Bring on the Chateaus & Van Goghs!
We're giving two parties, sent the invitations, got the table set, but will anyone come? Isn't that the pervasive question?
To use the same metaphor we're also planning a couple of parties with high hopes that, when the guest lists go out, that we'll have a great response. Today, most developers would rather be in this group vs. the former one.
The wealth effect, or more accurately the negative wealth effect, is controlling sales these days. A lot of our customers have the money to spend to buy a fractional interest, but they 'feel' as though they don't, so they aren't. It's as straight forward as that.
We may even be living the negative wealth effect ourselves. Gave up our storage locker the other day…why spend $2400 per year for it? Just toss all that stuff away, or more appropriately give it away.
I saw on Fox News the other day that $300,000 invested in the S&P500 a year ago would now be worth $160,000. Take any variation on that number and our customers know that. So, go from a portfolio of $7 million to $3.8 million - that's still a cut worth thinking twice about.
The fraction is a personal use purchase. Each of the 'buying unit' needs to sign off on that use. In these times one of the buying couple is sure to be more 'tucked in' than the other, and there goes the sale!
So, on the Spectrum Clusters I say bring on the 'CEO with a Lexus to Go' and the 'Chateaus & Van Goghs'. These are the folks to whom we have the best chance to sell this winter.
You remember the Xerox sales training program….the selling for benefits and not features? Now's the time for that for one buys what benefits them most. The adjustment in the sales pitch today will be vital to snag those sales than can be snagged!
I hope Santa's coming to your project!
Tuesday, December 02, 2008
Sunday, November 02, 2008
November Blog
Greetings all you practitioners of fractional interests! Keeping the faith?
Just back from ULI and the Recreational Development Council meeting. The best reports were that sales were 50% of projected sales reduced as they year went on, but the great majority of projects just had one sale here and one there over the summer all as hard as heck to get closed.
Lots of prospects coming up to the bar but backing off - similar to our experiences at SRG.
Some comments:
*The major banks are firmly being controlled by their credit departments, so no new loans are going out unless its to a 'platinum-plated' repeat customer.
•A major SE resort doing a St. Kitts project now going hard on deposits: 135 reservations >> 30 conversions.
•A comment from a multi resort developer - on one hand no use spending marketing dollars, but can't go invisible, so still putting some money in their markets.
•Tales of lender defaulting on construction loans.
•Tales of no buyer loan money and no hypothecation loans.
•Naturally a great time to planning a project and a louse time to be in sales.
•Marginal hopes of winter 09 and not much better for summer 09. Will we be surprised?
•All eyes on 2010
•From Paul Volker: the capital markets won't come fully back until the trust and confidence is restored between banks worldwide. As that trust has been smashed he feels it will take two or more years to fully come back.
On the more positive side of things: another report from a research company on wealth as of September 23rd. Conclusions? The top 10% of wealth is not buying anything let along resort real estate. Maybe some interest in bottom feeding for investment real estate.
•Last year these wealthy segments were in a psychological recession. Now, they acknowledge that it's a real recession.
•They plan to cut their spending by an average of -6%
•Only family-oriented spending will hold up.
•If the past years were 'I want it'
•Then the most recent period was 'I need it'
•Now it's 'We need it' -- reflecting that family hunker down approach.
•This opens up avenues for sales to focus on 'what's real' for family use which goes to service, usable amenities and robust activities.
And, hey, these folk are still optimistic on America…they believe 09 will be a better year for them than 08 and also for America.
Greetings all you practitioners of fractional interests! Keeping the faith?
Just back from ULI and the Recreational Development Council meeting. The best reports were that sales were 50% of projected sales reduced as they year went on, but the great majority of projects just had one sale here and one there over the summer all as hard as heck to get closed.
Lots of prospects coming up to the bar but backing off - similar to our experiences at SRG.
Some comments:
*The major banks are firmly being controlled by their credit departments, so no new loans are going out unless its to a 'platinum-plated' repeat customer.
•A major SE resort doing a St. Kitts project now going hard on deposits: 135 reservations >> 30 conversions.
•A comment from a multi resort developer - on one hand no use spending marketing dollars, but can't go invisible, so still putting some money in their markets.
•Tales of lender defaulting on construction loans.
•Tales of no buyer loan money and no hypothecation loans.
•Naturally a great time to planning a project and a louse time to be in sales.
•Marginal hopes of winter 09 and not much better for summer 09. Will we be surprised?
•All eyes on 2010
•From Paul Volker: the capital markets won't come fully back until the trust and confidence is restored between banks worldwide. As that trust has been smashed he feels it will take two or more years to fully come back.
On the more positive side of things: another report from a research company on wealth as of September 23rd. Conclusions? The top 10% of wealth is not buying anything let along resort real estate. Maybe some interest in bottom feeding for investment real estate.
•Last year these wealthy segments were in a psychological recession. Now, they acknowledge that it's a real recession.
•They plan to cut their spending by an average of -6%
•Only family-oriented spending will hold up.
•If the past years were 'I want it'
•Then the most recent period was 'I need it'
•Now it's 'We need it' -- reflecting that family hunker down approach.
•This opens up avenues for sales to focus on 'what's real' for family use which goes to service, usable amenities and robust activities.
And, hey, these folk are still optimistic on America…they believe 09 will be a better year for them than 08 and also for America.
Wednesday, September 24, 2008
I hoped 09 might be better for sales than 08. I get the feeling of, "not so fast" thanks to the last month on Wall Street. Was September a good sales month for anyone out there?
I'm holding my breath 'till after the election. One of the great parts of the Harrison Group's presentation to the ULI Recreation Development Councils a year ago was the focus on discretionary income of a family as the driver for the purchase of resort real estate vs. household income.
So, I assume that if Obama is elected that two of the key drivers for discretionary income, dividends and capital gains, will have their tax rates increased from the current 15%. Not good for our sales.
However, I used to assume that if McCain were elected that these rates would be kept at present levels. I'm not so sure now. He may be forced to increase them due to all the current economic dynamics he'll have to live with. Not good for our sales.
This does not take into account the marginal rates being increased for all those 'rich' people, via Obama, making over $200k, which is a gross number. Forget the discretionary part that's left. Not good for our sales
2010 here we come - I hope. Does all this put a spotlight on fractional sales? I think so.
Did you know that on Vegas' South Strip there's a hotel with 1200 horse stalls underneath? Don't volunteer for the maintenance crew!
I'm holding my breath 'till after the election. One of the great parts of the Harrison Group's presentation to the ULI Recreation Development Councils a year ago was the focus on discretionary income of a family as the driver for the purchase of resort real estate vs. household income.
So, I assume that if Obama is elected that two of the key drivers for discretionary income, dividends and capital gains, will have their tax rates increased from the current 15%. Not good for our sales.
However, I used to assume that if McCain were elected that these rates would be kept at present levels. I'm not so sure now. He may be forced to increase them due to all the current economic dynamics he'll have to live with. Not good for our sales.
This does not take into account the marginal rates being increased for all those 'rich' people, via Obama, making over $200k, which is a gross number. Forget the discretionary part that's left. Not good for our sales
2010 here we come - I hope. Does all this put a spotlight on fractional sales? I think so.
Did you know that on Vegas' South Strip there's a hotel with 1200 horse stalls underneath? Don't volunteer for the maintenance crew!
Tuesday, August 26, 2008
Aug Blog
Dog days of summer…what's going on around the business?
We wanted to schedule a sales manager round-table, for a day, to get ten or twelve pros together and see what's working or not. We all have a program or two that works regardless of outside conditions. Couldn't put it together as there were too many personal conflicts.
On one hand one might say, "What's more important than selling or keeping your job?" On the other hand, these were pros and they know what they know and as we all know personal time is to be kept away from business.
Hart Rist of North Carolina was venturing with us, and I want to thank him for his energy and efforts to make the Eastern half of the round-table go.
Those developers who have breathing room have gone on 'hold' and are planning to come out strong, when the buyers return. Other developers, who don't have much space left, are doing their best. We do know that in fractions lowering the price does not make much of a difference. The 'bail out' guys seem to have come and gone.
At Meriwether the summer sales are beginning to drop. It's been very taxing to get buying decisions made. All the buying signals are there. And, as reported earlier most all the buyers want financing to leverage their purchase, and there's very, very little of it out there. We gone to the old favorite of local bank financing for a handful of deals.
View-up here…Rick Abelson, one of our Meriwether sales pros, did his own video to show clients. Now, this is really using technology in a smart way.
www.video.google.com and then type in Meriwether Ranch. The video, parts 1 and 2 were shot in one day, and, no, the wildlife were not paid to show…they were just there as they always are.
NextStar is in the market, but their underwriting procedure has us baffled. Textron is in the market, they are pros, but do not lend direct, which in this environment may have to be okay. Tom Ward is doing a good job in moving them into more of the main stream for fractions vs. timeshare where they have resided for decades.
Vallarta Gardens is coming together for a strong winter opening. We expect there to be a market, but we'll need to wait and see. The same for Tierra del Sol in Aruba. Pam Temples is applying her talents to the project's interiors.
Sales are going down at the Cape Codder Residence Club in Hyannis, though a bit slower than planned, but at least sales are being made.
We continue to have good experiences transitioning selected timeshare sales pros into fractions. They need mentoring at the outset to change the mind-set, but once they get it they really go to town especially in this environment as they do know how to close in a more direct line. That's a delicate balance, but the good ones we have use their past experiences to their benefit.
