The Timeshare Beat: New Timeshare Companies and Projects Formed in 2000

A beach in Goa, India not far from Mobor Beach Resort

New Timeshare Companies and Projects Formed in 2000

The Timeshare Beat
December 29, 2000
The year 2000 has been full of events both cataclysmic and quiet, with Sunterra's bankruptcy at the beginning and the possibility of bankruptcy for Finova at the end, like bookends. Sandwiched in between those events there have been several new entries into the timeshare market this year, from the French giant Accor to small, independent companies formed by industry veterans and those brand new to the industry. In the small independent category, one of the most intriguing start-ups is in Goa, India.

Mobor Beach Resort: "The value and quality of your life has to count for something. There are no pockets in a shroud." So says Colin McFarlane, developer of the newest timeshare project in Goa. Englishman Colin and his Goan partner Tony are completing the first phase of their Mobor Beach Resort on an unspoiled beach in South Goa, which is one of India's smallest states along the southwestern coast. This first phase consists of hotel units, but the second phase will be one hundred beach bungalows with two more much bigger phases to follow. McFarlane Vacations' plans are to affiliate with an exchange company once the bungalows are started, and it looks as though the resort will be Gold Crown quality. Already, with just the hotel, amenities onsite include: Beach; Swimming Pool; Restaurant and Bar; Entertainment Hall and Cocktail Bar; Shops; Exercise Room; Library; Games Room; Coffee and Reading Lounges; Laundry; and Sea Fishing. This looks to be a promising beginning for an upstart new company, in a beautiful and fascinating part of the world. It will be opened for the start of the 2001 season, and low key, informal tours are already being given-- with about 75% of the tourees purchasing so far.

"The pearl of the east," Goa is known for its Gothic churches, crumbling forts, palm-fringed beaches, coconut groves, ferry rides, folk music and a 131-km-long coastline. There are long beaches interspersed with open grasslands and low hills. The vegetation is tropical with cashew and teak plantations, coconut and arecanut groves and paddy fields. Goan culture is a blend of Indian and Iberian: European style central squares and Indian bazaars, Portuguese churches alongside Hindu temples. Americans should not let the Europeans keep this resort a secret among themselves... You can take a look at both the area and the resort at http://www.goa-way.com

Festiva Resorts, LLC: In the USA, former Peppertree Resort execs Herbert (Butch) Patrick, Jr., senior vice president and chief financial officer, and Donald K. Clayton, senior vice president for sales and marketing, left that company this year as new owner Equivest implemented its new style of management. Together the two have formed a new company: Festiva Resorts, LLC, with headquarters in Asheville, North Carolina. There is not a great deal of reliable information about this new company yet, but it is understood that they are currently marketing the Ellington at Wachesaw East in Murrells Inlet, South Carolina, which was formerly being marketed by Sunterra.

WestPac Resort Group: Andy Gennuso - Sunterra Resorts’ Western/Pacific Region vice president (1997-2000), quietly left that beleaguered company this year to start his own company with Les Abeyta, whose experience includes finance and operations positions with The Welk Resort Group, Hilton Grand Vacations Co. and Sunterra Resorts; and Kevin Pereira. Together they formed WestPac Resort Group. Gennuso serves as president and managing member of WPRG, Les Abeyta as vice president of operations, and Kevin Pereira as vice president of finance and administration. Concurrently, Anthony Sharp, former Executive Vice President of Four Seasons Hotels and Resorts, became the new owner and developer of Peaks Lodge at Breckenridge, an unfinished Sunterra Resort which is back under construction and which WestPac Group is marketing. Peaks Lodge at Breckenridge will feature a fractional ownership structure, with 20 shares of ownership per condominium. (http://www.westpacresortgroup.com/ )

Hostetler Public Relations: Rae Hostetler, who WAS the public voice of RCI for many years, has gone out on her own this year with the opening of Hostetler Public Relations, a freelance company specializing in communications programs for the timeshare and hotel industries. Founded on a philosophy of customer service, HPR offers made-to-order public relations support ranging from preparing the big picture strategic plan to executing the tactical work, Hostetler has more than a decade of experience working in public relations and broadcast journalism. She has worked with national journalists from The Chicago Tribune, The Detroit Free Press, The New York Times and New York Newsday to place positive articles about timesharing.

Her journalism background includes working for the NBC-television affiliate in South Bend, Ind. as a news anchor and reporter, as well as holding the position of news director for South Bend’s number one radio station. You can contact Rae (317) 541-0244 or hostetlerpr@iquest.net

Prime Time Hospitality: Robert L. Drake, formerly of All Seasons in Sedona, is now CEO of Prime Time Hospitality and is developing a timeshare resort in Prescott, Arizona, formerly called Prescott Boulders Resort, now called Granite View Resort. (The Boulders in Carefree have a Federal registration on the name and forced them to change it.) The development has obtained all of its entitlements through the City including its 100-year water supply, zoning, etc. It has also had its final plat approved. On December 21, 2000 the company entered into an agreement for structuring and securing its financing with a major financial institution. With almost everything in place, they are expecting to be under construction and in presales by spring of 2001.

