Timeshare Information

Owners at Poipu Point Resort on Kauai, Hawaii, faced with a special assessment in excess of $5,000 per week for reconstruction to correct water intrusion damage to the buildings, have rebelled against the assessment by filing a lengthy class action Complaint against Diamond Resort International, its CEO Stephen Cloobeck and several directors.

In 163 paragraphs within the 52-page Complaint, the plaintiffs have detailed allegations of intimidation against recalcitrant directors and other methods to gain control of the board of directors by installing Diamond employees as directors. Once in control, according to the Complaint, the Diamond directors increased the management fee paid to Diamond to more than ten times prior levels and imposed the special assessment in violation of the Poipu Point governing documents.

Among the allegations is a claim that the water intrusion damage was known to Diamond before they acquired the resort from Sunterra and that Diamond delayed taking any action until they gained control over the board. Further, Diamond is alleged to have sold points in its collection of Hawaii resorts without disclosing the water intrusion damage and impending assessment.

The Complaint points out that the $65 million total assessment works out to more than $300,000 per unit, and charges that much of the money will be used for renovations unrelated to the water intrusion problem.

Plaintiffs allege the directors committed breaches of their fiduciary duty in assisting CEO Stephen Cloobeck to gain control of the board, voting on matters when they had a conflict of interest and authorizing the water intrusion assessment knowing it was invalid under the governing documents.

Diamond Resorts and Stephen Cloobeck are alleged to have committed consumer fraud and deceptive trade practices in seeking to collect the invalid assessment.

Plaintiffs seek to have the water intrusion assessment declared invalid, all payments already made to be refunded and damages.

Source: Timesharing Today Express

Diamond Resorts International Chairman and Chief Executive Officer, Stephen J. Cloobeck, together with CEOs from many of the nation’s leading travel industry companies, met on March 28, 2012, with senior Administration officials at the White House to express support for President Obama’s national travel and tourism strategy.

President Obama’s national travel and tourism strategy would increase travel and foreign tourism to the United States, spurring economic growth and job creation.

As a cornerstone of the U.S. economy and one of our nation’s leading service sectors, the $1.9 trillion travel industry supports 14.4 million U.S. jobs and with the appropriate policies in place, has the potential to quickly provide opportunities for unemployed workers across the country.

Cloobeck expressed his continued support for President Obama’s Executive Order given in January which included a new pilot program and rule change for visa processing in China and Brazil; a final rule to expand and make the Global Entry program permanent; the appointment of new members to the U.S. Travel and Tourism Advisory Board; and the Nomination of Taiwan to the Visa Waiver Program.

“As a global leader in the travel and vacation ownership industries, it’s my responsibility to be actively involved, united with fellow travel industry leaders, and supporting vital travel initiatives as the U.S. seeks to become the top tourist destination in the world,” said Cloobeck.

Alongside Diamond Resort's Stephen Cloobeck, some of the other CEOs representing the travel industry at the White House meeting included: Jim Atchison, President & Chief Executive Officer, Seaworld Parks & Entertainment; Roger Dow, President and Chief Executive Officer, U.S. Travel Association; Dara Khosrowshahi, President and Chief Executive Officer, Expedia, Inc.; Christopher Nassetta, President and Chief Executive Officer, Hilton Worldwide; Rossi Ralenkotter, President & Chief Executive Officer, Las Vegas Convention and Visitors Authority; John Sprouls, Executive Vice President & Chief Administrative Officer, Universal Parks and Resorts; and Frits van Paasschen, President and Chief Executive Officer, Starwood Hotels & Resorts Worldwide.

ARDA (American Resort Development Association) has joined C.A.R.E (Cooperative Association of Resort Exchangers) as an Associate member.

“It is a great honor to welcome ARDA as a new member of our organization,” said C.A.R.E. president Alain Carr. “C.A.R.E. appreciates the participation of Howard Nusbaum and Jason Gamel at our conferences this past year, and C.A.R.E. has benefited from the knowledge and insight in our industry that they were generous enough to share with us.

Because C.A.R.E.’s values are directly in line with ARDA’s, C.A.R.E. has always been a strong supporter of ARDA and has been directly responsible for many C.A.R.E. member companies becoming and maintaining memberships with ARDA.

