Growth Seen in Resort Development

As the Economy Goes So Goes the Hospitality Industry 

There is good news for the timeshare industry, which was hard hit during the recession when travelers postponed vacations and held back on new purchases.  Recently there are indications that companies are showing they can compete, thrive, and do better.

Industry leaders are seeing a recovery in the resort industry. According to a report from Jones Lang LaSalle, 'the resort sector accounts for 18.4 percent of total investment transaction volume this year in the hospitality sector." The report goes on to say that "the increase is due to $2.46 billion of transactions through year-to-date August 2013, the highest volume in the segment since 2007, and more than triple that of 2012."

The Jones Lang LaSalle report also states, "even though the resort market is taking off, not all assets are ready for the flight." "During the downturn, resorts held off on renovations. Now owners may be able to add amenities and create a more differentiated product. Companies who are able to go to market in the next three years with a renovated product and capitalize on the on the upswing with added value, may attract more investors."

FARROW Commercial Construction, a hospitality construction company in Santa Rosa, California understands the upswing in the industry. The nationwide company reports revenues up 300% over last year at the half-way mark.

John Farrow, President and CEO of FARROW says, "We are growing again. After the few soft years where not many were breaking down our door to get either refurbishments or ground-up construction done, we are very happy to report that the tide has changed and we are once more on the move." Farrow attributes his company's growth surge to competitive pricing, faster timelines and strong communication.

Another turn-around happened recently when construction resumed in Las Vegas.  Construction started up on a Wyndham Worldwide project, a 281 unit timeshare called The Desert Blue.  Work on the project had halted four years ago.

Breckenridge Grand Vacations has broken ground on a very high end, luxury 75-unit timeshare called the Grand Colorado Resort. According to Rob Millisor, an owner/developer of the company, “The Grand Colorado will be the pinnacle resort within this community. With only 75 residences, it will become the most exclusive fractional/timeshare resort to own." The company is also showing its industry optimism by looking to hire new sales representatives. “We have more qualified prospects than we can currently handle," says Dave Stroeve, Vice President of Sales and Marketing.

Cautious Optimism?

Though there are definite signs of upswing in the hospitality industry, should we remain cautiously optimistic?  We see how certain events can affect the industry. The current government shutdown has caused the closure of many top tourist attractions and, in turn, caused consumers to cancel travel plans. The industry needs to be prepared and anticipate future events that could potentially impact timeshare growth.

0 Responses

Post a Comment