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Ed Kinney, global vice president of Marriott Vacations Worldwide,
agrees. “Hotel conversions allow us to get into markets where we see
pent-up demand,” he says. “It’s certainly advantageous for us to
expand the portfolio that we offer Marriott Vacation Club owners.”
Could a hotel conversion work for your company? Here, timeshare
developers who have traveled this road share reasons why it works for
them, plus potholes to watch out for.
1. It’s Quick(er)
“Conversions are a great idea when developers want to get product to
market quickly,” Wilson says. By largely avoiding permitting and zoning
issues, plus saving months to years on the construction timeline, reno-
vating an existing hotel — be it the entire property or an area of the
property — means guests can check in sooner rather than later.
Westgate’s new Las Vegas resort opened its first timeshare suites just a
year after the July 2014 purchase, a fraction of the time that building a
30-story tower with 3,000 rooms would have taken.
2. $$$ Savings
Anna Kiseleva, business development director for Club Sunset
Boutique, says the company’s Club Laguna Suites in Cancún, Mexico,
cost much less to develop than previous projects. “For a relatively small
investment, we were able to convert half of the resort’s rooms into one-
bedroom suites, plus refresh the entire property’s feel,” she says.
Because it’s an all-inclusive property, they didn’t add kitchens to the
units, but, instead, created a gourmet fusion restaurant that prepares all
food to order rather than have guests visit a buffet line. “It’s a smaller
property, and guests really appreciate the personal touches we can pro-
vide. This is a nice model; now we’re looking for similar properties.”
“You’re able to create a higher-quality product if you acquire hotels
for a more reasonable rate,” Wilson adds. “You can really knock out the
FF&E at a higher level.”
3. New Markets
For multisite clubs, adding more dots on the map adds to the appeal.
Hotel conversions, even just a floor or two of a larger property, allow
clubs to add inventory at highly coveted destinations, including urban
areas. Marriott has taken that approach at the Mayflower property in
Washington, D.C., and also has projects underway in San Diego and
San Francisco. “These are traditional markets that people have always
wanted to go to,” Kinney says. “It’s certainly advantageous to have a
larger portfolio to offer owners.”
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Hotels in popular urban areas are prime
candidates for conversion to timeshare. Marriott
Vacation Club at The Mayflower in Washington,
D.C., fills a demand in the destination.