June and July were just dead for us in terms of new deals coming our way. August has been very busy so far, and maybe that's an indication - or not.
ULI is two months off and I'm looking forward even now to hear how the
Recreational Development crowd did over the summer.
Dog days of summer…what's going on around the business?
We wanted to schedule a sales manager round-table, for a day, to get ten or twelve pros together and see what's working or not. We all have a program or two that works regardless of outside conditions. Couldn't put it together as there were too many personal conflicts.
On one hand one might say, "What's more important than selling or keeping your job?" On the other hand, these were pros and they know what they know and as we all know personal time is to be kept away from business.
Hart Rist of North Carolina was venturing with us, and I want to thank him for his energy and efforts to make the Eastern half of the round-table go.
Those developers who have breathing room have gone on 'hold' and are planning to come out strong, when the buyers return. Other developers, who don't have much space left, are doing their best. We do know that in fractions lowering the price does not make much of a difference. The 'bail out' guys seem to have come and gone.
At Meriwether the summer sales are beginning to drop. It's been very taxing to get buying decisions made. All the buying signals are there. And, as reported earlier most all the buyers want financing to leverage their purchase, and there's very, very little of it out there. We gone to the old favorite of local bank financing for a handful of deals.
View-up here…Rick Abelson, one of our Meriwether sales pros, did his own video to show clients. Now, this is really using technology in a smart way.
www.video.google.com and then type in Meriwether Ranch. The video, parts 1 and 2 were shot in one day, and, no, the wildlife were not paid to show…they were just there as they always are.
NextStar is in the market, but their underwriting procedure has us baffled. Textron is in the market, they are pros, but do not lend direct, which in this environment may have to be okay. Tom Ward is doing a good job in moving them into more of the main stream for fractions vs. timeshare where they have resided for decades.
Vallarta Gardens is coming together for a strong winter opening. We expect there to be a market, but we'll need to wait and see. The same for Tierra del Sol in Aruba. Pam Temples is applying her talents to the project's interiors.
Sales are going down at the Cape Codder Residence Club in Hyannis, though a bit slower than planned, but at least sales are being made.
We continue to have good experiences transitioning selected timeshare sales pros into fractions. They need mentoring at the outset to change the mind-set, but once they get it they really go to town especially in this environment as they do know how to close in a more direct line. That's a delicate balance, but the good ones we have use their past experiences to their benefit.
June and July were just dead for us in terms of new deals coming our way. August has been very busy so far, and maybe that's an indication - or not.
ULI is two months off and I'm looking forward even now to hear how the
Recreational Development crowd did over the summer.
Wednesday, July 09, 2008
Professionals and practitioners of resort development….what’s selling?
I’ve been through the gas lines of 1973-4, the Carter recession with 21% interest on my San Francisco Suites loan [youth never sees a down side] the Clinton generated ‘we’re in the biggest recession since the 30s' minor dip of early 90s, the dot-bomb and now today. One thing for sure - the media has it down pat – doom and gloom.
Hiking in England last week, looking at BBC news for a 9-day period I never heard one positive economic statement. It was a lot of, “Current inflation is 3.2% but it could go to 12%! That kind of junk.
Back to the first statement. Are we selling? Yes, but slowly. This rundown will not be news to any readers. At Laguna Beach we are very close to the major market [SoCal] but getting them to put up a buck is tough. At Meriwether [see more below] if we can get ‘em there we can sell them, but being a national market getting them off the dime and getting them there has been very difficult.
In Vallarta, off-season, those who come to see us; we have a good closing percentage. Maybe that’s key indicator…if you’re in a resort counter-season you’re a good prospect.
At Cape Cod they are just coming into high, high time and have high hopes with Boston so close. First sale is down! More next month on their sales. In Aruba we plan to target the high-end buyer, who has already made a decision for the Island as Aruba has the highest repeat visitor percentage in the Caribbean.
Meriwether? Okay, if you know the outdoors you know Chris Dorsey of Orion Multimedia. He stars in 30 Beretta Outdoors episodes yearly and he produces another 150 half-hour segments of hunting and fishing adventure TV shows. Special episodes for the Ultimate Lodge will include: the Ultimate Gun Library & Trophy Room," a "Liar's Bar (aka: Fisherman's Watering Hole," "Master Mud Room & Labrador Lounge," "Eat-Like-a-Wild-Man Kitchen;" and many other custom house elements designed for the series.
Each segment will include features staring Jeff Foxworthy, America's favorite and funniest outdoorsman and will showcase amazing design elements from several outdoor lodges from around the nation. The network's 65 million viewers across America will be treated to DIY's newest phenomenon, "The Ultimate Sportsman's Lodge" series!
Great PR, huh?
We are really having to scrabble for buyer-fractional end loans….in the past with 90% of the buyers paying cash we paid only nominal attention to the sourcing of these loans. Now it seem almost all buyers inquire about financing and many are serious about it. The market has shrunken a lot, so it's tough sledding.
More next month…
I’ve been through the gas lines of 1973-4, the Carter recession with 21% interest on my San Francisco Suites loan [youth never sees a down side] the Clinton generated ‘we’re in the biggest recession since the 30s' minor dip of early 90s, the dot-bomb and now today. One thing for sure - the media has it down pat – doom and gloom.
Hiking in England last week, looking at BBC news for a 9-day period I never heard one positive economic statement. It was a lot of, “Current inflation is 3.2% but it could go to 12%! That kind of junk.
Back to the first statement. Are we selling? Yes, but slowly. This rundown will not be news to any readers. At Laguna Beach we are very close to the major market [SoCal] but getting them to put up a buck is tough. At Meriwether [see more below] if we can get ‘em there we can sell them, but being a national market getting them off the dime and getting them there has been very difficult.
In Vallarta, off-season, those who come to see us; we have a good closing percentage. Maybe that’s key indicator…if you’re in a resort counter-season you’re a good prospect.
At Cape Cod they are just coming into high, high time and have high hopes with Boston so close. First sale is down! More next month on their sales. In Aruba we plan to target the high-end buyer, who has already made a decision for the Island as Aruba has the highest repeat visitor percentage in the Caribbean.
Meriwether? Okay, if you know the outdoors you know Chris Dorsey of Orion Multimedia. He stars in 30 Beretta Outdoors episodes yearly and he produces another 150 half-hour segments of hunting and fishing adventure TV shows. Special episodes for the Ultimate Lodge will include: the Ultimate Gun Library & Trophy Room," a "Liar's Bar (aka: Fisherman's Watering Hole," "Master Mud Room & Labrador Lounge," "Eat-Like-a-Wild-Man Kitchen;" and many other custom house elements designed for the series.
Each segment will include features staring Jeff Foxworthy, America's favorite and funniest outdoorsman and will showcase amazing design elements from several outdoor lodges from around the nation. The network's 65 million viewers across America will be treated to DIY's newest phenomenon, "The Ultimate Sportsman's Lodge" series!
Great PR, huh?
We are really having to scrabble for buyer-fractional end loans….in the past with 90% of the buyers paying cash we paid only nominal attention to the sourcing of these loans. Now it seem almost all buyers inquire about financing and many are serious about it. The market has shrunken a lot, so it's tough sledding.
More next month…
Wednesday, June 04, 2008
June 2008
This month it’s Aruba, Laguna Beach, and Puerto Vallarta – Star having all the fun it can stand.
We are working with the wonderful Tierra del Sol project on Aruba - the Caribbean Island with the largest percentage of repeat visitors. http://www.Tierra delSol.com Aruba’s only planned development and only 18 hole golf course – Robert Trent Jones II – is launching a fractional project to go along with their extensive development comprised of homes, villas and condominiums plus spa, fine dining, etc.
Mac MacEwan, Ash Offermann and I were there over the past week to launch Star’s marketing and sales program with the Dutch owned luxury resort project. Tough assignment with the sapphire Caribbean calling….
Marriott Vacation Ownership ‘owns’ the timeshare action on the Island. If there ever was a juggernaut of VO development this is it. Three huge buildings; two sold out and the third within a year of sell out. Walking through the lobbies, pools and beaches they are all awash with blissfully pleased Marriott owners. Divi’s OPC are on the street, annoying, but nowhere as bad as in Mexico or Spain.
Is Aruba a long way from SRG’s headquarters in Scottsdale? You bet, but worth the trip!
Our project in Laguna Beach, Sunset Cove, began SoCal Wall Street Journal adverts this week after working with the extensive past renter guest list. Dede Bacon, down from her Tahoe base, has been heading up sales. http://www.sunsetcovelaguna.com Due to local ordinances we have what might appear as a kind of convoluted ownership structure, but just another innovation for us. Sixths and twelfths are being sold right on the beach, I mean right on the beach…sand between the toes!
Down Mexico way our Puerto Vallarta project, Vallarta Gardens, is selling away all the while trying to keep out of the way of the seemingly ever changing registration requirements of the state in which we’re located. Another groundbreaking set of use plans for the two unit types; the Corals and the Sea Stars.
Both tenths but with a combination of fixed, float and rotating to meet US and Mexican National demands. Nothing like it before, but then that’s us. By the way…dealing with the Registry Collection/Mexico is like being in another galaxy far away!
We count our blessings – 75% of our Kirkwood sales team is still with us, but at different deals: Dede Bacon at Laguna Beach, Linnea Stanhope at Meriwether and Melissa Maxey still living in the Carson Valley but heading up telemarketing for Meriwether. First class performers all!
