BA price fixing inquiry ‘could last for years’
Saturday, July 15, 2006
BRITISH Airways may face years of difficulty following a raid on its headquarters by the Office of Fair Trading.
BA chief executive Willie Walsh insisted it was business as usual in a memo to staff on Monday. But two senior executives have been sent on leave as the airline faces a series of inquiries.
Alleged price fixing among airlines has led to OFT conducting civil and criminal probes – looking at fuel surcharges on long-haul flights to and from the UK.
The US Department of Justice is also investigating, following a FBI raid on BA’s New York office.
BA and Virgin Atlantic have also been named in a class-action lawsuit in New York alleging a conspiracy to fix prices.
And BA and other airlines remain the subject of a probe launched in February by the US DoJ, European Commission and anti-trust bodies in Asia into fuel surcharges on cargo flights.
BA has refused to say more since its short statement last Thursday that it was under investigation and that commercial director Martin George and head of communications Iain Burns had gone on leave.
It’s understood the raid on BA on June 13 followed information from Virgin Atlantic, although Virgin would not comment other than to say it was assisting inquiries.
Investigations so far have focused on the four airlines with exclusive rights to fly between Heathrow and the US – BA, its alliance partner American Airlines, Virgin and United Airlines.
The US airlines said they were co-operating but were not targets of the inquiry.
The OFT can fine BA up to 10% of its turnover, a penalty that could amount to £850 million, and seek jail terms of up to five years for individuals.
However, it has not carried out an inquiry of this type before. The OFT said: “No assumption should be made that there has been an infringement of competition law.”
BA chief executive Willie Walsh insisted it was business as usual in a memo to staff on Monday. But two senior executives have been sent on leave as the airline faces a series of inquiries.
Alleged price fixing among airlines has led to OFT conducting civil and criminal probes – looking at fuel surcharges on long-haul flights to and from the UK.
The US Department of Justice is also investigating, following a FBI raid on BA’s New York office.
BA and Virgin Atlantic have also been named in a class-action lawsuit in New York alleging a conspiracy to fix prices.
And BA and other airlines remain the subject of a probe launched in February by the US DoJ, European Commission and anti-trust bodies in Asia into fuel surcharges on cargo flights.
BA has refused to say more since its short statement last Thursday that it was under investigation and that commercial director Martin George and head of communications Iain Burns had gone on leave.
It’s understood the raid on BA on June 13 followed information from Virgin Atlantic, although Virgin would not comment other than to say it was assisting inquiries.
Investigations so far have focused on the four airlines with exclusive rights to fly between Heathrow and the US – BA, its alliance partner American Airlines, Virgin and United Airlines.
The US airlines said they were co-operating but were not targets of the inquiry.
The OFT can fine BA up to 10% of its turnover, a penalty that could amount to £850 million, and seek jail terms of up to five years for individuals.
However, it has not carried out an inquiry of this type before. The OFT said: “No assumption should be made that there has been an infringement of competition law.”
Monarch Airlines steps up Luton services
Saturday, July 15, 2006
MONARCH Airlines will boost its scheduled services from Luton by 30% next summer in a bid to wrest market share from low-fare rivals it accuses of treating passengers like cattle.
The carrier will fly four times a week to Almeria in Spain and up to five times a week to Ibiza, using a fourth Airbus A320 based at the airport.
It will also increase flights to Palma from one a week to nine, and to Faro from five a week to daily.
Managing director Tim Jeans said: “People are fed up with the cattle-truck conditions and catering on many no-frills airlines.”
Jeans believes Monarch’s onboard service will make it the market leader on many routes. “We’re trying to put clear water between ourselves and the competition,” he said.
“The expansion is a sign that we’re sufficiently confident to take the fight to EasyJet and others.”
It will also mean 50 extra jobs at Luton, where Monarch has been based for almost 40 years.
Previous expansion has focused on Birmingham – where the airline will also base an additional aircraft next year – and Manchester.
The carrier will fly four times a week to Almeria in Spain and up to five times a week to Ibiza, using a fourth Airbus A320 based at the airport.
It will also increase flights to Palma from one a week to nine, and to Faro from five a week to daily.
Managing director Tim Jeans said: “People are fed up with the cattle-truck conditions and catering on many no-frills airlines.”
Jeans believes Monarch’s onboard service will make it the market leader on many routes. “We’re trying to put clear water between ourselves and the competition,” he said.
“The expansion is a sign that we’re sufficiently confident to take the fight to EasyJet and others.”
It will also mean 50 extra jobs at Luton, where Monarch has been based for almost 40 years.
Previous expansion has focused on Birmingham – where the airline will also base an additional aircraft next year – and Manchester.
First Choice trials 'travel pod' supermarket desks
Saturday, July 15, 2006
FIRST Choice is launching brochure-free ‘travel pods’ in supermarkets – which it claims could be an insight into the future of travel agencies.
First Choice Travel Pods will trade from four Asda stores in Sheffield, Basildon, Milton Keynes and Manchester with a further two pods at Sainsbury’s stores in Torquay and Liverpool. The Sainsbury’s outlets will be branded Travel Centres in conjunction with Sainsbury’s and First Choice.
Due to a lack of space, for both racking and storage, the information desk-style pods will be staffed by three consultants using the Internet and colour printers to print off holiday details for customers.
First Choice Retail managing director Cheryl Powell said the pods could be the future of travel distribution. “It breaks your heart to see all those unused brochures dumped. This way we are creating personalised brochures which is better for the environment.” Powell came up for the idea of the pods after visiting a portable nail bar in Telford Shopping Centre. “I thought ‘why can’t it work for travel?’” she said.
She expects the pods’ turnover to be the same as the agencies’ existing 36 Asda concessions – about 20% less than the average high street shop.
Powell claimed security will not be an issue even though foreign exchange would be available, because supermarket security is so tight with cameras and in-store security guards. First Choice is in talks with other supermarkets and shopping centres about adopting the pods if the trial is successful. However, Powell is “uncomfortable” about introducing them into shopping centres in their current form due to security issues.
Meanwhile, First Choice will also run trials of foreign exchange desks in four other Sainsbury’s supermarkets. It will manage Sainsbury’s Bank exchange bureaux in two stores and sell foreign exchange over the counter in two others.
First Choice Travel Pods will trade from four Asda stores in Sheffield, Basildon, Milton Keynes and Manchester with a further two pods at Sainsbury’s stores in Torquay and Liverpool. The Sainsbury’s outlets will be branded Travel Centres in conjunction with Sainsbury’s and First Choice.
Due to a lack of space, for both racking and storage, the information desk-style pods will be staffed by three consultants using the Internet and colour printers to print off holiday details for customers.
First Choice Retail managing director Cheryl Powell said the pods could be the future of travel distribution. “It breaks your heart to see all those unused brochures dumped. This way we are creating personalised brochures which is better for the environment.” Powell came up for the idea of the pods after visiting a portable nail bar in Telford Shopping Centre. “I thought ‘why can’t it work for travel?’” she said.
She expects the pods’ turnover to be the same as the agencies’ existing 36 Asda concessions – about 20% less than the average high street shop.
Powell claimed security will not be an issue even though foreign exchange would be available, because supermarket security is so tight with cameras and in-store security guards. First Choice is in talks with other supermarkets and shopping centres about adopting the pods if the trial is successful. However, Powell is “uncomfortable” about introducing them into shopping centres in their current form due to security issues.
Meanwhile, First Choice will also run trials of foreign exchange desks in four other Sainsbury’s supermarkets. It will manage Sainsbury’s Bank exchange bureaux in two stores and sell foreign exchange over the counter in two others.
Tumour Tot Kiera Cheated Of Hols
Saturday, July 15, 2006
LITTLE Kiera Aitken was thrilled to be going on her first holiday.
It was a special treat for the three-year-old, who was born with a tumour on her spine and had spent much of her young life in hospital.
But after paying £1295 to travel club Universal . Adventures, Kiera's family have no holiday -and no refund. The chancer responsible is Jason Wynne, 36, whose Kilmarnock-based Millennium Vacations International was exposed by me in September.
Kiera's mum Gillian Malone, 32, of Rutherglen, near Glasgow, said: "Universal have done a runner. I'm devastated and don't know how to explain to Kiera.
"We can't afford to go anywhere else." Gillian and partner John Aitken, 36, signed up to a three-year trial membership with Universal in April after attending a presentation at their offices in East Kilbride.
Gillian said: "It sounded great and they claimed to be backed by holiday points firm RCI."
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The couple were offered three weeks' five-star accommodation in Florida, Spain, Mexico or the Bahamas. They chose a week in Tenerife with Kiera, Gillian's son Robbie, 13, and John's children John, 15, and Chloe, nine.
They paid a £95 deposit and a further £1200 in May. Universal Adventures is a trading name of Consultancy Associates Ltd, based in Cambridge. But the family paid Capital Commercial Investments Ltd, run by Wynne.
Gillian, who is Kiera's full-time carer, said: "Universal kept hassling us to pay the balance.
"We didn't want to lose out so we borrowed and used our savings.
"The lady at Universal even looked Kiera in the eye and asked her if she was looking forward to going on a big aeroplane. She was so excited."
But weeks after paying, Gillian and John, a bin man, could not contact Universal. Their phones kept ringing out, so John visited their office but it had been closed down. Gillian said: "We want to warn other families."
The family are not Universal's only victims. Retired receptionist Kathleen McKenna, 58, and husband John, 63, paid £1995 for their membership in April.
Kathleen, of South Carbrain, Cumbernauld, said: "Our cheque was cashed. We contacted RCI but they had never heard of them." Universal sell holiday club membership not timeshare, so evade strict legislation.
Trading Standards have received more than 100 complaints about them and related firms The Travel Centre and The Holiday Company in Kilmarnock, which are also closed.
They are investigating as a matter of urgency as a firm based in Florida claims to have taken over the business. Wynne's £350,000 house in Catrine, Ayrshire, is now up for sale. He was not available for comment.
It was a special treat for the three-year-old, who was born with a tumour on her spine and had spent much of her young life in hospital.
But after paying £1295 to travel club Universal . Adventures, Kiera's family have no holiday -and no refund. The chancer responsible is Jason Wynne, 36, whose Kilmarnock-based Millennium Vacations International was exposed by me in September.
Kiera's mum Gillian Malone, 32, of Rutherglen, near Glasgow, said: "Universal have done a runner. I'm devastated and don't know how to explain to Kiera.
"We can't afford to go anywhere else." Gillian and partner John Aitken, 36, signed up to a three-year trial membership with Universal in April after attending a presentation at their offices in East Kilbride.
Gillian said: "It sounded great and they claimed to be backed by holiday points firm RCI."
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The couple were offered three weeks' five-star accommodation in Florida, Spain, Mexico or the Bahamas. They chose a week in Tenerife with Kiera, Gillian's son Robbie, 13, and John's children John, 15, and Chloe, nine.
They paid a £95 deposit and a further £1200 in May. Universal Adventures is a trading name of Consultancy Associates Ltd, based in Cambridge. But the family paid Capital Commercial Investments Ltd, run by Wynne.
Gillian, who is Kiera's full-time carer, said: "Universal kept hassling us to pay the balance.
"We didn't want to lose out so we borrowed and used our savings.
"The lady at Universal even looked Kiera in the eye and asked her if she was looking forward to going on a big aeroplane. She was so excited."
But weeks after paying, Gillian and John, a bin man, could not contact Universal. Their phones kept ringing out, so John visited their office but it had been closed down. Gillian said: "We want to warn other families."
The family are not Universal's only victims. Retired receptionist Kathleen McKenna, 58, and husband John, 63, paid £1995 for their membership in April.
Kathleen, of South Carbrain, Cumbernauld, said: "Our cheque was cashed. We contacted RCI but they had never heard of them." Universal sell holiday club membership not timeshare, so evade strict legislation.
Trading Standards have received more than 100 complaints about them and related firms The Travel Centre and The Holiday Company in Kilmarnock, which are also closed.
They are investigating as a matter of urgency as a firm based in Florida claims to have taken over the business. Wynne's £350,000 house in Catrine, Ayrshire, is now up for sale. He was not available for comment.
Dewey Beach to re-examine timeshare ownership
Saturday, July 15, 2006
Dewey Beach to re-examine timeshare ownership in resort
Voting power in town elections is concern
Dewey Beach may no longer welcome timeshare ownership in the resort.
Hotels and motels, too, could lose the ability to convert to condominiums.
Dewey commissioners will consider the options at a Friday meeting at 6 p.m. at the Lifesaving Station on Dagsworthy Avenue.
Commissioners normally would not try to regulate property ownership, said Dewey Mayor Courtney Riordan. But in this case, timeshare owners could tilt town elections.
Commissioner Dale Cooke proposed stopping the part-ownership setups as a way to block that possibility. A single unit's several part-owners -- a group that may spend little time and harbor no real concern for the town -- could alter elections in mobilized group efforts on certain issues, Cooke said.
That's a situation that happened a few years ago, Riordan recalled, noting the more than 100 votes from the 48-unit Royal Surf Club condominium complex.
"Nothing but a headache and a heartache for the town of Dewey Beach," Cooke agreed.
Yet Dewey needs its nonresident voters to fairly represent a town with 1,300 properties and only about 100 voting residents, Riordan said.
Other Delaware coastal towns also let nonresidents vote, unlike most municipalities.
Letting timeshare owners cast ballots in Dewey elections, though, relies on an outdated property-based voting system, Riordan said. "One man, one vote," he added.
Both Riordan and Cooke are up for re-election of their two-year terms in September.
