Westgate Timeshare

Marriott International, owners of Marriott Hotels and of Marriott Vacation Club International is expected to officially announce a new project that will create some 220 jobs – in Cork, Ireland. Great news for the people of Cork; disappointing news for recently laid off U.S. timeshare company employees like those at Westgate timeshares or Wyndham Worldwide resorts.

According to Finfacts, (Ireland’s top financial news portal) Marriott International is gearing up to more than double the size of its Cork call center which currently employees 160 people in reservations and customer service for inquires originating from Ireland, the United Kingdom, and Continental Europe. The new call center will occupy 10,400 square feet in Blackpool, Cork City and is expected to handle approximately 1,500,000 calls by the end of 2009.

Billy Kelleher TD, Ireland’s Minister for Labour Affairs at the Department of Enterprise, Trade, and Employment, says this about Marriott’s expansion in Ireland, “We are delighted that Marriott chose Ireland and Cork for its second operation. It shows a level of confidence that the company has in our ability to provide the highly skilled personnel necessary to support a rapidly growing international business. Marriott’s positive experiences at its existing Vacation Club International facility in Cork and the standard of its Irish management and workforce were instrumental factors in securing this investment for Cork against strong competition from other global locations. It is also a substantial endorsement of Ireland’s reputation in the business of global customer services and support activities.”

Both Cut Backs and Expansion Ahead for Marriott Timeshares

It’s interesting that the news of Marriott’s expansion in Ireland surfaced on the same day as Bill Marriott wrote in his blog, “In early October, we reported our third quarter earnings results and also provided observations about business for the rest of 2008 and into 2009. At that time, we expected business in late 2008 and 2009 to decline, but in just the last few weeks our business outlook has further weakened.”

For more information on the layoffs at timeshare companies, see these recent The Timeshare Authority blog posts:

• Wyndham Timeshare Announces Cut Backs
• Layoffs at Wyndham Timeshare as Wyndham Worldwide Shares Drop
• Layoffs Coming at Westgate Timeshare

Starwood Hotels and Timeshare Resorts reported a 12 percent drop in profits for the third quarter, 2008. With this announcement, they joined the ranks of other hoteliers and timeshare developers, including Marriott, Hilton, and Westgate timeshare, who have all acknowledged that they are sharply feeling the credit crunch and the economic downturn.

Starwood (the parent company of Westin timeshare resorts and Sheraton timeshare resorts) reported revenue was flat at $1.5 billion, with international operations shoring up those in North America. Earnings for Starwood were $113 million or 62 cents a share, which is down from $129 million or 61 cents a share, in the third quarter 2007. Figuring all adjustments, and earnings from continuing operations, earnings should have been 71 cents per share.

According to Hotels Magazine, Starwood Chief Executive Frits van Paasschen stated that the company had begun streamlining and reducing costs earlier in the year. Yet, Starwood’s efforts don’t seem to be sufficient to quell concerns. Steve Kent of Goldman Sachs commented on Starwood specifically and the timeshare and hotel industry in general, saying, “… the industry will be hit with increasing supply at the same time demand is falling and [its] negative operating leverage and inability to cut costs quickly suggests margins are going to be under pressure for some time.”

Starwood Says Decline in Hawaii Timeshare and Florida Timeshare Sales is Major Contributor

Pacific Business News reported that Starwood specifically blames a decline in Hawaii timeshares sales and Florida timeshares sales for its revenue shortfall. Compared to 2007, revenue in timeshare sales is down 27.4 percent. Contract sales of vacation ownership intervals decreased almost 30 percent at Starwood timeshares, due both to overall decline and to Starwood’s sellout of Westin Kaanapali Ocean Resort North on Maui.

Starwood timeshare says it expects operating income from its timeshare business to drop as much as $115 million this year as demand for Hawaii timeshares and Orlando timeshares decreases.

Bluegreen timeshares is the blog topic again today here at The Timeshare Authority. Last week, Bluegreen Corporation settled a pending lawsuit with Orlando timeshare magnate, David Siegel, another timeshare industry name who makes our timeshare blog from time to time.

