High-end timeshares push flexibility - San Antonio Business Journal:

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The new product, which costs from the low $100,000zs to $800,000, allows buyers to own an interesy in severalvacation properties. Instead of giving investorxs the rights to use a particular property for a certai amountof time, the Ritz-Carltojn Destination Club gives them access to Ritz’s properties worldwide. The Orlando-based companuy is applying a strategy usedby less-pricey timeshare among them , in which investors get points that can be used like currencty to buy vacation time. Ritz-Carlton said the option should increasew the appeal ofits high-end properties, known as fractionals, by attracting people who don’t want to be tied to a singl piece of real estate.
“Pointe give you much more flexibility,” said David Short, Ritz-Carlton Destination Club’d regional vice president for sales. “Theh allow people to customize each trip to theieown needs.” Howard Nusbaum, president of the American Resortt Developers Association, said the model fits well in the stresses economy, when vacation schedules can be less flexibles than in more prosperous times, and wealthy buyers are becomin more concerned about value. “Points allow peoplew to spend exactly the amount of money they want on Nusbaum said. In a traditional fractionapl ownership arrangement, an owner might have one month a year at afixec location.
With the points system, the buyefr can apply credits to hotels or othere timeshares in anytime configuration, decreasing the chance that time mighf not be used. Another advantage: In the traditional an owner who wants out of a timeshare needw to wait until some elsebuys in. the required ratio is three buyers forevery “If 15 people wanted out, they woulrd have to wait until 45 people want in,” Nusbauj said. “In this economic environment, that’s tough.
” Whild Ritz-Carlton’s new plan allows buyers to apply points toits properties, other timeshars companies are offering points packages that use a third partty to place owners in vacationn properties not connected to the timeshare company. Pat Connolly, senior vice president with , said his compant offers the use of The RegistryCollectionh — a global luxury timeshare exchange prograk — to buyers in its high-end Signaturs Collection.
The Signature Collection, which features 56 upscalde villas now under construction withimits 2,400-unit timeshare project near , will open next Orange Lake, which offers buyers of lower-priced units exchangr privileges through its own Holiday Inn Club Vacationds network, uses The Registry Collection to give luxury buyerw access to comparable properties it doesn’t own. “The introduction of a high-enf product is taking us into a new levekl of thetimeshare market,” Connollty said. Ritz-Carlton, which calls its pointxs membership Portfolio, will sell interests in The minimum purchaseis $130,000, which buys 5,000 points, with additional points sold in 2,500-point increments.
The company also charge annual dues rangingfrom $7,500 to $18,000. A pointz option will be available to current who are members ofthe company’s Home Club. “We’re spendingf a lot of time workintg on programs for ourexisting customers,” Short said. “It’se good for them, and it shouls allow us to grow a little more quickly inthe