Commissioners at Friday's meeting will also take another stab at keeping hotels and motels from converting to condominiums, a move now blocked by a moratorium.
Cooke was part of a Town Council that in 2004 passed a law allowing such switches. Since then, four hotels and motels in town chose that option. Riordan had opposed the measure and in 2005 joined with a group of residents and two newly elected commissioners to sue the town over it.
The Chancery Court lawsuit charged that it broke Dewey's zoning rules by allowing higher density limits in the new hotel room-sized condos.
A Chancery Court judge dismissed the case, saying that the law's effects did not show harm to the town. Following that decision, Riordan proposed changing Dewey's charter to let those unhappy with town decisions petition for public votes on issues -- a topic that the council will also consider at next week's meeting.
Commissioners late last year had directed the town's Planning and Zoning commission to consider revoking the condo-conversion law.
That body disagreed, deciding to let it stand. Commissioners have since appointed several new members to the seven-member commission, after five terms expired in the spring.
Voting power in town elections is concern
Dewey Beach may no longer welcome timeshare ownership in the resort.
Hotels and motels, too, could lose the ability to convert to condominiums.
Dewey commissioners will consider the options at a Friday meeting at 6 p.m. at the Lifesaving Station on Dagsworthy Avenue.
Commissioners normally would not try to regulate property ownership, said Dewey Mayor Courtney Riordan. But in this case, timeshare owners could tilt town elections.
Commissioner Dale Cooke proposed stopping the part-ownership setups as a way to block that possibility. A single unit's several part-owners -- a group that may spend little time and harbor no real concern for the town -- could alter elections in mobilized group efforts on certain issues, Cooke said.
That's a situation that happened a few years ago, Riordan recalled, noting the more than 100 votes from the 48-unit Royal Surf Club condominium complex.
"Nothing but a headache and a heartache for the town of Dewey Beach," Cooke agreed.
Yet Dewey needs its nonresident voters to fairly represent a town with 1,300 properties and only about 100 voting residents, Riordan said.
Other Delaware coastal towns also let nonresidents vote, unlike most municipalities.
Letting timeshare owners cast ballots in Dewey elections, though, relies on an outdated property-based voting system, Riordan said. "One man, one vote," he added.
Both Riordan and Cooke are up for re-election of their two-year terms in September.
Commissioners at Friday's meeting will also take another stab at keeping hotels and motels from converting to condominiums, a move now blocked by a moratorium.
Cooke was part of a Town Council that in 2004 passed a law allowing such switches. Since then, four hotels and motels in town chose that option. Riordan had opposed the measure and in 2005 joined with a group of residents and two newly elected commissioners to sue the town over it.
The Chancery Court lawsuit charged that it broke Dewey's zoning rules by allowing higher density limits in the new hotel room-sized condos.
A Chancery Court judge dismissed the case, saying that the law's effects did not show harm to the town. Following that decision, Riordan proposed changing Dewey's charter to let those unhappy with town decisions petition for public votes on issues -- a topic that the council will also consider at next week's meeting.
Commissioners late last year had directed the town's Planning and Zoning commission to consider revoking the condo-conversion law.
That body disagreed, deciding to let it stand. Commissioners have since appointed several new members to the seven-member commission, after five terms expired in the spring.
Denver Marriott for sale
Saturday, July 15, 2006
The Denver Marriott City Center, the metro area's fourth-largest hotel, is on the sales block again.
The 613-room hotel's Texas owner, Crescent Real Estate Equities Cos. of Fort Worth, put the hotel up for sale in 2004, then removed it from the market late last year. But the property is back on Crescent's roster of "properties held for sale," according to its Web site.
"A year and a half ago, they put us on the market to test the waters," said Patti O'Keefe, the Marriott City Center's general manager. "Now they think the timing [for a sale] may be the best."
The hotel, located at 1701 California St. in downtown Denver, should sell for around $200,000 per room, or $122.6 million, according to hotel industry experts.
Many hotel owners continue to put properties up for sale to take advantage of a hot sales market prompted by availability of debt, low capitalization rates and strong performance by hotels, according to hotel experts.
"There are a lot of people out there with money to spend on hotels," said Arvada hotel consultant Steve Hennis with Hospitium LLC. "They prefer to be in primary urban markets and in downtown locations."
Last year, hotel consulting firm HVS International of New York recorded more than 200 individual hotel sales of $10 million-plus per property, as well as another 123 hotels sold as part of portfolios. HVS has Denver and Boulder offices.
A publicly traded real estate investment trust (REIT), Crescent also owns the 675,000-square-foot Manville Plaza office building next to the Marriott City Center. The real estate company's metro-area portfolio consists of seven Denver-area office buildings with 2.2 million square feet of space. In the Colorado mountains, the REIT owns the 275-room Park Hyatt Beaver Creek Resort & Spa in Avon, as well as the Main Street Station timeshare property in Breckenridge and new-home lots in Eagle and Silverthorne.
Crescent already has sold its 395-room Hyatt hotel in Albuquerque, leaving it with three hotels -- the Denver Marriott, a 375-room Omni in Austin, Texas, and a 388-room Renaissance in Houston.
The Marriott City Center opened in 1982 and occupies the first 19 floors of the MCI Tower office building in downtown Denver's central business district. The hotel's recent average room rate was $203 a night, according to TripAdvisor.com.
Amenities include high-speed Internet access in all rooms, high-end beds with luxury mattresses and down comforters, parking and more than 25,000 square feet of meeting space.
Competition for prime assets has increased because of the "unprecedented availability of low-cost debt capital" to investors, according to a recent HVS International report.
A thinning pool of available assets is driving prices up, according to HVS. "There are not that many properties left," Hennis said.
Last year, a 76-room Best Western hotel in Washington, D.C., sold for $250,000 a room, while New York City's 495-room Drake Hotel went for $889,000 a room.
The 613-room hotel's Texas owner, Crescent Real Estate Equities Cos. of Fort Worth, put the hotel up for sale in 2004, then removed it from the market late last year. But the property is back on Crescent's roster of "properties held for sale," according to its Web site.
"A year and a half ago, they put us on the market to test the waters," said Patti O'Keefe, the Marriott City Center's general manager. "Now they think the timing [for a sale] may be the best."
The hotel, located at 1701 California St. in downtown Denver, should sell for around $200,000 per room, or $122.6 million, according to hotel industry experts.
Many hotel owners continue to put properties up for sale to take advantage of a hot sales market prompted by availability of debt, low capitalization rates and strong performance by hotels, according to hotel experts.
"There are a lot of people out there with money to spend on hotels," said Arvada hotel consultant Steve Hennis with Hospitium LLC. "They prefer to be in primary urban markets and in downtown locations."
Last year, hotel consulting firm HVS International of New York recorded more than 200 individual hotel sales of $10 million-plus per property, as well as another 123 hotels sold as part of portfolios. HVS has Denver and Boulder offices.
A publicly traded real estate investment trust (REIT), Crescent also owns the 675,000-square-foot Manville Plaza office building next to the Marriott City Center. The real estate company's metro-area portfolio consists of seven Denver-area office buildings with 2.2 million square feet of space. In the Colorado mountains, the REIT owns the 275-room Park Hyatt Beaver Creek Resort & Spa in Avon, as well as the Main Street Station timeshare property in Breckenridge and new-home lots in Eagle and Silverthorne.
Crescent already has sold its 395-room Hyatt hotel in Albuquerque, leaving it with three hotels -- the Denver Marriott, a 375-room Omni in Austin, Texas, and a 388-room Renaissance in Houston.
The Marriott City Center opened in 1982 and occupies the first 19 floors of the MCI Tower office building in downtown Denver's central business district. The hotel's recent average room rate was $203 a night, according to TripAdvisor.com.
Amenities include high-speed Internet access in all rooms, high-end beds with luxury mattresses and down comforters, parking and more than 25,000 square feet of meeting space.
Competition for prime assets has increased because of the "unprecedented availability of low-cost debt capital" to investors, according to a recent HVS International report.
A thinning pool of available assets is driving prices up, according to HVS. "There are not that many properties left," Hennis said.
Last year, a 76-room Best Western hotel in Washington, D.C., sold for $250,000 a room, while New York City's 495-room Drake Hotel went for $889,000 a room.
Shell Vacations’ Vino Bello Resort Opens In Napa
Saturday, July 15, 2006
It’s not every day that an independently owned and developed timeshare resort and a privately owned hotel open simultaneously on the same piece of land, especially in a place like Napa, California, where there are few hotels and even fewer timeshare resorts.
But that’s exactly what’s happening in July as Shell Vacations LLC, one of the nation’s leading independent vacation ownership developers, celebrates the grand opening of the 116-key Vino Bello Resort, considered its flagship property. Opening at the same time is the 158-room Meritage Resort at Napa, developed by Pacific Hospitality Group (PHG) an unrelated entity. Both properties have been built on 12 acres in the shadow of Napa’s landmark Grape Crusher statue, south of the city and in the heart of Napa’s Carneros Region.
“While there is no formal partnership involved, we are sharing the same piece of land and have many cross uses,” explained Shell Vacations CEO Sheldon Ginsburg, in describing this unique association. “It’s more of a joint-use agreement that will result in significant benefits to everyone involved, including guests at both properties with the Meritage staff checking in Shell guests and providing additional services.”
After two years of work with the Napa Planning Commission, Shell Vacations|–|based in Northbrook, Illinois – received development approval and closed on the property in July 2004. It was the only remaining Napa land that had been zoned for vacation ownership. Development plans for the mixed-use property called for a hotel and a premium purpose-built vacation ownership resort. A major element of the Planning Council’s approval was based on Shell’s|–|and the hotel’s – commitment to create an architecturally and environmentally acceptable design that blends with the surrounding Napa Valley area.
According to Simon Crawford-Welch, Ph.D., RRP, Executive Vice President of Sales & Marketing, “Vino Bello will be sold as part of the point-based Shell Vacations Club - West region and is expected to be in high demand by our Club members. Initial sales of SVC-West at our on-site Napa Preview Center are almost double our budgeted numbers and only strengthen our belief that Vino Bello will be an excellent strategic fit, considering our large California owner base,” he says.
Although the area welcomes more than ten million annual visitors who come to tour the functioning 500 or so wineries in Napa and nearby Sonoma County, Napa Valley has only 3,000 hotel rooms, the majority of which are small bed and breakfast establishments.
Crawford-Welch adds that their marketing team intends to tap into this burgeoning Napa Valley tourism traffic and has established strong joint marketing alliances with area businesses and attractions. Perry Bergelt is Regional Director of Sales & Marketing for Shell Vacations|–|West and John Carter is Regional Director of Marketing.
About Vino Bello
After developing 23 resorts and nearly 40 years in the business, Ginsburg and his Shell Vacations development team have learned what their 100,000 Shell Vacations Club (SVC) members/owners desire in vacation accommodations. The Vino Bello – the masculine version of the Italian words “beautiful wine” – is the culmination of this extensive knowledge.
According to Jeffrey Server, Shell’s Executive VP of Acquisitions/Development, who has spent over 4½ years bringing this project online, “This resort is the most expensive we have ever built on a per key basis. We have pulled out all the stops on this one!”
The interior design team was headed by the Orlando office of Wimberly, Allison, Tong & Goo (WATG). According to Elaine Lazarus, responsible for all Shell Vacations interior design, WATG has done several other Shell projects in Arizona and Hawaii.
“All units will include a 37” flat panel wall-mounted TV in the living room and 27” flat panel wall-mounted televisions in each of the bedrooms. The master bedroom will include a Jacuzzi tub with luxurious bedding packages. Porches have a variety of views with some overlooking a growing vineyard on the property. The porches on studio units feature seating for two while the porches on larger units include seating for four with a rocking bench.
Amenities include a swimming pool, Jacuzzi and children’s pool and water spray playground, and state-of-the-art exercise facility with a large flat panel mounted television.
Shell Vacations Club members will also have access to the hotel’s 118-seat Siena Restaurant, a full-service Tuscan inspired restaurant with a California theme. Also on the hotel site is a 60-seat Chapel named “Our Lady of the Grapes” which opens to vineyard views.
About The Meritage Hotel at Napa
The Pacific Hospitality Group, a hotel development and management company that develops and manages a portfolio of luxury hotels and resorts in Arizona and California, developed the Meritage Resort at Napa. PHG will manage both the Meritage and the Vino Bello bringing to future vacationers and business travelers the best of both worlds with their first-class operations and customer support services.
Built and marketed to the business traveler and corporate groups, The Meritage Resort at Napa features the largest convention facilities in Napa. The Meritage’s underground Spa Terra and Estate Wine Cave facilities will be open to hotel and Vino Bello visitors later in the year, creating a full-service resort experience for guests. With over 14,000 square feet of conference facilities, the hotel expects to attract business travelers and corporate groups.
They are a member of Preferred Hotels and Resorts Worldwide, an exclusive global brand of independently owned luxury hotels and resorts. To qualify as a Preferred hotel or resort, each property must meet exceptional criteria of hospitality standards.
Headquartered in Northbrook, Illinois, Shell Vacations (www.ShellVacationsClub.com) (www.ShellHospitality.com) is considered one of the most respected independent vacation ownership developers in the United States, operating 23 resorts in seven states and Mexico and Canada. Other California resorts include: The Inn at the Opera, The Suites at Fisherman’s Wharf, the Donatello Hotel in San Francisco and Peacock Suites in Anaheim. The company has over 2,000 employees and a hospitality division serving over 100,000 members and owners.
