Global Quarters: A Tour Of San Francisco’s Fractional Offerings

You may know is that there are six exceptional fractional ownership opportunities here, any of which you can call home. Forty eight attendees of the Annual Ragatz Conference had a closer look at these opportunities during two separate tours held by Global Quarters. One pre-conference tour was to the Wine Country and the other was spent out and about in San Francisco.

From as far away as New Zealand, Thailand and Bermuda folks came together and shared the experience of our Wine Country Tour. We met in the Fairmont Hotel lobby, climbed aboard a luxurious coach and headed to “The Ranch on Soda Rock” in Sonoma County. Set in the rolling hills of the world renowned Alexander Valley, this home, vineyard and winery is a “Green Growers” paradise.

Here we were greeted by Cynthia Palmer, developer and hostess, Monica Sallouti, personal chef, who provided a sumptuous lunch and Emma, the Papillion pooch. (She was a huge hit). The tour began with an overview of the project, focusing on the biodynamic and organic nature of the vineyard, gardens and wine. We headed directly to the “Ranch’s vineyard and winery”, where the first year’s harvest rests in French oak barrel. Each year the owners will receive approximately 6-8 cases of their own grown and bottled cabernet sauvignon, made by well-known winemaker, George Vierra.

We meandered through the organic vegetable garden and into the spacious three bedrooms, three bathrooms home. This exquisitely renovated home with vineyard and mountain views from every room includes a gourmet kitchen, formal dining room, living room all with luxury furnishings throughout. Outdoors there is a 40’ x 20’ salt water pool, extensive decking, outdoor kitchen, and spa.

As our first glass of wine was poured, compliments of Tom La Tour of La Tour Winery, folks began to network among themselves. The tour was an excellent opportunity for developers, service providers, and newcomers to the fractional ownership industry, to get to know each other pre-conference.

Our second stop was the “Lodges at Calistoga Ranch” in Napa Valley where we were greeted by the team of Josh, Erin and Gary. The Ranch is nestled in a 157-acre canyon just off the Silverado Trail in the famed Napa Valley, managed by Auberge Resorts. This world class destination is known for both its award winning Bathhouse spa and coveted private Lakehouse restaurant.

Calistoga Ranch is recognized for its attentive service and truly unique architecture. Designed with sophistication in mind while taking full advantage of the surrounding natural beauty, each 2-bedroom Owner’s Lodge features over 2,500 square feet of extensive indoor and outdoor living space, as well as a private full service kitchen, and living room. After our tour of the property we enjoyed several
varieties of wine and cheese in their spectacular mountainside wine cave.

Back on our coach and driving South through the heart of the Napa Valley, we headed to “The Orchard at The Carneros Inn” a Private Residence Club consisting of 17 luxury cottages in the heart of the Napa Valley. The
Orchard offers a unique opportunity to own real estate at a premier resort and provides hassle-free vacations by combining the advantages of ownership with the services and amenities of a fine hotel plus exclusive access to resorts within the prestigious Timbers Collection.  The Orchard’s two-bedroom cottages feature spacious master suites, gourmet kitchens, indoor/outdoor living spaces, private in-ground spas and outdoor showers. Ownership at The Orchard also includes dedicated concierge services, pre-arrival grocery shopping plus access to The Inn’s exclusive amenities, the vineyard infinity-edged pool, family pool with
spa and cabanas, fitness center, yoga/Pilates studio, world-class spa and three celebrated restaurants including FARM, The Hilltop Dining Room and The Boon Fly Café.

The Orchard at The Carneros Inn is a member within the Timbers Collection, a portfolio of luxury, boutique resorts in the most sought after destinations in the world. Created and managed by Timbers Resorts,
the Collection offers many value added partnerships such as Sentient Jet, Hertz and membership in the Timbers Reciprocity Program allowing Orchard Owners trade access within a global resort portfolio.
At the end of this incredible pre-conference day many of the group had formed valuable new relationships. We had shared 8 hours with gourmet food excellent wine and many a good chuckle. As a result, when
the conference began on Monday morning several business meetings had been scheduled, new friends had been made and a sense of community was formed.

Several days later our group reconvened adding some newcomers for our second tour which was held in the City of San Francisco.

The Full moon was rising over the Bay Bridge as we arrived at the historic landmark, The Fairmont, Heritage Place in Ghirardelli Square. Here we were greeted by the Maserati Quattroporte parked outside the
property, which is available for the owner’s usage. Nice touch. Several of our attendees were ready to buy simply for the usage of the Maserati, and why not! Perched at the edge of the San Francisco Bay, with sweeping views from Alcatraz to the Golden Gate Bridge, the City’s waterfront treasure Ghirardelli Square,
has been transformed into an urban oasis featuring an exclusive assortment of stylish shops, fine dining, artisanal food and wine shops, a future brasserie by world renowned chef, Gary Danko and a world-class spa. Anchoring the revitalized landmark is the Private Residence Club, Fairmont Heritage Place, Ghirardelli Square. One of the city’s most distinctive and exciting new options for second home ownership it combines the restored charm and historical ambience of Ghirardelli Square with Fairmont Hotels & Resorts’ world-class amenities and services.

Fairmont Heritage Place ownership has the unparalleled convenience of a luxury vacation home without the obligations and responsibilities of owning a separate property. Fairmont Heritage Place offers deeded ownership in just 53 one, two- and three-bedroom residences, artfully blending historic ambience with modern luxury. The Fairmont Heritage Place homes feature open-concept living space, complete with a slate
hearth-framed fireplace and a large mounted LCD-screen television. Owners can enjoy selections from the extensive complimentary DVD and board game library for fun indoors, or relax on outdoor terraces featuring
fireplaces and views of the bay.

After our tour, sunset views, full moon rising and glass of wine, we headed to the famous Union Square where you will leave your heart in San Francisco after a stay in Resort Equities’ Odeon Penthouse. Outside your door awaits the energy, excitement, culture and cuisine of the urban experience – inside, a relaxing, sophisticated oasis. This newly constructed, top floor, corner, only-one-of-its-kind, 2,516 square foot residence offers three bedrooms, two bathrooms plus double high ceilings and oversized windows.
These expansive windows showcase views of the excitement below as well as San Francisco’s handsome buildings.

Entertain family and friends in the two-level great room, showcasing the twinkling city lights and the Powell Street cable car. The residence’s kitchen caters to the chef in you with signature series Viking™, Dacor™ and
Bosch™ appliances. Odeon Penthouse has an upper floor devoted entirely to a large, private master suite and the contemporary interior has been professionally decorated by award-winning Worldware.

Off to the Ritz Carlton-Club Residences in Downtown San Francisco. Majestically poised at the corner of Market and Kearney Streets, The Ritz-Carlton Club, San Francisco is a twenty-first century showplace, and the pinnacle of luxurious urban living. A place where unexpressed wishes are anticipated by 24-hour Concierge service in intimate detail.

A place where gracious amenities like valet parking and on-site dry cleaning make all the difference in a fast-paced world. Lavishly furnished, one-bedroom Residences welcome you home with stunning skyline views. Your full gourmet kitchen beckons the chef within. Upon arrival, you will find your wardrobe unpacked and your groceries stocked — thoughtful touches that are every bit The Ritz-Carlton and every bit what you  can expect from The Ritz- Carlton Club, San Francisco. One glimpse out your window will confirm that you are indeed, exactly where you belong.

“The fractional ownership tours held during the conference were the highlight of the conference” Dick Ragatz. I know there were many highlights of the conference and as the owner and host for Global Quarters, I am proud to have been one of them.

Biography
PAULA GOLD-NOCELLA
Paula Gold-Nocella has been in the real estate industry since 1987, starting as an agent in Miami, Florida
and relocating to San Francisco, California in 1990. She became a top producing Realtor for Hartford
Properties and later for Pacific Union Real Estate Company, where she specialized in TIC/Fractional
Ownership properties. As a dedicated member of the San Francisco Chapter of Woman’s Council of
Realtors (WCR) from 1990 to 1996, Paula held the positions of Treasurer, Vice President and served as its
President of the San Francisco Chapter in 1996. After moving to Sonoma County, Paula became the Managing Broker for Prudential California Realty, growing one location into three offices and 65 agents. Paula joined the Board of the North Bay Association of Realtors (NorBAR) and served as its President.

In 2007 Paula launched Global Quarters, Inc., A Fractional Ownership Brokerage the first Real Estate Brokerage exclusively for fractional ownership worldwide. Paula has been a leading advocate in the movement to help make “Fractional Ownership Properties” formally recognized and understood by Realtors and their Boards. She has taught numerous classes on the subject to Realtors and Agents.

She has been featured in the “Ask the Expert” column for the Halogen Guides, a guide to the ownership of
“smart luxury” products. January 2009 Paula completed all her course material and is a candidate for her Certified International Property Specialist (CIPS) Designation from the National Association of Realtors (NAR)

ABOUT GLOBAL QUARTERS
Global Quarters was launched in January 2008 and is a real estate brokerage dedicated to bringing buyers and sellers of fractional properties together throughout the world. We provide professional, knowledgeable and expert advice on selling, marketing and owning fractional vacation homes internationally. Global Quarters is focused on listing and selling unique and interesting properties in vacation and notably
remarkable destinations around the globe.

SERVICES:
Sellers – Global Quarters attracts buyers directly through sales and marketing. Additionally Global Quarters can attract buyers indirectly through its connection to the real estate industry. Global Quarters represents sellers with an authority and an inside track to real estate agents who then refer buyers. That doesn’t exist with any other firm. Global Quarters uses the power of the internet and the services it provides to sellers
as a communication and marketing device that leverages it to market seller’s property through the Global Quarters web site at globalquarters.com and through various search engine optimization and marketing techniques.

