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act as escrow agent, which was not an easy task. “It was very rigid and
cost-prohibitive,” Bowes says. “Even for the big guys, it was nearly
impossible.”
Bowes continues: “Over the next 15 to 20 years, many developers
tried to get into the city and the state, but they gave up,” he recalls.
Only a few developers, grandfathered before the law, remained. “We
were an endangered species,” he says, noting that of the four original
developers in New Orleans, two have since died.
In 2000, “bowing to pressure by the big brands working in con-
junction with ARDA,” according to Bowes, the legislature lifted the
moratorium, but challenges to timesharing in New Orleans were far
from over. Next came the recession after the September 11, 2001,
attacks. By the time Hurricane Katrina devastated New Orleans in
2005, Wyndham was the only major brand that had established a
foothold in the city.
Twists and Turns Aplenty
Bowes eventually sold off his two projects, Chateau Orleans and Hotel
de la Monnaie, but having gotten into the mar-
ket before the moratorium, he was able to
acquire the in 1988. “It had
been a timeshare but had gone broke,” and
was vacant, he remembers. He purchased the
resort through a federal bankruptcy sale.
“The feds hadn’t run it long enough to
destroy it, so it was in pretty good condition,”
he says wryly. “There were 80 or 100 owners
and I agreed to honor their contracts as long
as they maintained the property.” It seems to
have been a winning combination: Within six
years, he was able to expand the resort from
one phase to three.
Earth, Wind, and a Fire
Bowes and Hotel de L’Eau Vive are still going
strong despite a series of misfortunes, including
embezzlement, a brutal attack on an employee,
and corruption by a tax assessor that resulted
in sky-high property taxes for the resort.
Then there was Katrina. Situated on high
ground, as most French Quarter resorts are,
Hotel de L’Eau Vive suffered minimal water and
wind battering from Katrina. But there was col-
lateral damage, Bowes says. A fire that started
in the building next door spread to a roof in the
resort. “I saw the building on national televi-
sion, in flames reaching 10 to 15 feet,” he says.
Phase II of the resort burned to the ground.
“Katrina put us out of business for a while,”
Bowes recalls. “We were down for six weeks.”
Reconstruction costs skyrocketed. A panel
of sheetrock that had sold for US$.50 before
the storm fetched US$3.50 after, and construc-
tion workers were overbooked as properties far
worse off demanded immediate repair.
Putting Life Back Into Resort
Hobbled by higher expenses and an aging
owner base, Hotel de L’Eau Vive struggled for
several years. And then, on August 29, 2012,
exactly seven years to the day after Katrina, Hurricane Isaac came
ashore.
Eventually, the resort recovered some damages in a settlement
that is confidential, he adds. That boost, plus a rising economy, has
financed the first significant improvements since 2004.
A new canopy adorns the front entrance, and the main building
has a new roof and sundeck. Units are being completely redone, with
new plaster, carpet, and paint. The old countertops will be replaced
with granite, and under-counter refrigerators will be upgraded to full-
size units. Work is expected to be completed by the end of 2015.
“It will be better than it ever was,” Bowes says. “Owners have
noticed we’re putting some life back into this resort. Until recently, we
couldn’t do justice to it. It’s pretty extensive.”
New Generation’s Shiny Car
In the beginning, a floating week that could include Mardi Gras sold for
US$25,000, but demand is different now, Bowes says. “Many owners
want to will their children their weeks, but the younger generation isn’t
as interested as their parents were. That
creates a glut, and the situation won’t
change until excess inventory is absorbed,”
he predicts.
If his long tenure in the vacation owner-
ship business has taught Bowes anything, it
is the need to be responsive to changing
times by employing different tactics. He has
enlisted a marketer who has a unique plan to
sell the resort’s excess weeks in a way that
will appeal to this new breed of vacationer.
The homeowners’ association has
placed 500 to 600 unsold weeks with
California-based Great Destinations, Inc.,
Bowes says, and he has hopes that this new
method of selling will change the course.
“They specialize in highly recommended
legacy resort destinations like ours.”
“We’ve been successful taking invento-
ry from legacy resorts and selling their
unused weeks with an overlay of Club
Interval Gold®,” says Andrew Gennuso,
Great Destinations president and CEO.
“These buyers don’t want their father’s
Buick. They want the flexibility and variety
the points lifestyle provides. It evolves
along with the owner. We’ve been able to
give the resort its monetary interest back
and a brand-new owner who will pay main-
tenance fees. And, with Interval’s support,
we’ve been able to offer buyers a bright
shiny new car.”
Bowes’ confidence in the industry,
backed by solid experience and supported
by Interval’s products and services, is
stronger than ever. Observes Bryan Ten
Broek, Interval’s senior vice president of
resort sales and marketing, “A new genera-
tion is about to experience timesharing,
New Orleans style, with the lagniappe
Hotel de L’Eau Vive and Club Interval Gold
provide.”
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Developer: Thomas Bowes, Benjamin
Harrison Interests
Location: New Orleans, Louisiana
Product: Deeded fixed week, fixed unit
Units: 34 units; one-, two-, and three-
bedroom suites
Website: Hotel-deleauvive.com
Hotel de L’Eau Vive
fastfacts
AN INTERVAL INTERNATIONAL MEMBER RESORT