Read Carl Berry, May, Points Program for Ritz?
ULI Spring Councils meeting in Atlanta
Lani Kane King, on a marketing panel, teed up their announcement for the Ritz Carlton Destination Club; a parallel offering to their site-specific fractions. I always told my team that if Marriott went to points, in the USA, then I’d go. They are so darn conservative. Well, I’m on the ‘points-trail’ now looking into them for our Las Vegas project.
Other good info at ULI. From the American Affluence Research Center:
•91% negative rating on the current economy
•67% feel the economy will be same or worse
•64% feel the stock market will be same or lower
•46% feel their incomes will be lower
•60% have preservation of capital as their investment goal
•67% have no plans for major purchases
•Interest in purchasing a second home = 25% of 2005 levels
From the Norden-Kelsey Survey of Developers
•64% say recovery is 18 Months + away
•65% say sales velocities will not recover for 5+ years, 16 % say never
•61% say values have declined 20-30%
•56% say HOA and club fees need to drop by 20-30%
•75% say price recovery will take 3 to 6 years
•93% say developer credibility requirements will escalate
•92% say all amenities will need to be in place
•81% say product will be smaller
With all this digested there was more optimism that in October when we last met. Developers have either reconciled themselves to a slog or their projects are fully stopped do to the credit markets still being frozen for resort development.
SRG was alone is starting a new project, The Whitefish Club, a PRC on Whitefish Lake, Montana. So, our necks are really out there. Will our chests be puffed out when ULI next meets in November!
