Hapimag, the leading provider of holiday rights of residence on the European market, continued its positive development of the previous year in the first half of this year. In comparison to the same period last year, total sales increased by 2.4 per cent to EUR 81.9 million (EUR 80 million in 2008). The operating result after the first six months was EUR 1.8 million (EUR 2 million in the first half of 2008) and the occupancy rate of the resorts at around 71% is the same as for the previous year. In February 2009, Hapimag opened its new
flagship resort in Hörnum (Sylt), and thanks to the cooperation venture with ‘Dial an Exchange’ the company now offers even better access to apartments worldwide.

In particular the 56 holiday resorts throughout Europe contributed to the positive development of total revenue. Despite the difficult economic situation, their sales increased by 3.9 per cent. The occupancy rate of the resorts, as in the previous year at approximately 71%, was still above average for the industry.
The continuous investments in the resorts contribute considerably to this satisfactory occupancy rate. In 2009 over EUR 50 million will be invested, of which around EUR 26 million have already been transacted in the first half of the year.

Despite the tense economic situation, the sales division has remained practically stable. The net sales revenue, at EUR 15.5 million, is close to the previous year’s figure (EUR 16.1 million). The operating result (EBIT) after the first six months was EUR 1.8 million (EUR 0.2 million less than the previous year). The consolidated result of the joint-stock company, which is organised as a cooperative, totalled an encouraging EUR 1.7 million (0.7 million in 2008).

Resort in Hörnum officially opened
In May Hapimag opened its new flagship resort in Hörnum on the North Sea island of Sylt. The 151 apartments, with their modern architecture and an extensive offer of services, typify the modern expansion of Hapimag’s attractive resort portfolio. Special attention has been given to the wellness area. It includes a top-quality Deep Nature Spa, several pools, spacious relaxation areas and diverse treatment and relaxation
offers. The ‘Biike’ restaurant caters for the guests with authentic regional cuisine. The resort’s occupancy rate till the end of the year is very good, with bookings totalling 94.5 per cent.

Worldwide bookings thanks to cooperation venture with ‘Dial an Exchange’ The new cooperation venture with ‘Dial an Exchange’ (DAE) means that the world has come even closer for Hapimag members. Hapimag exchanges residential properties for its members via DAE, Europe’s largest independent share exchange for holiday apartments. This means that around 1500 resorts worldwide are now available to Hapimag members.

Hapimag is number 1 in the European market for holiday rights of residence. The company was founded in 1963 as a Swiss public limited company based in the Canton of Zug in Baar and today has approximately 140,000 members. On purchasing shares, members can choose from among 56 holiday resorts with more than 5,300 apartments and hotel rooms rent-free based on a points system. The resorts are located in 16 countries in Europe, Africa and the USA. The company has around 1,700 employees worldwide.

Dial An Exchange and Swiss based resort operator and provider of holiday rights of residence, Hapimag, this week announced the signing of a new agreement. The agreement will see members from each organisation gaining access to new holiday destinations via inventory sharing. The new agreement was negotiated and concluded by David Lilley, Managing Director of the Dial An Exchange European region and Robin Nicholson, Hapimag’s Head Of Business Development. 

Dial An Exchange has in excess of 250,000 members around the world and some 40,000+ members in the region of Europe. The organisation has fast gained a global reputation as a flexible and efficient exchange provider. The fact that a significant portion of the members who now use Dial An Exchange joined through word of mouth recommendation is some measure of their growing stature in global timeshare. 

With a ten year trading history and offices in the major contiments of Australia, South Africa, Asia, USA and Europe, Dial An Exchange has historically focused its efforts on working direct to consumer. However, in the last 12 months, it is clear that the timeshare industry is ready to embrace new ideas and a more customer friendly approach. As a result, DAE is now increasingly considered as a viable option for business alliance by existing operators and new entrants into the timeshare industry.

With 58 resorts and some 140,000 members, Hapimag is the largest provider of rights of residence in Europe. With the purchase of shares, 58 holiday resorts (3 of which are houseboat home ports) with more than 5400 apartments and hotel rooms, can be used rent-free in accordance with a points system. The resorts are located in 18 countries in Europe, Africa and the USA. The company has about 1700 employees worldwide and a turnover of Euro 156.3 million in 2008 . With a reputation for consistent quality standards and reliable service this new deal allows Hapimag to offer their members access to International destinations.

Commenting on the new alliance DAE Europe Managing Director David Lilley said “When I joined DAE in January 2008, I was optimistic that we would be able to announce a few major agreements inside my first two years… so I am pleased we have managed to win an exciting agreement with Europe’s largest provider of rights of residence.  What is particularly pleasing is that Hapimag are a business that I respect immensely”.

