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Savoy Vacation Club
Developer: Savoy Hotels and Resorts
Headquarters: Funchal, Madeira, Portugal
Product: Right-to-use
Resorts: Royal Savoy Resort and Savoy Palace (under construction), both in Funchal, Madeira, Portugal
Price: € 6,000 (US$6,320) for a studio for 10 years; € $18,000 (US$18,959) and up for a two-bedroom for 20 years
(prices for the New Year’s holiday are double)
Website: royalsavoyclub.com
FAST FACTS
That care extends to planning unique activities on the island. “We
always have something new to show them,” she says. “We have nice
partnerships with local excursion companies and we’re always looking
out for things that our members will enjoy.”
Funchal is the capital of Madeira, and is also its main tourist
center. Both resorts are just a 10-minute walk to its Zona Velha (Old
Town), which features a cathedral dating back to 1514, and squares
and esplanades with cafes. The island is also known for its beautiful
gardens with both tropical plants and roses. Its Laurilsilva forest has
been classified as a UNESCO World Heritage natural site. And in rec-
ognition of its many charms, Madeira was named the World’s Leading
Island Destination in 2015 and 2016 by the World Travel Awards.
Mixing It Up
While it was sad to see the historic hotel go, Cristina notes, there
was no way to refurbish it. “We tried to save it, but we couldn’t,”
she says. Too many additions over the years had created safety
hazards and made the property expensive to operate. What it did
have was a prime location. “It’s just five minutes to the center of
town, and from the top of the building, you’ll be able to see the
entire island—the mountains, the sea, and the cities,” Cristina says.
“The shops, restaurants, and clubs are very near.”
After the demolition of the Savoy Classic in 2010, the previ-
ous owner of the hotel group passed away, which prevented plans
from moving forward. Then, in 2015, Savoy Hotels and Resorts
was acquired by AFA Group, a corporate group from Madeira with
diverse holdings in construction, public works, executive aviation,
and hospitality. With new ownership in place, construction began
in December 2015.
The Savoy Palace, expected to open in December 2018, will
have a design that reflects the site’s history. “It has some of the
classic concepts, but in a more modern way,” Cristina says. “We
have a bit of belle epoque—it’s classic-modern but with glamour.”
The designs, which are still being finalized, call for black-and-
white marble floors and a dramatic three-story entrance with a
curving stairway. A large solarium, restaurants, and social areas will
surround the lobby.
With 480 units (more than 500 keys) and 12 floors, it will be
twice the size of the Royal Savoy, which has 162 units. About
80 percent of the Royal Savoy is part of the vacation club; the
rest operates as a hotel. The mix at the Savoy Palace will be 50
percent vacation club. “We rely on hotel guests for sales tours,”
Cristina says.
The resort will offer hotel rooms, studios, one- and two-bed-
rooms, and penthouse suites. Studios will average 430 square feet
(40 square meters), one-bedroom units will average 807 square feet
(75 square meters), and two-bedroom units will be 1,291 square
feet (120 square meters). All of the units will have sea views and
large balconies, ranging from 86 square feet (8 square meters) to
323 square feet (30 square meters).
The 6-acre (about 2.5 hectares) site will include the solarium area
with six pools and a spa. “It will have therapy showers, an indoor
pool, a Champagne bar, hot stone massages, a relaxation area,
and a beauty salon,” she says. “I just saw the plans, and I am really
impressed. It’s so beautiful.”
There will also be a children’s zone and three restaurants, four
bars (including a sky bar on the roof), and shops along the rear of
the resort.
Savoy Vacation Club has a right-to-use product, and prices begin
at €6,000 (US$6,320) for a studio for 10 years and go to €18,000
(US$18,959) and up for a two-bedroom unit for 20 years. Prices
double for the New Year’s holiday, in part because Funchal has one
of the world’s largest fireworks show at midnight.
Selling the Dream
With the project still on the drawing board, sales began in fall of
2016, but officially kicked off in January 2017. Target audiences
reflect the island’s general tourism market, which is largely from the
U.K., Scandinavia, and Germany. Traditionally, Madeira has been
popular with older travelers, but Cristina notes that more and more
are bringing younger family members. “It is a great destination for
families, and we frequently welcome three generations, attracted by
facilities that cater to the needs of all ages.”
In addition to in-house guests, lead-generation methods include
off-premises contact programs and fly-and-buy offers. “We have
to expand our strategy because the Royal Savoy is more than 80
percent sold out now, so there aren’t as many hotel guests,” she
says. They have also had success with email sales and can market
to guests at the other Savoy hotel properties: the Savoy
Saccharum and Savoy Calheta Beach, both in Calheta,
Madeira, and Savoy Gardens in Funchal.
As is the case with many island properties, building a
sales team in Madeira takes some effort. “We have recruited
some with international experience in the trade, and I am
trying to find local people [whom] I can train,” Cristina says.
Although many buyers come from the U.K., Cristina isn’t
worried that Brexit will affect them, as travel restrictions aren’t
likely to be imposed and members are committed to their
vacations. “The British—and people all over the world—are
learning that saving money doesn’t do much. When you’re
not getting any interest from banks, you should buy some-
thing that you enjoy,” she says.
There was an immediate effect, though, as some Royal
Savoy members from England pushed ahead with upgrades
and added time, hoping to lock in their purchase before the
pound fell against the euro.
When it comes to the sales pitch, the process includes
features from the Interval Sales Tool Kit app, with the
Exchange Tracker being of particular importance. “We do
virtual tours and show exactly which resorts people are
exchanging to,” Cristina explains. “People really like it.”
With just two properties, exchange is a much-needed benefit for
Savoy Vacation Club. That makes Interval International the logical
exchange partner. “We felt that Interval, because it has higher-quality
resorts, matched up more closely with our members’ expectations,”
she says. “We have Elite Resort status with Interval, and things have
gone very well for the past 15 years, so there’s certainly no reason
to change.”
The appreciation is mutual. “We eagerly await the opening of
Savoy Vacation Club’s newest resort,” says Darren Ettridge, Interval’s
senior vice president of resort sales and business development for
Europe, Middle East, Africa, and Asia. “This means more great,
high-quality inventory for Interval members in a unique destination
they will definitely enjoy.”
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APRIL – JUNE 2017 RESORTDEVELOPER.COM VACATION INDUSTRY REVIEW SAVOY VACATION CLUB