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 STREET TALK
Week of December 12 - December 18, 2003
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"
The world's biggest after-hours timeshare watering
hole."
Street Talk is a compendium of tips, facts, gossip, rumors,
speculation and editorial comment.
This Column is Published Every Friday, with
frequent updates throughout the week
E-mail: news@thetimesharebeat.com |
Email: street@streettalkblog.com
" The theory of a free press is that truth
will emerge from free discussion,
not that it will be presented perfectly and instantly in any one account." -- Walter Lippmann
click here for Street Talk International
It's time to take a vacation again. This writer is bored, crabby and short-tempered after
a year of wading through hundreds of emails every day-- the good the bad and the ugly-- and I don't care if I ever
see another email or hear about timeshare again as long as I live.
Yeah, I need a vacation. So I'll be taking a couple weeks off during Christmas and New Years, and there won't
be any new Street Talk stuff during that time UNLESS IT'S REALLY REALLY BIG NEWS. I'll come back following
my little attitude adjustment...
Meanwhile, see ya next week with more Street Talk and (sigh) keep those cards and letters comin' in.
In the " Getting really bigger' category is ICE Gallery. Carnival recently announced
the launch of Carnival Vacation Club (CVC), a unique points-based Cruise Program that allows Carnival guests
to purchase vacation packages that feature cruise points redeemable for " Fun Ship" cruise vacations.
Carnival contracted with ICE for the launch of this new Club product. The new CVC program, which will initially
be sold exclusively aboard the Carnival Conquest and Carnival Pride, features four different packages
of CVC Points which are redeemable any time within five years from the date of purchase. CVC Points may be redeemed
for any of Carnival's " Fun Ship" cruise vacations to The Bahamas, Caribbean, Mexico, Alaska, Hawaii,
Panama Canal, Canada, New England and Bermuda. CVC Points are not valid for any other cruise or resort vacation.
Dear ICE: You've come a long way, Baby.
- YOUR COMMENTS
- Dec. 12: --" Word
is that a gentleman by the name of Dwayne Smalls
(formerly a manager with Fairfield) is part of the initial roll-out of this new ICE/Carnival Points program. He
is a real professional - and a great closer - and will undoubtedly help to ensure the success of this exciting
new program."
Email: street@streettalkblog.com
| IN THE WESTERN Half of the USA: |
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CALIFORNIA:
LA QUINTA: KSL Recreation Corp. has hired Goldman, Sachs & Co.
to explore potential sales of six luxury resorts in its portfolio, according to KSL spokeswoman Patricia Peeples.
KSL, which is privately held, owns and manages all its properties, which is unusual in the industry, and hopes
to maintain management contracts with any resorts that might sell.
KSL and Kohlberg Kravis Roberts & Co., a private equity firm that is the " K" in KSL, formed
a new venture to explore investments in the resort and hospitality field. The venture recently bought La Costa
Resort & Spa in Carlsbad, CA, from KSL and expects to complete purchase this month of the Hotel del
Coronado resort in Coronado, CA, a deal that includes CNL Hospitality.
RANCHO MIRAGE: Summit Builders was recently awarded contracts to build
Phases IV and V of the Westin Mission Hills Resort Villas timeshare project located on Dinah Shore Drive.
The two new phases of this project will encompass seven two-story buildings and 102 luxury villas. Construction
of the new phases is expected to begin early next year, with anticipated completion by the fourth quarter of 2004.
Phoenix-based Summit Builders recently completed Phase III of the Westin project, which included five buildings
and 50 timeshare units.
E-mail street@streettalkblog.com
COLORADO:
DENVER: It's a war for the patronage of the very rich, with allegations of stolen
ideas, poached client lists and questionable sales tactics. (Wow, sounds like regular timeshare, doesn't it?) Denver-based
Exclusive Resorts filed suit against archrival Private Retreats, another company that sells luxury
private residence club memberships, to stop them from using the URL www.exclusiveresorts.com The complaint
alleged that Private Retreats is " cyber-squatting," an unfair business tactic to get companies to pay
big bucks for Internet addresses bearing their name. Exclusive Resorts complained that some consumers who are looking
for its official website - www. exclusiveresortsllc.com - have instead been confused by the similar domain
name and that Private Retreats profits from it.
