There’s a First Time For Everything Even a New York Timeshare

Earlier this month Hilton Grand Vacations Club (HGVC) held the grand opening of the first newly constructed timeshare/hotel from the ground-up in New York City, called West 57th Street by Hilton Club.  The timeshare is located at 104 West 57th Street between Sixth and Seventh avenues.  The 28-story building has 161 guest studios, 1-bedroom rooms and penthouses available.

Although the timing of the opening may not be ideal with the economy still in discord, HGVC has been marketing the time share to prospective owners over the past year or so.  According to the website, prices of weeks range from $40,680 to $117,120.  Or at least for now, studios are being used as hotel rooms for a reported $299 a night.

Let’s do the math on this a bit…at $500 a night, one week would be equivalent to $3,500.  Even at the lowest price for a week’s “ownership”, that would mean that you would need to go at least 11 years!  This does not include the annual maintenance fees or possible special assessments.  If you have the discipline and luck to go for a decade-plus, you may be able to get enough value to make it worth it.  But realize the changes that will happen over 11-15 years!

So, for ANY timeshare purchase think twice, even 3 or 4 times over.  There’s a reason why all the hotel chains have been massively profitable with timeshares.  They know that you probably won’t use them every year.

Warren Buffett Connected to Timeshares?

No, it’s not what you think…but a timeshare operation has made the world’s smartest investor and his company Berkshire Hathaway feel like a jaded timeshare owner just on a larger scale…

Warren Buffett and his company had purchased Netjets Europe, which offered timesharing on private jets in order to fly clientele around the world.  Only 18 months ago, Netjets was hiring hundreds of pilots and purchasing more aircraft for its fleet.  Today, it must lay off the equivalent of 300 pilots, or about a third of its pilot staff.

With the global economy in crisis, even the wealthy are conserving cash and forgoing travel or finding alternatives that are less expensive to the private-jet timeshare operation.  That’s left the company paying for pilots and aircraft that they were not using, to the tune of 60,000 excess duty days.

Whereas Buffett and Berkshire can cut their expenses by letting go of staff, timeshare owners of resort units have little recourse except to continue to pay for their timeshares even if they do not plan to use them.  Bound by firm and court-defended contracts, owners face harsh penalties like garnished wages and default court judgments with added court fees should they not pay their maintenance fees or special assessments.

A Well-Known Hotel & Timeshare Company Increased Profits?

Due to a tax benefit, Starwood Hotels & Resorts Worldwide Inc. saw a 28% increase in earnings in the 2nd quarter of 2009.  However, the small bump in earnings was overshadowed by the recognition of continued sharp declines in room occupancy realized in the company’s underwhelming earnings forecast.  At its timeshare business, revenue from vacation ownership fell 35% and residential sales dropped 47% amid average prices that fell 24% and weak demand.

For more information, read the article by Tess Stynes (http://online.wsj.com/article/SB124834494710075443.html)

Falling demand for the brand-name timeshares will have a domino effect for those owners trying to sell their timeshare.  As the large companies lower prices, it will squeeze the already tight timeshare resale market.  Be prepared to wait a long time if you want to sell your timeshare.  Remember, there is always another option, contact Timeshare Relief and get rid of that timeshare starting TODAY!

If Timeshares Employ More People, Is The Economy Improving?

It looks like Holiday Inn Club Vacations will hire 90 people to work in sales, marketing and operations in Orlando, Myrtle Beach and Vermont.  Holiday Inn Club Vacations is a relatively new division of Holiday Inn, so this may simply be a ramp up of services.  But, it may signify that they predict a recovery in the economy that timeshare sales will begin increasing.

Our hope is that the economy does indeed improve, that more people can find jobs and recover from the financial storm we’ve been put through.  However, it’s also our hope that people do not waste their money, especially timeshares.  Pre-paying for vacation accommodation time is fine as long as you and your family will absolutely, 100% user it in the future for years to come.  Otherwise, it’s a VERY, VERY expensive contractual obligation.

Timeshare Relief Weekend – We Work For You

Just a reminder that most weekends, Timeshare Relief personal consultants are visiting with timeshare owners throughout the United States and Canada.  If you would like to meet face-to-face instead of just over the phone or internet, please contact us by calling us at 1-866-797-0535 and let us know who you are and where you are located.  If a Timeshare Relief consultant is not in your area this weekend, you’ll make sure that we contact you when we are nearby