Mixed-Use Development With Timeshares

Hospitality industry experts are saying that the concept of fractional ownership, timeshares and residences joining forces with hotels is a promising idea. At panel on timeshare at the Meet the Money conference in Los Angeles in May, panelists discussed the possibility of hotel properties converting space into fractional ownership or timeshare properties.

Mixed-use of hotels and timeshares can be a double win if the developers take advantage of hotel strengths. Maximizing the marketing overlap is what’s most important. Over-aggressive growth within the mixed-use spaces can be risky. Converting high end space into fractional ownership rather than timeshares is generally more successful. It is also important to reduce the amount of conversion and even try to go for as much as double the space through fractional ownerships, control is key. Existing infrastructure can make thing complicated,  you have to make sure kitchen and plumbing wiring is allowed and zoning regulations must permit two and three bedroom spaces.

CEO of Vacation Finance, Bob Waun, said, “We think there’s great opportunity in the resort sector, condo-hotels, fractional ownership and timeshare”. The only foreseeable problem with mixed-use and timeshares comes with the lenders. They often do not understand the timeshare model and they need to be educated about mixed-use and timeshares before shared ownership is introduced to them.

Timeshares in India – A Trend for the Next Decade

Although the number of timeshares in India is small in comparison to the overall market (146,000 owners versus 6.7 million overall), the number will grow over the next decade.  A report by real estate consultants Cushman & Wakefield and Group RCI predicts the demand for timeshares in India will grow by 16% per annum between 2006-2015 as timeshare and fractional ownership gain acceptance in India.

Most of the resorts will be concentrated in the western part of the country in places like Mumbai, Pune, Ahmedabad and Surat.  New destinations like Coorg and Munnar in the South will open as well as tourism increases throughout the country.

The legal structure for timeshare and fractional ownership is still being put into place in India.  At the same time, the curiosity of luxury properties without normal ownership is growing.  Only time will tell how the industry will grow in India.  Hopefully, there will be a better plan for timeshare owners than in the US where the resale market is nearly non-existent.  Timeshare Relief has no plans to be in India any time soon.

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