Remaining Sheraton Kauai Can't be Converted to Timeshare?

[dioxide45]

I caught the tail end of the Morgan Stanley Travel & Leisure Conference where Marriott Vacations Worldwide CEO John Geller was being interviewed. They were talking about assets that Marriott Vacations owned that they were trying to monetize. He mentioned something about Sheraton Kauai hotel that couldn't be converted to timeshare. They were working through the agreements to sell that asset. Makes sense to do so as they don't want to be a long term hotel owner or operator. Though not sure why they don't since he said it contributes positively to EBITA. Anyway, is there a reason they can't convert the remaining hotel rooms to timeshare? Some local zoning issue or legal requirement? If it ends up anything like Marriott's Kauai Beach Club, the split hotel/timeshare operation can lead to more of a negative experience at the property.

 

[ljmiii]

Anyway, is there a reason they can't convert the remaining hotel rooms to timeshare? Some local zoning issue or legal requirement?

I'm sure that's the answer...but I don't know what exactly. I can tell you that Waiohai had to be built with a bunch of hotel rooms (I believe 8) to pass the then existing zoning/legal requirements.

If it ends up anything like Marriott's Kauai Beach Club, the split hotel/timeshare operation can lead to more of a negative experience at the property.

For what it's worth, I think that after the first year's transition KBC has been better off with Sonesta than with the latter years of Marriott International's lack of care for the property. It's more Lagoons that suffers from the change in the hotel operator.