A search of domain registration records shows that Private Retreats, launched from Telluride in 1998, registered
the exclusiveresorts.com domain name nearly three years before Exclusive Resorts was formed, but they did not use
the web address until recently. Private Retreats CEO Rob McGrath admitted Private Retreats did indeed " fire
up" the exclusiveresorts.com address for two days to retaliate for what he called " very dirty competitive
pool" played by Exclusive Resorts.
Currently, the disputed Web address shows an " Under Construction" notice as the argument was tentatively
resolved when a federal judge in Denver approved a consent agreement stipulating that Private Retreats will stop
using the Web address. But you can be sure the brawl isn't over...
E-mail street@streettalkblog.com
NEVADA:
MESQUITE:
•
The Mesquite City Council has approved " conditional use permit, tentative and final maps" for the CasaBlanca Villas timeshares at 100 Pulsipher Lane. What does that mean?
•
Highland Estates Resort has finally received its Nevada Public Offering Statement on November 7, 2003,
and will be in sales after January 2, 2004. Project Director, Ronald L. Haisting has a trained 8 person
sales staff ready to go after January 1, 2004.
This property will offer Studios, 1 Bedroom, and 2 Bedroom units and is affiliated with Interval International
as a Five Star Resort and also a Golf Resort. The Resort's amenities include a swimming pool, tennis court, fitness
center, restaurant, with an additional pool and conference center to follow. The total number of units will be
81. Phase One will offer 13 initial units for sale. All owners will have local discounts at several golf courses
in Mesquite, Nevada and St. George, Utah.
E-mail street@streettalkblog.com
TEXAS:
HILL COUNTRY: The Texas Hill Country is beginning to heat up as a destination.
Hyatt is building a big new timeshare resort at their Hyatt Regency Hill Country Resort & Spa
just outside of San Antonio and now Marriott is going to open its first resort in Texas on the shores
of Lake LBJ, 50 minutes from Austin. Set to open next Fall, the Horseshoe Bay Resort Marriott Hotel and
Conference Center is in the middle of the 6,500-acre Horseshoe Bay Resort, which features three Robert Trent
Jones, Sr. 18-hole championship golf courses, world-class tennis, a spa, watercraft rentals, and even a private
6,000-foot-runway airport. No word yet on whether vacation ownership will be included in the mix, but we think
the possibility is strong.
E-mail street@streettalkblog.com
UTAH:
SALT LAKE CITY: Owners' Resorts & Exchange (ORE), a non-profit company
functioning for the sole benefit of its timeshare owners since 1987, has outgrown its headquarters. Over the past
eighteen years, ORE has grown significantly, adding at least one association to the ORE family each year and tripling
the number of employees working at the corporate office. So they looked around for a good deal and finally purchased
a building in Salt Lake City that includes additional office and storage space, a sizeable parking lot and a conference
room large enough to accommodate all HOA annual meetings held in the Salt Lake Valley. They moved in at the end
of October and are nicely settled by now. ORE has also welcomed a new property to the family: Peppermill Palms
(Grand Destinations Vacation Club), 39 units at the Oasis Resort in Mesquite, Nevada.
E-mail street@streettalkblog.com
WASHINGTON:
REDMOND: There still seems to be some unease within Trendwest about its " corporatization" following Cendant's takeover. " Since Cendant purchased Trendwest/Worldmark, it seems
like lots of changes in the works. Regional Mangers Mark James and Larry McDowell have been demoted to PD's. Whats
up?" we are asked. And, " PD's are coming and going faster than ever in all
regions. Also tour flow has taken a hit since the no call. Is the problem they didn't prepare for the law change?