This month it’s Aruba, Laguna Beach, and Puerto Vallarta – Star having all the fun it can stand.
We are working with the wonderful Tierra del Sol project on Aruba - the Caribbean Island with the largest percentage of repeat visitors. http://www.Tierra delSol.com Aruba’s only planned development and only 18 hole golf course – Robert Trent Jones II – is launching a fractional project to go along with their extensive development comprised of homes, villas and condominiums plus spa, fine dining, etc.
Mac MacEwan, Ash Offermann and I were there over the past week to launch Star’s marketing and sales program with the Dutch owned luxury resort project. Tough assignment with the sapphire Caribbean calling….
Marriott Vacation Ownership ‘owns’ the timeshare action on the Island. If there ever was a juggernaut of VO development this is it. Three huge buildings; two sold out and the third within a year of sell out. Walking through the lobbies, pools and beaches they are all awash with blissfully pleased Marriott owners. Divi’s OPC are on the street, annoying, but nowhere as bad as in Mexico or Spain.
Is Aruba a long way from SRG’s headquarters in Scottsdale? You bet, but worth the trip!
Our project in Laguna Beach, Sunset Cove, began SoCal Wall Street Journal adverts this week after working with the extensive past renter guest list. Dede Bacon, down from her Tahoe base, has been heading up sales. http://www.sunsetcovelaguna.com Due to local ordinances we have what might appear as a kind of convoluted ownership structure, but just another innovation for us. Sixths and twelfths are being sold right on the beach, I mean right on the beach…sand between the toes!
Down Mexico way our Puerto Vallarta project, Vallarta Gardens, is selling away all the while trying to keep out of the way of the seemingly ever changing registration requirements of the state in which we’re located. Another groundbreaking set of use plans for the two unit types; the Corals and the Sea Stars.
Both tenths but with a combination of fixed, float and rotating to meet US and Mexican National demands. Nothing like it before, but then that’s us. By the way…dealing with the Registry Collection/Mexico is like being in another galaxy far away!
We count our blessings – 75% of our Kirkwood sales team is still with us, but at different deals: Dede Bacon at Laguna Beach, Linnea Stanhope at Meriwether and Melissa Maxey still living in the Carson Valley but heading up telemarketing for Meriwether. First class performers all!
Sunday, May 11, 2008
May 11, 2008
Just back from the Urban Land Institute’s spring meeting in Charleston SC. Our group, a sub part of the over 30,000 ULI members, is the Recreational Development Council comprised of about 220 members. Rarefied Atmosphere. I was there with Rich Feldheim and Ash Offermann.
Not a lot working for most developers, so the creative juices were flowing on how to get around the ‘emotional recession’ so named by Jim Taylor of the Harrison Group. As the country is not in a recession by the Government’s standards, not withstanding the incessant media harping that we are in one…the income demographic for vacation home properties is solidly on the sidelines.
This was an observation: this so-called recession is the first in memory not to have high interest rates. A way to create urgency for sales had been to buy-down the interest rate, but that’s a non-starter this time around. So, where is the urgency now with the buyers on the sidelines?
Here are some thoughts that came out of our meetings during this period and to focus on the strong sales that will occur in the coming years.
•Focus on ‘intellectual’ amenities in addition to the hard amenities. Build in programming for the mind and soul.
•Pay attention to ‘lifestyle’ brands in addition to hotel brands.
•In these times you have to ‘block and tackle’ – get back to fundamentals
•Concept of a ‘greater California’ meaning NV, AZ, OR, WA and ID.
•There may not be the appreciation in the coming years for vacation homes, so developers will need to focus more on the use aspects to make the property more valuable in that sense.
•Follow-on – service will become even more important to provide that side of value to the owner.
•Micro-economy – defined as an area with very limited supply of housing and therefore high demand.
•Bootstrapping Developer – ah, how often have we seen him?
•Tennis, after being dead in past years, grew 14% last year. Come back?
•Zip Code Brands i.e. the zip for an Aspen or Sun Valley. Remember Plumtv.com? Those areas.
•Best of all, from a selling vantage: QTR = Quality Time Remaining to have your vacation home and do all the things you want. This from Jim Hill at East-West.
Bottom line…the market is wide open for free-range fractions!
Just back from the Urban Land Institute’s spring meeting in Charleston SC. Our group, a sub part of the over 30,000 ULI members, is the Recreational Development Council comprised of about 220 members. Rarefied Atmosphere. I was there with Rich Feldheim and Ash Offermann.
Not a lot working for most developers, so the creative juices were flowing on how to get around the ‘emotional recession’ so named by Jim Taylor of the Harrison Group. As the country is not in a recession by the Government’s standards, not withstanding the incessant media harping that we are in one…the income demographic for vacation home properties is solidly on the sidelines.
This was an observation: this so-called recession is the first in memory not to have high interest rates. A way to create urgency for sales had been to buy-down the interest rate, but that’s a non-starter this time around. So, where is the urgency now with the buyers on the sidelines?
Here are some thoughts that came out of our meetings during this period and to focus on the strong sales that will occur in the coming years.
•Focus on ‘intellectual’ amenities in addition to the hard amenities. Build in programming for the mind and soul.
•Pay attention to ‘lifestyle’ brands in addition to hotel brands.
•In these times you have to ‘block and tackle’ – get back to fundamentals
•Concept of a ‘greater California’ meaning NV, AZ, OR, WA and ID.
•There may not be the appreciation in the coming years for vacation homes, so developers will need to focus more on the use aspects to make the property more valuable in that sense.
•Follow-on – service will become even more important to provide that side of value to the owner.
•Micro-economy – defined as an area with very limited supply of housing and therefore high demand.
•Bootstrapping Developer – ah, how often have we seen him?
•Tennis, after being dead in past years, grew 14% last year. Come back?
•Zip Code Brands i.e. the zip for an Aspen or Sun Valley. Remember Plumtv.com? Those areas.
•Best of all, from a selling vantage: QTR = Quality Time Remaining to have your vacation home and do all the things you want. This from Jim Hill at East-West.
Bottom line…the market is wide open for free-range fractions!
Sunday, April 27, 2008
Bob Wengel joins Star Resort Group
Beginning April 15th Bob joined SRG as a senior executive and principal of the company. Initially, Bob will manage Meriwether Ranch and then assist SRG in expanding their project base from the current four to eight in the coming 12 months. This also allows Star to handle projects in the Eastern half of the country and the Caribbean.
Bob is the former COO of Diamond Resorts the major Las Vegas timeshare development company with annual sales of $180 million and over 1600 employees. He was with Diamond and its predecessor, Jockey Club, for 22 years.
A native to Butte, Montana Bob came back to Butte for some time off, and when he decided to get ‘back in the business’ Star met his requirements, and we welcome him.
He can be reached at : bwengel@starresortgroup.com and his cel is (406) 498-5606.
It’s been a month since the Ragatz Conference and the calls keep coming in from developers wanting to enter the fractional business. The good news is that most projects are not bailouts of unsold condos or condo hotels…at least the ones we have seen.
The relationship of share size and use plan is still not well understood and ill-started projects are destined for a tough time. We’ve seen a bunch of these. Also, as Ron Frank’s talk at Ragatz pointed out, there’s really very little known about how to sell a fraction, save those of us who have learned by trial and error over the years. The number of real estate brokerage companies who feel they can jump in and sell fractions is startling.
An interesting note from a fractional session at ARDA is to cover a co-brokerage commission into the marketing budget as a cost of lead generation vs. putting it in the sales, commission line. The sales team has to handle the client from front to back, so it really is a generated lead. That is if brokers ever refer in any substantial numbers!
Off to ULI week after next where we’ll see what the ‘big guys’ have planned.
Beginning April 15th Bob joined SRG as a senior executive and principal of the company. Initially, Bob will manage Meriwether Ranch and then assist SRG in expanding their project base from the current four to eight in the coming 12 months. This also allows Star to handle projects in the Eastern half of the country and the Caribbean.
Bob is the former COO of Diamond Resorts the major Las Vegas timeshare development company with annual sales of $180 million and over 1600 employees. He was with Diamond and its predecessor, Jockey Club, for 22 years.
A native to Butte, Montana Bob came back to Butte for some time off, and when he decided to get ‘back in the business’ Star met his requirements, and we welcome him.
He can be reached at : bwengel@starresortgroup.com and his cel is (406) 498-5606.
It’s been a month since the Ragatz Conference and the calls keep coming in from developers wanting to enter the fractional business. The good news is that most projects are not bailouts of unsold condos or condo hotels…at least the ones we have seen.
The relationship of share size and use plan is still not well understood and ill-started projects are destined for a tough time. We’ve seen a bunch of these. Also, as Ron Frank’s talk at Ragatz pointed out, there’s really very little known about how to sell a fraction, save those of us who have learned by trial and error over the years. The number of real estate brokerage companies who feel they can jump in and sell fractions is startling.
An interesting note from a fractional session at ARDA is to cover a co-brokerage commission into the marketing budget as a cost of lead generation vs. putting it in the sales, commission line. The sales team has to handle the client from front to back, so it really is a generated lead. That is if brokers ever refer in any substantial numbers!
Off to ULI week after next where we’ll see what the ‘big guys’ have planned.
Saturday, March 22, 2008
March Blog
Just back from the front lines of fractional development and sales at the sold out Ragatz 08 conference. It was smashing in all areas; the most qualified attendees I’ve ever seen at any resort conference for new entrants, really good panels with as little hype as possible and some real substance.
