Upscale Orlando?
September 15, 2009 by Perspective Magazine | Timeshare & Fractional ReviewsPreviously, when people in the shared-ownership industry talked about upscale timeshare developments, Orlando didn’t always come to mind. Sure, there were nice resorts with roomy, fully appointed villas – but not high-end resorts with impressively appointed units.
By Matt McDaniel
It’s tough to be – and stay – upscale in today’s market. Once a high total square footage, leather furniture and big screen television meant upscale, at least in Central Florida. Today, owners are looking for those big-screen TVs to be high definition and the furnishings to have certain panache – and the units still have to be huge.
There has been a trend toward quality over the years, a move to providing a richer experience, whether as an aspirational experience or to keep up with what people are used to in their own homes. Perhaps because of the demographics of visitors to Orlando, the area had been slow to embrace truly upmarket fixtures, furnishings and equipment (FF&E) and their resultant higher price tags.
But now with the Baby Boomers getting older (and increasing their disposable incomes), the theme park capital of the world is seeing a boom in luxury timeshare offerings.
Marriott Origins
Edward Kinney, the Orlando-based vice president of corporate affairs and brand awareness for Marriott Vacation Club International, credits MVCI’s parent company for opening the upscale door for his company. “In our case, Marriott was the pioneer in bringing luxury accommodations to the Orlando market with the entrance of the JW Marriott Orlando, Grande Lakes and The Ritz-Carlton Orlando, Grande Lakes. Following that success, Marriott’s Lakeshore Reserve was a perfect compliment to the campus and an ideal match to the lifestyle of this affluent consumer,” Kinney says.
Marriott’s Lakeshore Reserve will share the 500-acre Grande Lakes grounds with the JW Marriott Orlando, Grande Lakes and The Ritz-Carlton Orlando, Grande Lakes offering a combination of impressive amenities, including The Ritz-Carlton Golf Club and The Ritz-Carlton Spa with 40,000 square feet of space dedicated to relaxation and rejuvenation.
Six spacious villa floor plans will range from 1,185 to 1,655 square feet of living space, and for the first time in North America, Marriott Vacation Club will introduce two-story townhomes and two-bedroom, two-bath lock-off villas offering two master suites. Designed to complement the luxurious design and decor enjoyed by guests of the neighboring JW Marriott and The Ritz-Carlton, the villa interiors will offer a blend of Mediterranean inspired and designed furnishings.
Each villa will feature a fully-equipped gourmet kitchen with granite countertops and GE stainless steel appliances; generous living and dining areas; multiple LG flat-panel LCD televisions with DVD players; oversized shower with multiple shower heads in master suite; washer and dryer; and wireless high-speed Internet accessibility. Three-bedroom, three-bath villas and townhomes can accommodate up to 12 guests.
The resort started sales in July 2009, with unit prices ranging from $26,000 to $40,000 per week depending on the season and floor plan selected.
Orange Lake Ultimate
Holiday Inn Club Vacations at Orange Lake Resort offers the Signature Collection, a cluster of 56 high-end units among its more than 2,400 villas.
“We introduced the high-end Signature Collection product into our portfolio because our owners and club members expressed that they wanted more ways to experience their vacation,” says Don Harrill, president and CEO, Orange Lake Resorts. “Our owners who’ve been with us for 5, 10, 15+ years and in-between love their timeshare and use it often; we weren’t surprised that much of our Signature Collection sales thus far have been from these legacy owners.”
The Signature Collection was designed to offer the intimate, residential feeling of a home away from home, appointed with upscale resort amenities to complete guests’ vacation experience. Accommodations have been designed for comfort and relaxation with special attention to detail, including soothing color palettes, luxury linens and bath amenities, surround-sound stereo, LCD televisions, screened patios and balconies, spa tubs with hydro-jets, full-sized washers and dryers, and fully-equipped kitchens.
What’s more, Signature Collection members can also enjoy personal attention from exclusive concierge staff, plus additional perks including daily newspaper delivery, a special onsite activities package and exclusive access to a private pool deck with a dedicated pool attendant.
“The cost increase for our Signature Collection villas in Orlando over our standard units was 16.7%,” Harrill notes. “This includes upgrades to construction-related items as well as all the FF&E increases.”
The Disney Difference
Disney Vacation Club’s newest resort opened at Walt Disney World on August 4. The new Bay Lake Tower at Disney’s Contemporary Resort offers a variety of accommodations from studios, and one- and two-bedroom villas to the luxurious three-bedroom grand villas. The two-story, ultra-modern Grand Villas boast a full kitchen, living room, laundry facilities and a magnificent view of Magic Kingdom or Bay Lake. Guests staying at the crescent-shaped Bay Lake Tower can access existing amenities, restaurants and shopping at Disney’s Contemporary Resort via an artistically designed covered walkway.
But according to Diane Hancock, manager of DVC communications, what really makes the grand villas at Bay Lake Tower stand out is the location: “The location is amazing and the views from the rooms are spectacular,” Hancock says. “We believe that all of our resorts offer experiences our Members and Guests don’t get anywhere else. For example, where else could you blow a goodnight kiss to Tinker Bell?”
Aspirational Trends?
But why are extremely upscale units now coming to Orlando? Are people looking for a higher-end aspirational product? Both Harrill and Kinney seem to think the local phenomenon is a natural outcome of trends in the industry overall. “In today’s market, the option of purchasing a higher-end Orlando vacation that has the flexibility of a pointsbased system is appealing, especially for buyers who don’t want to be tied to a fixed property,” says Harrill, referring to the Orange Lake set up. “So that may be part of the reason
that we’re seeing more upscale timeshare resorts right now.” He adds that many existing owner members decide that they want to experience the resort on a different level, “so in that sense, it is an aspirational product.”
Harrill posits another possible motivation as well: “Another reason why owners would aspire to this level is access to additional upscale inventory in other destinations,” he says. “Our Signature Collection villa owners who purchase at Holiday Inn Club Vacations at Orange Lake Resort and own more than 500,000 Holiday Inn Club Points enjoy the benefits of RCI’s Registry Collection program.” The Registry Collection provides members access to an elite global network of vacation properties at some of the world’s premier destinations, as well as personal concierge service available 24 hours a day.
Kinney makes an worthwhile observation about seasonality’s role in the purchase decision. “At Marriott Vacation Club,” Kinney explains, “we find that our resorts are both a continuation of the lifestyle of our owners and aspirational – depending upon the season purchased in. (Demographics tend to vary upon seasonality.) That said, the average head of household income for Marriott Vacation Club owners is the highest in the industry, so many times we see that our resort and villa amenities meet and appeal to the lifestyle patterns typical of our owners.”
So are there any drawbacks to the current trend? Perhaps the law of diminishing returns. “Delivering such a high-end product can be a double-edged sword,” Kinney says. He notes that while MVCI is “always striving to be an innovative force in the industry and are delivering a product that elevates the standard,” MVCI owners “have high expectations that we are held to, including experiential resort amenities such as golf and
spa offerings.”
Orlando-based Matt McDaniel has been writing about the shared ownership industry since 1997.
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