Timeshare company opens in NM's biggest metro
Saturday, July 15, 2006
Trendwest Resorts has opened its first sales center in Albuquerque at 6700 Jefferson St. NE. The timeshare business, which is part of Cendant Timeshare Resort Group of Orlando, Fla., has hired 25 employees in sales, marketing, telemarketing and administrative positions.
Earlier this year, the owner of the Conejos Office Park, where Redmond, Wash.-based Trendwest is located, decided that its 8,000-square-foot building, called the Conejos Executive Offices, was better suited for one lease, rather than 15. In mid-January, a letter notifying the tenants about the closure of the office park was sent out to the tenants at the time, giving the businesses more than two months to find another location. The 15 businesses were either on six month or month-to-month leases.
Trendwest first approached Vista Hills Partners, the owner of the five-building office park last October. Greg Foltz of Coldwell Banker Commercial - Las Colinas represented Trendwest in the lease.
"Albuquerque, in particular, is a key market since we have resort properties in the surrounding states and our presence enables us to provide residents and visitors an opportunity to purchase a lifetime of vacations," says Rich Folk, senior vice president of sales for Trendwest Resorts, in a news release.
Trendwest's network operates 59 WorldMark resorts in the U.S. and international locations such as Mexico and Australia. Trendwest is the exclusive developer and marketer of WorldMark, The Club, whose clients purchase ownership interest in the club through Trendwest.
Earlier this year, the owner of the Conejos Office Park, where Redmond, Wash.-based Trendwest is located, decided that its 8,000-square-foot building, called the Conejos Executive Offices, was better suited for one lease, rather than 15. In mid-January, a letter notifying the tenants about the closure of the office park was sent out to the tenants at the time, giving the businesses more than two months to find another location. The 15 businesses were either on six month or month-to-month leases.
Trendwest first approached Vista Hills Partners, the owner of the five-building office park last October. Greg Foltz of Coldwell Banker Commercial - Las Colinas represented Trendwest in the lease.
"Albuquerque, in particular, is a key market since we have resort properties in the surrounding states and our presence enables us to provide residents and visitors an opportunity to purchase a lifetime of vacations," says Rich Folk, senior vice president of sales for Trendwest Resorts, in a news release.
Trendwest's network operates 59 WorldMark resorts in the U.S. and international locations such as Mexico and Australia. Trendwest is the exclusive developer and marketer of WorldMark, The Club, whose clients purchase ownership interest in the club through Trendwest.
Accor Première Vacation Club buys Busselton Resort
Saturday, July 15, 2006
Busselton resort to be rebranded Grand Mercure following $11 million acquisition
Australia's leading timeshare company, Accor Première Vacation Club (APVC) has announced they had unconditionally contracted to purchase 59 apartments at Busselton Bungalows from Westralia Property Management Ltd for a price in excess of $11 million, with a proposed settlement date of August 16th 2006.
This acquisition increases APVC’s investment Australian and New Zealand tourism property to over $68 million.
The fully self-contained studios, 2 and 3 bedroom apartments will undergo a soft furniture refurbishment to upgrade the accommodation and facilities to 4½ star standard.
The resort, situated on the beachfront at Geographe Bay, 2.5 hours drive south of Perth, offers an extensive range of facilities including indoor and outdoor pools, two tennis and two squash courts, a gym and games room.
The property is to be re-branded to a Grand Mercure Resort, managed by APVC Resort Operations Division and will be available for APVC members as well as non-members, who will be able to book rooms on a nightly basis via normal distribution channels and Accor’s reservations systems.
The Busselton property will be the ninth Grand Mercure in the up-market hotel and resort collection available to APVC Members, including the historic Basildene Manor Margaret River Grand Mercure, also in Western Australia.
“The Resort is in one of the most picturesque parts of Western Australia, midway between Perth and the world famous Margaret River and its wineries, with world class diving, marine wildlife and a temperate climate,” says Martin Kandel, CEO of Accor Première Vacation Club.
“Perfect for couples or families, APVC’s 15,000 Members will soon have three top quality properties to choose from in Perth and its surrounds, including the existing Basildene Manor Margaret River Grand Mercure, our Vines Resort property which is under construction in the Swan Valley and now Busselton,” he added.
APVC is well on track to record an impressive 2006 bottom line - with forecasts predicting over $100 million in gross revenue.
The current 15,000 member-base is growing at the rate of 6,000 per year and the anticipated growth for the total memberships is a doubling in the next two years. APVC is projected to employ over 1,000 nationwide the end of 2006.
Accor Première Vacation Club is a joint venture established between hotel operator Accor Asia Pacific and property developer Becton Corporation. The Club has been operating in Australia since 2000, with over 15,000 members who utilise the benefits of its flexible Holiday Ownership system in Australia, New Zealand and around the globe.
Accor’s Grand Mercure brand is a collection of distinctive boutique hotels and apartment complexes, each with their own individual style. Properties are selected for their distinctive style and character and reflection of local influences.
Accor currently operates 23 Grand Mercure properties in the Asia Pacific region.
Australia's leading timeshare company, Accor Première Vacation Club (APVC) has announced they had unconditionally contracted to purchase 59 apartments at Busselton Bungalows from Westralia Property Management Ltd for a price in excess of $11 million, with a proposed settlement date of August 16th 2006.
This acquisition increases APVC’s investment Australian and New Zealand tourism property to over $68 million.
The fully self-contained studios, 2 and 3 bedroom apartments will undergo a soft furniture refurbishment to upgrade the accommodation and facilities to 4½ star standard.
The resort, situated on the beachfront at Geographe Bay, 2.5 hours drive south of Perth, offers an extensive range of facilities including indoor and outdoor pools, two tennis and two squash courts, a gym and games room.
The property is to be re-branded to a Grand Mercure Resort, managed by APVC Resort Operations Division and will be available for APVC members as well as non-members, who will be able to book rooms on a nightly basis via normal distribution channels and Accor’s reservations systems.
The Busselton property will be the ninth Grand Mercure in the up-market hotel and resort collection available to APVC Members, including the historic Basildene Manor Margaret River Grand Mercure, also in Western Australia.
“The Resort is in one of the most picturesque parts of Western Australia, midway between Perth and the world famous Margaret River and its wineries, with world class diving, marine wildlife and a temperate climate,” says Martin Kandel, CEO of Accor Première Vacation Club.
“Perfect for couples or families, APVC’s 15,000 Members will soon have three top quality properties to choose from in Perth and its surrounds, including the existing Basildene Manor Margaret River Grand Mercure, our Vines Resort property which is under construction in the Swan Valley and now Busselton,” he added.
APVC is well on track to record an impressive 2006 bottom line - with forecasts predicting over $100 million in gross revenue.
The current 15,000 member-base is growing at the rate of 6,000 per year and the anticipated growth for the total memberships is a doubling in the next two years. APVC is projected to employ over 1,000 nationwide the end of 2006.
Accor Première Vacation Club is a joint venture established between hotel operator Accor Asia Pacific and property developer Becton Corporation. The Club has been operating in Australia since 2000, with over 15,000 members who utilise the benefits of its flexible Holiday Ownership system in Australia, New Zealand and around the globe.
Accor’s Grand Mercure brand is a collection of distinctive boutique hotels and apartment complexes, each with their own individual style. Properties are selected for their distinctive style and character and reflection of local influences.
Accor currently operates 23 Grand Mercure properties in the Asia Pacific region.
Loan Helps Pennsylvania Developer Turn Timeshares
Saturday, July 15, 2006
$1.65 Million Loan from Kennedy Funding Helps Pennsylvania Developer Turn Timeshares into Condos
Alan and Adam Luckner of Bridge Associates of Pocono Township, L.P., had some interesting plans for Ski Side Village, a timeshare project nestled at the foot of Camelback Mountain in the Pocono Mountains of Pennsylvania. They wanted to transfer certain existing timeshares to existing three-bedroom units, in order to free up certain two-bedroom units so they could be sold as condominiums. There were a total of 26 units that would become free and clear, and the Luckners wanted to use them as collateral for a loan in order to repay certain existing obligations, and to refurbish some of those units. The two-bedroom units each have two stories, and measure approximately 1,300 square feet. On the first floor, there is a vaulted ceiling living room with a brick fireplace, kitchen, and dining room on a stepped up floor, and a bedroom and full bath in the rear. A staircase leads to the master bedroom, featuring a full bath with a sunken tub and dry sauna, and wooden decks extend from each bedroom.
The only possible stumbling block to the plan was finding a lender willing to accept the proposed units as collateral. Fortunately for the Luckners and Bridge Associates, they had a prior history with Kennedy Funding, headquartered in Hackensack, NJ. Kennedy Funding is a commercial real estate lending company that specializes in unconventional financing where speed and attention to special circumstances are critical. Their unique lending program has made them one of the largest direct, private lenders in the country, because they recognize that loans must often be structured around each client's unique set of financial circumstances.
"It's always a pleasure doing business with the Luckners," said Jeffrey Wolfer, President and co-CEO of Kennedy. "We've done successful deals in the past together, and this one looked very good. Ski Side Village is right in the middle of 'ski country', with great views of the Camelback ski slopes. The condominium units are extremely attractive and intelligently priced, so we had no problem making a loan to Bridge Associates for $1.65 million."
Kennedy Funding's evaluative process is quick, expert, and thorough, determining the intrinsic value of both the collateral and the project for which the funds are requested. The firm has the ability to issue loan commitments in as little as 24 hours, which can lead to a closing in less than a week. Available financing ranges from $1 million to $100 million and more.
While specializing in commercial real estate loans, Kennedy has funded such diverse enterprises as high-profile golf courses, amusement parks, TV and radio stations, airlines, and sports complexes, among others. Professionals including land-use developers, resort builders, entrepreneurs, and major businessmen have used the services of Kennedy Funding to great success. Kennedy can fund up to 75% loan-to-value for commercial land development, acquisitions, workouts, refinancing, bankruptcies, and foreclosures.
Alan and Adam Luckner of Bridge Associates of Pocono Township, L.P., had some interesting plans for Ski Side Village, a timeshare project nestled at the foot of Camelback Mountain in the Pocono Mountains of Pennsylvania. They wanted to transfer certain existing timeshares to existing three-bedroom units, in order to free up certain two-bedroom units so they could be sold as condominiums. There were a total of 26 units that would become free and clear, and the Luckners wanted to use them as collateral for a loan in order to repay certain existing obligations, and to refurbish some of those units. The two-bedroom units each have two stories, and measure approximately 1,300 square feet. On the first floor, there is a vaulted ceiling living room with a brick fireplace, kitchen, and dining room on a stepped up floor, and a bedroom and full bath in the rear. A staircase leads to the master bedroom, featuring a full bath with a sunken tub and dry sauna, and wooden decks extend from each bedroom.
The only possible stumbling block to the plan was finding a lender willing to accept the proposed units as collateral. Fortunately for the Luckners and Bridge Associates, they had a prior history with Kennedy Funding, headquartered in Hackensack, NJ. Kennedy Funding is a commercial real estate lending company that specializes in unconventional financing where speed and attention to special circumstances are critical. Their unique lending program has made them one of the largest direct, private lenders in the country, because they recognize that loans must often be structured around each client's unique set of financial circumstances.
"It's always a pleasure doing business with the Luckners," said Jeffrey Wolfer, President and co-CEO of Kennedy. "We've done successful deals in the past together, and this one looked very good. Ski Side Village is right in the middle of 'ski country', with great views of the Camelback ski slopes. The condominium units are extremely attractive and intelligently priced, so we had no problem making a loan to Bridge Associates for $1.65 million."
Kennedy Funding's evaluative process is quick, expert, and thorough, determining the intrinsic value of both the collateral and the project for which the funds are requested. The firm has the ability to issue loan commitments in as little as 24 hours, which can lead to a closing in less than a week. Available financing ranges from $1 million to $100 million and more.
While specializing in commercial real estate loans, Kennedy has funded such diverse enterprises as high-profile golf courses, amusement parks, TV and radio stations, airlines, and sports complexes, among others. Professionals including land-use developers, resort builders, entrepreneurs, and major businessmen have used the services of Kennedy Funding to great success. Kennedy can fund up to 75% loan-to-value for commercial land development, acquisitions, workouts, refinancing, bankruptcies, and foreclosures.
45-acre marina may be built in Kona lava field
Saturday, July 15, 2006
A developer who plans to carve a 45-acre marina out of a North Kona lava field will also build two miles of road to ease Kailua traffic congestion, and may construct 500 to 1,000 affordable "workforce" housing units, according to newly released details on the proposed project.
The additional housing could ease a crunch in West Hawai'i, where rents and housing prices are at sky-high levels. While jobs are plentiful in Kona, workers can't afford to live there, so many drive hours to get to work each day.
Spokesmen for the Kona Kai Ola project declined to estimate how much of an investment Atlanta-based Jacoby Development Inc. expects to make in the 530-acre waterfront commercial village planned near the edge of Kailua, Kona.
However, the cost of merely excavating the marina near the Honokohau Small Boat Harbor will be enormous. As a condition of the lease, the state is requiring the developer to build an 800-slip marina out of a lava field. Jacoby representative David Tarnas said that would require at least a 12-foot-deep excavation over the entire 45 acres, and the excavation might have to be deeper.
The project would be built on 350 acres of state land and about 200 acres of Hawaiian Home Lands near Honokohau. The state Department of Land and Natural Resources selected Jacoby as the developer in 2004, but is not expected to actually sign a lease with Jacoby for the 350 acres until next year.
Tarnas said the developer plans to provide a 42-acre shoreline park as part of the project, which would include 1,800 timeshare units and three hotels with a combined total of 670 to 770 hotel rooms. It also would include 52 acres of commercial development along the Queen Ka'ahumanu Highway.