In California they have been getting lots of press, any chance of being shut down? Do you forsee any Major changes
in the works, or is it a case of a new broom sweeps clean?"
Well, how clean the broom sweeps may depend on your point of view. For those who thrive in a more regulated corporate
structure things are going fine. For those who are more independent minded and free wheeling, well hasta la vista,
baby.
Trendwest has taken some hits for the " unscrupulous" tactics of some of their staff, most recently (and
notably) the big fine assessed against them by the state of California. Headquarters (and Cendant) doesn't like
that kind of thing. We think you can expect changes similar to those in Fairfield's structure-- pay-wise and in
other ways. We also expect that tour flow will begin to improve for y'all if you hang in there. And no, in our
opinion Trendwest will not get totally shut down in California-- but, as noted, there have been a lot of changes
and some of them are major. Hopefully this will mean that the heat merchants hit the road, and that everyone who
is supposed to have a license will really have one...
- YOUR COMMENTS
- Dec. 12: --" Trendwest
needs to trim the fat in corporate.
For years they have been top heavy with a lot of no talents who have no idea what it takes to sell timeshare. I
for one believe that trendwest is becoming to corporate, to anal in their thinking. It is no longer fun to come
to work anymore, as it used to be. Yes it is true that the industry is changing, however one thing will never change,
and that is the art of selling. Put all of these administrative thinking people on the sales floor and watch the
numbers fall. I believe that trendwest is changing for the worst. Look at the numbers of their regions. Southern
and northern california are on their lips. The mountain region has lost money for years. Lets get even more administrative
now.
Once a sales office becomes corporate in their thinking, administrative in its thinking, then watch the sales numbers
fall. Timeshare selling is an art that can not be taught at school. I say lets get back to the basics of selling."
- AND: --" Trendwest
is losing its grasp on reality. Ever
since Cendant stepped in they have tried to reinvent the wheel. They have lived in the illusion that they are going
to take the company to another level. Well that level is sinking. Bring back Bill Peare. He understood the concept.
Sales people are the bottom line. All you have now is a group of corporate fools who are paranoid about losing
their jobs. All they do is point fingers at the sales people. Bill peare knew how to keep salespeople. All Cendant
knows is how to lose them.
Corporate needs to stay away from sales, you cannot combine the two. It has never worked and it never will. Sales
people are a different breed of cat."
- Dec. 14: --" A
better name for Trendwest is Fairfield-West.
Cendant put Trendwest and Fairfield into a group called the Timeshare Resort Group (TRG). Guess where the TRG is
headquartered? Guess whose CEO came out of retirement to run the TRG? Guess what state most of the new execs in
Redmond are from? How long until Trendwest is merely another face to Fairfield, not a separate product?"
- AND: --" As
x employees from Trendwest we would
have to agree that it seems Trendwest is changing. It used to be FUN to come to work and when it became just another
Timeshare it was time to go.We believe that the higher ups are getting what's coming to them. The Regional Managers
are how do you say [USELESS] and we can't wait to see some changes with the Regional Manager in Southern California.
We would be the first to congratulate Cendant for demoting him.We never understood how one person could make so
many mistakes and bad judgement calls within the company and still keep his job. OH WAIT HE IS IN THE GOOD OLD
BOYS CLUB. Well guess what, your time has come because the good old boys club has changed players and we do believe
you won't be drafted when it's time to make that call. ... We as a group are sorry to see all the negative changes
in what once was the company that cared. All that went right down the drain, along with some very positive and
loyal employees who actually believed that was true. THANKS FOR THE MEMORIES!!!!!!!!!"
- Dec. 17: --" Yes,
it is true that Trendwest is changing.
But one thing that has not changed with Trendwest is their marketing practices. That is the primary source for
there dismally low numbers. They need to get rid of their pender mentality. They need to stop being slaves to outside
vendors who send in any tour that has at least bus change to get there. This is no exaggeration. I personally spend
all day talking to unemployed people, people who have no charge cards nor checking accounts, full time students,
and low income people. This goes on at all Trendwest stores.
