, hugging lush landscaping, planned recreation options and a lakeside pool, promises to deliver some of the most dramatic views available anywhere at the Walt Disney World Resort.

“Bay Lake Tower is something our members have been requesting for a long time. With a sweeping view of Bay Lake on one side and the Magic Kingdom Park on the other side, the location couldn’t be any better,” Lewis said.

The views promise to be equally appealing inside the tower’s 295 two-bedroom equivalent villas, where visionary design meets Disney chic to define the vacation experience. As the closest resort to the Magic Kingdom Park, Bay Lake Tower guests can easily return to their rooms for quick breaks from their busy day in the Park, where they can relax in an inspiring setting offering many of the conveniences of home.

Each of the guest rooms in this iconic resort is scheduled to feature innovative touches, such as modern artwork designed specifically for Bay Lake Tower and flat-screen TVs. In addition, plans for most of the vacation villas at the Bay Lake Tower include full kitchens complete with granite countertops and modern appliances, separate bedrooms, washers and dryers, and other home-like amenities. Plus, to accommodate larger families or families traveling together, many Bay Lake Tower vacation villas are designed to sleep up to nine, though some units can also be divided into one-bedroom villas that sleep five and studios that accommodate four, creating flexible options for smaller groups.

“These vacation homes will be furnished with some amazing custom pieces that are works of art unto themselves,” McFarland said. “And some of the most contemporary elements, such as the gliding storage unit in the kitchen or the sliding barn-style doors in the bathrooms, are as functional as they are attractive. It’s all about maintaining that feel of clean lines and open spaces, with plenty of Disney touches.”

Add to the plans a spacious lobby filled with woven woods and glass-wrapped columns, sweeping views from a rooftop lounge and fireworks viewing deck, and the convenience of a sky bridge linking families to shops, restaurants and the monorail station at Disney’s Contemporary Resort, and you have a Disney Vacation Club destination that is both practical and fashionable.

The Inspiration Behind Bay Lake Tower
For Disney Legend Marty Sklar, longtime leader of Walt Disney Imagineering and the only Cast Member to have been part of every Disney Park opening on earth, the announcement of Bay Lake Tower brought back a flood of memories about the original Disney’s Contemporary Resort. As he recalls:

“I was privileged to be an eyewitness, and briefly one of the earliest “Guests,” in the creation of this extraordinary facility. As a result of an excellent working relationship with WED Enterprises (now Walt Disney Imagineering) on the 1964-65 New York World’s Fair, the Santa Monica, Calif., firm Welton Beckett and Associates had been hired to design the first two Walt Disney World Resort hotels, one with a Polynesian theme and one with a contemporary theme.

“As the Florida project began, Dick Irvine, chief of design for WED Enterprises, sent the Beckett and Disney teams on a trip aboard the company’s Grumman Gulfstream to research some of the latest developments in resort hotels. We first visited Atlanta, where architect John Portman had recently opened the first of his signature hotels with a turntable restaurant at the top that rotated 360 degrees, then several resorts in Miami Beach and lastly new hotels on Grand Bahama Island.

“Three early decisions after that trip literally became the signatures of Disney’s Contemporary Resort. One such decision was to cover the resort’s towering elevator shaft with a tile mural designed by artist Mary Blair, whose illustrations inspired the children and toys of the “it’s a small world” attraction.

“The second key decision was to connect the two original Florida Project resorts to the Magic Kingdom Park and the Ticket and Transportation Center by monorail. For Disney’s Contemporary Resort, that meant creating still another first: routing a transportation system through the center of the hotel, within a few feet of restaurant diners and the front doors of the Guest rooms.

“The third decision led to the biggest challenge of all: building the Guest rooms through modular steel construction at an off-site location, and then trucking each of the 1,050 fully furnished, 8.5-ton rooms to the shoresof Bay Lake. Although unique in size at 9 feet high, 15 feet wide and 32 feet, 7 inches long, the rooms established a design requirement for all Disney Resort hotels around the world (and Disney Cruise Line staterooms for that matter). Every Disney Resort hotel room begins life as a full-size mock-up so that Cast Members can sample materials, colors and furnishings, as well as study lighting, carpeting, wall coverings and other fixtures.”

Bay Lake Tower Slated to Become a New Disney Icon
It should come as no surprise that Bay Lake Tower both complements and builds upon the inspiration provided by its next-door neighbor, Disney’s Contemporary Resort. While Sklar’s aforementioned fateful trip to Atlanta’s turntable restaurant culminated in the creation of the Top of the World Lounge at Disney’s Contemporary Resort, the beloved dining and entertainment venue closed many years ago and the area reopened as the famed California Grill restaurant. However, Bay Lake Tower will call upon the Ghost of Restaurants Past when it opens the Top of World Lounge, a planned rooftop venue where Guests can mix and
mingle in style before strolling outside to the fireworks viewing deck for an awe-inspiring view of Magic Kingdom Park’s “Wishes.”