Tooting the Star horn – Ron Frank gave the first ‘how do you sell’ a fraction presentation at any conference, Ragatz, ARDA, ULI or other…he worked on it to be specific and not BS. It was great. If you want a copy of the power point let me know.
Ash Offerman let the panel on product structure/use plans and delved into excellent examples of the varied nature of use plans and how they specifically relate to the market.
I had the 101 session and a brief 10 minutes in the sun, but I think the overview was comprehensive. That power point is available, too.
From Dick’s annual report the one statistic that stood out was that 91% of Robb Report subscribers had heard of fractions. The other one was that when asked where they would want to buy 83% said ‘give me the beach!’. Well, I guess that’s one reason we’re in Puerto Vallarta!
The tales one hears of deep Africa where there is a place that bull elephants go to die…you know that one? Well, we had our own version as it applies to former ARDA Chairmen. In chorological order George Donovan, Jerry Andres, yours truly and Ed McMullen, Sr. all present and standing.
There were lots of ‘deals’ floating around from Paris to Bermuda, to The Keys, to Costa Rica, to Toronto urban, to Idaho, the California desert back up to the Oregon coast over to Washington state and to Hawaii. That’s geography, and we did not get to the guys from India or Australia!
The consensus on the economy? Gonna wander a bit, but so far fractional sales are holding up just fine, and we expect them to continue. Going back to Dick Ragatz’s report…this mini-lull just hyper extends the pent up demand for fractional buyers.
Last notes: None other than Gordon McMahon, the originator of the luxury fractional product, was there. Originally at Tahoe in the 80s, [yes, there was a before, before the Deer Valley Club] and now the Oregon coast. A real treat to have the founder with us! Sons following fathers; Michael Kosmin, son of Alex, now with Lowe Enterprises and as competent as his dad; Malcolm McMullen presenting while dad Ed looked on; Allen Ten Broek getting lunch advice from son Bryan.
Jim Marmorstone with yet more fine ideas on how to make the product better for the buyer; Mel Grant finally launching his fractional exchange program [fractionalcollection.com]; Hart Rist of Bald Head Island, Carolinas, who named his dog after Dick ‘Ragatz’; Dick Bass of Snowbird still generating a big wake in his path; Mary Borgia, my ULI flight leader, who for reasons unknown came to 101 a second year in a row; Keith Cox the only guy to make the ‘one-offs’ work and now he has ten at Tahoe + others in SF, Hawaii and Tuscany;
Good folk all and many more.
Just back from the front lines of fractional development and sales at the sold out Ragatz 08 conference. It was smashing in all areas; the most qualified attendees I’ve ever seen at any resort conference for new entrants, really good panels with as little hype as possible and some real substance.
Tooting the Star horn – Ron Frank gave the first ‘how do you sell’ a fraction presentation at any conference, Ragatz, ARDA, ULI or other…he worked on it to be specific and not BS. It was great. If you want a copy of the power point let me know.
Ash Offerman let the panel on product structure/use plans and delved into excellent examples of the varied nature of use plans and how they specifically relate to the market.
I had the 101 session and a brief 10 minutes in the sun, but I think the overview was comprehensive. That power point is available, too.
From Dick’s annual report the one statistic that stood out was that 91% of Robb Report subscribers had heard of fractions. The other one was that when asked where they would want to buy 83% said ‘give me the beach!’. Well, I guess that’s one reason we’re in Puerto Vallarta!
The tales one hears of deep Africa where there is a place that bull elephants go to die…you know that one? Well, we had our own version as it applies to former ARDA Chairmen. In chorological order George Donovan, Jerry Andres, yours truly and Ed McMullen, Sr. all present and standing.
There were lots of ‘deals’ floating around from Paris to Bermuda, to The Keys, to Costa Rica, to Toronto urban, to Idaho, the California desert back up to the Oregon coast over to Washington state and to Hawaii. That’s geography, and we did not get to the guys from India or Australia!
The consensus on the economy? Gonna wander a bit, but so far fractional sales are holding up just fine, and we expect them to continue. Going back to Dick Ragatz’s report…this mini-lull just hyper extends the pent up demand for fractional buyers.
Last notes: None other than Gordon McMahon, the originator of the luxury fractional product, was there. Originally at Tahoe in the 80s, [yes, there was a before, before the Deer Valley Club] and now the Oregon coast. A real treat to have the founder with us! Sons following fathers; Michael Kosmin, son of Alex, now with Lowe Enterprises and as competent as his dad; Malcolm McMullen presenting while dad Ed looked on; Allen Ten Broek getting lunch advice from son Bryan.
Jim Marmorstone with yet more fine ideas on how to make the product better for the buyer; Mel Grant finally launching his fractional exchange program [fractionalcollection.com]; Hart Rist of Bald Head Island, Carolinas, who named his dog after Dick ‘Ragatz’; Dick Bass of Snowbird still generating a big wake in his path; Mary Borgia, my ULI flight leader, who for reasons unknown came to 101 a second year in a row; Keith Cox the only guy to make the ‘one-offs’ work and now he has ten at Tahoe + others in SF, Hawaii and Tuscany;
Good folk all and many more.
Wednesday, January 30, 2008
Going through the looking glass…gaining a totally different perspective? That’s what I did last week in attending the annual convention of Safari Club International. 22,500 attendees and 1100 booths at the Reno Convention Center.
I was there as part of Meriwether Ranch, which was a co-sponsor of the mega booth of our GM Teri Walsh’s brother, supreme wildlife artist John Banovich. Get this, in addition to his oils, all pre sold at north of $50-$100k he has a NASCAR deal and painted the hood of one that was auctioned off!
Safari Club is big on hunting and conservation. Booth position is based on the donations made to supported conservation programs. Good idea, no? Maybe ARDA or ULI could take note?
Thru the looking glass as I tramped the exhibit hall; no less than 182 outfitters and guides from the African Continent. Talk about jet lag in the faces of the exhibitors – a long haul from there to Reno! South Africa naturally, but lots of Mozambique, Namibia, and Rhodesia. Then, how about 13 outfitters from Asia including China, and 44 from the South Pacific [didn’t know that New Zealand was such a robust hunting venue], and 16 from Europe – lots of Spain. Of course tons from the USA and Canada.
Then there were the 10 ammo companies and how about the 14 optics companies [the better to see you with my Water Buffalo] and the 17 knife guys and then the 70+ gun and rifle manufacturers. All the famous names: Purdey, Bretta, Kreighoff, Remington, Smith & Wesson, Sturm, Ruger; Weatherly and Winchester.
I had not seen so much ‘money on the hoof’ so the $25,000 knife, or the $145,000 gun did not turn away the crowd. Lots of camo, too.
The logistics of getting the stuffed specimens to Reno much have been Herculean…no end of the aforementioned Water Buffalos, but full-size Crocs, scads of Mountain Sheep varieties from the World over…outfitters going to Iran and Kazakhstan and the other Stans, too; numerous leaping Lions, too many to count world record racks for Elk, Moose and deer, and Elephant and Giraffe heads – at every turn another display of the hunter’s success.
Did we sell any Meriwether fractions? Certainly, and Elk sausage and Roe Deer meat was grand, too, prepared by the NSACAR chef!
But, then there were the educational sessions: Designing Your Trophy Room, Sharpening Your Blades at Home and in the Field, Dark Secrets of Scope Sights Revealed, and then of course in the PM there was Dana Carvey and The Oak Ridge Boys. I was a babe in the woods!
Back to fractions next month!
I was there as part of Meriwether Ranch, which was a co-sponsor of the mega booth of our GM Teri Walsh’s brother, supreme wildlife artist John Banovich. Get this, in addition to his oils, all pre sold at north of $50-$100k he has a NASCAR deal and painted the hood of one that was auctioned off!
Safari Club is big on hunting and conservation. Booth position is based on the donations made to supported conservation programs. Good idea, no? Maybe ARDA or ULI could take note?
Thru the looking glass as I tramped the exhibit hall; no less than 182 outfitters and guides from the African Continent. Talk about jet lag in the faces of the exhibitors – a long haul from there to Reno! South Africa naturally, but lots of Mozambique, Namibia, and Rhodesia. Then, how about 13 outfitters from Asia including China, and 44 from the South Pacific [didn’t know that New Zealand was such a robust hunting venue], and 16 from Europe – lots of Spain. Of course tons from the USA and Canada.
Then there were the 10 ammo companies and how about the 14 optics companies [the better to see you with my Water Buffalo] and the 17 knife guys and then the 70+ gun and rifle manufacturers. All the famous names: Purdey, Bretta, Kreighoff, Remington, Smith & Wesson, Sturm, Ruger; Weatherly and Winchester.
I had not seen so much ‘money on the hoof’ so the $25,000 knife, or the $145,000 gun did not turn away the crowd. Lots of camo, too.
The logistics of getting the stuffed specimens to Reno much have been Herculean…no end of the aforementioned Water Buffalos, but full-size Crocs, scads of Mountain Sheep varieties from the World over…outfitters going to Iran and Kazakhstan and the other Stans, too; numerous leaping Lions, too many to count world record racks for Elk, Moose and deer, and Elephant and Giraffe heads – at every turn another display of the hunter’s success.
Did we sell any Meriwether fractions? Certainly, and Elk sausage and Roe Deer meat was grand, too, prepared by the NSACAR chef!