This kind of quality compromises the majority of Trendwest tours. That is the main reason that almost all Trendwest
stores are below ten percent close. It is very frustrating to see talented sales people wasting their time with
tours that are incapable of buying, and then being spanked by arrogant administrators for not selling them. Marketing
must stand accountable.
As a final note, the next step for the company, and probably all timeshare companies, is that something needs to
be done about the resale market, it is killing store numbers. Of course, corporate never listens to the sales floor,
they just sit in their offices and figure it all out. Corporate is so out of touch it is pathetic. It would be
very simple to control the resale market. After the tour is done, instead of introducing the client to a dicovery,
or explorer rep. introduce them to an inhouse resale rep, after he is done then offer an explorer or dicovery package.
There is not a day that goes by on the sales floor where resale does not cost a deal. Resale is also causing a
lot of kicks.
Of course all the school boys in corporate have got it all figured out."
E-mail street@streettalkblog.com
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| IN THE EASTERN Half & Midwest of the USA: |
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FLORIDA:
PORT CANAVERAL: Ron Jon is nearing completion of its first purpose-built
beach-side timeshare resort and is looking for future licensing deals in the business.
Ron Jon has teamed up with Milwaukee-based builder and timeshare operator The Towne Group to build a 525-unit resort
at Port Canaveral. The Towne Group already has three timeshare projects in the Cocoa Beach area: Ocean Landings,
Discovery Beach and Resort of Cocoa Beach. Although Ron Jon will get licensing revenue from the resort, it
will not be involved in the management or operations.
The beach-front location near Port Canaveral is slated for a Jan. 1 opening. The project, on 23 acres, will cost
about $130 million to build and include a $4 million water-oriented recreation area with a swimming pool, " lazy
river" type water stream, water slides, a tiki bar, and entertainment area for children.
The units are currently selling in one-week increments for $8,000 to $25,000 and the project is expected to sell
out in 12 to 13 years, grossing about $500 million. Annual maintenance fees run about $500.
FORT LAUDERDALE: According to news sources, Donald Trump has signed on
to take over the fledgling Club Regent private residence club that is under way off Highway A1A in Fort
Lauderdale and relaunch it as the Trump International Beach Club. The Miami Herald reports that Trump
plans to launch construction quickly at the Beach Club, rather than follow the traditional and safer course of
selling at least half of the units before building. Philip Spiegelman's company, International Sales Group in Aventura,
was hired to sell the Beach Club's condominiums. He was quoted as saying the building would serve as a hotel, with
at least some of the rooms available for sale as condominiums.
The $60 million Club Regent Fort Lauderdale Beach, an affiliate of Regent International Hotels, announced
the opening of its multi-million dollar sales center in March, 2001 (see Club Regent Opens Multi-Million Dollar Sales Center on Fort Lauderdale Beachfront ), but apparently
things have not gone as well as hoped prior to the disaster of Sept. 11.
E-mail street@streettalkblog.com
MISSOURI:
BRANSON: James " Runaway Rocky" Pridgen-- who had New Horizons
Travel Club in Ashville, NC then Infinity Travel Club in Johnson City, TN then Leisure Time Travel
in Branson -- allegedly has done it again..What, you ask? RUMOR has it that Pridgen took a midnight powder and
moved himself and his family to St. Thomas in the Caribbean. Word is he left Branson owing employees and
vendors a considerable amount of money. Yes? No?
- YOUR COMMENTS
- Dec. 12: --" yes,
Rocky has left the building... I worked
for him and he scammed out of town owing me a little over $4000.00 in unsecured debt. Rumor has it he is only on
vacation but the truth is.. he is GONE WITH THE WIND. Quite frankly timesharebeat I don't give a damn... to quote
a line."
- AND: --" I
am a former employee and I ran into
Rocky after I quit and he was mailing a large quantity of X-mas packages. I asked him about money he owed me and
he of course played dumb and said he was in a hurry on his way to " the islands" . Is he really gone? Is
Leisure Time out of business? Max Bodine was in the office as of 12-12-03. What's the deal?"