Buyers – Global Quarters is an expert in representing buyers in the purchase and ownership of a vacation fractional home in the United States and abroad. Global Quarters can assist buyers in everything from locating a property to reviewing the contract and arranging financing to closing services in the purchase of one of a fractional property anywhere internationally. Our buyers can feel secure in knowing that they are
being represented by both real estate and legal experts in this specific field. We have relationships with financial institutions who offer fractional financing to our buyers. We can write the contract, connect our buyers to reputable title and escrow agents and have set up very well developed associations with Realtors in areas around the world so that our buyers have appropriate representation on site in any country.

Real Estate Agents – Global Quarters has developed a Preferred Realtor Program whereby real estate agents and brokers can complete a fractional ownership workshop presentation and become an exclusive
member of the Global Quarters Preferred Realtor Program. The course, taught by Paula Gold-Nocella, founder of Global Quarters, gives real estate agents a basic understanding of the fractional ownership structure and training on how to have an intelligent conversation with buyers about fractional ownership and identify a property that has potential as a fractional listing.

Paula Gold-Nocella
707.413.6066 office
707.292.7505 mobile
866.303.6621 toll free
paula@globalquarters.com
WEBSITE: http://www.globalquarters.com

Ragatz Fractional Interest Conference Attracts Nearly 400 Attendees

By Marge Lennon

When experts talk, wise people generally listen and pay careful attention to their advice … especially in today’s turbulent times. Imagine how you’d benefit from listening to over 60 experts from all phases of your industry as they gathered in one location and freely shared with you their knowledge and experiences! This was the setting for three days in March at the Ragatz Fractional Interest Conference, where you could
hardly hear a pin drop throughout the audience as each expert shared valuable information.

In spite of a down economy and limited credit for developers and consumers, for the ninth consecutive year, shared-ownership resort developers and related business professionals converged on the elegant Fairmont Hotel in San Francisco to learn about the state of their industry. Yes, the mood was somber and serious as guests learned that their industry had posted declines in 2008 similar to other segments of the real estate market, but there were also faint visions of light at the end of the tunnel.

According to conference host and consulting veteran, Richard Ragatz, Ph.D., the 392 participants in this year’s gathering at the Fairmont Hotel came from 33 states and 15 countries, including Hong Kong, Australia, India, St. Kitts and Spain. This was about 60% of last year’s 750 conference attendees. Attendees
included companies currently in the fractional interest industry along with those considering entering this highly specialized field. Ragatz is founder of Ragatz Associates of Eugene, Oregon.

“From all accounts, it appears that our 9th Annual Fractional Interest Conference was well received by the nearly 400 attendees,” said Ragatz. “The general tone of the Conference was quite positive, especially considering today’s economic climate. The consensus from more than 60 speakers representing all aspects
of the industry was that while the financial crisis has affected every element of the real estate market, in the long term, shared ownership products are likely to be the first to rebound and will do so more rapidly than whole ownership products as the economy recovers. The key is for the development community to be prepared and properly positioned for the turnaround, which is certain to come.”

Speaker after speaker – from developers to attorneys to marketers – all agreed on this issue. Their reasoning is due to shared ownership being an attractive concept that fits this point in our country’s history – a concept based on personal use rather than speculation; on value rather than gloss; on rationality rather than waste; and on service and hospitality rather than on just brick and mortar, says Ragatz.

Industry Stats Revealed
At the conference, Dr. Ragatz released the findings of his much-anticipated annual research paper, the 2009 Edition of Ragatz Associates’ State of the Fractional Interest Industry. The survey revealed that there are some 325 fractional interest projects in North America and the Caribbean, along with 12 destination clubs.
Of the 138 active developments, 68 percent are in the United States, 17 percent are in Canada, six percent are in the Caribbean and nine percent are in Mexico. Colorado, California and Florida contain 25 percent of all developments. Of the 138 active developments, 56 percent are fractional interests projects (less than $1,000 per square foot) and 44 percent are private residence clubs (PRCs) (over $1,000 per square foot). Most
of the 187 inactive developments are older, soldout fractional interest projects.

In the 2008 Ragatz Fractional Survey, there were 153 active projects. Some 26 new projects started sales in 2008, meaning that 41 of the active projects in 2007 dropped from the list. A few of these attained sell-out, but most simply ceased sales due to the country’s economic condition.

It is estimated that the total sales volume in the shared-ownership industry in 2008 was $1.525 billion, despite downturns in the country’s overall residential-resort industry. This includes new closed sales, presales, and resales. The industry’s three components include $263 million (17 percent) in fractional interest projects, $913 million (60 percent) in private residence clubs, and $349 million (23 percent) in destination clubs.

Much like other industries in the United States, sales volume in the shared-ownership resort real estate industry declined in 2008 with sales decreasing from $2.297 billion in 2007 to $1.525 billion in 2008, or 34 percent. Declines occurred in all three components. By comparison, wholeownership vacation home sales were down in 2008 by 40.5 percent, boat sales down by 38.9 percent, motor home sales down by
34.9 percent and total home starts down by 15.5 percent and the stock market down by 37.5 percent.

Various feasibility analyses, consumer surveys and focus groups recently conducted by Ragatz Associates indicate a growing public awareness, acceptance and interest in the purchase of shared ownership products. Ragatz Associates is recognized as the leading consulting and market research firm in the resort real estate industry on a global basis. Specializing in feasibility analyses and market research, the firm has conducted
more than 2,000 studies in over 70 countries since its formation in 1974.

Conference Attendees Share Their Thoughts
Each of the nearly 400 people at the Ragatz conference had their own separate reason for attending. Some were new to the industry, others were veterans. All were in search of information and eager to learn how others were doing. We interviewed several attendees who were willing to share their thoughts with Perspective Magazine.

Dan Lubner, Robb & Stucky Interiors, Fort Myers, FL.
For a nearly one-hundred-year-old furnishing and design retailer, which has recently expanded to the fractional industry, attendance and sponsorship
at this event helped introduce our company to many prospective customers. We were very pleased at the
reception we received and look forward to a continuing dialog with developers we met at the conference.

Bob Wengel, Star Resort Group, Scottsdale, AZ.
This was my first Ragatz conference. I really don’t know anywhere else one can go to get this kind of information under one roof. It was highly beneficial with opinions expressed from dozens of people in the trenches, allowing me to form my own conclusions. I believe that we are in a period of compression. Projects that were marginal in terms of location and demand are doomed. Projectsin the best locations with a propensity for people wanting to go there will still fare well. These are the locations we must focus on.

Ron Tate, Balance Point International, Bellevue, WA.
If you are developing or selling a shared-use resort property anywhere in the world, then you must attend the Ragatz conference. It’s always a gathering of the ‘best and the brightest’ in the business and a place where attendees can hear honest answers to their questions. We came here to connect with other industry professionals and seek solutions to common problems.

Michael Novak, Balance Point International, San Jose De Capo, Mexico.
It has been most gratifying to see companies returning to the basic fundamentals: good recruiting, strong
management, consistent training and the optimum in customer service. We learned that any company not
implementing these philosophies in the immediate future will be doomed to failure.

Ed McMullen, E.H. McMullen & Associates, Orlando, FL.
I heartily commend Dick Ragatz for putting on his conference during these trying times. I don’t know anyone who did not walk away with a pocket full of new ideas or a positive response to comments that made them think. After many years in this industry, I have seen significant changes in customers’ buying preferences but few changes in our sales practices. In selling fractionals, we will have to revise our sales methods to reach people who want more of a lifestyle product than a second home. I believe 2009 will be a defining year for this industry.

R. J. Gallagher, Gallagher Sharp West, Aspen, CO.
It’s a war out there. This is when you want to retreat, re-energize, rejuvenate and open up to new ideas. Tried and true will no longer work. We are all in a retrenching mode. Our competition is not among each other but
with the economy. After attending six Ragatz conferences, I still come away with new ideas.

Art Spaulding, Cox, Castle, & Nicholson Irvine, CA.
I’ve attended all nine Ragatz conferences and appreciated how Dick has chronicled the growth of this business. I am as excited about the future of the fractional industry as anyone. It is a product that a segment of the population will always find attractive. I believe one of the things we will see in the future is more flexibility of use and more linkage between fractional resorts of comparable quality. And the lenders WILL be back, but it’s likely they’ll be new to the business.

Lucian Dancaescu, Island Empress, Pensacola Beach, FL.
We are in the process of developing a gulf-front fractional resort in Florida. Dick Ragatz did our feasibility study two years ago and we have looked forward to his conference every year. We have met many captivating people here. It’s the ideal place to expand industry knowledge and exchange new ideas with some of the best minds in the industry. This year we heard of projects finding successes in spite of the economy and in stark contrast to whole ownership and the second home real estate markets. The unexpectedly optimistic tone left us feeling that a positive momentum is underway. Things are slow but they are not dead.

Bryan Lunt, Absolute Group, Hong Kong & Thailand.
As Thailand’s leading fractional developer with nine projects, I came to learn about new usage plans,
try to meet fractional brokers and see generally what’s happening in our industy. I also toured the three fractional properties in San Francisco and was able to visit with two sales directors and one property owner. While our generic real estate sales have slowed down a bit in our regions, people are still going on holiday and fractionals are selling. We will make a few adjustments to some of our prodoucts, so some of what we learned here was most beneficial, some more U.S. Specific.

Alain Grange, Luxury Leisure Properties, Orlando, FL.
Attending this conference lets you better understand what others are doing within our industry. It’s reassuring for us to learn that we are doing better than most and still viable within a shaky economic environment.

Irene Aviles, President and Andra Minnehan, Director of Sales from Private Trade Winds, Inc., Newport Beach, CA.
As specialists in luxury accommodation rentals and trades, we attended the Ragatz conference to learn about opportunities to merge our services with the fractional industry. We were pleased with what we learned
and see a great value that we can bring to fractional properties since we understand how to maximize the
value of a vacation home. Our service can be custom designed to assist any developer or sales team to position their property as a unique offering to the buyer. It consists of a turn-key process from design to marketing that allows vacation homeowners the ability to rent, trade and travel within our hand
selected group of properties.