"We really want this to be a place that can bring what is really Kona out in front, a place where people can enjoy themselves and focus on the character of Kona," he said.
OCEAN WATER COOLING
Buildings in the project would be cooled by ocean water pumped into a cooling plant near the mauka edge of the development, and water discharged from that cooling process will be used to feed a series of man-made salt water lagoons that would flow back into the marina, Tarnas said.
That water circulation will keep the marina cleaner and more clear than an ordinary boat harbor, he said.
Big Island County Council Chairman Stacy Higa said the project promises to "put Kona on the map as one of the premier harbor destinations in the world." However, Higa said, county officials will have to study the project carefully when it is submitted for rezoning and other approvals.
"I want to support this, but the community benefit has to far outweigh the drawbacks," Higa said. "I think roads and traffic will be an issue."
TRAFFIC CONCERNS
Long, daily traffic tie-ups in the Kailua area have prompted some residents to call for a moratorium on new development until the state and county can build a network of roads adequate to accommodate more growth.
One Kailua resident who is questioning the pace of growth is Doug Parker, who owns a business doing home and commercial property inspections for buyers and sellers. Parker has urged the County Council to hold off on new rezonings until the county has completed a new Kona community development plan.
"Once you develop it, there's no turning back," Parker said of the Honokohau project. "I think that it's kind of overwhelming for an infrastructure that can't even handle what we have, or what we have on the books with approved development as it is."
Tarnas said the Kona Kai Ola project will help ease area traffic congestion because the developer plans to build a two-mile road from the Kealakehe Parkway at its intersection with Queen Ka'ahumanu Highway across the development site and other private lands to the Kuakini Highway near the old Kona airport. That road would be build before the rest of the project so the public can use it as soon as possible, he said.
EMPLOYEE HOUSING
The developer also plans to provide shuttle service from the project site to the surrounding areas and back, and is seeking permission to build employee housing on state lands near Kealakehe High School that have been earmarked for affordable housing.
Plans also call for a hands-on marine education center for use by area schools, a six-acre site within the development for community gatherings or events, and a man-made wetland habitat for birds that frequent the area.
The developer plans to produce a master development plan for the project, plans for the core infrastructure and a draft environmental impact statement by the end of this year, Tarnas said. Construction is tentatively planned to begin in 2008. Completing the entire development would take about a dozen years, he said.
The additional housing could ease a crunch in West Hawai'i, where rents and housing prices are at sky-high levels. While jobs are plentiful in Kona, workers can't afford to live there, so many drive hours to get to work each day.
Spokesmen for the Kona Kai Ola project declined to estimate how much of an investment Atlanta-based Jacoby Development Inc. expects to make in the 530-acre waterfront commercial village planned near the edge of Kailua, Kona.
However, the cost of merely excavating the marina near the Honokohau Small Boat Harbor will be enormous. As a condition of the lease, the state is requiring the developer to build an 800-slip marina out of a lava field. Jacoby representative David Tarnas said that would require at least a 12-foot-deep excavation over the entire 45 acres, and the excavation might have to be deeper.
The project would be built on 350 acres of state land and about 200 acres of Hawaiian Home Lands near Honokohau. The state Department of Land and Natural Resources selected Jacoby as the developer in 2004, but is not expected to actually sign a lease with Jacoby for the 350 acres until next year.
Tarnas said the developer plans to provide a 42-acre shoreline park as part of the project, which would include 1,800 timeshare units and three hotels with a combined total of 670 to 770 hotel rooms. It also would include 52 acres of commercial development along the Queen Ka'ahumanu Highway.
"We really want this to be a place that can bring what is really Kona out in front, a place where people can enjoy themselves and focus on the character of Kona," he said.
OCEAN WATER COOLING
Buildings in the project would be cooled by ocean water pumped into a cooling plant near the mauka edge of the development, and water discharged from that cooling process will be used to feed a series of man-made salt water lagoons that would flow back into the marina, Tarnas said.
That water circulation will keep the marina cleaner and more clear than an ordinary boat harbor, he said.
Big Island County Council Chairman Stacy Higa said the project promises to "put Kona on the map as one of the premier harbor destinations in the world." However, Higa said, county officials will have to study the project carefully when it is submitted for rezoning and other approvals.
"I want to support this, but the community benefit has to far outweigh the drawbacks," Higa said. "I think roads and traffic will be an issue."
TRAFFIC CONCERNS
Long, daily traffic tie-ups in the Kailua area have prompted some residents to call for a moratorium on new development until the state and county can build a network of roads adequate to accommodate more growth.
One Kailua resident who is questioning the pace of growth is Doug Parker, who owns a business doing home and commercial property inspections for buyers and sellers. Parker has urged the County Council to hold off on new rezonings until the county has completed a new Kona community development plan.
"Once you develop it, there's no turning back," Parker said of the Honokohau project. "I think that it's kind of overwhelming for an infrastructure that can't even handle what we have, or what we have on the books with approved development as it is."
Tarnas said the Kona Kai Ola project will help ease area traffic congestion because the developer plans to build a two-mile road from the Kealakehe Parkway at its intersection with Queen Ka'ahumanu Highway across the development site and other private lands to the Kuakini Highway near the old Kona airport. That road would be build before the rest of the project so the public can use it as soon as possible, he said.
EMPLOYEE HOUSING
The developer also plans to provide shuttle service from the project site to the surrounding areas and back, and is seeking permission to build employee housing on state lands near Kealakehe High School that have been earmarked for affordable housing.
Plans also call for a hands-on marine education center for use by area schools, a six-acre site within the development for community gatherings or events, and a man-made wetland habitat for birds that frequent the area.
The developer plans to produce a master development plan for the project, plans for the core infrastructure and a draft environmental impact statement by the end of this year, Tarnas said. Construction is tentatively planned to begin in 2008. Completing the entire development would take about a dozen years, he said.
Timeshares could become a thing of the past !
Saturday, July 15, 2006
Dewey Beach may block timeshare ownerships and stop motels and hotels from turning into condominiums as commissioners ready for a September election that part-time, part-owners of beach property could sway.
Town commissioners will consider the options at a July 14 meeting at 6 p.m. in the Lifesaving Station on Dagsworthy Avenue.
Commissioner Dale Cooke proposed stopping the timeshare ownership set-ups as a way to keep that group -- one that he said may spend little time and harbor little concern for the resort -- from altering elections.
That's a situation that happened a few years ago, recalled Mayor Courtney Riordan, who noted more than 100 votes from the 48-unit Royal Surf Club condominium complex.
"Nothing but a headache and a heartache for the town of Dewey Beach," Cooke agreed.
Yet Dewey needs its non-resident voters to fairly represent a town with 1,300 properties and only about 100 voting residents, Riordan said. So do other Delaware coastal towns that, unlike most municipalities, also let non-residents vote.
Letting timeshare owners cast ballots in Dewey elections, though, relies on an outdated property-based voting system, Riordan said.
"One man, one vote," he added.
Both Riordan and Cooke are up for re-election of their two-year terms in September.
Condo effect
Commissioners at the July 14 meeting will also take another stab at keeping hotels and motels from converting to condominiums, a move now blocked by a moratorium.
Cooke was part of the town council that in 2004 passed a law allowing such switches. Since then, four hotels and motels in town chose that option.
Riordan had opposed the measure and in 2005, joined with a group of residents and two newly-elected commissioners to sue the town over it. The Chancery Court lawsuit charged that it broke Dewey's zoning rules by allowing higher density limits in the new hotel room-sized condos. A Chancery Court judge dismissed the case, saying that the law's effects failed to show harm to the town.
Following that decision, Riordan proposed changing Dewey's charter to let those unhappy with town decisions petition for public votes on issues -- a topic that the council will also consider at Friday's meeting.
Late last year, commissioners directed the planning and zoning commission to consider revoking the condo-conversion law. That body disagreed, deciding to let it stand.
The town council has since appointed several new members to the seven-member commission, after five terms expired in the spring.
Town commissioners will consider the options at a July 14 meeting at 6 p.m. in the Lifesaving Station on Dagsworthy Avenue.
Commissioner Dale Cooke proposed stopping the timeshare ownership set-ups as a way to keep that group -- one that he said may spend little time and harbor little concern for the resort -- from altering elections.
That's a situation that happened a few years ago, recalled Mayor Courtney Riordan, who noted more than 100 votes from the 48-unit Royal Surf Club condominium complex.
"Nothing but a headache and a heartache for the town of Dewey Beach," Cooke agreed.
Yet Dewey needs its non-resident voters to fairly represent a town with 1,300 properties and only about 100 voting residents, Riordan said. So do other Delaware coastal towns that, unlike most municipalities, also let non-residents vote.
Letting timeshare owners cast ballots in Dewey elections, though, relies on an outdated property-based voting system, Riordan said.
"One man, one vote," he added.
Both Riordan and Cooke are up for re-election of their two-year terms in September.
Condo effect
Commissioners at the July 14 meeting will also take another stab at keeping hotels and motels from converting to condominiums, a move now blocked by a moratorium.
Cooke was part of the town council that in 2004 passed a law allowing such switches. Since then, four hotels and motels in town chose that option.
Riordan had opposed the measure and in 2005, joined with a group of residents and two newly-elected commissioners to sue the town over it. The Chancery Court lawsuit charged that it broke Dewey's zoning rules by allowing higher density limits in the new hotel room-sized condos. A Chancery Court judge dismissed the case, saying that the law's effects failed to show harm to the town.
Following that decision, Riordan proposed changing Dewey's charter to let those unhappy with town decisions petition for public votes on issues -- a topic that the council will also consider at Friday's meeting.
Late last year, commissioners directed the planning and zoning commission to consider revoking the condo-conversion law. That body disagreed, deciding to let it stand.
The town council has since appointed several new members to the seven-member commission, after five terms expired in the spring.
Mexico City Architect Selected for New Mixed Use
Saturday, July 15, 2006
Mexico City Architect Selected for New Mixed Use Master Plan
Loreto’s Latest Project Encompasses Hotel, Timeshare, Fractional, Whole Ownership Real Estate
Owen Perry, a partner in the highly successful The Villa Group for the past 20 years, has announced that Felipe Ochoa y Asociados has been selected to create the master plan for a spectacular 1800 acre resort development in Loreto, Baja Sur, Mexico. Loreto is located on the east coast of the Baja California Peninsula facing the Sea of Cortez. With practically no rain and a source of pure water coming from underground springs, Loreto is rapidly becoming one of Mexico’s prime vacation and second home destinations. It is surrounded by the Sierra La Giganta, one of Baja’s highest and most breathtaking mountain ranges.
The Mexico City based architect is renowned for many projects in Mexico including resorts in Puerto Vallarta and Cancun. The firm is known for its master plan of Loreto prepared on behalf of FONATUR, Mexico’s national trust for the promotion of tourism. Along with Loreto, FONATUR has developed Mexico’s top beach resort areas–Cancun, Ixtapa, Los Cabos, and the Bays of Huatulco.
According to Owen Perry, the magnificent development has been approved by local and state governments for a total of 2200 rooms, divided into four properties, with a variety of real estate products covering the spectrum of affordability and lifestyles. Included in the overall make-up are timesharing, fractional ownership, whole ownership, restaurants, recreational opportunities and commercial retail operations. A high-end hotel to be named shortly is also on the books. At least one 18-hole golf course will be integrated into the mixed-used master plan.
“One travel writer recently described Loreto as a place to “get off the treadmill of life,” said Perry. “We agree. Loreto is an hour flight from San Diego and an hour and a half from Los Angeles. The area is already attracting a lot of people who usually travel to Cabo San Lucas. We’re confident that many who tire of the five hour flight to Hawaii will choose Loreto as their destination.”
The property is situated on the beaches of a maritime park surrounded by mountains. The protected bay of the Sea of Cortez is known for its remarkable crystal blue clarity. The park was created by the Mexican government years ago to protect marine and wild life. The new resort destination will only be accessible by electric golf-style carts to ensure its pristine integrity is maintained.
The first phase, the timeshare resort, is expected to break ground in fall of 2006.
In association with The Villa Group, Owen Perry’s other ventures include Villa La Estancia (Cabo San Lucas and Nuevo Vallarta), one of the world’s most successful fractional ownership resorts, five timeshare resorts, hotels, restaurants and other real estate and tourism oriented entities.
Loreto’s Latest Project Encompasses Hotel, Timeshare, Fractional, Whole Ownership Real Estate
Owen Perry, a partner in the highly successful The Villa Group for the past 20 years, has announced that Felipe Ochoa y Asociados has been selected to create the master plan for a spectacular 1800 acre resort development in Loreto, Baja Sur, Mexico. Loreto is located on the east coast of the Baja California Peninsula facing the Sea of Cortez. With practically no rain and a source of pure water coming from underground springs, Loreto is rapidly becoming one of Mexico’s prime vacation and second home destinations. It is surrounded by the Sierra La Giganta, one of Baja’s highest and most breathtaking mountain ranges.
The Mexico City based architect is renowned for many projects in Mexico including resorts in Puerto Vallarta and Cancun. The firm is known for its master plan of Loreto prepared on behalf of FONATUR, Mexico’s national trust for the promotion of tourism. Along with Loreto, FONATUR has developed Mexico’s top beach resort areas–Cancun, Ixtapa, Los Cabos, and the Bays of Huatulco.
According to Owen Perry, the magnificent development has been approved by local and state governments for a total of 2200 rooms, divided into four properties, with a variety of real estate products covering the spectrum of affordability and lifestyles. Included in the overall make-up are timesharing, fractional ownership, whole ownership, restaurants, recreational opportunities and commercial retail operations. A high-end hotel to be named shortly is also on the books. At least one 18-hole golf course will be integrated into the mixed-used master plan.
