New Hawaii Timeshare and Fractional Ownership
Friday, June 5, 2009
Hawaii tourism has a new reason to celebrate with the recent opening of the Ritz-Carlton Club and Residences at Kapalua Bay on Maui. Hawaii timeshare has been an important part of the timeshare and vacation ownership industry for a long time, and candidly, tourism in Hawaii has taken a hit with the depressed economy. So it is especially good news that this $355 million Hawaii timeshare resort and condo complex is open and operational. The Honolulu Advertiser quoted Ryan Churchill, senior vice president and lead project investor of Maui Land & Pineapple Company as saying, “We are delighted to welcome this stunning new property to Kapalua Resort’s portfolio of luxury living.”
The new Ritz-Carlton Club and Residences at Kapalua Bay is the first resort in Hawaii to introduce a fractional ownership condo development on such a large scale. The resort is built on 24 acres and it encompasses nine buildings, each three to six stories high. Included are 84 fee-simple condos and 62 timeshare units. The timeshare units are being sold as fractional ownership condos, in which 12 co-owners share ownership of a unit, each owning a minimum of three weeks apiece.
The Hawaii Timeshare Real Estate Market
Offsetting the challenge of selling timeshare real estate in this price range is the fact that many presales occurred as early as June 2006, before the Hawaii timeshare real estate market felt the worst of the current economic situation.
Jenny Ochtera, who is in charge of sales and marketing at the resort, notes that these are challenging times economically, but that the resort has been, “incredibly fortunate.” The Maui Land Company and Ritz-Carlton corporate say that the property continues to attract an impressive number of buyers.
Presently, 267 units of fractional ownership have sold for prices between $350,000 to $850,000. Twenty-five of those sales occurred in the first quarter of 2009. The resort plans for the sale of 744 timeshare intervals total, reserving 16 weeks per year for use at an additional cost by the member-owners.
The timeshare units (fractionals) are spacious, ranging in size from 1,912 square feet to 2,257 square feet, and offering a choice of two or three bedroom units. On-site amenities include a lagoon-style pool with a bar and grill and a private beach club. There is a second bar near the water’s edge. By late June of this year, a 30,000 square-foot spa is scheduled to open, followed by a Maui-themed general store.
The Ritz-Carlton Club and Residences at Kapalua Bay was developed by Kapalua Bay LLC, which is 51 percent owned by Maui Land; 34 percent owned by Ritz-Carlton: (a unit of Marriott International); and 15 percent owned by Exclusive Resorts.