- Dec. 15: --" I've
heard Global Network is setting up shop
at Magens Point Resort and Global Discovery is opening near the tram. Is this the same company and is Rocky Pridgen
involved in either deal? Lord help him if he tries to screw an " Islander" !!!"
- Dec. 18: --" Rocky
showed back up in Branson last Wed....
said the deal in St. Martin(?) did not fall into place.. course he also has lost his backing in Branson..guess
he is not as popular as he would like for others to think... kind of a legend in his own mind."
E-mail street@streettalkblog.com
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| Rumors Rumors Who's Got the Rumors? |
- •
Is there any truth to the rumor that David Vopnford, the Executive
Vice President of Pahio Resorts / Demand Vacations, has put in his resignation?
- YOUR COMMENTS
- Dec. 14: --" I
do not know if David Vopnford is going
or not. But I have been told that Steve Thomas ( the South Center Regional Sales Director ) is going to be taking
a more active role in the company."
- Dec. 16: --" I
am not sure if Pahio Resorts / Demand Vacations
will stay open. But since our Regional Director Carter Lee left things have gone down hill. It is a fact that Ron
Walters the co owner is losing control and losing all his employees. Pahio Resorts also lost Shari Sparling the
Director of Operations. They are droppng like flies. Who is next."
- Dec. 17: --" It
is important to remember how their Seattle
operation got started-by hooking up with Mike Vasey's travel club. Customers would be given a week to use at Pahio
as part of their $3995 membership. A couple of weeks after their purchase, they would be contacted to come back
in for a " follow-up review" of their travel club benefits. The boys, Carter Lee, Steve Thomas ( who ran
the travel club for Vasey and Vopnford), and the rest really slam-dunked these people. With no money down, they
were closing well over thirty percent. Clearly, this was a bait and switch operation, but at the time, Walters
had way too much inventory- so I think he pretended otherwise. Now the end is probably near, as " all good
things must end sometime" and they are faced with having to sell in a more ethical and convential manner.
They probably don't have the talent to do that- so adios Seattle."
- AND: --" First
things first. David Vopnford is going
to be missed greatly. He held the company together. As for Carter Lee and Steve Thomas well they are what they
are. Now Mike Vasey's Travel Club. There is a story that should be told. Mike has given our business a bad name.
I know for a fact that Mike is in some real legal trouble for fraud. I wonder if any one wants to talk about that.
As for Pahio What ever happened to the California group."
- •
Is there any truth to the rumor that Gil Nogalski, due to conflict
of interest, will leave Star Island and concentrate on his partnership deal in Gatlingburg, TN with Tom
Daku? (Tom Daku is from Vacation Villas in Kissimmee)
- YOUR COMMENTS
- Dec. 12: --" Many
people close to the Star Island scene
believe Gil N. will end up with the former in-house manager (Fred) on a deal with Bob Kaplus. Both Gil and Fred
were very loyal to Mr. Kaplus during all the legal battles at Star Island."
- AND: --" They
tell us Gil has REAL strong ties to
Gatlinburg remember he was one of the key players in the Star Island marketing and they owned Town Square resort
for years before it was sold to Sunterra and Summer Bay. Is there another resort headed to Gatlinburg?"
- Dec. 13: --" The
real truth is when Gil converted to
Judism - Hillie adopted him into the Meyers Family - Gil is not going to Tenn. even though he is very connected
in that area. He will stay at Star Island and help rebuild the company. Good Luck Gill, " The Reverend" ."
E-mail street@streettalkblog.com
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| Quotable quotes: " I'm an ex-citizen of nowhere, and sometimes I get mighty homesick." --the character of Ben Rumson in Paint
Your Wagon |
| International: |
- BRITISH COLUMBIA: Will Canoe Mountain Resort include timeshare?
- GERMANY & CANARY ISLANDS: Anfi has chosen RCI...