Bay Lake Tower Guests will also be able to access Disney’s Contemporary Resort’s monorail station, shops and restaurants, including recently opened The Wave, as well as old favorites including Chef Mickey’s and the aforementioned California Grill. This can easily be accomplished via a short walk across the Sky Way Bridge, a covered outdoor sky bridge that winds its way between both Resort hotels and gives Bay Lake Tower Guests a quick and easy way to venture to and from the original resort. Guests can then marvel at Mary Blair’s much-loved Native American-themed tile mural as they wander through Grand Canyon
Concourse and other favorite areas of Disney’s Contemporary Resort. Plus, they can explore all of the other stops along the monorail routes, including the South Pacific experiences at Disney’s Polynesian Resort, and the fine dining options at Disney Grand Floridian Resort & Spa, as well as the fantasy and whimsy of Magic Kingdom Park and the technological innovations at Epcot.

Beyond all the amenities found inside the building and next door, the resort’s own zero entry pool, Bay Cove Pool, is scheduled to include a water slide, separate whirlpool spa and an interactive children’s water feature. Nestled next to the resort, the pool will allow Guests to indulge in their favorite water activities while soaking up the picturesque views and natural wonder of Bay Lake.

For those Guests looking for a glimpse of the vacation experience soon to be offered at Bay Lake Tower in anticipation of its opening next year, tours of the resort’s model rooms, located at the Disney Vacation Club Preview Center at Disney’s Saratoga Springs Resort & Spa, are available.

Bay Lake Tower Expands Disney Vacation Club’s Legacy
Disney Vacation Club was created as a unique experience for Guests who like to return to the Walt Disney World Resort on an annual basis and stay for longer periods of time. The innovative vacation ownership program has quickly grown to include a wide range of vacation offerings, with eight properties both inside and outside the Walt Disney World Resort in Florida and many more on the horizon.

Instead of a traditional timeshare program, Disney Vacation Club Members access their vacation club ownership through a highly flexible vacation point system that allows them to tailor vacations to their personal needs. Members receive an annual allotment of vacation points that can be used in a variety of ways for different types of accommodations.

Upon its scheduled opening next fall, Bay Lake Tower will become the ninth Disney Vacation Club Resort with the tenth, The Villas at Disney’s Grand Californian Hotel & Spa, planned to open soon after. As its Members can attest, each of Disney Vacation Club’s unique resorts boasts creative, family friendly theming and amenities that ranges from the African-inspired Disney’s Animal Kingdom Villas to the turn-of-the-century charm of Disney’s Old Key West Resort. As many Member families have discovered, Disney Vacation
Club’s unique flexibility and full slate of offerings ensure that their vacations are filled with a variety of experiences and nearly endless opportunities for new discoveries.

“We plan to continue to grow both domestically and internationally,” Lewis said. “Currently, our members can enjoy everything from a stay in a Disney Vacation Club Resort at one of our theme parks to an African safari to a weekend in London or even a Caribbean cruise! It’s exciting to know that the Disney Vacation Club Resort options are going to expand for our members over the years.”

The Fractional Influence: Absolute’s Key Role In Fractional Ownership In Thailand

What are the experts saying about fractional ownership? Is this a new buzz word? Why has it suddenly got so popular? Has it been around for long?
If you had £30,000 to £40,000 spare what luxury property can you buy as an investment as well as something to enhance your lifestyle, make the neighbours or work colleagues jealous etc.? Well thats the answer – Fractional ownership! And it is very obvious why both investors and serious hard-core lifestyle addicts would choose this route. The benefits massively outweigh any doubts or fears of sharing the ownership by far as well the sheer diversity of this type of investment portfolio, almost as impressive as the new Ferrari F430! If you find Thailand’s stunning beaches fused with chic, Asian style to be desirous but can’t imagine forking over a few hundred thousand pounds sterling for a holiday apartment thousands of miles away in Asia, which you would use only a few months a year, then fractional ownership may well be the ideal option to own a prime piece of property for more or less the real amount of time that you actually
will use it plus have various luxurious add-ons to go with it, such as a speed boat or a chauffeur-driven
jeep at your disposal.

From upcoming popular islands like Koh Samui to prime locations on Phuket’s best beaches, fractional ownership is not only springing up in Thailand but in some of the world’s most idyllic locations like Cancun, Aspen, St Lucia and Grenada for example. With prices in Thailand from as low as £25,000 for a month a year for life, investors take far less risk to own more property around the world this way with none of the associated hassles and headaches that run side by side with owning property outright. Fractional ownership makes second home ownership much more accessible to people. If you can spend £50,000 on a couple of months in an excellent second home in your favourite spot and use it 100% of the time, you would
say without a doubt, it is worth it.”

