SVV Expansion

[vistana101]

Looks like SVV is finally beginning construction on its final planned phase, South Beach.

January 5, 2016 - Winter Park Construction (WPC), one of the nation’s most respected general contractors and one of the world’s largest timeshare builders, was recently selected to build Starwood Vacation Ownership’s next project at Sheraton Vistana Villages. Located in Orlando, Florida, the first phase of the project will consist of site work, a 3,000 square foot clubhouse, pool, amenity area along with 63 timeshare units. Construction will begin on this $27,000,000 phase in April 2016 and be complete in June of 2017. Approximately 150 construction jobs will be created during the project. This building will be the first of 11, built with an iconic architectural flair to celebrate the curves and neon of South Beach. At build out there will be 734 timeshare units on 26 acres.

The Form 10 released a few months ago (ILG and SVO) noted that SVV had 734 units left, which are all to be in "South Beach" as noted in the release above. This nearly doubles the existing 892 units, and will result in 1,626 units at buildout, more than SVR at 1,566 units.

I'm looking forward to the new phase. It will be interesting to see when the project is fully completed as only one building will be completed for 2017.

 

[SMHarman]

So back of an envelope numbers.

That's 11 buildings 734 units
67 units a building I'm counting units as 1 bed.
27m so construction is 40k a unit. Let's assume a painted shell with kitChen and bathroom in that number.
Add the same again for finishing the fit out.
80k a unit to construct.
52 intervals, sell at
12.5 k each.
Well 9 sales covers basic costs. The rest is gravy.

 

[DeniseM]

Heaven knows that we need more timeshares in Orlando!

Of course, this will feed the new Flexoption sales machine.

 

[Ty1on]

So back of an envelope numbers.

That's 11 buildings 734 units
67 units a building I'm counting units as 1 bed.
27m so construction is 40k a unit. Let's assume a painted shell with kitChen and bathroom in that number.
Add the same again for finishing the fit out.
80k a unit to construct.
52 intervals, sell at
12.5 k each.
Well 9 sales covers basic costs. The rest is gravy.

Count 8K-ish each to account for marketing costs and commissions. Still some gravy there.

 

[vistana101]

I found some more plans filed with Orange County and I believe the first building, building 31, will have 8 stories. Also looks like they are building a 2 story parking garage.

 

[Westnick]

This is a major additition. Why hasn't this come up in any of the owner updates?

 

[tschwa2]

This is a major addition. Why hasn't this come up in any of the owner updates?

I would imagine because talking about additional Orlando units is not going to add to sales the way talking about future Hawaii units would. Savvy buyers would know that more Orlando units that are at least initially sold with SO mean more competition for the good stuff and since its too early to sell no reason for sales to mention.

 

[sjsharkie]

This is a major additition. Why hasn't this come up in any of the owner updates?

They probably have enough sales inventory without the new phases given the current SVV and SVR. I'd imagine that there is a good chunk of defaults that come through on a periodic basis.

Plus ditto to tschwa2's post, there is better stuff in the pipeline.

-ryan

 

[cubigbird]

I really wish they would develop some new locations from the properties conveyed to VSE. As said before, just what we need -- more Orlando and Hawaii.

 

[Mexico279]

Heaven knows that we need more timeshares in Orlando!

Of course, this will feed the new Flexoption sales machine.

I understand that Orlando is not everyone's cup of tea but personally my family love it , we have owned Svv for 15 years and although we have been angered by the depreciation in value we have had fantastic memorable family vacations at our home resort, I have learned lots of very useful information on here but sometimes I get very tired of the elitist Orlando bashing that takes place, we have all paid a lot of money for our ownerships and I think that any expansion is good and I'm really looking forward to the new phase as I'm sure many owners are!!!

 

[DeniseM]

I get very tired of the elitist Orlando bashing that takes place, we have all paid a lot of money for our ownerships and I think that any expansion is good and I'm really looking forward to the new phase as I'm sure many owners are!!!

That is not the point at all: Orlando is the most over-built area of the world as far as timeshares go. It really doesn't need MORE timeshares - there is already far more supply than demand.

The exchange companies, and the resale market, and the rental market, are swamped with Orlando timeshares.

BTW - adding units at this resort devalues the exchange value, and rental value of your timeshare, because it is just adding more units to an already flooded market, which increases the supply even more.