“One travel writer recently described Loreto as a place to “get off the treadmill of life,” said Perry. “We agree. Loreto is an hour flight from San Diego and an hour and a half from Los Angeles. The area is already attracting a lot of people who usually travel to Cabo San Lucas. We’re confident that many who tire of the five hour flight to Hawaii will choose Loreto as their destination.”
The property is situated on the beaches of a maritime park surrounded by mountains. The protected bay of the Sea of Cortez is known for its remarkable crystal blue clarity. The park was created by the Mexican government years ago to protect marine and wild life. The new resort destination will only be accessible by electric golf-style carts to ensure its pristine integrity is maintained.
The first phase, the timeshare resort, is expected to break ground in fall of 2006.
In association with The Villa Group, Owen Perry’s other ventures include Villa La Estancia (Cabo San Lucas and Nuevo Vallarta), one of the world’s most successful fractional ownership resorts, five timeshare resorts, hotels, restaurants and other real estate and tourism oriented entities.
Saddleback gets OK for condo units, house lots
Saturday, July 15, 2006
The owner of Saddleback Maine received approval Wednesday for the first step in an ambitious plan designed to transform the ski mountain into a four-season resort. The Land Use Regulation Commission unanimously approved the construction of 18 condominiums and the creation of five house lots, along with associated roads, parking and utilities at the ski resort. Work on that project could begin as early as this summer.
Waiting in the wings, however, is a $150 million proposal that, over 10 years, would create a small village of condominiums, timeshares and homes on the mountain, while greatly expanding ski trails and opportunities for year-round nonmotorized recreation including hiking, mountain biking and kayaking.
Bill Berry of Farmington, whose family owns Saddleback, said the development is designed to dovetail with the offerings of nearby Rangeley rather than creating new stores and other services already available there.
He said that if the plan goes forward as projected, it would provide a boost to the local economy by greatly expanding year-round tourism.
Berry and his wife, Irene, along with their adult children purchased the ski mountain in 2003 when it was about to close. Berry has said that creating jobs in Franklin County and keeping skiing affordable for Maine people were goals when his family decided to buy the property.
They have already spent $15 million on improvements, the most visible of which is a three-level, 36,000-square-foot lodge.
The 10-year plan has been submitted to LURC and is slated to go to a public hearing this fall. A decision by LURC, which serves as the planning authority for the unorganized territory, could come either later in the fall or during the winter, according to Saddleback officials.
If the plan is approved as submitted and is fully implemented, 165 house lots, 275 condominium units and 313 condominium timeshares would be created in a village-type setting similar to the existing development.
The ambitious plan is largely dependent on market conditions, however, particularly in the later years of the proposal.
John Cannizzaro, planning and development manager of Saddleback Maine, said that the plan calls for the construction of between 20 and 24 condominium units and the same number of timeshare condominiums each year along with the creation of 16 house lots.
If market conditions allow, more units could be added during the later years, he said.
The plan also calls for construction of a 40-room inn near the existing base lodge in 2009 and a hotel with between 60 and 100 rooms near the cross country trails in 2014.
Amenities associated with the timeshare condominiums include an indoor pool, exercise facility and tennis courts. A tubing park and ice-skating facility are also part of the plan.
About three ski trails would be added every year and a new lift would be added about every two years. Saddleback now owns more than 8,000 acres, with 1,960 acres zoned for development.
The 10-year plan calls for adding about 1,900 acres to those already zoned for development, with the vast majority of that for new trails. Finally, two new day lodges are also part of the plans, one slated for construction in 2009 or 2010, and the other in 2012 or 2013. Those lodges would also be associated with lifts and condominiums.
Cannizzaro said the idea is to provide just about any sort of nonmotorized recreational opportunities people could want, including canoeing and kayaking on Saddleback Lake.
"We are trying to create a nonmotorized wilderness experience," he said.
Waiting in the wings, however, is a $150 million proposal that, over 10 years, would create a small village of condominiums, timeshares and homes on the mountain, while greatly expanding ski trails and opportunities for year-round nonmotorized recreation including hiking, mountain biking and kayaking.
Bill Berry of Farmington, whose family owns Saddleback, said the development is designed to dovetail with the offerings of nearby Rangeley rather than creating new stores and other services already available there.
He said that if the plan goes forward as projected, it would provide a boost to the local economy by greatly expanding year-round tourism.
Berry and his wife, Irene, along with their adult children purchased the ski mountain in 2003 when it was about to close. Berry has said that creating jobs in Franklin County and keeping skiing affordable for Maine people were goals when his family decided to buy the property.
They have already spent $15 million on improvements, the most visible of which is a three-level, 36,000-square-foot lodge.
The 10-year plan has been submitted to LURC and is slated to go to a public hearing this fall. A decision by LURC, which serves as the planning authority for the unorganized territory, could come either later in the fall or during the winter, according to Saddleback officials.
If the plan is approved as submitted and is fully implemented, 165 house lots, 275 condominium units and 313 condominium timeshares would be created in a village-type setting similar to the existing development.
The ambitious plan is largely dependent on market conditions, however, particularly in the later years of the proposal.
John Cannizzaro, planning and development manager of Saddleback Maine, said that the plan calls for the construction of between 20 and 24 condominium units and the same number of timeshare condominiums each year along with the creation of 16 house lots.
If market conditions allow, more units could be added during the later years, he said.
The plan also calls for construction of a 40-room inn near the existing base lodge in 2009 and a hotel with between 60 and 100 rooms near the cross country trails in 2014.
Amenities associated with the timeshare condominiums include an indoor pool, exercise facility and tennis courts. A tubing park and ice-skating facility are also part of the plan.
About three ski trails would be added every year and a new lift would be added about every two years. Saddleback now owns more than 8,000 acres, with 1,960 acres zoned for development.
The 10-year plan calls for adding about 1,900 acres to those already zoned for development, with the vast majority of that for new trails. Finally, two new day lodges are also part of the plans, one slated for construction in 2009 or 2010, and the other in 2012 or 2013. Those lodges would also be associated with lifts and condominiums.
Cannizzaro said the idea is to provide just about any sort of nonmotorized recreational opportunities people could want, including canoeing and kayaking on Saddleback Lake.
"We are trying to create a nonmotorized wilderness experience," he said.
Sunterra Corporation to Engage Investment Banker
Saturday, July 15, 2006
Sunterra Corporation to Engage Investment Banker; Announces Changes in Senior Management
Sunterra Corporation (PINKSHEETS: SNRR) today announced that the company is in the process of engaging an investment banking firm for the purpose of assessing strategic alternatives for Sunterra, including a potential sale of the company (with the North American and European operations together or separately). The company expects to finalize the engagement prior to the end of July.
As previously disclosed, Sunterra has engaged Chanin Capital to assess, value and assist management in considering strategic alternatives with respect to Sunterra Europe, including a potential sale of Sunterra Europe. Since that time the company has received indications of interest for its European operations from third parties. The company expects that Chanin will provide preliminary analysis to the company regarding Sunterra Europe shortly, and the company intends to take this into account in its evaluation of the alternatives for the entire company.
No decision has been made as to whether Sunterra will engage in a transaction or transactions resulting from its Board of Director's consideration of strategic alternatives, either with respect to Sunterra or Sunterra Europe, and there can be no assurance that any transaction or transactions will occur or, if undertaken, the terms or timing of such a transaction or transactions.
In other developments, on July 12, 2006, Sunterra's Board of Directors appointed Keith Maib to serve as the company's Chief Operating Officer and as an Executive Vice President. Mr. Maib has significant experience managing companies through periods of operational change. Mr. Maib will assist James A. Weissenborn, interim President and Chief Executive Officer, with day-to-day operations and other company matters.
Also on July 12, 2006, the Board appointed Derek Kanoa to serve as a Senior Vice President-Sales, to replace Andrew Gennuso, who resigned effective July 21, 2006, in order to pursue other opportunities within the timeshare industry. Mr. Kanoa, currently Vice President of Sales for the Western Region, joined Sunterra as a sales agent in 1995 at the company's resort on Kauai, Poipu Point, HI, and held several positions of increasing responsibility in the company's sales operation, most recently as the head of Western sales.
For more information on Sunterra and recent events, why not read posts on our dedicated Sunterra forum. Click [url="http://www.timesharetalk.co.uk/forum/default.asp?CAT_ID=11"]here to go straight to the forum.
Sunterra Corporation (PINKSHEETS: SNRR) today announced that the company is in the process of engaging an investment banking firm for the purpose of assessing strategic alternatives for Sunterra, including a potential sale of the company (with the North American and European operations together or separately). The company expects to finalize the engagement prior to the end of July.
As previously disclosed, Sunterra has engaged Chanin Capital to assess, value and assist management in considering strategic alternatives with respect to Sunterra Europe, including a potential sale of Sunterra Europe. Since that time the company has received indications of interest for its European operations from third parties. The company expects that Chanin will provide preliminary analysis to the company regarding Sunterra Europe shortly, and the company intends to take this into account in its evaluation of the alternatives for the entire company.
No decision has been made as to whether Sunterra will engage in a transaction or transactions resulting from its Board of Director's consideration of strategic alternatives, either with respect to Sunterra or Sunterra Europe, and there can be no assurance that any transaction or transactions will occur or, if undertaken, the terms or timing of such a transaction or transactions.
In other developments, on July 12, 2006, Sunterra's Board of Directors appointed Keith Maib to serve as the company's Chief Operating Officer and as an Executive Vice President. Mr. Maib has significant experience managing companies through periods of operational change. Mr. Maib will assist James A. Weissenborn, interim President and Chief Executive Officer, with day-to-day operations and other company matters.
Also on July 12, 2006, the Board appointed Derek Kanoa to serve as a Senior Vice President-Sales, to replace Andrew Gennuso, who resigned effective July 21, 2006, in order to pursue other opportunities within the timeshare industry. Mr. Kanoa, currently Vice President of Sales for the Western Region, joined Sunterra as a sales agent in 1995 at the company's resort on Kauai, Poipu Point, HI, and held several positions of increasing responsibility in the company's sales operation, most recently as the head of Western sales.
For more information on Sunterra and recent events, why not read posts on our dedicated Sunterra forum. Click [url="http://www.timesharetalk.co.uk/forum/default.asp?CAT_ID=11"]here to go straight to the forum.
Deal closes for 700 Ilikai rooms
Saturday, July 15, 2006
The local company Anekona Properties completed its purchase of some 700 rooms at the landmark Renaissance Ilikai Waikiki hotel yesterday afternoon.
The deal was announced to the hotel management and employees at an internal meeting yesterday afternoon, though no sales price was disclosed.
The Y-shaped property, which opened in 1964, is expected to undergo significant renovations.
Brian Anderson, president of Anekona Properties, confirmed the deal yesterday, but declined to give further details.
Anderson in recent years has acquired numerous hotels in Hawaii, including the Kauai Beach Resort and Islander on the Beach on Kauai, which were converted to condominium hotels.
He also owns the Regency on Beachwalk and the 51-room W Honolulu Diamond Head boutique hotel in Waikiki.
Anekona was planning to sell the W Honolulu to an unsolicited buyer earlier this summer, but the deal fell out of escrow. It will still undergo a million-dollar renovation.
The Ilikai, at 1777 Ala Moana Blvd., was sold by Forward One LLC of California, which is connected to the Zen family of Taiwan.
Previously, the Ilikai was operated under Japan Airlines' Nikko Hotels.
Anderson said last week he was in discussions with three or four operators, including Hard Rock International, to take over management of the Ilikai. Currently, the hotel operates under Marriott's Renaissance brand.
Alan Cambra, the Ilikai's general manager under Marriott, declined comment.
Some 580 units at the Renaissance Ilikai are fee-simple condominiums owned by members of its Association of Apartment Owners. Shell Vacations, a timeshare operator, owns about 80 rooms.
Joseph Toy, president of Hospitality Advisors LLC, said new investors taking ownership of the Ilikai would help rejuvenate the Ala Moana corridor alongside the redevelopment taking place in central Waikiki.
"We've already begun to see that with the redevelopment of the Waikikian and the Tahitian Lanai," he said. "I'm confident there will be a plan to renovate and reposition the (Ilikai) to take better advantage of the market."
The Ilikai, built by the late Chinn Ho, is popular among film crews and a range of celebrities. It was the site of shots ranging from the opening credits of "Hawaii 5-0" to Bruce Willis' "Tears of the Sun."
Unite Here Local 5, which represents between 450 and 500 employees at the Ilikai, was informed of the new ownership yesterday, but has yet to set up a formal meeting.
The new ownership presents uncertainty for some of the business owners at the hotel, particularly those located in the Yacht Harbor Tower overlooking the water.
One longtime business owner, who declined to give her name, said she was informed her operation did not blend in with new design plans.
The deal was announced to the hotel management and employees at an internal meeting yesterday afternoon, though no sales price was disclosed.
The Y-shaped property, which opened in 1964, is expected to undergo significant renovations.
Brian Anderson, president of Anekona Properties, confirmed the deal yesterday, but declined to give further details.
Anderson in recent years has acquired numerous hotels in Hawaii, including the Kauai Beach Resort and Islander on the Beach on Kauai, which were converted to condominium hotels.
He also owns the Regency on Beachwalk and the 51-room W Honolulu Diamond Head boutique hotel in Waikiki.
