Berry on Fractions & Shared Ownership: April 2007

Thursday, April 19, 2007

April 18th Orlando

Attending the IMN conference on fractions and destination clubs. Some interesting stuff:

•Dick Ragatz says, from the podium, that hotel companies are looking to buy into the destination club market. Hummmm

•Those darn destination club founders/CEOs/managers are continuing to admit they were flying blind [my term] when it came to understanding member services. No one home there with all the PRC and other condo management experiences? Well, at least they are paying attention, now.

•On an allied note the subject of how to define levels of service continues to come up as well it should. At SRG we chose to 'loose' a management proposal to 8050 Mammoth, some years back, by stating in the first line of our proposal that there was no 5* in fractional management. Well, there isn't. And, as one of the destination club guys said today, giving him credit, it's not about what hotels do for their ratings [AAA or Mobile], but about what the owner/member expects. Kind of common sense, but it says it well.

•Was told that forbes.com is the largest business web site - period.

More on the destination club 'guys' as they say that they are very, very referral-centric. Makes sense, but the lengths they go to - to work with their members to refer might offer some tips to PRC developers.

•Suggested to Dick Ragatz that he 'up' his price-per-square-foot definition of a PRC to above $1000, as per his stats the average is now $1800.

•Our Bill Orwig is here leading a panel on PRC sales. Chris Tivey on the marketing panel, I was on the 101 and 'stump the CEO' panel.

*Next week heading to Sioux Falls to speak at an event - extending the boundaries of fractional marketing by Jim Farmer, talented developer of Tatanka Spirit in the Black Hills. Through a selected invitation list he has designed an evening presentation on the project with the hook to 'win' a Toyota J Cruiser! We'll follow up with results.

•Then to Montana to interview the top candidates for HOA and Ranch Manager for Meriwether Ranch as the project 'opens' in June. Side note: posted jobs at Western Montana University for wranglers, drivers, housekeepers etc and nary a response. Not interested in the work, underneath them, or other opportunities?

•SRG's marketing guru, Chris Tivey, starting up his own company, Gravity. We wish him well. He's around the corner from SRG - HQ in Scottsdale, and will continue to collaborate on our projects.

•The aforementioned Jim Farmer of Tatanka Spirit won four, count 'em 4, Gold Ardys last month for project collaterals and advertising. Congrats Jim!

•Mid-tier fractions - more. You might recall that I was on an ARDA panel of this topic, and a good one it was. No sooner than finished at ARDA I was thrust into mid-tier land; Nisswa MN a few hours NE of MSP at the Grand View Lodge a family run operation since the 30s. Grand View is a fabulous, full service resort on Gull Lake. Now, they are adding 20 cabins for fractions, quarters, for this historical weekend retreat location. More as this product comes to market as it will be hit.

•Pat Hanes in Dubai? Yup, so reports Cindy Shaklee of Fairmont Heritage. Pat is sales manager of the Heritage project 'over there'. Now, that's a commute from Bigfork MT to Dubai right Cherlye? Also, Cindy reports that Fairmont announcing fractional projects, it seems, on a monthly basis. Some growth curve.

About Carl Berry

Carl Berry is CEO of Star Resort Group, which is the nation’s oldest and most respected fractional/private residence club developer and marketer. Star is headquartered in Bozeman, Montana.

Star’s current projects are located in St Simons Island GA, Saratoga Springs NY and Windham Mountain NY. Completed projects are located in Lake Tahoe CA, Snowmass CO, Steamboat Springs CO, Cave Creek AZ, Pinehurst NC, and Stowe VT.

Carl was the founder of The World’s Finest Resorts, the leading luxury exchange company acquired in 2005 by The Registry Collection a unit of RCI.

Shared ownership projects have been the focus of Carl’s development career for 40 years. He brought to market the first, fee ownership timeshare project in the World, in 1973 located at Brockway Springs, Lake Tahoe CA.

The Manhattan Club, New York City is the largest urban timeshare project in the World with 242 luxury apartments. It has completed sales. Other urban timeshare projects developed by Carl are located in San Francisco and New Orleans.

Timeshare projects, in the Western United States, are located in Lake Tahoe CA, Sun Valley ID, Vail CO, Sunriver OR and LaJolla CA.

Holiday Clubs International was the first multi site hotel program, which was a venture with Holiday Inns using company owned properties from Bermuda to Hawaii.

He is a former Chairman of ARDA and a member of its Board for over 18 years. Previously he served a Chair of the ARDA International Foundation Educational Institute, Chair of the Meetings and Membership Committees and Chair of the National Timeshare Council.

Carl is a founder and director of the Meritus College Fund, nonprofit providing four-year college scholarships, a National Board Member of the Lionel Hampton Center Initiative for the University of Idaho, a former president of the University of Idaho Foundation and a former president of the Alumni Association. He was recently named to the University of Idaho Hall of Fame.