Vacation Insurance Products, Inc.: The Ed McMullens, Senior and Junior, formed a new company this year focusing on insurance. Ed Senior resigned his position as Managing Director and his operational involvement with Shell Vacations at the end of June, having been with Shell since November 1997. The McMullens have developed an insurance products business specializing in the vacation ownership and resort real estate markets. Based in Orlando, Florida, McMullen’s company, Vacation Insurance Products, Inc. (VIP), provides mortgage-protection coverage options that include credit life, disability, involuntary unemployment, accidental death and travel-related offerings.

Prime Hospitality Corp.(NYSE: PDQ) announced in December that it has entered into an agreement with Timescape Resorts to develop the AmeriSuites Vacation Club at Calypso Cay Vacation Villas, in Orlando, FL, south of Lake Buena Vista. The 151-suite Vacation Club is expected to open in late 2001. Opportunities to develop other AmeriSuitesVacation Clubs with Timescape are currently being explored. The AmeriSuites Vacation Club, a brand new effort by this hospitality company, will offer an array of franchise opportunities to hotel developers, such as timeshare franchise status, sales and marketing, management and consulting. The Vacation Club concept will allow timeshare developers the autonomy to operate their own project while having the clout of a national brand.

Scott Church, for many years with Shell Vacations, has completed one new timeshare project on the Big Island of Hawaii, and is working on more. Ten years in the making, this special timeshare project consists of just one unit-- but what a unit! What Scott did was to take the former sales room on the 2nd floor of the recreation center at Shell's Kona Coast Resort and turn it into a penthouse. This is a 'one of a kind' ( fee simple ) 'timeshare', and is modestly called on its Web site "the finest timeshare residence ever created in Hawaii !" It is a private development, not affiliated with Shell Vacations LLC or its 'Club', although it is managed by Shell Management Hawaii, Inc. You can see photos of this lovely creation at http://www.penthouseonekcrhawaii.com/ There is still enough room upstairs-- that Church owns-- for Penthouses Two and Three. Maybe in 2001?

Accor Première Vacation Club: French hospitality giant Accor teamed up with Australia's Becton in August to launch the new Accor Première Vacation Club, using a points-based system. Suite and apartment-style accommodation will be offered across a selection of Accor’s extensive portfolio of four and five star hotels in Australia and New Zealand. Initially, this will include the Grand Mercure and Novotel brands, with new products to be developed by the joint-venture. A national roll-out of offices is planned for the Accor Première Vacation Club, starting with a Queensland branch (opened in October), followed by offices in New South Wales then Victoria. Around 200 staff will be employed by the Accor Première Vacation Club by the end of 2001.

Peccole Nevada Corp. is focusing on a 300-unit high-end fractional resort to be developed on the northeast corner of the company's Queensridge property near the Badlands Golf Club in western Las Vegas near Summerlin. The new development will include townhomes of 1,600, 3,200 and 4,800 square feet. This will be the first high-end fractional development in Las Vegas. Peccole Nevada Corp. was founded in 1949 and has developed the Canyon Gate Country Club, Peccole Ranch, Queensridge and Queensridge North in Las Vegas.

Prestige Resort Development has begun construction of the $90 million-plus, 61-unit Club at Big Bear Village, the first luxury residence club providing fractional ownership in Southern California. Located two hours from most metropolitan areas, the project is scheduled to open in the summer of 2001. It is designed for prospective buyers interested in a second home without the complexities of traditional vacation-home ownership. The Club at Big Bear Village will be a gated private residence club and high-end resort, owned by 610 members, each with a 1/10 undivided, deeded interest ownership.

Timeshares International, through its newly formed division named Cruiseshares, Inc., has created a cruise line specifically for timesharing. Called Romantic Cruise Line, initial plans call for a total of five vessels. These include the Romance I, already under contract, the Romance II (built in 1959 as the Statendam IV), two more existing ships and a new build, for which the company is negotiating with a Chinese shipyard.

All of the company's ships will carry the Romance name, and they will all offer up-scale staterooms, facilities and service. Ship sizes, some public areas and the number of staterooms will vary according to the specific ship's size and layout, ranging from inside staterooms for 2 passengers to outside suites for up to 4 guests. The number of Cruiseshares on a ship will be 50 weeks (each being a 7 day cruising period) times the number of staterooms.

Cruise itineraries will vary each year and will include Caribbean, Alaska, Mediterranean and other locations. Some of these and other itineraries will occur simultaneously when more than one Romance ship is in service. When possible, itineraries will be scheduled to comply with the interests of Cruiseshare owners based on their response to related questionnaires provided by the Association. Annual changes will ensure that different ports are visited each year.

The Cruisehare concept is owned by Cruiseshare Project, Inc., a Florida corporation which is wholly owned by EXA International, Inc. a public company. The "Developer" of the vessel Romance II is Cruiseshare Two, Inc., a Bahamas corporation.

The United States address of EXA International, Cruiseshare II and Cruiseshare Project, Inc. is 440 South Federal Highway, Deerfield Beach, Florida 33441.