ARDA 2009: Things Aren’t So Bad, After All

Yes, the economy is bad. Yes, credit is hurting. But the shared-ownership industry is optimistic. By Matthew McDaniel.

Given the current global economy and it’s effects on the credit market, a lot of timeshare industry professionals went to this year’s annual American Resort Development Association (ARDA) meeting expecting it to be much like attending a funeral: Reminiscing among old friends while mourning loss. But
while the overall conference atmosphere was more downbeat than in past years, surprisingly, there actually was a sense of optimism among many at the ARDA 2009 Convention & Exposition, held March 29 through April 2 at the Orlando World Center Marriott in Florida.

Almost 3,000 timeshare professionals attended the conference, and the 164 exhibitors included 36 companies that were new this year. But, overall, there were fewer attendees and exhibitors, making the usually always-bustling exhibition hall at times seem like a slow weeknight at a weekend hot spot, and the general sessions just didn’t feel as full as in past years.

As would be expected, most of the people who were there came concerned about the economy and the credit crisis. ARDA organizers were well aware of this fact, and hosted as the featured keynote speaker Dr. Jeffrey Rosensweig, a global economics forecaster and expert on global investing and business strategy from Emory University. Other plenary sessions, such as the opening and an industry think tank, gravitated toward analyzing and charting success in midst of financial upheaval.

While Rosensweig, ARDA leaders and other public faces worked hard to keep things uptempo – sort of a pragmatic, cautious optimism – some attendees casually (and let us hope, euphemistically) spoke in almost apocalyptic terms. So, Perspective Magazine spent some time in the sessions and halls, getting a feel for the mood and asking a few attendees to share their impressions of the convention.

“I was hoping, and not necessarily anticipating, that I wouldn’t hear an awful lot of doom and gloom as I’ve heard at some other conferences within the last six months or the last year,” said Tom Goetschius of Orlando-based Fractional Ownership Consultants, noting that he wasn’t disappointed. “As an industry, we’re pretty upbeat. There’s no doubt we’re facing some challenges, but we’ve consummate professionals who are dedicated to promoting the industry and despite everything that’s happening, we remain pretty optimistic. The people who are here are very, very serious about our industry – and will be survivors.”

Goetschius’s views were echoed by others, including Málaga, Spain-based industry veteran Robin Mills, who said the meeting was “a lot better than what I expected.” Mills noted that “the general impression is that
things are starting to bottom out. People seem a lot more positive, people have gone back to basics. Credit crisis or not, we’ve overcomplicated everything and it’s actually a chance to sit back and have a look at what
we’ve done over the last couple of years.”

Geoff Ballotti, RCI Group’s president and CEO, drew a similar conclusion on how the business is reacting. “Probably for me, this being my second ARDA, the most noticeable difference to last year’s is less focus on new construction, and more focus on becoming more efficient in terms of sales and marketing, more efficient in costs, and trying to maintain or improve your profitability – which ultimately is a great thing,” Ballotti said. “Everyone here is going to come out of this in one way, shape or form, a lot stronger than
they were before this credit crisis.”

Many attendees focused on the business rebounding. “While the consumer piece of the equation is clearly softer than it has been, people are still buying timeshare,” said Craig M. Nash, chairman, president, and CEO of Interval Leisure Group, the parent company of Interval International. “And, developers are still selling and could be selling more but for the necessary pullback to conserve cash due to the lack of receivables financing.”

“Once again, the timeshare industry is The Little Engine that could and continues to outperform other sectors in hospitality and real estate,” said Howard Nusbaum, touting the “76 million baby boomers who are eager, for the price of a modest automobile, to own a vacation for life.” As president and CEO of ARDA, Nusbaum pretty much has to be optimistic – but he is not without a solid rationale, and he proceeded to cite the timeshare mantra: “We have very small market penetration, which means a huge marketplace for us,” he explained. “We’re active marketers, we don’t wait for the phone to ring, so when the phone quits ringing, it’s really irrelevant.  We go out, entice people through offerings and then put them through a sales process
that compels them for better vacationing … and that would continue.” He also noted the industry’s resilience in the midst of other downturns. “Any business that has to access the capital markets is in trouble right now
because you can’t use consumer debt to leverage cash flow. As soon as that loosens up we will go back to being robust.”

Not everyone predicted a smooth turnaround and rosy future, however.

“I’ve been in the business about 35 years and [these are] the toughest events I’ve ever faced in my own business,” said Edwin H.McMullen, Sr., senior partner at E.H. McMullen & Associates. “Everyone here is really unsettled as to where we’re going and how we’re going to finance this business going forward. So there’s a
lot of hesitancy in everybody’s comments; we’re not as all-powered and positive as we always have been.”
But today’s problems are just the start, according to McMullen. “There’s a lot more trouble to come, I’m afraid. Our current political environment is somewhat anti-development, and anti-travel, and anti-incentive travel and that type of thing, which kills our industry from a hotel point of view, which also is where we get most of our prospects,” he says. “So if you kill a destination, you basically kill our way to meet people in an economical way to sell them. We haven’t seen the end of it, unfortunately.”

Perhaps we will be able to weather the storm, though. “Although the industry has been hit hard by the current credit crisis, the fundamentals remain sound, especially in fulfilling the need for better vacationing at a great value,” said ARDA leader Nusbaum in a statement released after the conference concluded. “Our industry was developed during the recession of the 1970s, and the entrepreneurial nature and creative spirit of our members will continue to meet the needs of a new generation of Americans eager to answer
their wanderlust with vacation ownership.”

One final note: It may be worth noting that the 2009 ARDA conference marked the beginning of Jim Lewis’s two-year tenure as chairman of the organization. Lewis, who is president of Disney Vacation Club, is a certified public accountant with an MBA in business. Maybe a hardcore numbers guy as chairman of ARDA is just what timesharing needs right now.

If We Weren’t Dealing with Economic and Credit Problems, What Would Be the Hot Topic?
“International growth would be a topic if economic issues weren’t the focus. Business growth and acquiring properties in new vacation destinations.” Craig M. Nash, chairman, president, and CEO of Interval Leisure Group, the parent company of Interval International

“There would be more talk about new construction and new development, which there is not. There probably
been more discussion about timeshare developers that are actually out building new product.” Geoff Ballotti, RCI Group’s president and CEO

“The changing product, the technology side is growing rapidly. We’ve been able to say we would do certain things for the customer for years, but [now we’re] actually getting it done.” Edwin H. McMullen, Sr., senior partner at E.H. McMullen & Associates

“Probably it would be what it has been in previous years, with everybody talking how successful they are in their individual projects.” Tom Goetschius of Orlando-based Fractional Ownership Consultants

“For me, it’s an international perspective, it’s the new European Directive.” Málaga, Spain-based
industry veteran Robin Mills

Central Florida-based Matt McDaniel has been reporting on tourism, travel and timesharing industries since 1997, and has attended many industry conferences and events oover the years.

South Africa – Alive With Possibilities

Group RCI (Africa) reports on the market in one of the world’s most spectacular holiday destinations and looks at the potential for the shared-vacation ownership industry.

South Africa is the economic powerhouse of Africa. It leads the continent in industrial output. The country has abundant natural resources, well-developed financial, legal, communications, energy and transport
sectors, a stock exchange ranked among the top 20 in the world, and a modern infrastructure supporting efficient distribution of goods throughout the southern African region.

The country’s financial systems are sophisticated and robust with a banking system ranking among the top 10 globally.

Not only is South Africa itself an important emerging economy, it is also the gateway to other African markets. The country plays a significant role in supplying energy, relief aid, transport, communications and investment on the continent. Its well-developed road and rail links provide the platform and infrastructure
for ground transportation deep into Africa.

Economic strength
South Africa’s economy has been growing since September 1999 – the longest period of economic expansion in the country’s recorded history. During this upswing (working on data for the period up to the fourth quarter of 2007), the country’s annual economic growth rate has averaged more than 4%. In the decade prior to 1994, economic growth averaged less than 1% a year.

Since the advent of democracy in the country in 1994, bold macro-economic reforms have boosted competitiveness, grown the economy, created jobs and opened South Africa up to world markets.
Ease of travel South Africa has a modern and well developed transport infrastructure. The country’s roads are world-class, its air and rail networks are the largest on the continent, and the country’s ports provide a natural stopover for shipping to and from Europe, the Americas, Asia, Australasia and both coasts
of Africa.

The transport sector has been highlighted by the government as a key contributor to South Africa’s competitiveness in global markets and is increasingly viewed as a crucial engine for economic growth and social development.

World Cup boost
The South African Government plans to spend R9-billion on improving and extending the transport infrastructure in nine host cities to deal with the massive influx of visitors expected when it hosts the 2010 FIFA World Cup from 11 June to 11 July of that year. Before then it plays host to The FIFA Confederations Cup from 14 to 28 June this year.

The true legacy of the 2010 FIFA World Cup, according to President Kgalema Motlanthe, “will be in our ability to showcase South African and African hospitality and humanity – to change once and for all perceptions of our country and our continent among the peoples of the world”.

These events will introduce a new, more open, South Africa to the world stage which can only be a positive for the tourism industry. Preparations for these events include major upgrades to the country’s airports and
improvements to the general transport system, including a taxi recapitalisation programme, the consolidation of passenger rail services and the transformation of the bus industry. Plans are in hand for a
rapid rail city train serving the Gauteng province, where there is also a project to upgrade and extend all the national roads and highways.

The Gautrain, an 80 kilometre rapid rail network, will connect Johannesburg, Pretoria and OR Tambo International Airport, easing congestion on the Johannesburg-Pretoria highway and offering visitors and tourists a safe and viable alternative to road travel. Gautrain’s 24 train sets of four rail cars each (96 rails cars in total) will travel at 160km/ hour, 18 hours a day, together making around 135 000 passenger trips a day. Secondary transport to and from stations and nearby destinations will be provided by luxury buses.
There will be 10 stations, three of which will be underground. The first phase – the section between the airport, Sandton and Midrand – is expected to be complete in time for the 2010 World Cup, and the second phase by 2011.