Bryan Lunt, Chairman of the Absolute Group of companies says “Most people are only able to take holidays for 2, 3 or 4 weeks per year, so why own a whole property when you can own the part you would actually use? A luxury holiday home at around £30-75,000 that you would use to the full makes a huge difference to a holiday home for £200-250,000. Fractional ownership makes it possible to own that beautiful holiday retreat for a very small cost and with the benefit real capital appreciation.”

“Our fractional ownership developments have an irresistible WOW factor. Clients can take advantage of 31 foot Gulf craft speedboats together with local captain for 3 days a week, the use of the latest Callaway Golf equipment as well as concierge services and high end interiors with all the mod cons you would expect from a leading development. We are also soon to launch two sensational developments in partnership with a world
leading design team – this will be the first time you will be able to buy into this brand at such a low price point. Very exciting times, just drop our sales team an email to be amongst the first to hear who we have partnered with!”

What does Absolute say about the fractional market in today’s climate?
Sales are increasing at a rapid rate and are projected to increase further as this high season approaches and more and more buyers are introduced, often for the first time to the concept and the advantages of fractional ownership as opposed to timesharing concepts. Current owners in the new Absolute Fractional Ownership Programmes are enjoying the perks of buying early with excellent off-plan prices and guaranteed long-term rental returns on un-used share periods. Lunt says “The current demands seem to be for a real estate product, but not whole ownership, more a couple of months, a quarter or a half-share in a unit is sufficient rather than the whole unit. Of course, the benefits of having to pay only for what you own [and use]
rather than for all year are excellent, and having the benefit of real capital appreciation, too, is also a big draw for this product.”

Paula Gold-Nocella, founder of Global Quarters, a San-Francisco-based fractional ownership brokerage that sells fractions around the world says she believes that “fractional ownership structure will gain popularity because it offers the ability to enjoy home ownership anywhere in the world, as well as the financial potential for capital appreciation.”

Fractional Investments in Thailand
As fractional sales continue to grow into a multi-billion dollar industry in the States alone, the Absolute Group, with offices in Hong Kong, Pattaya (Jomtien), Koh Samui and in Phuket, Thailand, have recognised a gap in the ownership market for people interested in savvy investment opportunities in destination real estate markets. In April of 2008, Absolute launched its Fractional Ownership Programme, sparking joint venture interest from worldrenowned design teams, one such partnership is soon to be announced. Now with the fractional ownership scheme in place, sales at the Absolute Beach Resort at Nakalay, Phuket
have rocketed. This fractional opportunity was limited to a select few owners, as the exclusive development is comprised of only 33 units on the beach. Absolute also unveiled its flagship project, Bangla Suites Jacuzzi Condominiums in all her glory on Patong’s most eclectic and revitalized walking street, the famous Soi Bangla. The Penthouse Residences at Bangla Suites are offered as an exclusive fractional investment in the only 5-star condominium development in the area. Aside from the obvious high-quality interior specifications including balcony Jacuzzi’s, owners will also have access to the latest audio-visual
technology. Even the artwork in the Penthouse Residences is selected from a designer’s gallery and a sophisticated lighting scheme was designed specifically for the building.

In addition, the Absolute team are currently in preparations to launch two new developments this Spring in Phuket and Koh Samui, a joint venture with their soon to be revealed, world leading designer development partner. These apartments will showcase the design style of this most sought after luxury brand, on par with the world’s finest boutique resorts. It will be a first time opportunity to buy into this well-known brand of properties, fully designer styled and furnished and under the fractional program from as little as £30,000 for a 1/4 share (3 consecutive months).

The Phuket development is a collection of 256 apartments nestled on the edge of a serene lake and surrounded by three world class Golf Courses on one of the most sought after island destinations in Asia. The Koh Samui development is situated on prime beachfront, and very soon to be surrounded by the likes of Conrad and Grand Hyatt hotels, this resort brings high-market appeal and investment potential to the charming, laid-back beaches of Koh Samui. Fractional investors will have access to Callaway Golf clubs and six 31ft Gulfcraft Dolphin Super Deluxe speedboats, part of the many perks you will find with Absolute’s fractional investments.

The Absolute Influence
As leaders in fractional investment opportunities in Thailand, Absolute is diversifying its own fractional portfolio in an effort to meet the demands of its market in Asia. Whether you are looking for a stylish yet peaceful holiday home situated directly on the beach or Golf course, or for a classy 5-star condominium development in the heart of the action, Absolute will have what you are looking for, at a fraction of the price. For more information about the Absolute Fractional Ownership Programmes please contact Eleanor Cacar in the Absolute sales team on +66 878 960 594 or email eleanor@nsre-thailand.com.

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