Friday, December 16, 2005
In an official release, Lodging Econometrics provides interesting data about timeshares and condo hotel development.
An official release from Lodging Econometrics, dated December 13 2005, provides interesting statistical data that serves to illuminate the current state of the American timeshare industry from a development perspective. Here’s what I learned from this article:
– Timeshare resort development is expected to continue at its current robust rate. This is not new news by any stretch of the imagination. The real value here is that of multiple industry sources confirming the same information.
– 63% of timeshares scheduled for development are new resorts built from the ground up. The remaining 37% would appear to be comprised of remodeled/reflagged/rebuilt resorts.
– 28% of the total forecasted resort development is slated to occur at casino destinations. Surprisingly, oceanfront resorts came in second-place in this category, with 17% of the total. Does this mean more people are gambling? The report also stated that Las Vegas will see more development of timeshares than Orlando, so we might be seeing a trend emerge here.
– These findings also corroborate the rising popularity of condo hotels and private residence clubs. I’d venture to predict that the next ten years will bring many exotic new varieties of vacation lodging products to the public’s attention.
– What I found most interesting about this article came directly from LE President Patrick Ford: “…timeshare is still pretty much a fragmented industry with 74 out of 111 projects in the Pipeline being constructed by smaller local and regional developers.”
With smaller development companies retaining most of the market share, looks like the big boys in the industry aren’t dominating the timeshare landscape after all.