The Timeshare Beat
January 31, 2001
ATLANTIC CITY, NJ -- Late last year Jones Lang LaSalle Hotels was appointed to identify a joint venture partner
for the former Tannen Towers, a vacant, luxury apartment building ideally suited as either a hotel or timeshare
redevelopment. The 31-story Towers is situated near the main entrance to the newly restored Resorts Casino Hotel
and is a prominent feature in the Atlantic City skyline. The building has been renamed to simply "The Towers".
Said Arthur Adler, Managing Director, Americas, of Jones Lang LaSalle Hotels, "Few are aware of the exceptional
strength of the Atlantic City timeshare market. Interval sales at The Towers' two primary competitors exceeded
$45 million in 1999 and are on pace to surpass that in 2000."
Timeshare resorts currently in Atlantic City include the Park Lane and the Royal Suites at the Atlantic Palace, both affiliated with RCI, and The Flagship Resort and La Renaissance, which are affiliated with Interval International.
Atlantic City is located on Absecon Island in Atlantic County, New Jersey. It is approximately 60 miles southeast
of Philadelphia and about 100 miles south, southwest of New York. With more than 34 million people visiting every
year, the city has become one of America's most popular destinations and regularly outpaces Las Vegas in terms
of gambling revenue. It offers 12 casinos offering 24-hour non-stop action, world-class headline entertainers,
long beaches, a 4 1/2 mile amusement-filled Boardwalk, championship golf courses, tennis, charter boat fishing,
sailing, restaurants to please any dining choices, historic sites, the Miss America Pageant, natural attractions,
shopping and beach resort recreation.
Unlike Las Vegas, which has recently seen a boom in timeshare projects, Atlantic City is still underserved in the
market. A project such as The Towers would go far toward rectifying that situation.
Originally conceived as a luxury, high-rise condominium complex, The Towers has 296 apartment units (including
a mix of large one- and two- bedroom units), a five-story parking deck for 265 cars, health club, outdoor pool
and 8,100 square feet of retail and/or meeting space.
According to Alan Tantleff, Senior Vice President of Jones Lang LaSalle Hotels, numerous opportunities exist to
form a strategic alliance with several of the casino hotels. "There is enormous potential for a partnership
here because all of the casinos need more rooms to generate casino traffic. The overall casino hotel market runs
in excess of 95% occupancy annually. The two closest casinos, Resorts Casino Hotel and Trump's Taj Mahal, have
expressed a willingness to work together to ensure that the property is redeveloped as a hotel or timeshare use."
Jones Lang LaSalle Hotels, the leading hotel investment banking services group in the world, provides clients with
value-added investment opportunities and advice. Its recent two-year success story includes the sale of 17,027
hotel rooms to the value of $2.2 billion in 75 cities and advisory expertise for 200,036 rooms to the value of
$29.8 billion across 278 cities. Jones Lang LaSalle Hotels' services include transactions, mergers and acquisitions,
financial advice and capital raising, valuation and appraisal, asset management, strategic planning, operator assessment
and selection and industry research. Jones Lang LaSalle (NYSE: JLL) is the world's leading real estate services
and investment management firm, operating across more than 100 key markets on five continents.
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