But, then there were the educational sessions: Designing Your Trophy Room, Sharpening Your Blades at Home and in the Field, Dark Secrets of Scope Sights Revealed, and then of course in the PM there was Dana Carvey and The Oak Ridge Boys. I was a babe in the woods!
Back to fractions next month!
Thursday, January 10, 2008
January 10, 2008
Greetings to the New Year!
I'd like to share more information from the Harrison Group's presentation to the Recreational Development Councils at the Urban Land Institute October meeting. In my November bog I mentioned some of the material, but over the past two months I've though more and more about the data.
Source: Harrison Group for American Express Publishing
The concept that I had not thought much about was 'discretionary income' vs. household income. Sorry if I'm behind the curve on this. I know we are in the discretionary product market with vacation homes - that's clear , but, I had always thought of the 'household' part, NOT the part they had to spend of the household income. I guess assuming if the income was high enough they would buy.
Here' s how Harrison delineates wealth categories:
Affluent = annual, discretionary income of $125,000 to $249,999
Super Affluent = annual discretionary income of $250,000 to $499,000
Wealthy = annual discretionary income of $500,000+
Here's how the vacation ownership break down:
Own 2nd Home
Affluent 32%
Super Affluent 34%
Wealthy 49%
Own Timeshare
Affluent 20%
Super Affluent 15%
Wealthy 14%
Own Fraction
Affluent 15%
Super Affluent 12%
Wealthy 13%
Their Intention to buy:
Buy a Second Home
Affluent 21%
Super Affluent 28%
Wealthy 37%
Buy a Timeshare
Affluent 15%
Super Affluent 19%
Wealthy 11%
Buy a Fraction
Affluent 15%
Super Affluent 23%
Wealthy 14%
Wow, wow and wow on the 23% of the Super Affluent!
As we design the physical fractional home here's how these groups look at and how they play out with brands. We kind of know to use quality stuff, but….
Quality - 97% want quality and the reputation of quality
Craftsmanship - 96% want to have their property be reflective of this
Design - 81% go for who has a reputation for this
All you marketing folk read up here: What the wealthy are collecting?
Fine art 20%
Sound systems/media 18 %
Books/Rare books 18%
Fine Watches 18%
Yachts/Boat 17%
Vintage cars 14%
Great stuff, no? Gimme those Super Affluents almost a quarter of which want to buy a fraction!
Best to all.
Greetings to the New Year!
I'd like to share more information from the Harrison Group's presentation to the Recreational Development Councils at the Urban Land Institute October meeting. In my November bog I mentioned some of the material, but over the past two months I've though more and more about the data.
Source: Harrison Group for American Express Publishing
The concept that I had not thought much about was 'discretionary income' vs. household income. Sorry if I'm behind the curve on this. I know we are in the discretionary product market with vacation homes - that's clear , but, I had always thought of the 'household' part, NOT the part they had to spend of the household income. I guess assuming if the income was high enough they would buy.
Here' s how Harrison delineates wealth categories:
Affluent = annual, discretionary income of $125,000 to $249,999
Super Affluent = annual discretionary income of $250,000 to $499,000
Wealthy = annual discretionary income of $500,000+
Here's how the vacation ownership break down:
Own 2nd Home
Affluent 32%
Super Affluent 34%
Wealthy 49%
Own Timeshare
Affluent 20%
Super Affluent 15%
Wealthy 14%
Own Fraction
Affluent 15%
Super Affluent 12%
Wealthy 13%
Their Intention to buy:
Buy a Second Home
Affluent 21%
Super Affluent 28%
Wealthy 37%
Buy a Timeshare
Affluent 15%
Super Affluent 19%
Wealthy 11%
Buy a Fraction
Affluent 15%
Super Affluent 23%
Wealthy 14%
Wow, wow and wow on the 23% of the Super Affluent!
As we design the physical fractional home here's how these groups look at and how they play out with brands. We kind of know to use quality stuff, but….
Quality - 97% want quality and the reputation of quality
Craftsmanship - 96% want to have their property be reflective of this
Design - 81% go for who has a reputation for this
All you marketing folk read up here: What the wealthy are collecting?
Fine art 20%
Sound systems/media 18 %
Books/Rare books 18%
Fine Watches 18%
Yachts/Boat 17%
Vintage cars 14%
Great stuff, no? Gimme those Super Affluents almost a quarter of which want to buy a fraction!
Best to all.
Friday, December 07, 2007
December 6th
The reach of fractions continues to surprise me. In the past week inquiries from a Manhattan area golf and residential community, a luxe hotel in Miami expanding to CO ski and Manhattan, a fancy golf course outside of Denver, the best located of all Santa Fe deals and a couple of left-fielders from Panama! Those are just the calls I got to return.
Mac MacEwan, our marketing guru, and I are advising a nifty project in Hyannis, Cape Cod. No, it's not the windmill farm that the Kennedys are so excited about, but a full service, amenity-rich resort hotel property expanding into fractions. It's great to work with, in this case, entrepreneurs, who 'get it' and are on the move.
A new destination spa, major water park, and beach house are being added to go along with the current amenities. The beach house, right on the beach, and not inexpensive to say the least brings this project to the ocean. A shuttle will take owners to Hyannis for shopping and to the private beaches [owners only] that surround Hyannis. As this is a fee product the owners are, well, owners. Only in Hyannis, where the Kenneyds preach for the little guy can there be private beaches! So says a California guy, were we are proud to share our beaches with any bum that comes by!
15 fractional condos will be built on top of hotel wings [259 room resort hotel] and on top of the destination spa building, two and three bedrooms, lock-offs, robust rental program and fully leveraged HOA budget with all hotel personnel and services right there. The one missing spot right now is the fractional experienced sales director for a February soft opening.
Mike Bosch, our advisory team leader, and I have finished a stint in Atlantic City for a luxury condo tower that chose not to sell the top floor units so it can have a fractional project. Atlantic City? Yup. Only $11 billion going into new development on top of the $11 billion already invested. As they have seen the regional [Indian] casinos take away a lot of the day business they are transforming themselves into more of a Vegas, destination location.
Morgan Stanley's gaming company has launched a 3900-room hotel and when it is 'all in' the tab will be $2.5 billion, not to mention the new MGM Grand and a deck of others. Atlantic City is a happening place. . A new, twice-a-day train from Penn Station will begin this summer.
There are some 50 fractional condos, 1/6th shares, eventually. All amenities are in and in the building, and of course Atlantic City is the big amenity. There's a need for a sales director here, too. The good news is that the developer is very experienced in PA and well-established in Atlantic City.
Star is launching its 'Star Sales Education Center' in January. It's purpose is to inculcate the Star-way of selling to our new sales directors and sales teams, and not loose our grasp on how we have grown up with the fractional selling business.
The reach of fractions continues to surprise me. In the past week inquiries from a Manhattan area golf and residential community, a luxe hotel in Miami expanding to CO ski and Manhattan, a fancy golf course outside of Denver, the best located of all Santa Fe deals and a couple of left-fielders from Panama! Those are just the calls I got to return.
Mac MacEwan, our marketing guru, and I are advising a nifty project in Hyannis, Cape Cod. No, it's not the windmill farm that the Kennedys are so excited about, but a full service, amenity-rich resort hotel property expanding into fractions. It's great to work with, in this case, entrepreneurs, who 'get it' and are on the move.
A new destination spa, major water park, and beach house are being added to go along with the current amenities. The beach house, right on the beach, and not inexpensive to say the least brings this project to the ocean. A shuttle will take owners to Hyannis for shopping and to the private beaches [owners only] that surround Hyannis. As this is a fee product the owners are, well, owners. Only in Hyannis, where the Kenneyds preach for the little guy can there be private beaches! So says a California guy, were we are proud to share our beaches with any bum that comes by!
15 fractional condos will be built on top of hotel wings [259 room resort hotel] and on top of the destination spa building, two and three bedrooms, lock-offs, robust rental program and fully leveraged HOA budget with all hotel personnel and services right there. The one missing spot right now is the fractional experienced sales director for a February soft opening.
Mike Bosch, our advisory team leader, and I have finished a stint in Atlantic City for a luxury condo tower that chose not to sell the top floor units so it can have a fractional project. Atlantic City? Yup. Only $11 billion going into new development on top of the $11 billion already invested. As they have seen the regional [Indian] casinos take away a lot of the day business they are transforming themselves into more of a Vegas, destination location.
Morgan Stanley's gaming company has launched a 3900-room hotel and when it is 'all in' the tab will be $2.5 billion, not to mention the new MGM Grand and a deck of others. Atlantic City is a happening place. . A new, twice-a-day train from Penn Station will begin this summer.
There are some 50 fractional condos, 1/6th shares, eventually. All amenities are in and in the building, and of course Atlantic City is the big amenity. There's a need for a sales director here, too. The good news is that the developer is very experienced in PA and well-established in Atlantic City.
Star is launching its 'Star Sales Education Center' in January. It's purpose is to inculcate the Star-way of selling to our new sales directors and sales teams, and not loose our grasp on how we have grown up with the fractional selling business.
Wednesday, November 14, 2007
Carl's November Blog
Notes from the Star front lines:
•At Snowbird, going into our second, selling season we are really set up. What a difference it makes - start-up one year to 'roll-out'' in year two. Great developers, great sales team and wonderful buyers!
•Vallarta Gardens in Puerta Vallarta just the opposite; the jumble of tasks for a start up getting into sales - a full time job for five, but handled expertly by Ron Frank and Ash Offermann from Star.
