I have a friend that is in the tourist industry. They are beginning to talk about converting one of their hotel properties to a timeshare.
Any advise as to how to get started?
Any advise as to how to get started?
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How do you start a timeshare facility?
- Thread starter BargainTraveller
- Start date
PA-
TUG Member
Just hire a lawyer who's done it before, and do it.
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- Maui Schooner; Club Wyndham; Worldmark.
Who wants the advice? You or them? I doubt anyone on this forum has done this. They need a developer with a lot of experience to do this.
Dave M
TUG Lifetime Member
Most states have laws - often very complex laws with numerous legal requirements that must be met - that apply to timeshare projects. In most states a full-blown public offering document must be prepared. Doing it won't be cheap.
TomF
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I just have one suggestion. Tear down the hotel and rebuild with purpose-built timeshare units with full kitchens. Every converted hotel room timeshare I've ever seen, including Marriott's, sucks.
johnmfaeth
TUG Member
How to create a timeshare
Hi Bargain,
Several resources to recommend to your friend.
1) The book "Developing Timeshare and Vacation-Ownership Properties", 1999, The Urban Land Institute, Washington DC is a general primer for anyone interested in this field. They have a couple of related titles for followup reading too.
2) The American Resort Development Association (ARDA) is the industry's trade group. They have a couple of big conferences each year, usually in Florida and Vegas. Expensive a heck to join by a must do if you play in this sandbox.
3) There's a guy by the name of Dr. Keith Trowbridge in Florida who runs a timeshare headhunting firm called Executive Quest (I believe they are the largest of such firms). His website wis www.execq.com and email is keith@execq.com. He is hooked in with the academics (and one himself) who have done a lot of the industry studies for the ARDA. He is an old timer with an incredible roledex of industry types. His number is 1- 239 -454 -1100.
4) From a legal perspective, a timeshare is typically (the legal structure) what is referred to as a "time sequenced condominium" so a law firm with a track record of large condo conversions is the place to start. Typically one which has done timeshares before. Look at the offering documents filed with the Secretary of State (in the state where the potential project resides) for references to these firms from past projects. Reading these documents in general will also be very inciteful.
Lastly the moral aspects...
To really fit in, my belief is that you also have to sell your soul to the devil. So any sort of Wican activities, etc. are probably mandated....
John Faeth
Hi Bargain,
Several resources to recommend to your friend.
1) The book "Developing Timeshare and Vacation-Ownership Properties", 1999, The Urban Land Institute, Washington DC is a general primer for anyone interested in this field. They have a couple of related titles for followup reading too.
2) The American Resort Development Association (ARDA) is the industry's trade group. They have a couple of big conferences each year, usually in Florida and Vegas. Expensive a heck to join by a must do if you play in this sandbox.
3) There's a guy by the name of Dr. Keith Trowbridge in Florida who runs a timeshare headhunting firm called Executive Quest (I believe they are the largest of such firms). His website wis www.execq.com and email is keith@execq.com. He is hooked in with the academics (and one himself) who have done a lot of the industry studies for the ARDA. He is an old timer with an incredible roledex of industry types. His number is 1- 239 -454 -1100.
4) From a legal perspective, a timeshare is typically (the legal structure) what is referred to as a "time sequenced condominium" so a law firm with a track record of large condo conversions is the place to start. Typically one which has done timeshares before. Look at the offering documents filed with the Secretary of State (in the state where the potential project resides) for references to these firms from past projects. Reading these documents in general will also be very inciteful.
Lastly the moral aspects...
To really fit in, my belief is that you also have to sell your soul to the devil. So any sort of Wican activities, etc. are probably mandated....
John Faeth
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I've only stayed in a couple and I agree, they are horrible. Coconut Bay "Resort" in Ft. Lauderdale immediately comes to mind.
Carolinian
TUG Member
On the other hand I have traded into some magnificent conversions of castles or manor houses in Europe that absolutely beat the stuffings out of any purpose built timeshare I have ever seen.
Carolinian
TUG Member
You need to find a lawyer who is familiar with timeshare in the state the property is located in to draw up the legal documents.
All timeshares use exchanging as one of their selling points. Your friends should start making contacts with the exchange companies. I think it would be a real sales incentive to offer affiliation with both of the large exchange companies, II and RCI, and also give new members a packet of info on the indepenent exchange companies they can use. If they are going high end, I would definitely suggest hooking up with SFX from the start.
All timeshares use exchanging as one of their selling points. Your friends should start making contacts with the exchange companies. I think it would be a real sales incentive to offer affiliation with both of the large exchange companies, II and RCI, and also give new members a packet of info on the indepenent exchange companies they can use. If they are going high end, I would definitely suggest hooking up with SFX from the start.
boyblue
TUG Member
If the property is in a place where the demand for TS units far outweigh the supply, then your friend is on the right track otherwise forgetaboutit.
It is fun, facinating and very dangerous
Oh, you'd be surprised.
Every state differs, and now local communites and their Planning and Zoning people are well involved in the procedures almost everywhere. It is happening more and more especially in places like Ca, Hawaii and other resort areas where real estate is a premium. In Ca, if you want to do this, you have to get involved with all kinds of groups including the Coastal Commission. So, it is very hard and too many times those involved in small fractional interests (mostly good intentioned real estate licensees) get into big trouble. As indicated above, attorneys must be involved and depending on the interests sold an experienced developer. My experience recently, is it is better to buy and lease out for a specific time or simply develop a bed and breakfast.
Oh, you'd be surprised.
Every state differs, and now local communites and their Planning and Zoning people are well involved in the procedures almost everywhere. It is happening more and more especially in places like Ca, Hawaii and other resort areas where real estate is a premium. In Ca, if you want to do this, you have to get involved with all kinds of groups including the Coastal Commission. So, it is very hard and too many times those involved in small fractional interests (mostly good intentioned real estate licensees) get into big trouble. As indicated above, attorneys must be involved and depending on the interests sold an experienced developer. My experience recently, is it is better to buy and lease out for a specific time or simply develop a bed and breakfast.
cancun dish
TUG Member
if I were your friend before hiring a lawyer or consultant I would call the locall II or RCI rep. They could have a lunch or dinner, discuss the local dynamics and determine if there were a demand for the product.
If from that meeting there is a concensus it is feasable then (if financing is needed) they would need a feasability analysis for lenders. Before that I would be putting out feelers to sales and marketing and other talent..
Where is the location? a hotel conversion would require a significant capital outlay and if it were not in the right location would definitely fail
If from that meeting there is a concensus it is feasable then (if financing is needed) they would need a feasability analysis for lenders. Before that I would be putting out feelers to sales and marketing and other talent..
Where is the location? a hotel conversion would require a significant capital outlay and if it were not in the right location would definitely fail
The only problem with tearing it all down and starting over is the surrounding developments. If there is no extra ground to buy up and use, it might not be cost effective. And I am sure that if it is an older hotel the city codes have changed.
With new city codes in place, there are new rules for the size of the building you can put on the existing lot.
And when you have it engineered, that guy will tell you how much parking you need, which will take up a lot of room, and how much square feet of water retention you will need. That is if the sewer/drainage system is not updated.
And dont forget the cost of that engineer, and architect, and city permit fees, and greasing the local politicians:ignore: .......... OH also dont forget about the cost of earthquake proofing, if it is in one of those areas..
Now some cities have written into their code that if you use some of the existing walls of the current building, you can get around all the engineering stuff and build onto it.
Or if they just want to turn it into a timeshare, upgrading it to modern luxuries would be best. Lush gardens. Couple of huge pools....
Good Luck.
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