Robin Nicholson Hapimag’s Head Of Business Development was equally pleased with the new arrangement “This new arangement  gives our members the opportunity to try resorts other than those in the Hapimag portfolio. Importantly this means accessing International destinations. I have been impressed by the commitment of the DAE team to working with us and by their focus on delivering strong service to their customers”

Despite the difficult economic environment, Hapimag, the leading company in the European market for holiday rights of residence, was able in 2008 to build on its success of previous years, achieving 5.0 per cent growth and a positive result. The operating income – in the 2008 annual financial accounts stated for the first time in Euro – totalled Euro 165.4 million (+ 5.1%) in 2008. Although the good result from
operating activities was affected by the negative financial result, which was due to currency developments, at Euro 0.5 million it was nevertheless positive. As a joint-stock company organised as a cooperative, Hapimag is not profit-oriented and strives to attain a maximum degree of self-financing.

In the Hapimag holiday resorts, sales increased by Euro 5.1 million against the previous year (+8.5%) to Euro 64.2 million. The 3,068,000 overnight stays at the 58 Hapimag resorts in 18 countries generated an average capacity utilisation rate last year of 78.5 per cent. The increase in operating costs in the holiday resorts was mainly due to structural reasons (e.g. increasing personnel costs), but also external factors such as the development of energy costs, which led to greater expenditure for heating, cleaning and laundry. A total of Euro 4.3 million was spent on maintenance and repair work in the holiday resorts in 2008.

The Sales division generated net revenue of Euro 35.2 million from the sale of shares and right of residence products, a year-on-year increase of 7.2 per cent. Despite the unfavourable currency situation, the key markets of Germany and Italy developed positively. Revenue from sales activities enabled living space to be increased moderately and the buy-back of shares to continue.

Thanks to the revenue from annual subscription charges, in the area of properties further measures for maintaining and improving the quality of living space were again financed from Hapimag’s own resources. In 2008, Euro 39.0 million was invested in renovating and extending the holiday resorts. Depreciation remained stable at Euro 32.0 million, equivalent to 51.1 per cent of revenue from annual subscription charges.

The high equity ratio (56.5%) and the company’s equity capital base (79.3%) confirm Hapimag’s solid structure. The free cash flow improved in 2008 from Euro -10.8 million to Euro -7.5 million. The reason for the negative free cash flow was, as in the previous year, the high level of investments of Euro 41.9 million (2007: Euro 53.2 million), for example in Hörnum, Binz, Dresden, Salzburg and Burnside Park, among others, and the buy-back of 8,268 shares totalling Euro 17.4 million.

At the end of February 2009 after a construction period of two years, the third holiday resort on Sylt/Germany was put into operation in Hörnum. With regard to the architecture, furnishings and equipment, as well as the offer, the resort provides an indication of Hapimag’s future direction.
In November 2008, the foundation stone was laid for the new city resort in the reconstructed heart of Dresden. The ‘British Hotel’, being rebuilt with its historical facade, will, after its probable completion in 2010 as the eleventh city resort, complement the exclusive offer of Hapimag city destinations.

After Hapimag had already taken new paths in the sector with the introduction of new General Terms and Conditions of Holiday Share_21, now providing for the buy-back of right-of-residence shares, the system will also undergo further modifications in 2009, for example the possibility of booking stays in all holiday resorts on a day-by-day basis. And in the medium term, Hapimag wants to satisfy its members not only with regard to their holiday wishes, but increasingly also by helping them to organise and achieve their own individual lifestyle.

Hapimag is number 1 in the European market for holiday rights of residence. The company was founded in 1963 as a Swiss public limited company based in the Canton of Zug in Baar and today has approximately 140,000 members. On purchasing shares, members can choose from among 58 holiday resorts with more than 5,400 apartments and hotel rooms rent-free based on a points system. The resorts are located in 18
countries in Europe, Africa and the USA. The company has around 1,700 employees worldwide.

This edition sees a return of Lion Resorts vacation Club to the Front Cover 12 months on from their last appearance, as we see the successes they have had since the announcement of their joint venture with Kouroushi Bros Ltd at last year’s OTE Forum, creating the larger Kouroushi Lion Resorts (KLR).

Our focus on the European timeshare and fractional markets this month for the 10th OTE Forum brings an exclusive interveiw with Roy Peires, founder of Club La Costa Resorts & Hotels, a look at the successes of the Hilton Vilamoura as a mixed use resort in Portugal, the latest affiliations of fractional ownership developments to The Registry Collection and much more…

EDITION HIGHLIGHTS Front Cover Sponsorship: Lion Resorts Vacation Club Perspective A-List: Roy Peires, Club La Costa Resorts & Hotels Developer Review: Hapimag Convention Review: Fractional Forum New York Feature: Hilton Vilamoura Continues Success With Mixed Use Resorts Feature: Tackling Consumer Awareness From A Different Perspective Feature: Tomorrow’s Resort Software, Today Supplier Review: Visions Of The World Feature: A Slice Of The High Life Feature: Charting Future Directions Feature: An Industry Taking Shape View Digital Page-Turn Edition Online Download PDF Version To Hard Drive