•Finishing the main selling season at Meriwether in Montana, owner occupancy of homes, adding operations to sales, and if initial owner users are indicators - the project's a winner.
•Success story or is it genetic? Josh, son of Sherman Potvin, sales exec extraordinary with Ritz and others, came to Meriwether as 'green 'pea' last December and this November he's the #1 salesperson and just escrowed a three-lot purchase in addition to all his fractional sales! We think it's our sales education program designed by Ron Frank. What's say, Sherman?
ULI's annual conference held last month in Vegas at the Venetian. My question: how big is too big for Vegas hotels…how many towers do there need to be and how long a trek is long to get to your room and back to the conference center? That aside - Recreational Development Council day focused on Lake Las Vegas a star-crossed development now 20 years in the making. From our discussions beyond Lake LV:
•The sub-prime crises and the availability of development money is affecting community developers not unexpectedly. The niche players with well located projects or the fractional guys continue to sell well. No 'crisis' in sight for them. As a couple of Council members said, 'We're in an emotional recession".
•Responses to developer's laments on slow moving inventory - get out there and sell the product! The order taking years are over! That's not news to those of us in the shared ownership business as we've always been advancing our shared products, and have sharply honed sales skills.
•Great presentation by Jim Taylor of Harrison Group on wealth in America and how that relates to buying vacation homes. Some of his points:
•Most of the wealth today has been accumulated in the past 15 years.
•The wealthy today have come from the middle class and retain many of
those values
•Discretionary income above $25k per year is the real, target for our
business, and families with discretionary income of over $125k and
up to $499k either own fractions at a good percentage and/or
plan to buy them at a higher rate than a wholly owned home. Over
$500k the percentages flip back to the fully owned home.
•Plumtv.com….if you have to ask…no, seriously a web site for selected,
mega wealthy resort areas that tells owners what's happening, so
they can plan before their arrival. And, in these towns when they do
arrive, in season, they take over the place. Think Nantucket, Sun
Valley, Aspen, etc.
•Auctions for failed fractional projects? I've seen two so far…in Santa Barbara and Big Bear CA. Both filed - do we call that 'failed squared'? Why, beats me, but common sense would say that the buying public is not yet aware enough to jump on these deals. Or, the stigma of a failed deal and how will owner services be provided and the HOA costs, etc?
Notes from the Star front lines:
•At Snowbird, going into our second, selling season we are really set up. What a difference it makes - start-up one year to 'roll-out'' in year two. Great developers, great sales team and wonderful buyers!
•Vallarta Gardens in Puerta Vallarta just the opposite; the jumble of tasks for a start up getting into sales - a full time job for five, but handled expertly by Ron Frank and Ash Offermann from Star.
•Finishing the main selling season at Meriwether in Montana, owner occupancy of homes, adding operations to sales, and if initial owner users are indicators - the project's a winner.
•Success story or is it genetic? Josh, son of Sherman Potvin, sales exec extraordinary with Ritz and others, came to Meriwether as 'green 'pea' last December and this November he's the #1 salesperson and just escrowed a three-lot purchase in addition to all his fractional sales! We think it's our sales education program designed by Ron Frank. What's say, Sherman?
ULI's annual conference held last month in Vegas at the Venetian. My question: how big is too big for Vegas hotels…how many towers do there need to be and how long a trek is long to get to your room and back to the conference center? That aside - Recreational Development Council day focused on Lake Las Vegas a star-crossed development now 20 years in the making. From our discussions beyond Lake LV:
•The sub-prime crises and the availability of development money is affecting community developers not unexpectedly. The niche players with well located projects or the fractional guys continue to sell well. No 'crisis' in sight for them. As a couple of Council members said, 'We're in an emotional recession".
•Responses to developer's laments on slow moving inventory - get out there and sell the product! The order taking years are over! That's not news to those of us in the shared ownership business as we've always been advancing our shared products, and have sharply honed sales skills.
•Great presentation by Jim Taylor of Harrison Group on wealth in America and how that relates to buying vacation homes. Some of his points:
•Most of the wealth today has been accumulated in the past 15 years.
•The wealthy today have come from the middle class and retain many of
those values
•Discretionary income above $25k per year is the real, target for our
business, and families with discretionary income of over $125k and
up to $499k either own fractions at a good percentage and/or
plan to buy them at a higher rate than a wholly owned home. Over
$500k the percentages flip back to the fully owned home.
•Plumtv.com….if you have to ask…no, seriously a web site for selected,
mega wealthy resort areas that tells owners what's happening, so
they can plan before their arrival. And, in these towns when they do
arrive, in season, they take over the place. Think Nantucket, Sun
Valley, Aspen, etc.
•Auctions for failed fractional projects? I've seen two so far…in Santa Barbara and Big Bear CA. Both filed - do we call that 'failed squared'? Why, beats me, but common sense would say that the buying public is not yet aware enough to jump on these deals. Or, the stigma of a failed deal and how will owner services be provided and the HOA costs, etc?
Friday, September 28, 2007
October 2007
Hawai'i Fractions:
Just back from the second, Ragatz/Pacific Rim/Trans Pacific Mortgage Hawaii seminar on fractions. Following their July seminar Pacific Rim and Trans Pacific are committed to educating the Hawaii market to fractions, so as the offerings grow they will grow with intelligent development, marketing and sales.
The one, very major impediment to a fast start to projects is the exemption for six interests or less, but use has to be for sixty consecutive days. So, sell two, fixed 60-day periods, sell two, rotating sixty-day periods, but sixty days it must be. Owners, however, can internally trade within those blocks of time, but that ability to trade can't be a material part of the offering. This probably rules out 70% of the easy market for sales.
Registration under the timeshare act is occurring with a few projects and more need to come along, so use plans can be designed commensurate with a broader market demand.
Dick Ragatz, as usual, gave a compressive update on the fractional business and it's explosive growth.
The One-Off House
Old Republic Mortgage has a database of some 40 one-off houses being offered as fractions on the 1/6 exemption basis. So that's 240 potential sales. They list 15 in escrow.
Dick Ragatz will have a pronouncement on this one-off product by or at his upcoming March conference. But in the meantime my take is that while some of these houses in the $10-14 million dollar category, so shares are being sold in the $2.5 to $3 million range; others are in the $85,000 range, and all in between; the systemic problem is post-sale management. Who's going to provide and at what price? Some buyers may be okay with standard property management services, but the upper-end will need the specialized and dedicated service that only a 'project' can offer. So, whadda 'ya do?
•Snowbird's Night in New York event was two weeks ago, and over 250 showed up in midtown on a weekday night! Real loyalty. Our sales team met with all reservation holders in that market, naturally, to secure their deals.
•Up at Meriwether Ranch Josh Potvin, Sherman's son, has emerged as our top salesperson for 2007. Congrats.
• Also at Meriwether Dede Bacon, fresh from her excellent results at Kirkwood, has been filling in, to meet mini vac demand, this fall. She has, naturally, snagged her share of sales. Thanks, Dede!
•At Vallarta Gardens, in PV, Ron Frank, Mac MacEwan and Ash Offermann are moving ahead to get that project structured for fractions, amenitized, marketed and set-up for sales. Fortunately, the project's location, on the Bay of Banderas, is exploding, so opportunies are now available for local lead generation programs.
•Star has sold the Nautical Inn, Lake Havasu, to its investor group on a pre-arranged purchase agreement. So, we are out of the muscle-boat business.
And, out of the condo-hotel and timeshare businesses, too.
When does Mel Grant's fractional exchange company open up?
Hawai'i Fractions:
Just back from the second, Ragatz/Pacific Rim/Trans Pacific Mortgage Hawaii seminar on fractions. Following their July seminar Pacific Rim and Trans Pacific are committed to educating the Hawaii market to fractions, so as the offerings grow they will grow with intelligent development, marketing and sales.
The one, very major impediment to a fast start to projects is the exemption for six interests or less, but use has to be for sixty consecutive days. So, sell two, fixed 60-day periods, sell two, rotating sixty-day periods, but sixty days it must be. Owners, however, can internally trade within those blocks of time, but that ability to trade can't be a material part of the offering. This probably rules out 70% of the easy market for sales.
Registration under the timeshare act is occurring with a few projects and more need to come along, so use plans can be designed commensurate with a broader market demand.
Dick Ragatz, as usual, gave a compressive update on the fractional business and it's explosive growth.
The One-Off House
Old Republic Mortgage has a database of some 40 one-off houses being offered as fractions on the 1/6 exemption basis. So that's 240 potential sales. They list 15 in escrow.
Dick Ragatz will have a pronouncement on this one-off product by or at his upcoming March conference. But in the meantime my take is that while some of these houses in the $10-14 million dollar category, so shares are being sold in the $2.5 to $3 million range; others are in the $85,000 range, and all in between; the systemic problem is post-sale management. Who's going to provide and at what price? Some buyers may be okay with standard property management services, but the upper-end will need the specialized and dedicated service that only a 'project' can offer. So, whadda 'ya do?
•Snowbird's Night in New York event was two weeks ago, and over 250 showed up in midtown on a weekday night! Real loyalty. Our sales team met with all reservation holders in that market, naturally, to secure their deals.
•Up at Meriwether Ranch Josh Potvin, Sherman's son, has emerged as our top salesperson for 2007. Congrats.
• Also at Meriwether Dede Bacon, fresh from her excellent results at Kirkwood, has been filling in, to meet mini vac demand, this fall. She has, naturally, snagged her share of sales. Thanks, Dede!