Tourism in South Africa
South Africa’s scenic beauty, magnificent outdoors, sunny climate, cultural diversity and reputation for delivering value for money have made it one of the world’s fastest growing leisure – and business – travel destinations. The country is highly diverse in terms of its climate, culture, tourist activities and infrastructure, catering for every tourism niche, from business, eco- and cultural tourism through to adventure, sport and paleo-tourism.

International travel to South Africa has surged since the end of apartheid. In 1994, the year of South Africa’s first democratic elections, only 3.9 million foreign visitors arrived in the country. By 2004, international arrivals had more than doubled to 6.7 million, reaching a total of 9 million visitors by 2007 which represented an increase of 8.3% over 2006 as the country broke its annual tourist arrivals record for the third year running.

Tourism is also one of the fastest growing sectors of South Africa’s economy, its contribution to the country’s gross domestic product (GDP) increasing from 4.6% back in 1993 to 8.3% in 2006. Directly and indirectly, tourism constitutes approximately 7% of employment in South Africa and has been earmarked by the government as one of the country’s growth sectors.

This makes the outlook for the industry extremely positive, particularly with the exposure the country will receive in the lead-up to the world’s biggest sporting event, the FIFA World Cup, taking place in
South Africa in 2010 – together with the accompanying upgrades to the transport and accommodation infrastructures.

SA resorts among world’s best
Cape Town was voted the top city in Africa and the Middle East, and the eighth best city in the world in the 2006 Condé Nast Traveler Readers’ Choice survey, while two lodges in South Africa’s Singita Private
Game Reserve were together rated the second best resort in the world. According to the readers of the highly
regarded US travel magazine, South Africa also has seven of the top 15 hotels in Africa, nine of the top 25 resorts in Africa and the Middle East, as well as four properties in the world’s 100 ‘best of the best’ list.

The 19th annual Condé Nast Readers’ Choice Awards, published in the November issue of the magazine, are based on the travel experiences of the 21,000 readers who voted in the 2006 survey.

Four Cape Town hotels were ranked among the top 15 in Africa in the survey, with the Cape Grace being rated the second best hotel on the continent – after the Four Seasons Cairo at Nile Plaza – and the 32nd best hotel in the world. The Cape Grace was also put at 49th spot on the 100 ‘best of the best’ list.

SA resorts topping Condé Nast survey
South African resorts placed in ‘top 25 resorts in Africa and the Middle East’ category of the 2006 Condé Nast Traveler survey were:
• Singita: Ebony & Boulders Lodges (1st)
• MalaMala Game Reserve (7th)
• Singita: Lebombo and Sweni Lodges (8th)
• Sabi Sabi Private Game Lodge (10th)
• Londolozi Private Game Reserve (11th)
• Phinda Forest Lodge (12th)
• Sun City Hotel (15th) – A Group RCI affiliated resort
• Palace of the Lost City (18th)
• Ngala Private Game Reserve (21st)

RCI members’ hotspots in South Africa
Wayne Grews managing director, Group RCI (Africa), highlights some of the destinations in South Africa that have proven popular with RCI members and looks at what they have to offer.

KwaZulu Natal North Coast
KwaZulu Natal North Coast is the South African destination RCI members most like to visit, according to Grews. Along KwaZulu Natal’s North Coast are magnificent stretches of endless beaches and rolling fields of sugar cane. The coastline is relatively clear and the shallow waters attract dolphins which swim close to shore in order to feed, which is why the North Coast is also known as the Dolphin Coast, as surveys suggest that at least 200 dolphins, in small groups, frequent these waters.

The towns along the North Coast are popular for holidaymakers who are attracted to the friendly villages, beautiful beaches, rocky coves and shallow paddling pools.

Cape Town
The second most popular area in South Africa that RCI members travel to is Cape Town. Situated on the south western tip of Africa, Cape Town and the Western Cape are recognised as the most beautiful places
on earth. Offering a range of attractions, breathtaking sights and endless activities, it is a year-round holiday destination with friendly people, a mild climate and a rich cultural heritage.

• Credit: All economic data and statistics courtesy of www.southafrica.info web site. For more information on the shared vacation industry in South Africa, please contact: Tel: +27 11 258 1000 E-mail: clientrelations@rci.com

Group RCI in South Africa
According to Wayne Grews, Managing Director Group RCI (Africa), the significant contribution to infrastructure development, particularly in transport networks, that the football tournaments will provide will result in a timely economic boost.

Everyone in the South African tourism industry will be casting a strategic eye upon the impact the 2010 Word Cup event will have on the vacation industry – and the shared-vacation industry in South Africa – well after 2010.

Grews highlights some key industry achievements in 2008 – one of the toughest trading years in a long time – as being:
• 200 Group RCI-affiliated resorts within South Africa
• Over 20,000 new timeshare member enrolments for Group RCI in 2008
• More than R800 million in vacation ownership industry sales

Grews said: “Celebrating our 35 year anniversary this year, 2009 marks a new dawn for Group RCI in South Africa. Where is Group RCI going? We are taking a long hard look at our operations within Group RCI and
will be striving to become more passionate and more innovative.

“We believe the tourism industry in South Africa is going to expand after 2010 because millions of people will be exposed to the beauty of the country who would probably never have visited it if not for the football
events. They in turn will go back and spread the word to their friends and families.

“How do we look forward today? Group RCI looks forward with optimism – there are positive steps to be taken in these exciting times that we find ourselves in.

“We have already been making some significant changes, some more visible than others, but all designed to add value to our customers, both our members and developers.

“RCI is now placed to make a bigger difference to your business success than ever. Our senior leadership team in South Africa has a total commitment and total dedication to making this happen.”

First Resorts – Superior In Everything We Do

First Resorts is South Africa’s largest and leading resort Management Company, with a portfolio of close on 50 body corporates, share block companies and hybrid timeshare/residential complexes spread throughout the country as well as in Namibia and the United Kingdom.

Originating from the amalgamation of five top resort management companies, with a total of almost 60
years’ experience, First Resorts takes advantage of the individual talents as well as the combined experience
of all these entities to maintain a management package that provides all the necessary services and expertise, and sets First Resorts apart in an extremely competitive industry.

The highest levels of service are required from every link in the First Resorts chain, from property  development to club, resort or hotel management, sales, marketing and reservation services. Accordingly, the services we offer are becoming increasingly refined and sophisticated to match the pace of the fast-growing leisure industry and to maintain the loyalty of the discerning and demanding consumer year after year.

First Resorts specializes in holiday resort management, including Body Corporates, TMA’s (Timeshare Management Associations), HOA’s (Home Owners’ Associations), and Share Block companies. In a position to accommodate properties of all sizes, First Resorts currently provides a management service to complexes ranging from a 9-unit Body Corporate on the KwaZulu-Natal South Coast to a beachfront resort with over 150 apartments (and incorporating several restaurants and entertainment venues), from mountain to sea, hotel to lodge and luxury to economy.

First Resorts is the only resort management company that has developed a sophisticated, customized
resort grading system which provides a distinctive, unique and comprehensive rating scheme, specifically
designed for the timeshare industry, measuring every aspect of the service chain throughout the guest’s stay
at the complex, as well as that of owners, directors, trustees and shareholders. This is effected by means
of stringent and independent key performance indicators, all focused on maintaining supreme service
levels whilst concentrating on customer ratings.

The company’s Head Office is situated in KwaZulu- Natal, with satellite offices around the country. First
Resorts directly and indirectly supervises some 1 400 staff members at its administrative centres and within
the resorts it manages.

An annual turnover in excess of R120 million is administered, purchases of some R80 million per annum effected and the property of almost 42 000 owners managed. First Resorts currently manages 47 timeshare resorts out of a total of 55 entities, encompassing 1 292 rooms, which translates into 471 580 room nights, and a levy income in excess of R95 million per annum.

First Resorts performs the following world-class services:
A comprehensive accounting service, including the preparation of periodic financial statements, annual
budgets and annual financial statements. The financial statements reflect comparisons of expenditure against the budget set in conjunction with the entity’s board. Full management reports including financial statements for the period under review are tabled at regular board meetings, and, if required, members of these boards can request financial statements at shorter intervals.

First Resorts will deal with all necessary returns required by SARS, including VAT, PAYE, etc., and payments to creditors are made electronically, which reduces the risk of fraud inherent in cheque-based transactions.

First Resorts also deal fully with resorts’ auditors, and are qualified to draft annual financial statements in a
statutory format. Each financial controller is responsible for a portfolio of resorts, working to strict deadlines, and monthly detailed financial statements are prepared in respect of each of the resorts we manage.

Collection of levies including legal action, if necessary. This includes the administration of banking, preparation and despatch of levy statements, and a follow-up programme – both by post and telephone – developed by First Resorts over many years. A team of qualified and fully-trained staff collects levies in respect of some 67 000 timeshare weeks, geographically scattered all over South Africa. All the staff are bilingual, and take part in an ongoing Service Excellence programme to ensure that excellent relationships are maintained with our clients. An internally created computer system, written specifically for the Group, covers all aspects of resort levy collection, with a wide range of reports that can be customised to user requirements.

In the case of share block companies, the aim is to ensure that the levy debtors book is clear by the conclusion of a particular year, and if necessary, utilising the ‘parati’ method to collect arrears.

In respect of resorts operated under Sectional Title, First Resorts will hand arrear accounts over for collection by a firm of attorneys, and regular follow-ups are carried out to ensure that such matters are concluded as speedily as possible.

First Resorts has all the necessary experience required to calculate, raise and collect a special levy, should this be necessary, implementing the payment criteria specified by the Board members of the resort.

Small wonder then, that First Resorts has an excellent collections rate, well over 98% on average, before the
‘parati’ or legal route needs to be followed.

Annual compilation of timeshare calendars for each resort, from the simplest fixed-week calendar to the most complicated modular type.

