virna2016aprjun

That larger portfolio will soon include Marriott Vacation Club at

Surfers Paradise on Australia’s Gold Coast, also a very desirable loca-

tion. For this project, MVC is converting 114 units into 88 studio, one-,

and two-bedroom timeshare units. “There isn’t too much we have to

change; we’re just enhancing the experience,” Kinney says.

4. Built-in Amenities

Hotels usually feature restaurants, pools, spas, and other amenities to

serve their guests. These features are, of course, highly desirable in a

timeshare resort. Westgate’s new Vegas property is an extreme exam-

ple, but it has a 95,000-square-foot (8,826 square meters) casino that

features Vegas’ largest sports book facility, plus 15 restaurants and

bars, a retail shopping center, a Regis Signature Salon, a spa and fitness

center, and a heated pool.

Marriott Vacation Club guests staying at the Mayflower property

have access to an on-site restaurant and bar as well as a fitness center

and event space.

5. In-House Guests

For some projects, developers convert the entire property into time-

share units, but leaving some rooms as standard hotel inventory has its

own advantage: in-house tours. “Developers can leverage the existing

hotel operations to keep marketing costs down,” Wilson explains. The

key is to create an elevated experience for timeshare owners when

compared with the standard hotel rooms. “You need to give them some-

thing different, a reason to buy since you’ll be touring people who are

staying there.”

“Our business model is not to sell timeshare as a lodging product,

but as a vacation experience,” says Mark Waltrip, Westgate’s chief oper-

ating officer. “We have dedicated spaces for owners, and if hotel guests

use those amenities, they’re paying extra. For example, if we have an

indoor water park, timeshare owners use it for free, but hotel guests

have to buy a pass. Timeshare guests also have a better-quality unit.”

At the Mayflower property, MVC has a separate check-in area.

“We’re working on some extra perks that will distinguish the experience

for owners and guests,” Kinney says. “We’ll make it unique but not intru-

sive to the hotel guest experience.”

A Couple of Potential Pitfalls

Of course, nothing’s perfect. The number-one drawback to conversions,

Waltrip says, is that, “You’re living with someone else’s decisions.”

Hotels that were built as a place to stay rather than as a resort may not

have the best views, and the physical plant may not accommodate

the addition of kitchens and laundry facilities. In areas affected by

drought, water rights can be a problem. Plus, if the hotel lacks ameni-

ties, it can be difficult to create an experience that’s different from a

standard lodging property.

Still, Waltrip, Kinney, and Kiseleva all believe the benefits can out-

weigh any challenges. Wilson says it’s easy to see why: “As the industry

as a whole has migrated from sticks and bricks to a hospitality focus —

but with the idea that you get a condo versus a hotel room — develop-

ers have added more services to bridge the gap between traditional

timeshare and hotels. The younger generation wants restaurants and

services on-site, and this trend makes it easier to make that happen. It

will definitely continue.”

Judy Kenninger, RRP, heads Kenninger Communications, a provider of

complete creative services to the shared-ownership industry. She has been

covering vacation real estate for nearly two decades.

TRENDS

RESORTDEVELOPER.COM

vacation industry review

APRIL – JUNE 2016

How much do you need to change a hotel property to convert it to timeshare?

Of course, that will vary with the property, the market, and the size of the units

you’re trying to create. Taking multiple rooms to make one-, two-, or three-

bedroom suites is one option, but sometimes developers can create studios

from just one room. “In most markets, three hotel bays create a two-bedroom

lockout, and two bays will become a grand one-bedroom,” Waltrip says.

But it’s about more than adding space. “You’ll want to create a more

residential look and feel,” advises Merilee Elliott of Merilee Elliott Interiors. “A

big part of that is in the finishes. The move is to a more Danish modern or

Scandinavian look, with oval or amoeba shapes, and away from brushed nickel

to bronze.” Here are some of her ideas for turning standard hotel rooms into

memorable timeshare units.

Emphasize bathrooms.

“By removing a closet and adding an armoire, you

can usually steal that square footage for a bigger bathroom,” she says. The

fixtures become design elements. A free-standing soaker tub adds impact,

and sinks can rest on any type of furniture. Instead of tile, consider back-

painted glass or colored acrylic, then use LED lighting behind it for impact.

Make a kitchenette or small kitchen count.

“Install built-ins and go with

high-end finishes such as a copper sink,” Elliott suggests. “It’d be really

great to have a small ice-machine. It’s unique and guests don’t have to trot

down the hall.” Other ideas include using a plug-in induction hot plate,

hiding a microwave inside the cabinet, and a wine cooler and a refrigerator

below the counter in drawers.

Ditch the carpet.

“There’s new click vinyl flooring that has a real wood

look to it,” Elliott says. “They take a mold of a real piece of wood, then use

that to add texture and imprint a photo. It’s 6- or 9-inch wide plank and

cushioned. If you do that and have area rugs, it’s a more residential feel.”

Create separation.

In studio units, you can still have the feel of different

rooms without adding walls. “There are really cool new products made from

a synthetic material reminiscent of building blocks,” says Elliott. “They come

in panels and you can make them as wide and tall as you want.”

Changing Spaces

Investing in bath upgrades, such as a free-standing tub and high-end

materials, creates valuable impact to a hotel conversion.