Reciprocally, ARDA has been extremely supportive of C.A.R.E. and its efforts to deliver outstanding vacation services to owners and members.

“ARDA looks forward to sharing valuable industry information with C.A.R.E. members through increased opportunities,” said ARDA president and CEO, Howard Nusbaum. “While we’ve participated in C.A.R.E. events in the past, becoming an Associate Member will enable ARDA to educate a broader audience about the policies that impact owners and efforts the industry is taking to protect the integrity of the product and the value of vacation ownership.”

ARDA is the Washington D.C. based trade association representing the vacation ownership and resort development industries (timeshares) with almost 1,000 corporate members ranging from privately-held firms to publicly-traded corporations with extensive experience in shared ownership interests and leisure real estate.

C.A.R.E. (Cooperative Association of Resort Exchangers) is a trade association that has helped provide opportunities for vacation fulfillment and exchanges and revenue enhancement through increased networking opportunities since 1985. Its membership is comprised of developers, wholesalers, travel clubs, HOA’s, resorts, and management and exchange companies. Its member companies offer inventory at over 2500 properties and service over one million vacation owners and members.

Holiday Inn Club Vacations® has added the seventh location to its portfolio of vacation resorts, a 36-unit resort located on the Rio waterway in the “City Center” activities district of Marco Island, FL.

Holiday Inn Club Vacations Sunset Cove Resort joins the flagship location, Holiday Inn Club Vacations at Orange Lake Resort in Orlando, FL, and five other Holiday Inn Club Vacations resorts.

“As part of our alliance with IHG, we said we’d grow Holiday Inn Club Vacations in places where our Holiday Inn Club Members have said that they want to vacation,” explained Don Harrill, president and CEO of Orange Lake Resorts, the timeshare developer that manages Holiday Inn Club Vacations properties.

“Our Members have asked for another drive-to destination in Florida, and Sunset Cove Resort delivers just that, with a unique and upscale experience for all owners and guests who visit,” said Harrill.

Like all Holiday Inn Club Vacations resorts, this location at Sunset Cove Resort offers more space, more amenities and more things to do, including three-bedroom residences ranging from 1,667 square feet to 1,900 square feet, with views of either the Gulf of Mexico or Smokehouse Bay.

The resort offers a host of amenities for guests including a pool with sundeck, a bar and promenade area, boat dock and fitness center. The property is also a part of Resort Condominium International’s (RCI) distinguished Registry Collection® program.

“At Holiday Inn Club Vacations, we offer great resorts where families can create their own vacation experiences,” said Del Ross, vice president, U.S. Sales and Marketing, IHG. “We offer our guests the flexibility to vacation when, where and how they want to, all under the comfort and security of a well-known and trusted brand like Holiday Inn.”

Holiday Inn Club Vacations was created in 2008 as a strategic alliance between IHG, the world’s largest hotel company, and Orange Lake Resorts, a leader within the timeshare industry with nearly 30 years of proven success. Holiday Inn Club Vacation’s flagship property in Orlando, located next to Walt Disney World® Resort, was established in 1982 by Holiday Inn founder Kemmons Wilson.

Photo Credit: holidayinn.com

Continuing its notable growth in the South Pacific, Wyndham Vacation Resorts Asia Pacific and Wyndham Hotel Group, both part of the Wyndham Worldwide family of companies, has announced the purchase of a combination of hotel rooms and timeshares, together with the management rights for Wyndham® Resort Torquay.

The beachfront property located in Torquay, near Melbourne, Australia, was developed by Massey Pty Ltd as OnShore Torquay and formerly carried the Crowne Plaza flag.

“The Asia Pacific region continues to be a key area of focus for our company’s development,” said Barry Robinson, managing director Wyndham Vacation Resorts Asia Pacific and also managing director for Wyndham Hotel Group in the South Pacific. “We are pleased to introduce the Wyndham brand to Torquay, further strengthening our presence in this region of Australia.”

Wyndham Hotel Group was launched in the South Pacific region in 2010 with the acquisition of Wyndham Surfers Paradise, the hotel division’s first mixed use property in collaboration with Wyndham Vacation Resorts Asia Pacific.

