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deteriorated to the point that the fire marshal inspection resulted in
concerns, owner complaints were increasing, poor exchange reviews
rolled in, and there was minimal rental interest. Instead of giving up,
however, the homeowners’ association board signed VRI as its
management company, with a mandate to oversee a renovation.
The US$4.13 million project was funded by a special assessment
spread over four US$675 invoices per owner in one year. All units were
gutted, and cabinets, flooring, and entry doors were replaced. “The
design team from Hospitality Resources & Design introduced an
innovative design package with a beach-friendly color scheme,” says
Jeffery Wharton, director of resorts for VRI. The project also included
a complete overhaul of the pool interior, pool deck, filtration system,
lighting, and landscaping. Worn-out beachfront pavilions were rede-
signed and rebuilt. The restoration also included replacement of exterior
stairs and walkways.
Due to the extensive renovations, the resort was closed for the
18-week project, which was completed on time.
The resort reopened on January 16, 2010, and has since received
glowing reviews from exchangers, TripAdvisor, and local publications—
including Best on the Beach. Very few intervals are available for rent.
Even more important, the association now owns just two intervals.
“Our sales agent has 250 people on the waiting list, and delinquency
is at 2 percent, and all but two of those units are in foreclo-
sure,” Wharton says. “They will be sold once the foreclosure
process is complete.”
Villa del Palmar:
Old-World Feel, New-World Luxury
After three decades as the crown jewel in The Villa Group’s
collection, Villa del Palmar in Puerto Vallarta, Mexico, was still
popular with owners and guests, who love the location on
the beach at Banderas Bay and minutes from the charm of
downtown. There were signs, however, that things were slip-
ping. “We do a post-stay survey of everyone who visits and
ask about every aspect of their experience,” says Michael
Buchalter, vice president of timeshare operations for The Villa
Group. “The executive review was showing consistent com-
ments about the units, and it hurt the overall score for the
resort. We had to act.”
And act they did, to the tune of US$6.7 million. “We redid the
whole entrance, replacing a parking lot with beautiful fountains.
We upgraded all the restaurants, and in the units, we replaced
all the FF&E, appliances, painted—everything,” he says.
The Villa Group was able to pay for the renovation out
of its operations budget. “In this case, the developers paid
for 90 percent of the expense versus using the maintenance
fees,” Buchalter says.
To reduce the impact on guests, the interiors were done
in phases, one wing at a time. The resort closed for about
two months during the heaviest construction on the exterior,
which was scheduled during the low season.
Looking back, Buchalter
says he is satisfied with the
decisions made. “At the end
of the day, there are so many
things you can do; the amount
of money that can be spent is
limitless,” he says. “The biggest
impact has come from the
rooms and the more inviting
entrance. We took a look at
the overall property, and the
way the entrance was de-
signed, your first impression
was of all the cars parked
there. You would never de-
sign a resort like that today.
Changing the layout was a
good use of the space.”
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APRIL – JUNE 2017 RESORTDEVELOPER.COM VACATION INDUSTRY REVIEW LEGACY MATTERS
MARINER BEACH CLUB
VILLA DEL PALMAR
To reduce
the impact
on guests,
the interiors
were done in
phases, one
wing at
a time.
Before
VILLA DEL PALMAR
MARINER BEACH CLUB