Anekona was planning to sell the W Honolulu to an unsolicited buyer earlier this summer, but the deal fell out of escrow. It will still undergo a million-dollar renovation.
The Ilikai, at 1777 Ala Moana Blvd., was sold by Forward One LLC of California, which is connected to the Zen family of Taiwan.
Previously, the Ilikai was operated under Japan Airlines' Nikko Hotels.
Anderson said last week he was in discussions with three or four operators, including Hard Rock International, to take over management of the Ilikai. Currently, the hotel operates under Marriott's Renaissance brand.
Alan Cambra, the Ilikai's general manager under Marriott, declined comment.
Some 580 units at the Renaissance Ilikai are fee-simple condominiums owned by members of its Association of Apartment Owners. Shell Vacations, a timeshare operator, owns about 80 rooms.
Joseph Toy, president of Hospitality Advisors LLC, said new investors taking ownership of the Ilikai would help rejuvenate the Ala Moana corridor alongside the redevelopment taking place in central Waikiki.
"We've already begun to see that with the redevelopment of the Waikikian and the Tahitian Lanai," he said. "I'm confident there will be a plan to renovate and reposition the (Ilikai) to take better advantage of the market."
The Ilikai, built by the late Chinn Ho, is popular among film crews and a range of celebrities. It was the site of shots ranging from the opening credits of "Hawaii 5-0" to Bruce Willis' "Tears of the Sun."
Unite Here Local 5, which represents between 450 and 500 employees at the Ilikai, was informed of the new ownership yesterday, but has yet to set up a formal meeting.
The new ownership presents uncertainty for some of the business owners at the hotel, particularly those located in the Yacht Harbor Tower overlooking the water.
One longtime business owner, who declined to give her name, said she was informed her operation did not blend in with new design plans.
SellMyTimeshareNOW Promotes New Sales VP
Saturday, July 15, 2006
SellMyTimeshareNOW is pleased to announce the promotion of Jim Paone from Sales and Advertising Manager to the Vice President of Sales. Jason Tremblay, co-CEO of SellMyTimeshareNOW, says, Jim is an excellent asset to our company. He has helped us grow exponentially in the last year, something we expect will continue far into the future.
$92,376,910 in timeshare sale and rental offers were presented to SellMyTimeshareNOW s timeshare resale and rental advertisers in 2005. In the first half alone of 2006, $104,685,181 in offers were made. Mr. Paone, who has been with the company since March 2005, says he is Quite surprised, grateful, and tickled pink to be promoted.
I m not very big on titles, but the fact that the owners gave that to me demonstrates their confidence in me. Mr. Paone originally joined SellMyTimeshareNOW at a point when owners Jason Tremblay and Mark Eldridge were looking for someone to take the company to a new level, and Mr. Paone was looking for a company to develop. He is excited about the potential for growth that SellMyTimeshareNOW has, and that the timeshare resales industry holds.
Prior to working with SellMyTimeshareNOW, Mr. Paone had worked with companies as diverse as broadcast radio and financial services. It was this background with small businesses which gave him the experience and motivation to move on to an even more ambitious level. He manages with the four E s, taken from Jack Welch, which are to have Energy 24-7, Energize others around you 24-7, have Enthusiasm, and manage the Execution of the game plan. I love the personalities behind sales, working with the customers and understanding them, working by phone, training others to do this and how to grow.
Add to that the fact that the whole company is growing I just love the whole dynamic. I am very excited about the opportunity to service the public worldwide in the timeshare industry and about taking care of a customer who has been mistreated for years. It s nice to see two business men who came into this marketplace to do what s right for the timeshare seller, buyer and renter.
SellMyTimeshareNOW is focused not only on doing what is right for their customers, but they are also focused on doing what is right for their employees. As Mr. Paone says We moved the company from Hampton to Dover for special reasons. This area had been crippled in the job market. I knew there were plenty of good people up here working for far less than they were worth, family people.
With SellMyTimeshareNOW, we ve brought excellent wages and a super working environment to Dover and the surrounding area, and we will continue to do that and more. There is outstanding growth in this company.
$92,376,910 in timeshare sale and rental offers were presented to SellMyTimeshareNOW s timeshare resale and rental advertisers in 2005. In the first half alone of 2006, $104,685,181 in offers were made. Mr. Paone, who has been with the company since March 2005, says he is Quite surprised, grateful, and tickled pink to be promoted.
I m not very big on titles, but the fact that the owners gave that to me demonstrates their confidence in me. Mr. Paone originally joined SellMyTimeshareNOW at a point when owners Jason Tremblay and Mark Eldridge were looking for someone to take the company to a new level, and Mr. Paone was looking for a company to develop. He is excited about the potential for growth that SellMyTimeshareNOW has, and that the timeshare resales industry holds.
Prior to working with SellMyTimeshareNOW, Mr. Paone had worked with companies as diverse as broadcast radio and financial services. It was this background with small businesses which gave him the experience and motivation to move on to an even more ambitious level. He manages with the four E s, taken from Jack Welch, which are to have Energy 24-7, Energize others around you 24-7, have Enthusiasm, and manage the Execution of the game plan. I love the personalities behind sales, working with the customers and understanding them, working by phone, training others to do this and how to grow.
Add to that the fact that the whole company is growing I just love the whole dynamic. I am very excited about the opportunity to service the public worldwide in the timeshare industry and about taking care of a customer who has been mistreated for years. It s nice to see two business men who came into this marketplace to do what s right for the timeshare seller, buyer and renter.
SellMyTimeshareNOW is focused not only on doing what is right for their customers, but they are also focused on doing what is right for their employees. As Mr. Paone says We moved the company from Hampton to Dover for special reasons. This area had been crippled in the job market. I knew there were plenty of good people up here working for far less than they were worth, family people.
With SellMyTimeshareNOW, we ve brought excellent wages and a super working environment to Dover and the surrounding area, and we will continue to do that and more. There is outstanding growth in this company.
Cendant board approves spin-offs
Saturday, July 15, 2006
Cendant Corporation announced today that its Board of Directors has formally approved the spin-offs of its real estate services and hospitality services.
This includes timeshare resorts and businesses through the distribution of 100% of the common stock of its Realogy Corporation and Wyndham Worldwide Corporation subsidiaries to stockholders of Cendant Corporation.
The distributions are expected to occur after the close of business on July 31, 2006 to Cendant stockholders of record as of the close of business on July 21, 2006.
Cendant will distribute one share of Realogy common stock for every four shares of Cendant common stock outstanding as of the record date, and one share of Wyndham Worldwide common stock for every five shares of Cendant common stock outstanding as of the record date.
Fractional shares of Realogy or Wyndham Worldwide common stock will not be distributed and any Cendant stockholder entitled to receive a fractional share will instead receive a cash payment.
The distributions have been structured to qualify as tax-free stock dividends to Cendant stockholders for U.S. federal income tax purposes. Cash received in lieu of fractional shares, however, will be taxable.
Cendant currently has approximately 1.0 billion shares outstanding. Based on the distribution ratio, approximately 250 million shares of Realogy common stock and approximately 200 million shares of Wyndham Worldwide common stock will be distributed to Cendant stockholders.
In addition, Cendant intends to submit several proposals at its annual stockholders meeting scheduled for August 29, 2006, including one to change Cendant's name to Avis Budget Group, Inc. and another to authorize a 1-for-10 reverse stock split of Cendant's common stock to reduce the number of Cendant shares outstanding to approximately 100 million.
As announced on June 30, 2006, Cendant entered into a definitive agreement to sell its Travelport subsidiary to The Blackstone Group and confirmed that it will use the net proceeds from such sale (after taxes, fees and expenses and retirement of Travelport's borrowings) to reduce the indebtedness allocated to Realogy and Wyndham Worldwide.
Based on the expected amount of proceeds from the Travelport sale, it is currently estimated that Realogy's debt level will be reduced from $2,225 million at the time of its separation from Cendant to approximately $750 million upon receipt of its share of Travelport proceeds and that Wyndham Worldwide's debt level will be reduced from $1,360 million at the time of its separation from Cendant to approximately $600 million after the receipt of its share of Travelport proceeds.
Closing is subject to satisfaction of customary conditions and is expected to occur in August 2006.
Because Cendant common stock will continue to trade "regular-way" (inclusive of the Realogy and Wyndham Worldwide distributions) on the New York Stock Exchange (the "NYSE") through the distribution date, any holder of Cendant common stock who sells shares prior to the close of business on July 31, 2006 will also be selling the related entitlement to receive shares of Realogy or Wyndham Worldwide common stock in respect of such shares.
Investors are encouraged to consult with their financial advisors regarding the specific implications of selling Cendant common stock before the distribution date.
Realogy and Wyndham Worldwide have filed applications to list their common stock on the NYSE under the symbols "H" and "WYN," respectively. The Company expects that "when issued" public markets for Realogy and Wyndham Worldwide common stock will develop on or about two business days prior to the record date.
No action is required by Cendant stockholders to receive their Realogy or Wyndham Worldwide common stock. Cendant stockholders who hold Cendant common stock as of the record date will receive a book-entry account statement reflecting their ownership of Realogy and Wyndham Worldwide common stock or their brokerage account will be credited for the shares.
Shortly after July 21, 2006, Cendant will mail Information Statements to its stockholders of record as of the close of business on the record date. The Information Statements will include information regarding the distributions and the business and management of Realogy Corporation and Wyndham Worldwide Corporation, as applicable, following each distribution. In addition, each of Cendant, Realogy Corporation and Wyndham Worldwide Corporation intend to file important information related to the spin-offs, including this release and the appropriate Information Statement(s), with the Securities and Exchange Commission (the "SEC") on Form 8-K.
JPMorgan and Evercore acted as financial and strategic advisors to Cendant in connection with the spin-offs and related transactions. Skadden, Arps, Slate, Meagher & Flom LLP acted as Cendant's legal advisor.
The distribution of the Realogy and Wyndham Worldwide shares will be made as described in the applicable Information Statement relating to such securities, which have been filed with the SEC. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
Adoption of Stockholder Rights Plan
The Company also announced that its Board of Directors approved the adoption of a stockholder rights plan (the "Rights Plan"). The Rights Plan is designed to preserve the long-term value of the Company in the event of a potential takeover that the Board of Directors determines may be coercive or unfair or otherwise not in the best interests of the Company and its stockholders. The Company also noted that the Board of Directors has not adopted the new rights plan in response to any known effort to acquire control of the Company.
To implement the Rights Plan, the Company will distribute a dividend of one Right for each share of its common stock held by all stockholders of record at the close of business on July 21, 2006. The Rights initially will attach to and trade with Cendant common stock, unless and until they are separated upon the occurrence of certain future events; no separate certificates will be issued. Rights will attach to shares of common stock issued by the Company after that date.
Each Right will entitle holders of each share of common stock to buy one one-thousandth of a share of the Company's Series A junior participating preferred stock at an initial exercise price of $80.00 per share. Subject to the terms of the Rights Plan, the Rights will become exercisable ten business days after a person or group acquires 15% or more of the Company's outstanding common stock or announces a tender or exchange offer that would result in that person or group owning 15% or more of the Company's common stock. Each Right, when exercised, entitles the holder (other than the acquiring person or group) to receive Cendant common stock with a market value of twice the exercise price of the Rights upon payment of the exercise price of the Rights.
The Company will be entitled to redeem the Rights at $0.001 per Right until 10 business days after a person or group achieves the 15% threshold. This Rights Plan will expire unless stockholders approve its continuation at the Company's 2008 annual meeting of stockholders. Additional details regarding the Rights Plan will be outlined in a Current Report on Form 8-K to be filed by the Company.
This includes timeshare resorts and businesses through the distribution of 100% of the common stock of its Realogy Corporation and Wyndham Worldwide Corporation subsidiaries to stockholders of Cendant Corporation.
The distributions are expected to occur after the close of business on July 31, 2006 to Cendant stockholders of record as of the close of business on July 21, 2006.
Cendant will distribute one share of Realogy common stock for every four shares of Cendant common stock outstanding as of the record date, and one share of Wyndham Worldwide common stock for every five shares of Cendant common stock outstanding as of the record date.
Fractional shares of Realogy or Wyndham Worldwide common stock will not be distributed and any Cendant stockholder entitled to receive a fractional share will instead receive a cash payment.
The distributions have been structured to qualify as tax-free stock dividends to Cendant stockholders for U.S. federal income tax purposes. Cash received in lieu of fractional shares, however, will be taxable.
Cendant currently has approximately 1.0 billion shares outstanding. Based on the distribution ratio, approximately 250 million shares of Realogy common stock and approximately 200 million shares of Wyndham Worldwide common stock will be distributed to Cendant stockholders.
In addition, Cendant intends to submit several proposals at its annual stockholders meeting scheduled for August 29, 2006, including one to change Cendant's name to Avis Budget Group, Inc. and another to authorize a 1-for-10 reverse stock split of Cendant's common stock to reduce the number of Cendant shares outstanding to approximately 100 million.
As announced on June 30, 2006, Cendant entered into a definitive agreement to sell its Travelport subsidiary to The Blackstone Group and confirmed that it will use the net proceeds from such sale (after taxes, fees and expenses and retirement of Travelport's borrowings) to reduce the indebtedness allocated to Realogy and Wyndham Worldwide.
Based on the expected amount of proceeds from the Travelport sale, it is currently estimated that Realogy's debt level will be reduced from $2,225 million at the time of its separation from Cendant to approximately $750 million upon receipt of its share of Travelport proceeds and that Wyndham Worldwide's debt level will be reduced from $1,360 million at the time of its separation from Cendant to approximately $600 million after the receipt of its share of Travelport proceeds.