Negotiation with insurance brokers to ensure that the best cover is obtained at the most competitive
rates, carefully tailored to the requirements of each individual complex.

Management of full payroll service for all resort staff. First Resorts employs directly or indirectly 1 400 staff members with a total payroll cost of R24 million. Payrolls for all resorts managed by First Resorts are centralised and processed using an acknowledged superior-standard software package.

All payroll submission data is independently verified by the responsible operations manager and payment is
made to each employee by way of direct transfer into the employee’s bank account. All the required electronic submissions to SARS are processed by the payroll department and all necessary taxation, etc. is paid to SARS timeously.

Management of on-site operations, including front office administration.  First Resorts manages the overall hospitality and management aspects of close on 50 timeshare resorts. Without doubt, their success to date can in the main be attributed to their relentless focus on “owning” the guest experience from arrival to departure, whilst not neglecting the specific requirements of shareholders and owners. This aspect of our service is overseen by the Operations Director, Johann Jordaan, assisted by three Regional Operations Managers.

Regular and intense training in labour relations and the up-to-date study of world-class entertainment
programmes for all of our management staff is ongoing. Naturally, specialist consultants are contracted to assist wherever necessary.

First Resorts embraces the philosophy of surpassing expectations at every opportunity, without exception, from the first warm friendly greeting to the delicate placement of the chocolate on the pillow. A considerable proportion of management and training investment is made in instilling this passion for superior service into every single member of staff.

A tailor-made Central Purchasing company selects suppliers and supplies all the resorts goods including furnishings linen, towels, soft furnishings, crockery etc.

Management of on-site staff including recruitment, training and human resources functions. Staff members are constantly monitored and trained to a degree where they are able to deliver exemplary and exceptional service on all levels.

First Resorts are in the process of becoming THETAaccredited (Tourism, Hospitality, Sport Education and
Training Authority), which has qualified us to carry out Adult Based Education and Training (ABET). The ABET
programme is multimedia-based and teaches illiterate persons to communicate in English, as well as, if
necessary, in Zulu. It also includes a module that covers basic life skills, encouraging and teaching individuals to deal with everyday situations at work and in the business world.

As part of our staff development and upliftment initiative, the ABET programme was rolled out recently at four of the Central Durban resorts under First Resorts management, and has proved extremely successful.

Resort managers also undergo regular training and motivational conferencing to ensure that they remain
at the top of their game and, in turn, are able to motivate and support their staff in their everyday tasks.
Shareholders and directors are provided with regular educational material, so that they, too, remain informed
and up to date.

First Resorts are committed to delivering the complete holiday experience to guests, regardless of age, race or creed and go to extraordinary lengths to enhance every facet of every day spent at the resorts they manage by introducing novel and exciting activities and excursions. This intense commitment to remaining abreast of guests’ ever-changing expectations of the holiday experience is fostered in every staff member at every resort.

Operation of on-site food and beverage operations and conferencing. These functions are undertaken with an intense focus on exceeding the client’s expectations at every turn, whilst maintaining acceptable levels of costing versus expenditure.

Regular inspections for quality control, maintenance of service standards and condition of physical buildings as well as Special Projects Management such as refurbishment programmes. This facet of checking, control and maintenance forms an integral part of our distinctive and unique grading system, which has been specifically designed for the timeshare industry and measures every aspect of service delivery to every individual who spends even one night in a resort managed by First Resorts.

Monitoring of expenditure against budget and management of funds and services. First Resorts focuses on accounting and budgeting excellence, ensuring that provision is made not only for day-to-day running expenses, but that adequate reserves are budgeted for and built up for – in particular – large-scale future maintenance and refurbishment programmes.

Preparation of monthly management accounts and regular reporting to board members. Regular Resort
Director/Trustee meetings as well as annual general meetings are convened and held to ensure that all relevant parties remain informed and up to date. Discussion with and feedback with board members is essential to ensure that anything that requires attention or decision is dealt with as and when it arises.

The provision of statutory secretarial services, which includes the submission of all documents as
required by CIPRO, including Annual Returns. This function is performed using sophisticated,  custom-designed software.

Minutes are taken at every board and general meeting, and minute books updated and held in safekeeping.

Transfer of ownership within resorts. First Resorts will liaise with conveyancers and provide the required clearance certificates to facilitate the transfer of ownership of sectional title timeshare modules, and effect share block transfers in its capacity as transfer secretary to the share block companies under its management. First Resorts performs every service related to the transfer of ownership, from updating the computerised share register to safekeeping of original share certificates.

Advisory services. First Resorts provides resort board members with an advisory service in respect of the Sectional Titles Act, Shareblocks Control Act, and Timeshare Control Act.

First Resorts also provides an advisory service for new timeshare developments, and project development for
body corporates and share block companies.

Brand personality
First Resorts proudly projects an image of efficiency, confidence, professionalism, reliability, warmth
and approachability. We believe in Service Excellence, and our motto is “Superior in everything we do”.

Perspective Magazine – May 2009

EDITION HIGHLIGHTS Front Cover Sponsorship: First Resorts Convention Review: Ragatz Fractional Interest Conference, San Francisco, USA Convention Review: TATOC Convention, Warrington, England Developer Review: Taylor Woodrow Feature: Orange Lake Growing Steadily Despite Economy Feature: Vacation Ownership Association of Southern Africa Conference Schedule Feature: South Africa – Alive With Possibilities Convention Review: ARDA 2009: Things Aren’t So Bad After All Feature: Global Quarters: A Tour Of San Francisco’s Fractional Offerings Feature: A New School For Christel House View Digital Page-Turn Edition Online Download PDF Version To Hard Drive

Well, it has been a rollercoaster ride this last couple of months with us attending more conventions and events than ever before. In the past 8 weeks alone we have travelled to the USA twice, attended 3 events in England and fitted in a week in Spain and a few days in Provence, France; and so with just one more trip to South Africa in less than two weeks time we are looking forward to a little downtime.

But for you, all this travelling brings you another great edition! This month we bring you three convention reviews – Ragatz Fractional Interest Conference San Francisco, ARDA Convention Orlando and the TATOC Convention in the United Kingdom. Then following on from the Ragatz review there’s a look at the Fractional Property offerings in and around San Francisco courtesy of Global Quarters who arranged a fantastic tour of these properties; 3 during the day before the conference around the Napa Valley area and 3 more city based properties on one of the evenings during the event.

Our Front Cover Sponsors this month are First Resorts, a world class management company based in South Africa who you can read about on page 12. Continuing the theme you can see the schedule for the Vacation Ownership Association of Southern Africa conference we’re attending this month on page 26 and following that RCI reports on the potential for the shared ownership in South Africa.

We have an exclusive feature looking at Orange Lake and their alliance with IHG to create Holiday Inn Club Vacations and the acquisition of new resorts expanding their offerings across U.S. and beyond, and another feature looking at the entry of developer Taylor Woodrow into the fractional ownership arena in Spain.

Many of you will also remember the story about our visit to Christel House South Africa last year. Unfortunately and with great regret, we were unable to attend personally this year to see the official opening of the new school which broke ground during our first visit, but we are very grateful to Robin Mills, who has written his account of events at this year’s gathering in Cape Town especially for Perspective Magazine.

Spotlight On The TATOC Conference

Since taking over the consumer HelpLine in January 2008, TATOC has helped scores of timeshare owners save or recoup thousands of pounds. The success of the service was a highlight of the annual conference, staged by the Timeshare Association in Warrington, Cheshire. A report by BRIAN FOLLEY.

A new HelpLine for timeshare owners… a Resort Accreditation process… a Certification programme for sales
executives… creation of an individual membership platform… the recruitment of strategic sponsors… a revamped web site… the launch of a new member magazine, SHARETIME…

These were among the achievements of 2008 in a wide-ranging review delivered by Harry Taylor, chief executive of the Timeshare Association, TATOC, at its annual conference and A.G.M.

A fully independent consumer body, TATOC – the Timeshare Association (Timeshare Owners and Committees) – is run by timeshare owners for timeshare owners.

In its first 15 months of operation the HelpLine has assisted scores of timeshare owners, conservatively saving them at least £1.5million. In that same period TATOC handled more than 8,000 calls.

Last year some 60 per cent were general enquiries, the remainder complaints. The majority of complaints related to dubious re-sale services or scams based on non-timeshare holiday clubs. Substantial postal and email communications were also addressed along with the growing phone volumes. The HelpLine is free of charge to member and non-member resorts and individuals. It has also been enhanced with the move to new offices in central Manchester and the recruitment of additional staff.

According to TATOC director Geoff Chapman, the HelpLine continues to have a crucial role to play. “Many problems are still out there and the demand for our services is growing,” he said.

While the majority of contacts with the HelpLine are from UK residents, others are from further afield – the United States, the Dominican Republic and India to name a few. TATOC took over the HelpLine following a
decision by TATOC and OTE (the Organisation for Timeshare in Europe) to close down VOICE – the Vacation Owners’ Independent Coalition in Europe — that had previously been responsible for it.

Last year the service was manned by TATOC director Jan Tilley and Mr Chapman. In January this year Mark Caldicott, who previously worked with Diamond Resorts International, was recruited to join the team in
Manchester. The telephone number for the HelpLine is 0845 230 2430. In his conference report, Mr Taylor
acknowledged that some projects were “work in progress”. In 2008 TATOC was successful in boosting its membership by 20 per cent – some 84 resorts now represent more than 300,000 owner-families.

It also recruited major strategic sponsors and bolstered its press and public relations programme. The Association’s relationship with the timeshare industry was excellent. It would continue to forge professional ties with reputable companies. “We will do this in part through the Resort Accreditation and Affiliation programmes,” said Mr Taylor. “We are keen to work with companies that share the TATOC vision of enhancing the holiday experience for existing and prospective timeshare owners. We also aim to be the voice of timeshare owners.”

Chairman David Eastburn introduced a video message from MEP Arlene McCarthy who publicly thanked TATOC for its assistance in drafting the new Timeshare Directive. She chairs the Internal Market & Consumer Protection Committee at the European Parliament where she represents the North West Region of England.

