The latter part of 2010 marked the rebound of the timeshare market and sales have been brisk since then and steadily picking up each year. Sales activity has been picking up at both the developer level and also on the timeshare resale market.
Developer timeshare news:
Developer sales are doing really well especially with the name brand companies like Hilton, Starwood and Marriott.
Starwood has been exercising its right of first refusal option at Westin Ka’anapali Ocean Resort Villas, Westin Ka’anapali Ocean Resort Villas North, Westin Princeville Ocean Resort Villas and Westin Mission Hills, for inventory for their sales operations. In addition, Starwood is taking some of their hotel rooms and converting them into their vacation ownership program, at the Virgin Grand Villas on St. John, USVI.
The Marriott Destination Club Points sales program has been quite brisk, so Marriott is exercising its right of first refusal option for inventory into the Marriott Destination Club Points program.
Timeshare sales nationwide of name brand properties has been strong for the past several years.
Timeshare sales in Hawaii has overall been very strong for Hilton, Starwood, Marriott and Wyndham and Diamond resorts.
By exercising their right of first refusal option, Hilton, Marriott and Starwood are securing risk free supply and low cost inventory.
Other Developer news: Hyatt completed their latest property at the Hyatt Regency on Ka’anapali Beach Club consisting of a 12 story building offering 131 units, including 19 one-bedroom units, 100 two-bedroom units, and 12 three-bedroom units.
One of the reasons resale of timeshares has gone up is because hotel room rates have gone up. Annual maintenance fees in some resorts have experienced a modest increase, in part due to lower maintenance fee delinquencies and minimal increase in labor costs.
Consumers are finding timeshares provide an attractive alternative to vacationing in a hotel.
If the annual fee of a timeshare is less than what one would pay for a comparable accommodation with the added savings of having cooking facilities and a washer/dryer in a timeshare property, those considerations can justify the upfront cost of purchasing a resale.
Buying a timeshare resale on the secondary market is much less expensive than purchasing direct from the developer because of the fact that the developer incurs marketing costs that are passed on to the consumer. It is the developer who sets the price on the retail market. On the secondary market, prices are determined by individuals and current market conditions.
A timeshare interval should be purchased for enjoyment. The purchase of a timeshare ensures that you will be able to vacation and spend quality time with your family and friends each year. You might want to think of it as vacation insurance for all your future vacations!
Syed Sarmad, Principal Broker for Advantage Vacation