Closing is subject to satisfaction of customary conditions and is expected to occur in August 2006.
Because Cendant common stock will continue to trade "regular-way" (inclusive of the Realogy and Wyndham Worldwide distributions) on the New York Stock Exchange (the "NYSE") through the distribution date, any holder of Cendant common stock who sells shares prior to the close of business on July 31, 2006 will also be selling the related entitlement to receive shares of Realogy or Wyndham Worldwide common stock in respect of such shares.
Investors are encouraged to consult with their financial advisors regarding the specific implications of selling Cendant common stock before the distribution date.
Realogy and Wyndham Worldwide have filed applications to list their common stock on the NYSE under the symbols "H" and "WYN," respectively. The Company expects that "when issued" public markets for Realogy and Wyndham Worldwide common stock will develop on or about two business days prior to the record date.
No action is required by Cendant stockholders to receive their Realogy or Wyndham Worldwide common stock. Cendant stockholders who hold Cendant common stock as of the record date will receive a book-entry account statement reflecting their ownership of Realogy and Wyndham Worldwide common stock or their brokerage account will be credited for the shares.
Shortly after July 21, 2006, Cendant will mail Information Statements to its stockholders of record as of the close of business on the record date. The Information Statements will include information regarding the distributions and the business and management of Realogy Corporation and Wyndham Worldwide Corporation, as applicable, following each distribution. In addition, each of Cendant, Realogy Corporation and Wyndham Worldwide Corporation intend to file important information related to the spin-offs, including this release and the appropriate Information Statement(s), with the Securities and Exchange Commission (the "SEC") on Form 8-K.
JPMorgan and Evercore acted as financial and strategic advisors to Cendant in connection with the spin-offs and related transactions. Skadden, Arps, Slate, Meagher & Flom LLP acted as Cendant's legal advisor.
The distribution of the Realogy and Wyndham Worldwide shares will be made as described in the applicable Information Statement relating to such securities, which have been filed with the SEC. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
Adoption of Stockholder Rights Plan
The Company also announced that its Board of Directors approved the adoption of a stockholder rights plan (the "Rights Plan"). The Rights Plan is designed to preserve the long-term value of the Company in the event of a potential takeover that the Board of Directors determines may be coercive or unfair or otherwise not in the best interests of the Company and its stockholders. The Company also noted that the Board of Directors has not adopted the new rights plan in response to any known effort to acquire control of the Company.
To implement the Rights Plan, the Company will distribute a dividend of one Right for each share of its common stock held by all stockholders of record at the close of business on July 21, 2006. The Rights initially will attach to and trade with Cendant common stock, unless and until they are separated upon the occurrence of certain future events; no separate certificates will be issued. Rights will attach to shares of common stock issued by the Company after that date.
Each Right will entitle holders of each share of common stock to buy one one-thousandth of a share of the Company's Series A junior participating preferred stock at an initial exercise price of $80.00 per share. Subject to the terms of the Rights Plan, the Rights will become exercisable ten business days after a person or group acquires 15% or more of the Company's outstanding common stock or announces a tender or exchange offer that would result in that person or group owning 15% or more of the Company's common stock. Each Right, when exercised, entitles the holder (other than the acquiring person or group) to receive Cendant common stock with a market value of twice the exercise price of the Rights upon payment of the exercise price of the Rights.
The Company will be entitled to redeem the Rights at $0.001 per Right until 10 business days after a person or group achieves the 15% threshold. This Rights Plan will expire unless stockholders approve its continuation at the Company's 2008 annual meeting of stockholders. Additional details regarding the Rights Plan will be outlined in a Current Report on Form 8-K to be filed by the Company.
Sunterra offers SkyMed emergency service
Saturday, July 15, 2006
Sunterra Corporation, a vacation ownership industry, has entered into an agreement with SkyMed International Inc, to provide Club Sunterra members with a medical air repatriation services program. Club Sunterra members now can purchase SkyMed emergency services on a per-trip basis or can buy an annual membership. This program is available to North American members who are vacationing at a resort located in North America.
Should a Club Sunterra member become critically ill or injured while traveling more than 100 air miles from their home SkyMed will provide medically equipped air ambulance jet service to transport that member home to his or her trusted health care provider rather than to the nearest medical facility.
John Boland, Sunterra’s Senior Vice President of Member Operations, said "While critical illnesses or injuries may seem a rare event when vacationing, they do happen, and it is comforting to know we can now make SkyMed available to our North American members for short-stay trips. It is always best to be prepared, and we are pleased to incorporate the acclaimed SkyMed program as a cost-effective travel option worthy of member consideration."
Will Klein, President of SkyMed, said, "We recently used a medically equipped Lear jet to repatriate a timeshare member from St. Maarten to New Jersey. It would have cost the patient $25,000, cash in advance, if he were not a SkyMed member. Instead, his only out-of-pocket cost was his SkyMed membership fee. SkyMed is proud of being called the ‘Cadillac` of emergency air membership programs."
Should a Club Sunterra member become critically ill or injured while traveling more than 100 air miles from their home SkyMed will provide medically equipped air ambulance jet service to transport that member home to his or her trusted health care provider rather than to the nearest medical facility.
John Boland, Sunterra’s Senior Vice President of Member Operations, said "While critical illnesses or injuries may seem a rare event when vacationing, they do happen, and it is comforting to know we can now make SkyMed available to our North American members for short-stay trips. It is always best to be prepared, and we are pleased to incorporate the acclaimed SkyMed program as a cost-effective travel option worthy of member consideration."
Will Klein, President of SkyMed, said, "We recently used a medically equipped Lear jet to repatriate a timeshare member from St. Maarten to New Jersey. It would have cost the patient $25,000, cash in advance, if he were not a SkyMed member. Instead, his only out-of-pocket cost was his SkyMed membership fee. SkyMed is proud of being called the ‘Cadillac` of emergency air membership programs."
Weaverville man charged in time-share scam
Saturday, July 15, 2006
Two men have been charged and one arrested for what Woodfin Police are calling a nationwide fraud case in which dozens of people were scammed on time shares in 21 states and Canada.
Woodfin Police Detective Don Guge said more than 60 people lost a total of $150,000 in time-share payments.
Police charged James Pridgen, 44, of Weaverville with receiving money by false pretense and embezzlement. Pridgen was being held in the Buncombe County Detention Center in lieu of a $100,000 bond.
Jacob Denson, 20, of Asheville had warrants issued for his arrest on charges of obtaining money by false pretense. Police said he fled to Jacksonville, Fla., a month ago.
Guge said police were continuing to investigate.
“The whole industry is on hold right now because you have so many people that have been a victim,” he said.
Guge said the two men were partners in a company called Timeshare Liquidators, which Pridgen ran out of his Weaverville home. Time-share payments ranged from $200 to $11,000, he said.
Guge said police uncovered a scheme leading to the arrests about a month after responding to a break-in and theft at Resort Acquisitions Inc., a Woodfin company that also deals in time shares.
Police allege that Denson skipped town after the business was broken into, everything in the office was stolen and $68,000 of the company’s money was taken out of the bank.
Pridgen had 45 percent ownership in Resort Acquisitions and that Denson had 10 percent, Guge said. The company is being considered a victim, he added.
Woodfin Police Detective Don Guge said more than 60 people lost a total of $150,000 in time-share payments.
Police charged James Pridgen, 44, of Weaverville with receiving money by false pretense and embezzlement. Pridgen was being held in the Buncombe County Detention Center in lieu of a $100,000 bond.
Jacob Denson, 20, of Asheville had warrants issued for his arrest on charges of obtaining money by false pretense. Police said he fled to Jacksonville, Fla., a month ago.
Guge said police were continuing to investigate.
“The whole industry is on hold right now because you have so many people that have been a victim,” he said.
Guge said the two men were partners in a company called Timeshare Liquidators, which Pridgen ran out of his Weaverville home. Time-share payments ranged from $200 to $11,000, he said.
Guge said police uncovered a scheme leading to the arrests about a month after responding to a break-in and theft at Resort Acquisitions Inc., a Woodfin company that also deals in time shares.
Police allege that Denson skipped town after the business was broken into, everything in the office was stolen and $68,000 of the company’s money was taken out of the bank.
Pridgen had 45 percent ownership in Resort Acquisitions and that Denson had 10 percent, Guge said. The company is being considered a victim, he added.
Marriott plans huge roll-out of Courtyard
Saturday, July 15, 2006
Marriott plans to aggressively expand its four-star Courtyard brand in the UK and Ireland, Caterer can reveal.
Fifty new hotels are planned over the next 10 years, with properties in Edinburgh, Guildford, Manchester, Newcastle, Liverpool, London and Belfast to be signed by the end of the 2006.
The company's newly appointed vice-president for hotel development, Timothy Walton, said it would consider contracts for stand-alone properties, mixed-use developments and condo-hotels. He also said Marriott would consider buying and developing properties in order to secure prime locations.
"We are very serious about this roll-out, and despite being mainly a managing and franchise-based company, we may use company capital to get a foothold in key cities," he said.
"The UK midmarket is currently relatively ill-defined and of mixed quality. We are looking to change that."
The announcement follows Marriott's final separation from Whitbread last month. Under the Whitbread-Marriott joint venture set up in March 2005 Marriott was not allowed to expand its Courtyard brand.
Fifty new hotels are planned over the next 10 years, with properties in Edinburgh, Guildford, Manchester, Newcastle, Liverpool, London and Belfast to be signed by the end of the 2006.
The company's newly appointed vice-president for hotel development, Timothy Walton, said it would consider contracts for stand-alone properties, mixed-use developments and condo-hotels. He also said Marriott would consider buying and developing properties in order to secure prime locations.
"We are very serious about this roll-out, and despite being mainly a managing and franchise-based company, we may use company capital to get a foothold in key cities," he said.
"The UK midmarket is currently relatively ill-defined and of mixed quality. We are looking to change that."
The announcement follows Marriott's final separation from Whitbread last month. Under the Whitbread-Marriott joint venture set up in March 2005 Marriott was not allowed to expand its Courtyard brand.
Marriott to open a further 50 UK hotels
Saturday, July 15, 2006
Marriott International said that it plans to open up to 50 hotels under its Courtyard by Marriott brand in Britain over the next five to 10 years. – The Times, 13 May
Marriott make new St Pancras hotel a Renaissance
Saturday, July 15, 2006
Marriott will brand its new landmark property at London’s St Pancras Chambers development as an upmarket Renaissance hotel.
The 245-bedroom Victorian hotel will include two restaurants, two bars, a health and leisure centre, ballroom and business and function facilities.
Marriott’s president and managing director of international lodging, Ed Fuller, said: “The restoration of the St Pancras Chambers will herald the revival of the wider King’s Cross area. We’re confident that this Renaissance hotel will be a catalyst for the success of this extraordinary project.”
Developer Manhattan Loft Corp will oversee the £50m restoration of the Grade 1 listed-building, which will then be managed by Marriott.
The development, which will also include residential apartments, is set to open in 2009.
St Pancras Chambers was originally built as the Midland hotel, between 1868 – 1876. It closed in 1935 and was used as British Rail offices until the early 1980s, since when it has remained vacant.
The 245-bedroom Victorian hotel will include two restaurants, two bars, a health and leisure centre, ballroom and business and function facilities.
Marriott’s president and managing director of international lodging, Ed Fuller, said: “The restoration of the St Pancras Chambers will herald the revival of the wider King’s Cross area. We’re confident that this Renaissance hotel will be a catalyst for the success of this extraordinary project.”
Developer Manhattan Loft Corp will oversee the £50m restoration of the Grade 1 listed-building, which will then be managed by Marriott.
The development, which will also include residential apartments, is set to open in 2009.
St Pancras Chambers was originally built as the Midland hotel, between 1868 – 1876. It closed in 1935 and was used as British Rail offices until the early 1980s, since when it has remained vacant.
Marriott predicts 40% boost to hotel profits
Saturday, July 15, 2006
Marriott’s lodging business (which covers hotels, timeshare, fractional ownership and serviced apartments) boosted operating income from $77m (£42m) to $252m (£137m) in the 12 weeks to 16 June, despite a decline in timeshare business.
Sales increased to $2.8b (£15b) from $2.56b (£1.4b) in the second quarter of 2005.
For the half year, the hotel business increased operating profit from $280m (£153m) to $482m (£263m), and turnover from $4.99m (£2.7b) to $5.46b (£2.98b).
“Given these above items, the company estimates that lodging operating income will total $950m (£518) to $980m (£534m) in 2006, an increase of 36% to 40% over 2005,” the company forecast in its quarterly report.
During the second quarter, Marriott opened 33 new hotels and timeshare units (including the Marriott hotel in Leicester and five Courtyards in Europe) with a total of 4,853 bedrooms.
Its pipeline of hotels under construction has grown to 80,000, up from 60,000 at the same point in 2005, and it intends to open 25,000 of them during the current year.
Total group pre-tax profits rose to $491m (£268m) from $254m (£138m) in the first half of the year.
Sales increased to $2.8b (£15b) from $2.56b (£1.4b) in the second quarter of 2005.
For the half year, the hotel business increased operating profit from $280m (£153m) to $482m (£263m), and turnover from $4.99m (£2.7b) to $5.46b (£2.98b).
“Given these above items, the company estimates that lodging operating income will total $950m (£518) to $980m (£534m) in 2006, an increase of 36% to 40% over 2005,” the company forecast in its quarterly report.
During the second quarter, Marriott opened 33 new hotels and timeshare units (including the Marriott hotel in Leicester and five Courtyards in Europe) with a total of 4,853 bedrooms.
