Fractional

Zoning laws that limit the length of stay or the size of a hotel unit are creating problems for developers of condo-hotels and fractionals in parts of the Florida Panhandle

Pensacola Beach Developers hope to replace a Clarion hotel*, damaged by Hurricane Ivan, with a new 216-suite fractional resort. Each unit in the resort property would be sold to eight owners, who would individually pay to use it six weeks per year. When the owners were not using it, the suite would be available for rent to short-stay guests as a hotel room.

According to Joe Endry, owner of JME Realty, as quoted in a Pensacola News Journal article of April 12, 2007, each of the fractional or hotel units would average 1,250 square feet in size and would rent for $275 to $300 per night. By comparison, a traditional hotel room is between 300 and 450 square feet in size and generally rents for $150 per night (or less) in that particular geographic location.

The crux of the problem is that some officials say visitors who stay longer and have the use of a kitchen and dining area will utilize these in-suite amenities and thereby dine out fewer times than short-stay guests who do not have access to kitchens and eating areas. The critics say that a fractional or condo-hotel component added to a project essentially turns the property into an apartment unit, rather than a hotel, creating a difference that would be felt sharply by local restaurants.

As legislators, including the Santa Rosa Island Authority and Escambia County commissioners, attempt to sort through the distinctions that define one type of property as a hotel, another as a timeshare, a third as a fractional, and still another as a condo-hotel, they are considering hiring a hotel consultant to assist them.

One thing is certain, as resorts more frequently become multi-use properties, this issue will have to be ironed out in board rooms and meeting halls across the country.

* Note to readers: While the Pensacola News Journal identifies the site in question as being that of the hurricane-damaged Clarion hotel, other sources have said that it is the site of an old Best Western motel or and old Holiday Inn.

Elysian Development Group is acquiring the luxury Hotel Jerome in Aspen, Colorado.

David Pisor, the CEO of Elysian Development Group is acquiring Aspen’s Hotel Jerome. Pisor currently owns and runs the Elysian Chicago hotel, which has 51 private residences as well as 181 guest rooms. The Elysian’s private residences reportedly sell for between $480,000 and $640,000.

While it has yet to be announced whether the Hotel Jerome will convert to a condo-hotel property, fractional, or timeshare resort, many anticipate such a move, based on Pisor’s business history. The Aspen Times (March 29, 2007) even referred to the Hotel’s new owner (meaning Pisor) as a “Chicago timeshare specialist”.

Timeshares have also been a touchy subject with some of the residents and council members of Aspen, which explains why the future of the Hotel Jerome remains, at this point, a little uncertain.

Nevertheless, there are other fabulous fractionals, timeshare resorts, and timeshare rentals in and around Aspen, Colorado, that are perfect for your ski vacation or just enjoying the great outdoors.

The award-winning, historic Hotel Jerome was built in 1889 and most recently owned by the Gaylord family who also owns Nashville’s Opryland Hotel, as well as the newspaper, The Daily Oklahoman.

Before you buy vacation property, learn the facts.

According to statistics recently released by the National Association of Realtors, four out of every ten homes sold are purchased either as investment properties or as a second home. As today’s baby boomer generation enters their peak income earning years, as well as comes into inherited money from previous generations, this trend is expected to escalate.

The vacation home market it thriving and with it comes new options for ownership beyond the traditional cabin in the woods or condo on the beach. Fractionals and private residence clubs are choices for people looking to buy deeded property to use on a part time basis. Destination clubs are another option in which owners do not acquire a deed to a specific property but instead gain the right to use a portfolio of homes.

Condo hotels or condotels are actual operating hotel properties that offer some or all of their suites for sale to individuals. While the hotel units may be privately owned, the condo hotel management assumes responsibility for running the hotel and providing contracted management of the units to be rented like regular hotel rooms. Owners can schedule the units at any time for their personal use.

And of course, there are timeshares and vacation club memberships which offer a variety of products from deeded ownerships, to right-to-use, to points-based programs. Timeshares enable you to buy vacation property yet pay for only the days and nights you actually schedule to use. While new timeshare in 2005 sold for an average price of more than $17,000 per week or interval, resale timeshare is available at much lower prices. If you are among the many people who are looking for vacation ownership, ARDA, the American Resort Development Association, has developed the following questionnaire to help you decide which option is best for your lifestyle and your budget:

1. How much time will we be using the vacation home?
2. Is the destination choice difficult to purchase in, or seem over-valued due to location popularity?
3. Are we looking at this second home as an investment and/or family legacy, or perhaps primarily as an annual ‘go to’ vacation spot?
4. How much time and money are we willing to invest in home maintenance or decor?
5. Is it important to be in the same vacation home every time we visit the area, or do we prefer variety?
6. What level of luxury are we seeking, and are we realistically able to achieve it in a second home?
7. Is it important for the vacation home to be deeded?
8. What is our annual vacation budget?

Here’s one more important addition to the list: Before you buy any vacation property, visit www.sellmytimesharenow.com and look into your opportunity to buy resale timeshare at excellent prices.

The Middle East is one of timeshare’s fastest growing regions.

This year’s Vacation Ownership Investment Conference will be held on March 6, 2007 in Dubai, United Arab Emirates. The theme of the VOIC Dubai 2007 conference will be, “Timeshares, Fractionals, Condo-hotels And more…”

Over 100 senior management executives from industries in 13 countries attended the 2005 Dubai symposium, formerly known as the Timeshare & Resort Investment Conference. This year’s event is returning to Dubai because VOIC recognizes the Middle East as one of the fastest growing regions for vacation ownership, in an industry that has experienced double-digit growth for more than two decades. Many experts believe that the timeshare vacation industry in the Middle East will see growth previously unparalleled in vacation ownership. With some 6.7 million timeshare owners, and over 5500 resorts in 110 countries around the globe, the vision of even greater growth, at a faster rate, is staggering.

The conference will not only educate its attendees on the opportunities in timesharing but will discuss fractionals, private residence clubs and condo-hotels, as well. Owners and decision makers within the industry will learn ways to benefit from the multiple profit centers timesharing creates, as well as develop a better understanding of the unique synergy between the traditional real estate industry and the vacation ownership market. Orlando’s Peter C. Yesawich, the chairman and ceo of Yesawich, Pepperdine, Brown, & Russell, will be the conference’s keynote speaker. Mr. Yesawich is an industry expert you’ve heard me quote frequently in the Sell My Timeshare NOW, Timeshare Owners’ Blog, podcasts, and press releases. You’ll also find Yesawich’s wisdom in publications including The Wall Street Journal, USA Today, The New York Times, Business Week, and Newsweek. His firm is one of the travel industry’s leaders in marketing, advertising, and public relations, and includes among their clients, the Walt Disney Swan and Dolphin Hotels, US Airways, Marriot Hotels and Resorts, Hilton Grand Vacations, Marriott Vacation Club International, the American Resort Development Association (ARDA), and Interval International, to name only a few.

The host hotel for the conference will be The Arabian Court, One & Only Royal Mirage in Dubai, a beachside resort that includes three properties: The Palace, The Residence & Spa, and The Arabian Court.