In an upbeat address, Mr Eastburn told delegates: “Only by pooling our resources and working together can we as consumers ultimately achieve our goals. With the enthusiastic support of our membership we can and will achieve them.”

With a new membership drive underway later this year, he said: “I am confident that by March 2010, membership of TATOC will be a compelling need for any self-respecting resort. Members will benefit from all the services we offer, confident in the knowledge that their resort either has, or is moving towards, the standards that we, as consumers, are demanding.”

TATOC publicly thanked its major sponsors for their support: Dial an Exchange, Diamond Resorts International, Group RCI, Interval International, Macdonald Hotels & Resorts, Needham & James (Solicitors), Perspective International, Thomas Westcott (Chartered Accountants) and Worldwide Timeshare Hypermarket.
In a frank assessment of timeshare in Europe, a senior industry executive outlined a ninepoint plan for rejuvenating the business.

David Lilley, managing director of Dial an Exchange, said the TATOC conference was an ideal forum for an honest appraisal of the industry.

While timeshare had many happy owners, it also had an aging owner base. On the supply side most major players had failed to attract new owners from the under-40 age group. Many marketing practices were old fashioned and data protection laws were broken regularly. Repossessions represented a major challenge for owner-run resorts as did careless rental programmes that caused owners to question the value of their timeshares.

So what needs to be done? The key elements of his rejuvenation strategy are to:
• Adopt an honest rationalisation of what is good and what has gone wrong
• Develop the sales certification platform
• Advance the independent Resort Accreditation process
• Undertake fundamental product re-invention, ensuring it is customer friendly
• Effect resort management solutions
• Devise re-sale solutions
• Introduce new marketing practices
• Launch new sales methods, and
• Undertake an effective public relations programme.

Owners were “the most important element in the timeshare industry”. Mr Lilley told delegates: “Without owners, the industry would not exist. The way you are treated is fundamental to the success of the business.”

In conclusion he stressed that customers wanted to fully understand what they owned and how it worked – particularly products such as points. They wanted to feel the value received from their apartment was worth the recurring financial commitment.

In a motivational address, Patrick Duffy, chief experience officer at Diamond Resorts International, also underlined the importance of the resort guest. In the UK, most workers have four weeks holiday a year, in the United States just two weeks.

“Think how important we are in that context…in their holiday experience,” he said. “As hospitality-driven professionals, we can bring reliability and dependability together. It’s what our owners have come to expect when they arrive at our resorts.”

A panel, chaired by TATOC director Jennie Thompson, addressed the often-contentious issue of re-sales. According to Jason Tremblay, Sell-my-timeshare-NOW, over the years re-sales had been suppressed by
resort developers who feared they would “cannibalise” retail sales. This “ill-conceived” notion was based on
the belief that owners would never need to sell their timeshare in future when in fact their personal circumstances often changed because of poor health, bereavement, divorce or financial difficulties.

Another major problem confronting the industry was not solely fraudsters but “the lack of liquidity in the secondary (re-sale) market,” he said.

The current change in attitude by resort developers to legitimate re-sale companies was a sign of the times. His company web site logs some 90,000 ‘hits’ a day. Sell-mytimeshare-NOW acts as the authorised re-sale
agent for Hilton Grand Vacations Company in North America.

Phil Watson heads Worldwide Timeshare Hypermarket, another company to benefit from changing attitudes. “For a long time developers would not speak to re-sale companies,” he said. “That has changed. My company now has a portfolio of resorts that are working with us.”

According to Sarah Hulme, Diamond Resorts International, her company provides owners wishing to sell their timeshare with a list of reputable re-sale outlets.

She told delegates: “We have to bring respect back to the industry. We have got to stop consumers being victims of scams that are out there now. Legislation has to work for us as a business.”

New European and national regulations have done much to boost consumer protection for timeshare owners and prospective buyers. Philip Broomhead, a member of the Legislative Council of the Organisation for Timeshare in Europe, said it was gratifying that the authorities were clamping down on fraudsters who operated dubious re-sale schemes and non-timeshare holiday clubs. He acknowledged that the EU Directive was a good one. However, he told delegates that the new legislative environment for timeshare would “increase costs”. Implementation into national law by all 27 Member States of the EU Directive would be complicated. The deadline for it to be in place was 23rd February 2011.

Consumers and the supply side of timeshare also recognised that 2009 would be a difficult year. Consumer spending would be down while other factors, such as inflation, cost increases, exchange rate fluctuations
and limited available financing, were all major concerns.

OTE, now re-launched as the Resort Development Organisation (RDO), would offer TATOC a full insight into the guidance it was preparing “so that clubs and committees will see how the Directive will impact their
organisations, responsibilities and liabilities,” said Mr Broomhead.  Regulation and other legal issues were
addressed by John Hughes, a senior partner with Needham & James (Solicitors) and barrister Sandra Wrightson, a partner with DeCotta McKenna & Santafé.

Considerable consumer protection legislation had been introduced over the past two decades. The latest regulations gave added protection to the public against “aggressive commercial practices,” defined as unfair if they breached professional diligence and materially distorted the economic behaviour of the average consumer.

They also outlawed high-pressure sales tactics that would lead consumers to enter into transactions as a result of “harassment, coercion or undue influence,” said Mr Hughes. In a separate conference address, the merits of arbitration and mediation were outlined by Ms Wrightson. Litigation was not always the most cost-effective way of resolving a dispute, she said.

Arbitration is a formal procedure where a judge gives a written opinion. The decision is binding in law although it can be appealed. Mediation is a more informal process where both parties work to reach a solution. “It is particularly suitable when two parties are not too far apart in their dispute,” said Ms Wrightson.

The main conference programme was augmented by break-out sessions held by Dial an Exchange, Diamond Resorts International, Group RCI, Merlin (it specialises in software products and services for the industry) and Resort Solutions. Special presentations were made to the first two companies to meet the criteria
of the TATOC Resort Accreditation programme – Club Las Calas in Lanzarote and Macdonald Villacana Resort on the Costa del Sol.

Fractional Properties Spotlight: Taylor Woodrow de España

The Taylor Woodrow story started in 1921 when a young Frank Taylor, just sweet sixteen at the time, wanted to build two average family houses in Blackpool. He had to borrow £100 from his uncle Jack Woodrow but it turned out to be a wise move for both borrower and lender: their first property venture made a 100%
profit. Nevertheless, the budding property entrepreneur was too young to form his own company, so he teamed up with his uncle Jack and founded “Taylor & Woodrow” as it was called at the time.

Their company’s housebuilding division, Taylor Woodrow Homes, soon became a household name. Behind the distinctive “four strong men pulling a rope” logo that represented teamwork (replaced by a new logo in 2001) is a brand that symbolises quality and security in the consumer’s mind, a powerful combination in
the building industry, especially when combined with a focus on customer service and steady, strategic expansion. (And there’s a story behind the world famous logo: Frank Taylor asked his employees to come up with a logo and it was a foreman, who designed the original four man version, who won.)

From strength to strength
In 2001, Taylor Woodrow acquired Bryant Group, a long-standing UK home developer, and renamed its house building division Bryant Homes. One of the company’s biggest milestones is its merger in March 2007 with another British building giant, George Wimpey, to become Taylor Wimpey plc, a leader at the forefront of the UK’s construction industry. Taylor Woodrow’s evolution is marked by numerous other milestones, some of which, arguably, changed the face of Britain. St. Katherine’s Dock, developed in the ‘70s, was an extremely ambitious private urban construction project and Taylor Woodrow was a founder member of the Channel Tunnel consortium at a time when “The Chunnel” was a groundbreaking project that only the most visionary
undersea engineer could dream of. From pragmatic to artistic, Taylor Woodrow’s projects have included Main Street in Disneyland in Paris, John Wayne Airport in Orange County, California, and the spectacular new Frank Gehry Serpentine Gallery Pavilion in London which opened last summer. The strikingly beautiful
pavilion, of large, “floating” glass panels and timbers hosts a series of talks and live events during the summer months.

Frank Taylor’s empire quickly diversified into hospitals, industrial and commercial buildings in various sectors, yet to the man in the street the Taylor Woodrow brand stands for quality family homes,
whether that’s an affordable house in Manchester or a luxury villa in Mallorca. Staying true to its philosophy of quality builds in sought-after locations with a focus on customer service, the company’s recently made a significant foray into fractional properties, mainly in Spain and the golf market. Despite a rich choice of holiday home locations available to them in the Mediterranean, British buyers have been more reticent in
adopting the fractional model compared to their American counterparts who were early adopters and quickly recognised that fractional ownership wasn’t just a smart idea – it works. Across the pond, fractionals in the States have been tried and tested. They’re mainstream. While in Europe, for consumers who might
be thinking of dipping their toes into fractional ownership, but are still warming up to the reality of investing in the concept, the new fractional properties by Taylor Woodrow in Spain make the water
a lot more inviting.

Whole in one – fractional properties by Taylor Woodrow de España
Who’d have guessed that the fractional lifestyle would appeal equally to millionaires and those of us on a more restricted budget? While CEOs share yachts and jets, the rest of us can still soak up plenty of Spanish sunshine on the private terrace of a two-bedroom holiday apartment at Los Arqueros. Just down the road from La Zagaleta (the world-famous gated private golf and equestrian resort, an almost impenetrable millionaire’s hideaway, complete with helicopter landing pad) Los Arqueros is one of the coast’s most
sought-after golf locations, close to Marbella yet far enough away to enjoy total peace and privacy and nestling against a beautiful mountain backdrop and plenty of greenery are Taylor Woodrow de España’s latest luxury fractional homes.

Frank Taylor founded Taylow Woodrow de España after he and his wife Christine fell in love with the island of Mallorca during his honeymoon. Their first residential development was on the east coast of Mallorca, in Canyamel, before they expanded throughout the “Costas” – Azahar, de la Luz, Dorada, Sol and Blanca on the mainland, and the Balearic islands of Ibiza, Menorca and Mallorca. By giving home buyers a piece
of paradise as well as priceless peaceof mind, Taylor Woodrow de España is, even now, the only major UK home builder in Spain, with fifty-one years experience in the region.