Its pipeline of hotels under construction has grown to 80,000, up from 60,000 at the same point in 2005, and it intends to open 25,000 of them during the current year.
Total group pre-tax profits rose to $491m (£268m) from $254m (£138m) in the first half of the year.
S A Travel clubs rocked by claims of deceit
Saturday, July 08, 2006
Lies and misinformation are among the scandalous claims levelled against timeshare giants Flexi-Club and the Club Leisure Group, accused of swindling tens of millions of rands from clients.
The matter has been investigated by the Department of Trade and Industry, and CLG is currently the subject of a second investigation by the South African Revenue Service.
Unhappy clients from Flexi-Club and Club Resorts International (CRI), both of which are managed by a CLG subsidiary, have also amassed scores of written complaints and signed affidavits placing serious allegations at the feet of Flexi-Club managing director and CLG chairperson Stuart Lamont. Lamont has distanced himself and his companies from the allegations.
At the heart of the matter is the claim that Lamont helped to engineer a deal in 2000 whereby a management company, Club Leisure Management (CLM), was formed together with the Southern African arm of global timeshare leader RCI (Resorts Condominium International).
In the same year, RCI also purchased CRI Operations, the company with the management contract to administer CRI Club, a popular, points-based timeshare concept.
S'bu Mngadi, managing director of RCI's Global Vacation Network for Africa, told the Saturday Star this week that RCI soon afterwards sold CRI Operations to CLM. RCI and Flexi-Club continued to own CLM, with RCI as a minority shareholder, according to Mngadi. CLM then took over the management of the CRI club.
According to information received from several clients, former CRI consultants and a former director of the CRI Management Association (CRIMA), Lamont embarked on an aggressive marketing drive in 2002 aimed at converting CRI clients to Flexi-Club.
Clients allege, many of them in signed affidavits, that "arrogant and aggressive" Flexi-Club consultants began contacting them, spinning a yarn that CRI was in financial difficulty, that it had been bought over by Flexi Club and that clients had no option but to buy into Flexi-Club. In order to do this, clients had to purchase Flexi Club points, at an average cost of about R5 000.
Johannesburg businessman Bruce Phillips said he forfeited R30 000 in levies and many thousands more in legal fees after he was forced to hire an attorney to extricate himself from his timeshare contract.
A CRI client for many years, Phillips said he became disillusioned with constant problems trying to secure availability at his preferred resorts. The last straw came a few years ago when he was phoned "non-stop" by a Flexi-Club consultant, trying to convince him to convert his points.
"They never stopped phoning - at night, during the day and over weekends. They wanted me to convert my points to another scam and made all sorts of overtures about CRI going under and being taken over by Flexi-Club," an angry Phillips said.
According to figures announced at a CRIMA meeting last year, CRI had fewer than 10 000 members, a loss of more than 25 000 members. Members were told that 13 300 CRI members were converted to Flexi-Club during the past three years.
A former CRIMA director, who asked not to be named, said the CRIMA board of directors, along with the directors of CRI Operations, should be held accountable for "this in-house type of incestuous breeding".
"They are supposed to protect and promote the CRI points system and yet they have allowed consultants to actively convert people over to Flexi-Club. They knowingly permitted the conversions …
"You can't have different brand names under the same roof if you've got the one screwing the other," he said.
"It makes commercial sense if you can get R5 000 out of a whole list of people. If you convert 10 000 people, you've got R50-million," he added.
Responding to the allegations, Lamont denied that Flexi-Club consultants were behind the strong-arm tactics and instead blamed independent marketing firms. He said he would be very interested in investigating the claims. He said Flexi-Club was "very, very fussy" about conversions and that they were not entered into unless the person was made "fully aware of all the details".
He also claimed that several CRI members had complained about deteriorating rooms and resorts and had requested changing over to Flexi-Club.
"CRI is still strong and it's still operating. It is not insolvent and there is nothing wrong with it," Lamont said - but CRI clients canvassed by the Saturday Star slammed Lamont's comments.
Dorothy Higgins, of Johannesburg, was offered to convert at the "special price" of R3 300 and was contacted by consultants claiming to represent CRI.
"They tell you they are phoning from CRI, and then when you meet them, they say they are actually from Club Leisure Management and they are representing Flexi-Club.
"They'd say that CRI was definitely going under," Higgins said.
The comments coincide with a warning issued this week by credit information ombudsman Manie van Schalkwyk about "aggressive timeshare salespeople".
Van Schalkwyk said his office had seen an upswing in the number of consumers being blacklisted for timeshare purchases and warned people to "read the fine print" and not be bullied by aggressive sales tactics and "partial truths".
He added that although there was currently no legislative power over the timeshare industry, the Timeshare Institute of SA (TISA) was mandated to deal with complaints.
The acting executive director of TISA, Alex Bosch, who is also a director at CLM, said TISA was aware of the allegations and had referred the complaints to the Department of Trade and Industry (DTI) in 2002. As far as TISA was concerned, there was "no merit in certain of the allegations".
Ebrahim Mohamed, chief director of the office of consumer protection at the department, said the department's investigation had revealed that the manner in which certain Flexi-Club agents were approaching CRI members was "indeed problematic".
"It was then agreed between the DTI and Flexi-Club that changes had to be effected with immediate effect.
"Flexi-Club agents had to explain to converting members that CRI was not in liquidation," Ebrahim said.
Sources have confirmed that an investigation into the Club Leisure Group has also been launched by the SA Revenue Service. The Competition Commission is also keen to look into the matter, according to its enforcement and exemptions manager, Thulani Kunene.
The operations manager at CLM, Peter Snyman, also responding on behalf of Lamont, said permission to market Flexi-Club to CRI members was obtained from the former CRI board because members were struggling to "receive holidays as a result of the exceedingly poor mixture and availability of timeshare properties in their property portfolio".
He said the conversion fees were necessary in order to enable CRI members to become Flexi-Club members.
"We do not condone any bullying behaviour with potential clients. Staff are trained to show potential members the benefits of joining Flexi-Club, and members are … required to make up their own minds."
The matter has been investigated by the Department of Trade and Industry, and CLG is currently the subject of a second investigation by the South African Revenue Service.
Unhappy clients from Flexi-Club and Club Resorts International (CRI), both of which are managed by a CLG subsidiary, have also amassed scores of written complaints and signed affidavits placing serious allegations at the feet of Flexi-Club managing director and CLG chairperson Stuart Lamont. Lamont has distanced himself and his companies from the allegations.
At the heart of the matter is the claim that Lamont helped to engineer a deal in 2000 whereby a management company, Club Leisure Management (CLM), was formed together with the Southern African arm of global timeshare leader RCI (Resorts Condominium International).
In the same year, RCI also purchased CRI Operations, the company with the management contract to administer CRI Club, a popular, points-based timeshare concept.
S'bu Mngadi, managing director of RCI's Global Vacation Network for Africa, told the Saturday Star this week that RCI soon afterwards sold CRI Operations to CLM. RCI and Flexi-Club continued to own CLM, with RCI as a minority shareholder, according to Mngadi. CLM then took over the management of the CRI club.
According to information received from several clients, former CRI consultants and a former director of the CRI Management Association (CRIMA), Lamont embarked on an aggressive marketing drive in 2002 aimed at converting CRI clients to Flexi-Club.
Clients allege, many of them in signed affidavits, that "arrogant and aggressive" Flexi-Club consultants began contacting them, spinning a yarn that CRI was in financial difficulty, that it had been bought over by Flexi Club and that clients had no option but to buy into Flexi-Club. In order to do this, clients had to purchase Flexi Club points, at an average cost of about R5 000.
Johannesburg businessman Bruce Phillips said he forfeited R30 000 in levies and many thousands more in legal fees after he was forced to hire an attorney to extricate himself from his timeshare contract.
A CRI client for many years, Phillips said he became disillusioned with constant problems trying to secure availability at his preferred resorts. The last straw came a few years ago when he was phoned "non-stop" by a Flexi-Club consultant, trying to convince him to convert his points.
"They never stopped phoning - at night, during the day and over weekends. They wanted me to convert my points to another scam and made all sorts of overtures about CRI going under and being taken over by Flexi-Club," an angry Phillips said.
According to figures announced at a CRIMA meeting last year, CRI had fewer than 10 000 members, a loss of more than 25 000 members. Members were told that 13 300 CRI members were converted to Flexi-Club during the past three years.
A former CRIMA director, who asked not to be named, said the CRIMA board of directors, along with the directors of CRI Operations, should be held accountable for "this in-house type of incestuous breeding".
"They are supposed to protect and promote the CRI points system and yet they have allowed consultants to actively convert people over to Flexi-Club. They knowingly permitted the conversions …
"You can't have different brand names under the same roof if you've got the one screwing the other," he said.
"It makes commercial sense if you can get R5 000 out of a whole list of people. If you convert 10 000 people, you've got R50-million," he added.
Responding to the allegations, Lamont denied that Flexi-Club consultants were behind the strong-arm tactics and instead blamed independent marketing firms. He said he would be very interested in investigating the claims. He said Flexi-Club was "very, very fussy" about conversions and that they were not entered into unless the person was made "fully aware of all the details".
He also claimed that several CRI members had complained about deteriorating rooms and resorts and had requested changing over to Flexi-Club.
"CRI is still strong and it's still operating. It is not insolvent and there is nothing wrong with it," Lamont said - but CRI clients canvassed by the Saturday Star slammed Lamont's comments.
Dorothy Higgins, of Johannesburg, was offered to convert at the "special price" of R3 300 and was contacted by consultants claiming to represent CRI.
"They tell you they are phoning from CRI, and then when you meet them, they say they are actually from Club Leisure Management and they are representing Flexi-Club.
"They'd say that CRI was definitely going under," Higgins said.
The comments coincide with a warning issued this week by credit information ombudsman Manie van Schalkwyk about "aggressive timeshare salespeople".
Van Schalkwyk said his office had seen an upswing in the number of consumers being blacklisted for timeshare purchases and warned people to "read the fine print" and not be bullied by aggressive sales tactics and "partial truths".
He added that although there was currently no legislative power over the timeshare industry, the Timeshare Institute of SA (TISA) was mandated to deal with complaints.
The acting executive director of TISA, Alex Bosch, who is also a director at CLM, said TISA was aware of the allegations and had referred the complaints to the Department of Trade and Industry (DTI) in 2002. As far as TISA was concerned, there was "no merit in certain of the allegations".
Ebrahim Mohamed, chief director of the office of consumer protection at the department, said the department's investigation had revealed that the manner in which certain Flexi-Club agents were approaching CRI members was "indeed problematic".
"It was then agreed between the DTI and Flexi-Club that changes had to be effected with immediate effect.
"Flexi-Club agents had to explain to converting members that CRI was not in liquidation," Ebrahim said.
Sources have confirmed that an investigation into the Club Leisure Group has also been launched by the SA Revenue Service. The Competition Commission is also keen to look into the matter, according to its enforcement and exemptions manager, Thulani Kunene.
The operations manager at CLM, Peter Snyman, also responding on behalf of Lamont, said permission to market Flexi-Club to CRI members was obtained from the former CRI board because members were struggling to "receive holidays as a result of the exceedingly poor mixture and availability of timeshare properties in their property portfolio".
He said the conversion fees were necessary in order to enable CRI members to become Flexi-Club members.
"We do not condone any bullying behaviour with potential clients. Staff are trained to show potential members the benefits of joining Flexi-Club, and members are … required to make up their own minds."
Cendant agrees to $4.3bn sale of Travelport
Sunday, July 02, 2006
Cendant said on Friday that it would sell Travelport, the company's travel distribution division, to an affiliate of Blackstone, the private equity group, in a $4.3bn cash deal.
Shares in Cendant, the world largest travel group rose 4 per cent to $16.41 on news of the deal, the biggest increase in almost two years, after falling by 8.4 per cent so far this year.
The sale of Travelport, which includes the Galileo reservations system and the Orbitz online travel website, comes after a decision in December by Cendant to split the company into four parts in order to bolster its flagging share price.
Henry Silverman, the chairman and chief executive of Cendant, is a former partner at Blackstone.
Cendant owns a a range of brands such as travel websites Orbitz and Ebookers, a massive hotels and timeshare business, a car rental division that includes Avis and Budget, and a large real estate unit.
The company had earlier said that proceeds from the Travelport sale would be used primarily to reduce debt in Realogy, its real estate arm, and Wyndham, which houses Cendant's hospitality assets, including the Days Inn hotel franchise.
Following the Travelport deal, debt at Realogy and Wyndham is expected to be $750m and $600m respectively.
Cendant said it expected to spin off the two subsidiaries in late July.
Shares in Cendant, the world largest travel group rose 4 per cent to $16.41 on news of the deal, the biggest increase in almost two years, after falling by 8.4 per cent so far this year.
The sale of Travelport, which includes the Galileo reservations system and the Orbitz online travel website, comes after a decision in December by Cendant to split the company into four parts in order to bolster its flagging share price.
Henry Silverman, the chairman and chief executive of Cendant, is a former partner at Blackstone.
Cendant owns a a range of brands such as travel websites Orbitz and Ebookers, a massive hotels and timeshare business, a car rental division that includes Avis and Budget, and a large real estate unit.
The company had earlier said that proceeds from the Travelport sale would be used primarily to reduce debt in Realogy, its real estate arm, and Wyndham, which houses Cendant's hospitality assets, including the Days Inn hotel franchise.
Following the Travelport deal, debt at Realogy and Wyndham is expected to be $750m and $600m respectively.
Cendant said it expected to spin off the two subsidiaries in late July.
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