David Siegel founded Central Florida Investments, the parent of the Orlando timeshare company, Westgate Resorts. In recent months, Siegel had acquired 2.3 million shares of Bluegreen timeshare’s common stock. He also had options that would have given him nearly 10 million shares, or about 32 percent of the company’s stock, if he exercised those options.

But this was already in the pipeline when Westgate Resorts timeshares announced budget cutbacks and massive layoffs in response to the credit freeze. A Sept 29, Orlando Sentinel article, said this of Siegel, “He blamed the national financial meltdown and said until the situation in Washington straightens out, Westgate and all other time-share companies likely are in for very hard time.”

Bluegreen’s board had voted and approved bylaws to allow them to dilute the value of Siegel’s holdings, but not the value of other existing shares held primarily by those Bluegreen shares held through the Levitt Corp.

Under the terms of the new settlement, Siegel and his associates must reduce their Bluegreen holdings by at least 5.4 million shares within a year and within two years, have disposed of all of them. Additionally, pending the sale, Siegel’s shares must be voted in accordance with the recommendations of the Board of Directors of Bluegreen. David Siegel has agreed to not pursue any takeover of Bluegreen nor seek to influence Bluegreen’s management.

The Timeshare Authority will continue to keep you abreast of the changes, shake ups, and shake downs in the timeshare industry … interesting times we are living in, to say the least

Other recent posts about Westgate Resorts Timeshares:

• Hotels, Timeshares, and the Bailout
• Layoffs Coming at Westgate Timeshare

Other recent posts about Bluegreen Resorts Timeshares:

• Credit Crisis May Change the Deal for Bluegreen Timeshare Resorts
• Bad News for Bluegreen Timeshares

Wyndham Worldwide hotel and Wyndham timeshare company underwent several significant changes this week; none of them seemingly positive, at least on the surface. Monday’s stock trading saw shares of Wyndham Worldwide Corp drop and settle at $11.83 a share after hitting a low of $11.05 earlier in the day.

WFTV.com (Orlando) reported that, on Wednesday, approximately 200 people were laid off from Wyndham’s timeshare division, including marketing directors, managers, and financial analysts.

According to an article published in Forbes, “Wyndham expects to post pretax charges of $7 million, or 2 cents per share, in the third quarter for job cuts and restructuring … The company expects fourth-quarter charges to range from $10 million to $15 million and charges in the first quarter of 2009 to range from $5 million to $10 million.” Moreover, Wyndham “anticipates recouping its investment by the end of 2010.” The company plans to release its third quarter business report on October 30.

Timeshare Resales Aren’t Facing the Same Problems

Despite the downturn economy, many timeshare resales company, including Sell My Timeshare NOW, find themselves in a growth and expansion period. Unlike a timeshare developer, Sell My Timeshare NOW does not finance the sale of timeshare; instead, we advertise and market timeshare for sale or rent on a by-owner basis.

In a timeshare resale transaction, no one is trying to entice a timeshare buyer to buy timeshare he or she cannot afford. Instead, in a simple, straightforward way, timeshare owners attempt to sell timeshare they currently own; they are selling vacation property or vacation club points, but they are not trying to sell you a financing deal.

e big picture for Wyndham timeshare, Marriott timeshare, Westgate Resort timeshare, and other large development companies will probably turn out fine. They have hit a time of slowed growth and are burdened with more debt, and uncollectable debt than they can handle in the short term. But these companies are cornerstones in the hospitality industry. The derive income from many areas besides hotel room nights or timeshare sales. Most of these companies will be able to trim the fat, cut back, take a few hits, and move forward. 2009 may not be their most profitable year, but like the forest that flourishes after the fire, we should expect them to soon be back, stronger than ever.

Other recent The Timeshare Authority blog posts about Wyndham timeshare:

• Wyndham Timeshare Announces Cut Backs
• Hotels, Timeshares, and the Bailout