Wyndham Resort Torquay will be a mixed-use property featuring 149 rooms, a combination of hotel rooms and one and two bedroom timeshares. In addition to management of the resort, Wyndham has contracted to acquire a selection of hotel rooms and timeshares to be transferred into WorldMark South Pacific Club by Wyndham, for use by its 44,000 Vacation Owners of Wyndham Vacation Resorts Asia Pacific’s Vacation Ownership club.

Torquay, one of Australia’s favorite beachside towns, is located 90 minutes from Melbourne and approximately half an hour from Avalon airport. It is home to one of Australia’s most famous surf beaches, Bells Beach and is the gateway to the world-renowned Great Ocean Road.

“Wyndham Resort Torquay is a significant addition to our portfolio as we continue to expand into Australia and the South Pacific region through franchising and management agreements,” said Robinson.

Photo Credit (top) : visitgreatoceanroad.org.au
Photo Credit (center): jason.com.au

Everything’s coming up roses for Dial An Exchange (DAE), one of the world’s largest independent timeshare exchange organizations, after being named a winner in two international competitions.

Selected from a field of international entries, DAE has been named a finalist in three categories in the American Resort Development Association’s (ARDA) annual Awards Program.

In the Advertising, Promotion & Communications Division, the company was named a finalist in the Magazine Advertisement category for their Dial An Exchange Old School Service advertisement as well as selected as a top winner in the Sales Center Materials division for Dial An Exchange – North America.

In the Sales and Marketing Division competition, DAE was named a finalist for their Call Center with less than 200 persons. The top award winner will be announced at a Black Tie Gala held in conjunction with ARDA’s annual conference in Las Vegas on April 4, 2012.

DAE was also honored with the Best Project Team award for its North American operations at the Global Networking Expo, GNEX 2012 & Perspective Magazine Awards Gala. This annual event was held in February in Cancun, Mexico and attended by industry leaders from five continents. The Perspective Magazine Awards annually recognizes the top companies and individuals doing business in the timeshare and fractional sector of the hospitality industry.

Commented Fermin Cruz, Vice President of North American Business for DAE who accepted the award, “The entire team in the North American office for DAE is especially proud of winning in the Best Project Team Award category. We work very hard as a team and to receive an award that was voted on by our peers makes it a special honor.”

Dial An Exchange CEO Francis Taylor agreed. “Winning this prestigious award for two consecutive years is a testament to the level of success DAE continues to achieve. During 2011, the company grew more than in the previous five years."

"This growth was achieved while maintaining an A+ customer satisfaction rating with the Better Business Bureau. At the same time, we added 100,000 new members as a result of new industry partnerships,” said Taylor.

Interval Leisure Group (ILG) has announced that it has acquired Vacation Resorts International (VRI).

"With the acquisition of VRI and ILG’s existing management interests, Interval Leisure Group becomes the largest independent provider of resort and homeowner association management services to the shared ownership industry,” said Craig M. Nash, chairman, president, and chief executive officer of Interval Leisure Group.

“ILG companies now deliver these services to more than 180 timeshare resort and club locations and 325,000 owner families. The purchase supports our strategic focus on asset-light, fee-for-service businesses and further positions us as a leading source for shared ownership management and membership expertise,” said Nash.

Headquartered in Laguna Hills, California, Vacation Resorts International (VRI) has provided resort and homeowner association management services to the shared ownership industry for 30 years. VRI has four regional offices and manages more than 140 resort and club locations in North America for the approximately 250,000 families who own at VRI-managed properties.

Interval Leisure Group (ILG) is a leading global provider of membership and leisure services to the vacation industry. ILG is headquartered in Miami, Florida, and has more than 2,800 employees worldwide.

The company’s primary business segment is Membership and Exchange, which offers travel and leisure-related products and services to approximately 2 million member families who are enrolled in various programs.

Interval International, the segment’s principal business, has been a leader in vacation ownership exchange for 35 years. With offices in 15 countries, it operates the Interval Network of more than 2,600 resorts in over 75 nations. ILG delivers additional opportunities for vacation ownership exchange through its Trading Places International (TPI) and Preferred Residences networks.