With the foreclosures of some major hotels like the Watergate, which did not have a single bid at auction, or the St. Regis Hotel in Laguna Niguel that benefited from the last big-spending hurrah from AIG, it’s not surprising to hear about other hotels suffering the same fate.
We reported a while back about the Xanadu Hotel closing, yet the timeshare portion of the property remained open. Well, this occurrence has repeated itself, this time at the Ilikai Hotel in Waikiki, Honolulu, Hawaii. The operational losses of the hotel just became too great to overcome. All the staff was let go from the shutdown with a scant possibility that new management would rehire them.
Yet, the condo and timeshare areas of the property remained. Could it be that timeshares are self sufficient with maintenance fees on a multitude of timeshare owners actually earns a profit? Or that mandated special assessments require that timeshare owners to pony up lest they receive liens on real property or default judgments? Does this prove the profitability of timeshares?