•At Vallarta Gardens, in PV, Ron Frank, Mac MacEwan and Ash Offermann are moving ahead to get that project structured for fractions, amenitized, marketed and set-up for sales. Fortunately, the project's location, on the Bay of Banderas, is exploding, so opportunies are now available for local lead generation programs.
•Star has sold the Nautical Inn, Lake Havasu, to its investor group on a pre-arranged purchase agreement. So, we are out of the muscle-boat business.
And, out of the condo-hotel and timeshare businesses, too.
When does Mel Grant's fractional exchange company open up?
Sunday, September 16, 2007
Rolling into the fall from a busy summer…at Mt. Superior Club - Snowbird, Dave Ruff, our new sales manager has made superb progress getting solid on our reservations, thereby getting to the next price levels and preparing for the “Snowbird Comes to Big Apple” event.
Mt. Superior also released a handful of whole units with one being snapped up at $3.3 million and two others in process.
Dave is backed up by Ash Offermann, and he in turn by the crack Snowbird resort team of Bob Bonar, Tom Jones and Jerry Giles. The NYC event has over 400 respondents, so far and that means the sales team will be very, very busy.
Trans-Pacific Bank is sponsoring a second Ragatz one-dayer on September 27th. in Honolulu. This follows their successful seminar in July. The invited guests here will be realtors. I have the opportunity to speak, again, on marketing and sales. It will be interesting to see how the real estate community responds, and to if they really want to make a business out of fractions in the Islands. Certainly, all indicators are that fractions are ’made’ for Hawaii.
Destination Clubs…the Wall Street Journal had an article last week about consolidation and self-regulation. I wonder what Steve Peterson, who heads the ARDA club regulatory group, will have to say about ‘their’ view on regulation vs. what the hurdles shared ownership industry has to jump over. Not one mention of Exclusive in the article, so congrats to them for keeping their head down.
Back from Croatia and their Dalmatian Coast on the Adriatic Sea. Just gorgeous water and weather, and great hiking on the islands. One RCI sign for a resort. Now that Croatia is on the other side of the war development money is pouring in from all over Europe, and vacation villas are everywhere, so fractions will follow at the appropriate time for the European market. It’s a long commute from the US.
August was my opportunity to join the ranks of ‘air service does not work’ in America team. All four segments from Kalispell to Providence and back to SFO either did not go or did not work to any timeframe that was expected. Hell, I got to Croatia faster than I got from Rhode Island to San Francisco!
Mt. Superior also released a handful of whole units with one being snapped up at $3.3 million and two others in process.
Dave is backed up by Ash Offermann, and he in turn by the crack Snowbird resort team of Bob Bonar, Tom Jones and Jerry Giles. The NYC event has over 400 respondents, so far and that means the sales team will be very, very busy.
Trans-Pacific Bank is sponsoring a second Ragatz one-dayer on September 27th. in Honolulu. This follows their successful seminar in July. The invited guests here will be realtors. I have the opportunity to speak, again, on marketing and sales. It will be interesting to see how the real estate community responds, and to if they really want to make a business out of fractions in the Islands. Certainly, all indicators are that fractions are ’made’ for Hawaii.
Destination Clubs…the Wall Street Journal had an article last week about consolidation and self-regulation. I wonder what Steve Peterson, who heads the ARDA club regulatory group, will have to say about ‘their’ view on regulation vs. what the hurdles shared ownership industry has to jump over. Not one mention of Exclusive in the article, so congrats to them for keeping their head down.
Back from Croatia and their Dalmatian Coast on the Adriatic Sea. Just gorgeous water and weather, and great hiking on the islands. One RCI sign for a resort. Now that Croatia is on the other side of the war development money is pouring in from all over Europe, and vacation villas are everywhere, so fractions will follow at the appropriate time for the European market. It’s a long commute from the US.
August was my opportunity to join the ranks of ‘air service does not work’ in America team. All four segments from Kalispell to Providence and back to SFO either did not go or did not work to any timeframe that was expected. Hell, I got to Croatia faster than I got from Rhode Island to San Francisco!
Monday, July 23, 2007
July 23, 2007
Just returned from Hawaii's first fractional seminar sponsored by Pacific Rim Bank, ResortQuest Hawaii and TransPacific Mortgage. Dick Ragatz put on the daylong program. Invited attendees numbered about 75 plus some local speakers notably market-maker lawyers Charlie Pear and Steve Lee.
Coming down from the Mainland in addition to Dick and Tracy Ragatz: Art Spaulding on legal issues, Steve Dering on marketing in general, Jim Beckham and myself on implementing marketing, sales and HOA budgeting, and Tom LaTour on hospitality management.
The 'big boys' have yet to move into fractions on the Islands. It's a matter of time. The business there is getting started, which as usual for a new product, involves small developments or 'one off' homes of which there are by some count 30 or 40 being offered in one from or another. Most of these will go nowhere.
Due to the convolutions of Hawaii real estate law and timeshare being managed by the consumer affairs department a 'stand-up' fractional project, registered as timeshare [as we do up here] needs to be in a transient or hotel zone.
The other option is to offer the fraction under the registration minimum, which means a 1/6th interest. To complicate the immediate future; the regulators apparently have attempted to better define what 60 day use means, and have come up, so it looks, with a 60 consecutive day stay. That's not workable for a fractional, so there's work being done to clear up the definition. Hawaii's a 'small town' when it comes to real estate development, and with the rough-shod past of timesharing there is a knee jerk reaction, by many, to any shared ownership product.
Due to whole unit pricing in the Islands fractions will become a big business - it's as natural as fractions in Aspen, Vail or other steroid-driven home priced areas.
For me it was a sweet homecoming of sorts. In the early 70s, when we aggregated the condo rental inventory and brought it to the lower 48 in association with United 'Airlines, we had offices on each, major island and Mainland offices in San Francisco, LA, Denver, Chicago and New York.
We sold that company to join a Hyatt subsidiary, and that resulted in the World's first fee timeshare at Brockway Springs, Lake Tahoe CA.
I've been back to Hawaii as a visitor since, naturally. If find it kind of amazing that there are not only business associates from that period still there, and how great to see them, but some of the same old haunts. Dinner at Huggos, over the water, in Kailua was and still is a treat.
Dick Ragatz will repeat next year.
Just returned from Hawaii's first fractional seminar sponsored by Pacific Rim Bank, ResortQuest Hawaii and TransPacific Mortgage. Dick Ragatz put on the daylong program. Invited attendees numbered about 75 plus some local speakers notably market-maker lawyers Charlie Pear and Steve Lee.
Coming down from the Mainland in addition to Dick and Tracy Ragatz: Art Spaulding on legal issues, Steve Dering on marketing in general, Jim Beckham and myself on implementing marketing, sales and HOA budgeting, and Tom LaTour on hospitality management.
The 'big boys' have yet to move into fractions on the Islands. It's a matter of time. The business there is getting started, which as usual for a new product, involves small developments or 'one off' homes of which there are by some count 30 or 40 being offered in one from or another. Most of these will go nowhere.
Due to the convolutions of Hawaii real estate law and timeshare being managed by the consumer affairs department a 'stand-up' fractional project, registered as timeshare [as we do up here] needs to be in a transient or hotel zone.
The other option is to offer the fraction under the registration minimum, which means a 1/6th interest. To complicate the immediate future; the regulators apparently have attempted to better define what 60 day use means, and have come up, so it looks, with a 60 consecutive day stay. That's not workable for a fractional, so there's work being done to clear up the definition. Hawaii's a 'small town' when it comes to real estate development, and with the rough-shod past of timesharing there is a knee jerk reaction, by many, to any shared ownership product.
Due to whole unit pricing in the Islands fractions will become a big business - it's as natural as fractions in Aspen, Vail or other steroid-driven home priced areas.
For me it was a sweet homecoming of sorts. In the early 70s, when we aggregated the condo rental inventory and brought it to the lower 48 in association with United 'Airlines, we had offices on each, major island and Mainland offices in San Francisco, LA, Denver, Chicago and New York.
We sold that company to join a Hyatt subsidiary, and that resulted in the World's first fee timeshare at Brockway Springs, Lake Tahoe CA.
I've been back to Hawaii as a visitor since, naturally. If find it kind of amazing that there are not only business associates from that period still there, and how great to see them, but some of the same old haunts. Dinner at Huggos, over the water, in Kailua was and still is a treat.
Dick Ragatz will repeat next year.
Friday, June 22, 2007
June 22, 2007
Star execs just completed their annual retreat, taking a breath after the ski season and before the summer season gets into full swing. It was held at my Montana home in the Flathead Valley. Rain for a day and a half and glorious sun for the other day and a half.
Again, we wondered at the myriad of 'deals' throughout the USA and Mexico. Last month I mentioned how Hawaii and Mexico seemed to come alive, and that has not abated.
Our Mike Bosch just completed an advisory assignment for two sites on the Black Sea in Russia. He reports that Moscow, other than being the most expensive city in the World now, is a very hip place with cell phones on every ear and the under 40 crowd crowded into very European-type bars and restaurants.
Anyone want to go over there to sell? Heck, after Pat Hanes went to Dubai…who knows?
On the move…
Dave Ruff has joined us as sales director for Mt. Superior Residence Club in Snowbird as Bill Orwig has flown the mountains for the Caribbean. Dave has worked with Ron Frank for a decade and is cut from the same mold.
Also on the move, from our Kirkwood sales team, Melisa Maxey has moved into a lead generation role for most of our projects. Suzanne Heron continues her lead generation work. Both are doing a superlative job.
