Here is a Wall Street Journal article of July 8, 2009, “Hotels Sound the Alarm on Time Share.”   Take a moment to read the article and please note what it says there about a timeshare company, Consolidated Resorts, Inc.  I have more about that company – a sad story of a condominium project conversion into timeshare by Consolidated and what happened to that project.  Let’s hope the Ilikai does not follow that path.

Here are some quotes from the article (emphasis added): “The hotel industry has been reeling for the past year amid a steep decline in business and leisure travel. Now it is moving away from one of its former profit centers: time shares.  Major time-share developers, led by Wyndham Worldwide Inc., Marriott International Inc., Starwood Hotels & Resorts Inc. and others, are scaling back their time-share business as investors in time-share loans demand higher interest rates, buyers become more scarce and resales of time shares put downward pressure on prices and demand for new units. …

The pullback will reshape some large time-share players. Wyndham, which owns 150 resorts globally and counts 830,000 time-share owners, intends to whittle its time-share business by 40% this year to an annual sales rate of $1.2 billion. That is a big reduction for Wyndham as a whole; its time-share division provided 53% of Wyndham’s revenue last year and 42% of earnings before interest, taxes, depreciation and amortization.  …

The cutbacks made by Wyndham and others are aimed at remaking their time-share divisions into “a much smaller business” …

The problems came to a head late last month for a Las Vegas time-share developer when the company, Consolidated Resorts Inc., said it would file for bankruptcy protection. …

Analysts say the giant hotel companies aren’t in danger, but the decline in the time-share business will be a drag on profits for years. …”

Anyway, take a moment to read the whole article and note Consolidated Resorts, Inc., I have more about them – that should ring the alarm for us at the Ilikai.

Why is our Board of Directors still refusing to cite Shell for running their timeshare operations at the Ilikai, even though the Ilikai Declaration and Bylaws only permit hotel and apartment use?  Why are they allowing Shell to run their timeshare sales here?

This entry was posted on Tuesday, December 8th, 2009 at 3:57 am and is filed under Timeshare & Shell Vacations Club. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.