Taylor Woodrow’s entry into the fractional market is relatively recent, but it seems the timing is right – could this be the year the fractional model comes of age? Victor Sague, Director of Taylor Woodrow de España, says he has observed a rise in the number of buyers wanting to get their foot on the ladder in Spain:
“Interest in purchasing Spanish properties remains strong. However, over the past year we have had an increasing number of enquiries from people who are house hunting at the lower end of the budget.”

Sague goes on to say that by opting to purchase a home using Fractional Ownership, buyers are able to own a share in a home they may not otherwise be able to afford. And in today’s market, most buyers remain reticent when it comes to investing to maximum limits. Fractionals satisfy the taste for the good life without the heavy financial commitment that can go hand in hand with outright freehold ownership.

As Sague concludes, “Fractional Ownership provides the ideal solution for those who want to enjoy the use of a holiday home in the sun but due to commitments such as work, they can only make use of the home for a few weeks per year. Fractional Ownership, in this instance, is an attractive proposition.”

A viable solution for today’s property hunters
As the property market evolves, so has Taylor Woodrow, whose entry into fractionals reflects their belief that
not only is this a viable solution for today’s homehunters, it’s also an alternative way of buying that could
become mainstream.

Victor Sague explains, “Taylor Woodrow de Espana has only been participating in Fractional Ownership for the last couple of months, so we are very much testing the waters at present. To date, demand has been limited, but the peak season for house sales is approaching, so the next six months will definitely
be revealing and help us to further understand the appeal of Fractional Sales in the UK market.”

At Taylor Woodrow’s development at Los Arqueros in Southern Spain, for example, buyers buy into the golf
lifestyle as well as the benefits of an excellent location, quality development and convenient facilities. You’re not just buying a percentage of a holiday home, you’re buying the lifestyle that goes with it.

Los Robles and Las Encinas, both at Los Arqueros Golf and Country Club, are part of the overall resort which has been developed and designed by Taylor Woodrow during the last eight years. Close to a nature reserve, and a short drive in an open top jeep from Marbella town, it’s also airport accessible – just forty minutes from Malaga.

Los Arqueros was designed by Seve Ballesteros who describes it as an ideal course for all players – a challenger for the average golfer and testing enough for pros.

Both are Mediterranean village-style developments. Los Robles has 42, two and three-bedroom apartments arranged in low-rise style (in seven blocks on just three levels) which face south or southwest for maximum sunshine on the spacious balconies and views of the golf course and sea beyond.

Generous, light-filled living areas at LosRobles maximise Andalucia’s special light, and community facilities include adult and children’s pools, gardens, storage areas, underground parking and all the luxuries of resort living, such as a spa, gym, on-site restaurant, bar and clubhouse.

Residents at Las Encinas, which is smaller, with just 30 apartments, including garden apartments, or attics
with solariums, can also enjoy all the resort amenities, including a sauna, shopping centre and tranquil,
green surroundings.

Los Arqueros is on the road to Ronda, an Andalucian gem of a town twenty minutes away that feels steeped in history and is, literally, steep. Split into two halves separated by a small bridge that crosses a deep gorge, on a misty winter’s afternoon it’s a magical place to wander through and stop off for a hot chocolate or a heady Rioja at one of the tapas bars down the side streets. Bandoleros roamed the hills around Ronda and the town even has its own bandolero museum, as well as a famous bullring. Ernest Hemingway, one of
Ronda’s biggest fans, claimed it was the ideal place for a honeymoon, while Dubliner James Joyce described it more poetically:

“…Ronda, with the old windows of the houses, the eyes which spy out hidden behind the latticework so that their lover might kiss the iron bars and the taverns with half-closed doors in the night and the castanets and the night…”

Spain still reigns
Spain still tops most British property buyers’ wish lists, and despite the current economy, interest from the UK and Ireland, especially, remains strong. Fractional ownership continues to attract buyers keen to find out about this new way of owning a second home. To add to their peace of mind, Taylor Woodrow have partnered with the Safe Buying Experience to ensure their clients’ transactions are both smooth and watertight.

So, while the buying boom may be over, for a while at least, fractional ownership schemes from quality developers like Taylor Woodrow de España could provide just the boost developers and buyers are looking for, while keeping the “dream home” dream alive.

Prices
Las Encinas de los Arqueros 76,250 Euros for 1/4 share giving 13 weeks usage
Los Robles de los Arqueros 83,750 Euros for 1/4 share giving 13 weeks usage
For more information, visit: www.golfingfractions.com www.fractionalownershiptaylorwoodrow.com
www.taylorwoodrow.es

A New School For Christel House

By Robin Mills

For many years now I have been directly or indirectly involved, as have many others, in differing fund raising activities on behalf of Christel House, whether through attempting to put a reasonable round together in one or other of the Christel House Golf events or driving and cajoling already extremely generous delegates at
the annual conference to be to be even more generous with their contributions at the gala dinner
events. I thought I had a fairly comprehensive understanding of Christel House and it’s activities, oh
how wrong could I have been.

After some persuasion from industry colleagues and friends, in particular Ron Haylock, I arranged to head off down to South Africa with my wife Sarah to join Christel de Haan, varying key members of her team and other great benefactors from around the world for the inauguration of the purpose built Christel House facility in Cape Town. What we did not appreciate, myself in particular, in preparing for the trip, was the absolute stark wake up call to life and it’s varying inadequacies to many that the journey was going to have
upon us, combined with the utter humbling naivety that we were to experience whilst there, not purely in our
knowledge of Christel House activities, in life generally.

On Tuesday morning the 17th of March, after a glorious welcome dinner the previous evening in downtown Cape Town hosted by Christel herself, we arranged to follow friends out to the facility situated just outside the city in an area called Ottery…… On arrival at the facility, I was quite certain that we had arrived at the wrong place, this was a building that from the immediate first impression you would have been as proud of as a school or educational facility anywhere in the world, combining this with the stunning vista from behind
the facility, with views though from many of the class rooms of the mountains, anyone would be forgiven for being extremely envious of.

The inaugural assembly was being prepared for on our arrival, orderly lines of both immaculately turned out and behaved learners ( this is the name used within Christel House for students) , were congregating to go into the fabulous new multi purpose assembly hall. We in the meantime were ushered off into a different direction where we witnessed Christel and Helen Zille, the mayor of Cape Town and without whom the project may well still be a distant dream, unveil the plaque to officially inaugurate the school. Once this task was complete we made our way into the hall to join the six hundred and fifty students already at the facility, though capacity eventually will be for eight hundred and fifty. The atmosphere on entering into the hall was exceptional and already we had the feeling that we were about to be taken off on an extraordinary journey, how right we were.

After a warm welcome by Ronald Fortune, the facility principle, we witnessed an incredible address by Helen Zille that in itself was completely awe inspiring and thought provoking, yet nothing prepared us for the awesome array of performances either by individuals, duets, groups or singing by all of the learners together.Having been personally fortunate enough to attend a very well funded private school in the UK and further to have two children at an excellent school in Spain, the performances put on by these learners
were as professional, competent and spectacular as you would see anywhere in the many educational establishments and campuses that I have visited.

The lump in my throat and the tears building in the eyes of my wife, as we seamlessly moved from one perfect performance which subsequently blended in to yet another led us both to the harsh and immediate realization that this was going to be a day that will remain firmly with us forever and it was still only ten thirty in the morning!

Following an emotional closing address to the assembly by Christel, we continued to lunch and our first interaction with the students on a one on one basis. These children were so warm and welcoming, full of joy, overflowing with determination and eager to interact, it was mind blowing. Each and everyone we spoke with had such confidence that they would achieve their different goals and objectives in life, yet what was so amazing was that the majority recognized what Christel House in conjunction with their family and community had provided for themselves that amongst all their dreams was the wish to be able to do  something that allowed them to pay back into making their community a better place for their own generation and generations to come.

After lunch we went on a very informal tour of the facility accompanied by some of the graduating students, I say informal because we could go to any class room, talk with any group and ask any questions of both pupils and teachers alike, the one common factor that emanated from all without exception was joy, joy at being together, joy in learning, joy in teaching and most importantly again for teachers and students equally, the joy of common achievement. The other factor that struck us so poignantly was the love from the
students, for each other, for their teachers and for visitors, I do not believe I have ever seen it quite so visible on such a large scale.

We then congregated for a tour of the settlements/townships, billed in the day’s programme as an  opportunity to see where the learners live and their lifestyle’s away from Christel House, which in itself
is a little mis leading of me, as the learners are never really away from Christel House. Christel House involves not only the immediate family in the education and enrichment of the learner, but the community in general as well. One’s expectation for this part of the day, which would be quite understandable, was a drive through what was obviously going to be fairly run down areas, not dissimilar to what one can find in many
of the more prosperous parts of the world, especially when you match your expectations with the experience you have already had meeting the learners and seeing their enormous levels of competence and prowess,  again how erroneous one can be.

Nothing can really prepare you for the outrageous circumstances in terms of infrastructure or rather lack of it in which the learners and their families exist, I use the word “exist” as to use the word “live” would be a gross exaggeration and misrepresentation. Yet despite these circumstances the family bond on the outside is incredibly strong, although purportedly there are horrendous problems with alcohol and drug abuse within the townships, as awful as it is to say you can understand it even if you do not condone it. The shacks/huts are spotless inside, how seven or eight people and in many cases more cohabit in such an incredibly small space is beyond me, I hate to think what it would be like when the rainy season is upon them, yet I am sure there is the grim determination on behalf of the families to keep the insides as clean as when we visited, for
what would seem an enormous task in our privileged daily lives is absolutely nothing in the daily struggle that these families go through.

