Starwood Article in Barron's

[vss]

Interesting article about Starwood in this week's Barron's. Primary focus is that HOT is undervalued by as much as 50%:

• Primarily a management company;
• Exploiting strong growth in China and India;
• SPG program loyalty is very strong;
• Generating around a billion dollars in cash-flow.

Regarding Timeshares: (1) sales of St. Regis Bal Harbour Resort in FL are proceeding better than anticipated; and (2) average selling prices for timeshares increased for the first time in four years in their 2nd quarter.

Another interesting statistic - sales prices for full service hotels have average $425K per room for properties sold in 2011.

Some questions/observations:

• Was not aware of a Timeshare program for St. Regis. I guess I understand the reasons to stray away from Westin and SVN;
• Very focused on cashflow - dont see them building new units when they can buy cheaper by ROFR or on resale market;
• Average selling price for timeshares is increasing. Good implications.
• Timesharing seems to fit their business model of managing (not owning) properties.

ENJOY!!

 

[jarta]

vss, ... St. Regis Bal Harbour has no timeshares (buy by the week). However, there are condo residences and an interval ownership program. ... eom

 

[vss]

Jarta, thanks.

That was a direct quote from the article...I guess the author needs an education on the difference: "The outlook doesn't include revenue and cash flow from expected fourth-quarter sales of timeshare residences at the company's new St. Regis Bal Harbour Resort in Florida, where interest from Latin American buyers proved strong. Prices on Starwood's time-share residences increased in the second quarter for the first time in four years."

FYI - the article is a little difficult to find: "The Virtues of Traveling Light" by Sandra Ward.

 

[YYJMSP]

vss, ... St. Regis Bal Harbour has no timeshares (buy by the week). However, there are condo residences and an interval ownership program. ... eom

If it's like the St Regis Monarch Beach, they were offering quarter, half, and full ownerships on the residences. The quarter was from $1 million, depending on the specific unit, when we looked back in 2006.

On the other extreme, the St Regis San Francisco were only offering full ownerships when we took a gander back in 2005.

 

[LisaRex]

They often list SVO and Starwood Residences together. From the SPG T&C:

http://www.starwoodhotels.com/preferredguest/legal/spg_terms.html

6. LIMITED PARTICIPATION AT STARWOOD VACATION OWNERSHIP PROPERTIES AND STARWOOD RESIDENCES. INFORMATION FOR EARNING AND REDEEMING STARPOINTS AND OTHER MEMBERSHIP BENEFIT LIMITATIONS

6.1. Due to the nature of Starwood Vacation Ownership properties many Starwood Vacation Ownership Properties have limited participation with the Program.

6.2. Starpoints issued through Starwood Vacation Ownership, such as, tour incentives, purchase incentives, conversion incentives, sweepstakes and other giveaway prizes, will expire six years following the date they are deposited into a Member's account. All such Starpoints or any portion thereof that have not been redeemed by that time will be forfeited without notice.

6.3. (a) At the following properties, Members will earn Starpoints for all Eligible Charges; however upgrades, late check-out, and other in-hotel benefits are not available. Free Night Awards and other hotel Awards are not accepted.

Properties:
Sheraton Broadway Plantation, Myrtle Beach, SC
Sheraton Desert Oasis, Scottsdale, AZ
Sheraton Mountain Vista, Avon, CO
Sheraton PGA Vacation Resort, Port St. Lucie Village, Port St. Lucie, FL

(b) At the following properties, Members will earn Starpoints for all Eligible Charges; however upgrades, late check-out, and other in-hotel benefits are not available. Free Night Awards and other hotel Awards are accepted in the hotel portion of these properties, but not the villa portion or residence portion.

Properties:
Westin Kierland Resort & Villas, Scottsdale, AZ
Westin St. John Resort & Villas, Great Cruz Bay, St. John, USVI
The Westin Mission Hills Villas, Rancho Mirage, CA
St. Regis Residence Club, Aspen, CO
St Regis Residence Club, New York, NY
Phoenician Residences, Luxury Collection Residence Club, Scottsdale, AZ
Sheraton Steamboat Springs Resort Villa, Steamboat Springs, CO
The Westin Riverfront Mountain Villas, Avon, CO

(c) At the following properties, Members will earn Starpoints for all Eligible Charges; however, upgrades, late check-out, and other in-hotel benefits are not available. Free Night Awards are accepted at these properties subject to the following conditions: 1) Free Night Awards may only be booked within 120 days of arrival; 2) blackout dates may apply; 3) limited rooms may be available for Free Night Awards; 4) Starpoints acquired through conversion of a Vacation Ownership Interest at an SVO Resort may not be redeemed for Free Night Award accommodations at a SVO Resort.

Properties:
Westin Ka'anapali Ocean Resort & Villas, Lahina Maui, HI
Westin Princeville Ocean Resort Villas, Princeville, Kauai, HI
Sheraton Vistana Villages, Orlando, FL
The Westin Lagunamar Ocean Resort, Cancun, Mexico
Sheraton Vistana Resort, Orlando, Florida

 

[jarta]

TUG has a separate forum for "Non-traditional Interval Ownership."

http://tugbbs.com/forums/forumdisplay.php?f=48

The concept is similar from the developer's point of view. Build it. Sell off the use or ownership interests. Manage it. ... eom