And, back on the Snowbird front, Bill Raddinger, has joined our sales team bringing the team members to three.
Also, up at Meriwether Ranch Teri Walsh is now the GM for the HOAs. Teri, a butte native, wife to the Sheriff [no foolin' around up there!] came to us with a broad range of hotel management experiences.
And, Rebecca Ramsey is our sales administrator for Meriwether plus outdoor expert first class. Her husband makes those $3000 fishing rods we read about now and then.
www.residentialcrusieline.com is the place to go for a very exciting fractional product. Unlike other cruise ships, like The World, which is a retirement residence that floats, Magellan is a Vegas on the water with really mainstream pricing for fractions. Randy Jackson, the 'developer' is the sales program on the move. What to participate? Contact me.
Star execs just completed their annual retreat, taking a breath after the ski season and before the summer season gets into full swing. It was held at my Montana home in the Flathead Valley. Rain for a day and a half and glorious sun for the other day and a half.
Again, we wondered at the myriad of 'deals' throughout the USA and Mexico. Last month I mentioned how Hawaii and Mexico seemed to come alive, and that has not abated.
Our Mike Bosch just completed an advisory assignment for two sites on the Black Sea in Russia. He reports that Moscow, other than being the most expensive city in the World now, is a very hip place with cell phones on every ear and the under 40 crowd crowded into very European-type bars and restaurants.
Anyone want to go over there to sell? Heck, after Pat Hanes went to Dubai…who knows?
On the move…
Dave Ruff has joined us as sales director for Mt. Superior Residence Club in Snowbird as Bill Orwig has flown the mountains for the Caribbean. Dave has worked with Ron Frank for a decade and is cut from the same mold.
Also on the move, from our Kirkwood sales team, Melisa Maxey has moved into a lead generation role for most of our projects. Suzanne Heron continues her lead generation work. Both are doing a superlative job.
And, back on the Snowbird front, Bill Raddinger, has joined our sales team bringing the team members to three.
Also, up at Meriwether Ranch Teri Walsh is now the GM for the HOAs. Teri, a butte native, wife to the Sheriff [no foolin' around up there!] came to us with a broad range of hotel management experiences.
And, Rebecca Ramsey is our sales administrator for Meriwether plus outdoor expert first class. Her husband makes those $3000 fishing rods we read about now and then.
www.residentialcrusieline.com is the place to go for a very exciting fractional product. Unlike other cruise ships, like The World, which is a retirement residence that floats, Magellan is a Vegas on the water with really mainstream pricing for fractions. Randy Jackson, the 'developer' is the sales program on the move. What to participate? Contact me.
Wednesday, May 23, 2007
Fraction homes preceded jets, but jet shares got all the attention in the 90s as vacation-home fractions were defining themselves and picking up speed.
We now know that all types of property are being fractionalized: jewelry, cars, boats and the like.
So, it's not surprising that cruise ships are next. I spent an engaging afternoon with Randy Jackson, CEO of Residential Cruise Line and owner of the soon-to-be" keeled" Magellan a 860 foot, 15 deck vessel with 210 private residences sold both on a whole, fractional and club basis. Makes that other ship look like a shrimp!
The whole units go from $1.8 to over $7 million.
The fractions, for a month, range from $275,000 to $585,000 with annual fees from $9,500 to $20,000. Both sales and dues are certainly in the sweet spot for fractional products.
There's also a Club Membership for two weeks a year, floating unit, from $90k to $315k with dues from $4,000 to $10,000, which seems like pretty good deal. Matter of fact both the fractions and the clubs are both priced attractively.
www.residencecruiseline.com
Back to Randy…he's planned for some time to wed real estate, as he's a developer, to travel, cruising, aviation and high-styled amenity-action in one product. Sales so far, introductory level, are more fractions than whole units as one might expect, but, and here's the BUT, prospects are calling FOR the fractions! Sought good? Do those delicious words ring a bell?
A thought; is the fractional tipping point approaching? We've seen evidence over the past few months, not only with Magellan, but in many resort markets, that buyers are seeking out the product, and also those illusive real estate brokers may be coming around. Too good to be true? We'll see.
What part have the destination clubs played if the point is tipping? I don't know, but there is confusion out in the market place between the two products that may help both in the midterm period.
Lots of Hawaii calls recently….coming alive down there?
We now know that all types of property are being fractionalized: jewelry, cars, boats and the like.
So, it's not surprising that cruise ships are next. I spent an engaging afternoon with Randy Jackson, CEO of Residential Cruise Line and owner of the soon-to-be" keeled" Magellan a 860 foot, 15 deck vessel with 210 private residences sold both on a whole, fractional and club basis. Makes that other ship look like a shrimp!
The whole units go from $1.8 to over $7 million.
The fractions, for a month, range from $275,000 to $585,000 with annual fees from $9,500 to $20,000. Both sales and dues are certainly in the sweet spot for fractional products.
There's also a Club Membership for two weeks a year, floating unit, from $90k to $315k with dues from $4,000 to $10,000, which seems like pretty good deal. Matter of fact both the fractions and the clubs are both priced attractively.
www.residencecruiseline.com
Back to Randy…he's planned for some time to wed real estate, as he's a developer, to travel, cruising, aviation and high-styled amenity-action in one product. Sales so far, introductory level, are more fractions than whole units as one might expect, but, and here's the BUT, prospects are calling FOR the fractions! Sought good? Do those delicious words ring a bell?
A thought; is the fractional tipping point approaching? We've seen evidence over the past few months, not only with Magellan, but in many resort markets, that buyers are seeking out the product, and also those illusive real estate brokers may be coming around. Too good to be true? We'll see.
What part have the destination clubs played if the point is tipping? I don't know, but there is confusion out in the market place between the two products that may help both in the midterm period.
Lots of Hawaii calls recently….coming alive down there?
Monday, May 14, 2007
Just back from ULI's Council meeting in Chicago, and the four Recreational Development flights.
I was joined by other Star execs: Ron Frank and Ash Offermann and key alliance-guy Chirs Tivey he of Gravity.
Many old friends of 25 years including Bob Miller or Marriott, Ed McMullen, Sr. of hisself, Ed Spears among them.
Bob Miller recounted, yet again, his total praise of Howard Nusbaum as CEO or ARDA, and the job he has done to bring ARDA into the very mainstream of real estate lobbying groups. And, that the timeshare homeowner's PAC now raises some $3.5 million a year from $2 and $3 voluntary contributions from owners. Bob thought it up and Lynn Weas has been the honcho to bring it from pennies to multi millions.
The glamour side of the Rec Development function: Toni Alexander, as usual, lookin' LA great and Bryadyn Criswell 7 months PG, and looking very good, too. I can’t say as much for the ‘guys’ but I will state this: after Bob Miller and Ed McMullen, Sr showed up tieless for both Wednesday PM and all day Friday I sure has heck am not wearing mine next year
I was lamenting that we had not figured out how to sell fractions on an ‘event basis’ vs. tempo sales. Well, Randal Bone just opened up my thoughts with his Toscana experiences in selling, and how they 'evented' their way through the project by selling use vs. investment. Good stuff. Back to the drawing board, Carl.
As usual,, Mary Borgia, Red Flight Chair did a masterful job of programming and keeping the flight on track including that e mail sent at 3:45AM on the bus schedule!
Mary constructed a wonderful day of interactivity between members of the Red Flight that included round tables and panel discussions covering the whole spectrum of resort development and finance.
The Red Flight has such talented members. It's always a humbling experience to attend and learn. Sure, I've got the fractional side covered, but being a specialist of sorts can sometimes lead me to have tunnel vision. I certainly come away with my eyes wide.
I was joined by other Star execs: Ron Frank and Ash Offermann and key alliance-guy Chirs Tivey he of Gravity.
Many old friends of 25 years including Bob Miller or Marriott, Ed McMullen, Sr. of hisself, Ed Spears among them.
Bob Miller recounted, yet again, his total praise of Howard Nusbaum as CEO or ARDA, and the job he has done to bring ARDA into the very mainstream of real estate lobbying groups. And, that the timeshare homeowner's PAC now raises some $3.5 million a year from $2 and $3 voluntary contributions from owners. Bob thought it up and Lynn Weas has been the honcho to bring it from pennies to multi millions.
The glamour side of the Rec Development function: Toni Alexander, as usual, lookin' LA great and Bryadyn Criswell 7 months PG, and looking very good, too. I can’t say as much for the ‘guys’ but I will state this: after Bob Miller and Ed McMullen, Sr showed up tieless for both Wednesday PM and all day Friday I sure has heck am not wearing mine next year
I was lamenting that we had not figured out how to sell fractions on an ‘event basis’ vs. tempo sales. Well, Randal Bone just opened up my thoughts with his Toscana experiences in selling, and how they 'evented' their way through the project by selling use vs. investment. Good stuff. Back to the drawing board, Carl.
As usual,, Mary Borgia, Red Flight Chair did a masterful job of programming and keeping the flight on track including that e mail sent at 3:45AM on the bus schedule!
Mary constructed a wonderful day of interactivity between members of the Red Flight that included round tables and panel discussions covering the whole spectrum of resort development and finance.
The Red Flight has such talented members. It's always a humbling experience to attend and learn. Sure, I've got the fractional side covered, but being a specialist of sorts can sometimes lead me to have tunnel vision. I certainly come away with my eyes wide.
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.
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.
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