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From the Q3 TNL earnings call (bolding added for emphasis):
"Chris Woronka, Analyst, Deutsche Bank: Okay. Thanks, Michael. Very, very helpful perspective. Just as a follow-up, you know, you guys last quarter, I think, announced this other Sports Illustrated Resorts development in Chicago. I know that that’s an existing hotel property. Can you maybe talk a little bit about whether you see a lot of additional opportunities there, specifically on that? I know you’re going to continue on Margaritaville and now Eddie Bauer Adventure Club, but on Sports Illustrated Resorts specifically, do you see a lot of these kind of urban hotels? Maybe you know it’s a brand issue or something else where you guys can come in and, you know, convert to timeshare. If you could maybe just give us a little bit of a sense as to kind of economics. I think you’re going with the asset-led model up front of those. Add a little color on that would be very helpful. Thanks.
Michael Brown, President and Chief Executive Officer, Travel + Leisure Co.: Absolutely. We’re very excited about Sports Illustrated Resorts. I know there would be some competitive commentary amongst other urban locations, but we know that Chicago is a great sports town, one of the best in the U.S. There are many others that definitely have our eye. Given where the real estate market is, we mentioned in the last call, I think the last two calls, that at this point in time in the cycle, conversions are a better opportunity for us and for many people than Greenfield development. We’ve now got three resorts announced for Sports Illustrated Resorts. We will start sales by the end of this year, as we’ve previously committed to, and no change to that. At this stage, we’ll go where the market leads us. It’s to great urban locations. In the last two examples, conversions.
I will, though, come back to our original outlook on Sports Illustrated Resorts, as we see lots of opportunities in college towns. We continue to pursue those options. Just because our last two are in urban destinations, don’t think that that’s a shift in strategy. We will be announcing over the upcoming quarters more college locations because we think that’s a tremendous market as well."
"Chris Woronka, Analyst, Deutsche Bank: Okay. Thanks, Michael. Very, very helpful perspective. Just as a follow-up, you know, you guys last quarter, I think, announced this other Sports Illustrated Resorts development in Chicago. I know that that’s an existing hotel property. Can you maybe talk a little bit about whether you see a lot of additional opportunities there, specifically on that? I know you’re going to continue on Margaritaville and now Eddie Bauer Adventure Club, but on Sports Illustrated Resorts specifically, do you see a lot of these kind of urban hotels? Maybe you know it’s a brand issue or something else where you guys can come in and, you know, convert to timeshare. If you could maybe just give us a little bit of a sense as to kind of economics. I think you’re going with the asset-led model up front of those. Add a little color on that would be very helpful. Thanks.
Michael Brown, President and Chief Executive Officer, Travel + Leisure Co.: Absolutely. We’re very excited about Sports Illustrated Resorts. I know there would be some competitive commentary amongst other urban locations, but we know that Chicago is a great sports town, one of the best in the U.S. There are many others that definitely have our eye. Given where the real estate market is, we mentioned in the last call, I think the last two calls, that at this point in time in the cycle, conversions are a better opportunity for us and for many people than Greenfield development. We’ve now got three resorts announced for Sports Illustrated Resorts. We will start sales by the end of this year, as we’ve previously committed to, and no change to that. At this stage, we’ll go where the market leads us. It’s to great urban locations. In the last two examples, conversions.
I will, though, come back to our original outlook on Sports Illustrated Resorts, as we see lots of opportunities in college towns. We continue to pursue those options. Just because our last two are in urban destinations, don’t think that that’s a shift in strategy. We will be announcing over the upcoming quarters more college locations because we think that’s a tremendous market as well."