- SOUTH AFRICA: Sun International is planning a significant expansion
of its Fish River Sun resort in the Eastern Cape...
- MEXICO: Hotel discounts in Cabo during high season?
READ MORE in Street Talk International (Last Updated
Dec. 12)
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| Idle Thoughts: |
- • Is the battle
of the exchange companies heating up?
Interval International recently hosted a Timeshare Investment Conference in Dubai, the first ever
in the Middle East, which was apparently a big success. The Middle East is virgin territory, and both companies
are going for it.
For instance, it looks like the II boys are starting their own timeshare sales and marketing division there.
Look at Vacation Club Management. The principals of this company, which is based in Dubai, are Danny
Rubinstein, currently a director of Interval International John Hopwood, most recently the Middle East
Regional Marketing Director for Marriott Vacation Club International Sherif Khalil, II's General Manager
for Egypt & Middle East and Al Mansour Al Tarzi, the company’s Chairman, a specialist financial advisor
with 30 years experience in commercial and investment banking. Their mission, as stated on their website:
- " To assume the responsibility for the structure, implementation, sale and marketing of Vacation Ownership
(timeshare) programs for a quality network of client developed hotels and resorts that cater to the Middle Eastern
traveler.
" From Morocco to Malaysia, London to Johannesburg, the company’s ambition is to build the Arabian Vacation
Club where members will roam freely and enjoy a variety of vacation experiences.
" Through exchange opportunities afforded by Interval International, a member’s horizons will expand to
the full range of the more than 2000 affiliated resorts around the world."
- Is II using this as a launch into the timeshare sales and marketing business globally, just like RCI did? Certainly
makes for an interesting thought... http://www.vcmarabia.com
- UPDATE: Dec. 12, here is a response from Interval International-- " With regard to the item carried in the December 12, 2003 issue of The Timeshare Beat in
the “Street Talk” section, Interval International has absolutely no involvement with Vacation Club Management.
Interval maintains its long standing philosophy of complementing, rather than competing with, our developer clients
and has no financial or other interest in any outside sales and marketing organization." And there
you have it, straight from the horse's mouth.
- Meanwhile RCI, which recently opened a sales and call center in Dubai, has snagged IFA Hotels & Resorts. IFA chose RCI for the " membership inventory management" of its 5-star, 460 all-suite Vacation
Club on The Palm, Jumeirah in Dubai. The affiliation represents RCI's first inventory on The Palm, Jumeirah,
one of two man-made islands off the coast of Dubai (we've been telling you to watch the Palms developments).
In the Far East, RCI has let no grass grow under their feet either. As reported by the South China
Morning Post an " agreement in principle" has been reached with China National Real Estate Development
Group Corp (CRED), the mainland's biggest real estate developer, to link their timeshare accommodation networks
and expand their operations and reach. Under this agreement, CRED would adopt RCI's management and technological
standards, while both sides would gain access to each other's holiday exchange networks that would cover most major
Asian, European and US cities. Actual cooperation and exchange would begin once CRED's bid to convert Hong Kong's
20,000 vacant Home Ownership Scheme flats received the go-ahead from the government. The territory, seen as a lucrative
income earner, is considered an integral part of the mainland developer's China network that has now drawn RCI's
interest. The tie-up of the two powerhouses would see both companies as equal partners.
That has very big potential...
E-mail
street@streettalkblog.com
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| People on the Move: |
- Private Retreats by Abercrombie & Kent has named Mr. Bob E. Schrader
to the post of Chief Operating Officer to oversee all operational facets of the company, headquartered in Kansas
City, Mo. Mr. Schrader brings more than three decades in the luxury hospitality industry working with service leaders
such as Regent International, Miraval Life in Balance, Four Seasons and most recently Ritz Carlton.
- John Fitzgerald has been appointed Project Director, Marketing and Sales,
at Marriott Grand Residence Club Mayfair- London. Prior to joining Marriott 5 years ago, John spent 5 years
with Hilton Grand Vacations Company.
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