The possibility and reality that the learners come from this type of environment and existence to be so together, so full of love, so full of energy, so full of commitment and so full of hope for the future is a credit to themselves and a marvel that most of us can only gasp at in bewilderment. It is though the backbone of what Christel and her foundation have achieved in a relatively short period of time in so many places in the world for so many learners, their families and communities in general.

Sarah and I will never forget our trip to Christel House Cape Town and if by continuing to support Christel House in their varying projects and facilities we can make just the slightest bit of difference to one learners life directly or indirectly then we will have achieved something so very positive in our lives.

Orange Lake Growing Steadily Despite Economy

Alliance with IHG and Acquisition of New Resorts Expand Offerings Across U.S. and Globally
By Matt McDaniel

Something is definitely going right at Orange Lake Resorts. The flagship Orange Lake property, located near Walt Disney World, has more than 140,000 owners, including 10,000 from the United Kingdom. If you haven’t heard of Orange Lake, then you’ve probably never been in Orlando. But perhaps more noteworthy
is how they’re weathering the current economic storm. Contrary to many of their competitors, they’re actually hiring. And their credit lines are anything but frozen.

Attribute that scenario to Orange Lake Resorts President and CEO Don Harrill and his team, the sound business plan they developed, and their solid relationships with local and regional banks.

A New Beginning
Four years ago, nobody in timesharing was worried about the economy. The bullish industry was growing tremendously, both by new players entering the arena and seasoned organizations acquiring and developing one property after another. It was at that time that Harrill arrived at Orange Lake.

Harrill, a career hotelier, had spent the previous five years as the CEO of Hilton Grand Vacations and who for years had known the Wilson family, who founded Orange Lake as well as Holiday Inn. “I had the opportunity to be associated with building their club and their network. When I arrived here four years ago, I looked at Orange Lake and realized that it is a fabulous place,” says Harrill. “Orange Lake’s total landmass is about 2,000 acres, 1,400 of which we’ve got developed. Four golf courses and a variety of restaurants, super pools and retail stores – it’s akin to a city.”

The resort also has a 1,200-foot lazy river, 12-acre water park, 80-acre lake with water sports, seven swimming pools, three fitness facilities, four racquetball courts, six tennis courts, two basketball courts, three playgrounds, and a kids’ center.

As impressive as Orange Lake was, Harrill explains it had one serious drawback. It was a single-site operation – albeit one of the world’s largest. “One of the first things we did was customer surveys,” he says. “We had 10,000 of our customers respond and over 30% told us they loved us and our product and appreciated being introduced to timeshare. But they also told us they bought our competitors’ products, because our competitors had networks, multiple sites, by-the-day stays, and things we didn’t have.”

While Harrill knew Orange Lake needed to respond to the evolving needs of the customer, he also knew a key issue had to be addressed to move forward. “We had had a technology platform that did not manage anything but by-the-week stays, and it didn’t have the capacity to manage multiple resort sites.”

So they began to develop a new system that would manage all the complexities of by-the-day stays, multiple sites, points management, and the subsequently more-complex contract processing.

Learning from his experience with Hilton, Harrill also knew the importance of a strong service arm to engage customers and manage the complexities of the new offerings they envisioned. “So we started assembling
a team of people that had been involved with great customer service and clubs,” Harrill says. “We had Pat Connolly join us from RCI – he had been a senior manager with them for North America for years, and we had Lea Watts join us from the Indianapolis call center, which she managed for RCI for 17 years.”

In June 2006, Orange Lake rolled out the new technology platform and a club product, at the time called GlobalAccess. Although owners were still buying a deeded week, the club brought them great flexibility, including the convenience of by-the-day visits. “More than 9,000 of our owners live right around us
in Florida, and to give them that flexibility was important,” notes Harrill.

But that was just part of the picture. The day after launching GlobalAccess, Orange Lake purchased its first additional property in Lake Geneva, Wisconsin. “It’s another large resort,” Harrill says, with “two golf courses, restaurants, a world-class spa, indoor water park, and a ski hill – and it’s an important location because 12,000 of our owners live within two hours of the resort.”

The new club and property excited and motivated the sales team – and the owners.

Even thought the year was almost half over at the time, Orange Lake saw a 20% increase in our business for that year over the previous one.

Finding the Right Brand
Harrill and his team realized what they were onto: “We can create a network, we can pick out products that are in the backyards of our owners and delight our owners and get this thing going,” he recalls thinking. At the same time, though, Harrill and the team also realized the need for a strong branding alliance to reach critical mass in the marketing realm. “We said, we have a first-class operating team, first-class resorts, a first-class concept; what we need now is a marketing engine for getting that message out.”

Harrill added another key player to his team at this point, bringing on Bob Albertson, whom he had worked with at Cendant. Albertson also had headed up sales and marketing for Fairfield, where he was instrumental in creating strategic allianceswith Harrah’s in Las Vegas and Outrigger in Hawaii, helping Fairfield break into
those markets.

The Orange Lake team approached several hotel brands. Harrill says that Holiday Inn was an obvious choice. “I think at first they thought we were trying to sell our company to them,” he says. “Our objective was to not
sell our company, but to bring two companies together who could work together to drive each other’s business.”

InterContinental Hotels Group (IHG), Holiday Inn’s parent brand, is one of the largest hotel groups, with 4,150 hotels worldwide. “In the U.S. they don’t have many full-service resorts; we thought we could help them there,” Harrill explains, adding that Holiday Inn could use a stronger presence in major resort markets like Orlando, Las Vegas, and Hawaii. “Working together, we could help create that.”

It took over two years to negotiate all of the elements that were required to make an alliance work, and a final agreement was signed in September 2008. “It takes more than just hanging up the flag,” Harrill says.

During those two years Orange Lake acquired two more resorts: a ski resort in Vermont and another resort in the Florida Panhandle. Again, sales increased. “In 2007 we had another 20% increase in our sales,” Harrill notes, “and in 2008 we had another 20% increase in our sales, even in the face of these difficult economic times.”

Sales for the company’s first two months of 2009 outperformed that same time frame in 2008. During that time, the company added two more resorts, one in Myrtle Beach, South Carolina, and one in Gatlinburg, Tennessee. “We’re now solidly an East Coast timeshare club,” says Harrill.

Why Isn’t Orange Lake Feeling the Squeeze?
A quarter of the way into 2009 and the bottom hasn’t fallen out. “To date, we’ve not been impacted by the credit freeze. Four years ago, none of us knowing the credit squeeze was going to be at our door; part of the plan at the time was to engage our bankers,” explains Harrill. His long-term plan involved developing a technology platform, performing due diligence and creating the legal structure, recruiting professionals with club experience, and expanding the resort network; all of which are capital-intensive activities.

“We’re not a huge, billion-dollar company, but we operate in a sweet spot that is financiable by regional bankers,” he notes. “We laid out the performance metrics in excruciating detail and developed very strong local relationships with SunTrust and Wachovia. Our bankers have been on this journey with us for these
four years, and they have seen played out everything we said we were going to do in managing and growing our business – and they have celebrated with us these successes and year-over-year increases. The result was very educated, supportive bankers when we all arrived at this credit crunch.”

New resorts, strong sales, and flowing credit have translated into tremendous growth. “We’re probably one of the few timeshare resorts in Orlando that not only haven’t had layoffs, but also have been hiring,” Harrill says proudly. “In the past four years we’ve gone from 1,200 team members to almost 2,400.”

What’s next?
Unprecedented growth can be perilous, though – a thought which is not lost on Harrill. “In the near term, we’re going to digest all that we’ve created here hastily since September,” he says. Harrill adds that he wants to focus on honing the relationship and continuing to deliver top-notch customer service to his owners. But after that? “We have positioned ourselves to be a strong operator; we’re going to see what else there is to do. Our goals in our discussions with IHG are to expand the system and to take us to obviously large-resort
destinations, possibly Las Vegas or Hawaii, or both.”

Wherever Orange Lake expands to next, history tells us it will be well planned. “We intend on making sure that we have strong, financiable operating metrics and strong customer propositions,” Harrill promises.

Details of the Deal

How the Orange Lake – IHG Alliance Works
The venerable Holiday Inn brand began as an idea in the head of Kemmons Wilson in 1952. When Wilson left the innovative hotel chain in 1979, it had amassed 1,759 inns in more than 50 countries. That same year, Wilson began laying the groundwork for what ultimately would become Orange Lake Resort. While Holiday Inn and Orange Lake have the same founder, there was never any corporate relationship between the two entities. “We have come together as two separate, distinct companies,” says Don Harrill, president and CEO of Orange Lake.

Today, Holiday Inn Hotels & Resorts is part of InterContinental Hotels Group (IHG), which has seven hotel brands in nearly 100 countries. But Orange Lake has the cache in Central Florida.

“Orange Lake has created a lot of brand equity over the past 27 years. We didn’t think it prudent to come to
tell all the owners that we were “rebranding” their place,” Harrill explains, saying he told IHG the same. “Here
in Orlando, the Holiday Inn Club has joined Orange Lake.” He says owners at their other properties bought through GlobalAccess (Orange Lake’s previous club program) and therefore don’t have the same attachment to the Orange Lake name, so the branding at those resorts is more focused on the Holiday Inn Club.

Owners buy a deeded week and become a Gold Elite members in the Priority Club Rewards, IHG’s affinity
program. Other Priority Club members can use their points and come stay at Orange Lake. “That’s where this is a real win-win for us,” Harrill says, calling it “a marketing engine to introduce us to people.”

Harrill says that being part of IHG’s reservation system gives Orange Lake global visibility and activity, and that sales are tracking better than planned. In the United States, anyone who calls Holiday Inn to make a reservation for anywhere is asked if they’d like to hear about the Holiday Inn Club. “If people respond affirmatively,” says Harrill, “they transfer them to our marketing group here in Orlando.”

Matt McDaniel is a Winter Springs, Florida-based freelance writer who has been reporting on the shared ownership industry since 1997. He may be reached at McDaniel.Communications@gmail.com.