Hawaii Hotel Revenues Soar, Timeshare Purchases Down

Hotels across Hawaii have commanded such high rates this summer that their room revenues are far above 2005 levels despite selling fewer room nights.

July occupancy statewide was 86.6 percent, down from 88.9 percent in the same month last year. But rates were up 12.8 percent, producing record room revenue growth.

Hotels sold 1,577,000 room nights in July, Hospitality Advisors President Joe Toy said Wednesday, down 5.4 percent from July 2005.

"The trend of declining room sales parallels the decreasing use of traditional hotels in favor of alternative accommodations, such as condominiums and timeshares," Toy said.

The Hawaii Department of Business, Economic Development & Tourism reported Tuesday that July visitor arrivals fell 1.9 percent from year-before levels.

"We are likely past the peak of the industry expansion that began in mid-2003," Toy said, but added, "we should continue to expect a record year in industry revenues for 2006."

Details from the July report:

Waikiki was 92.1 percent full in July, compared to 93.7 percent in July 2005, but room rates were up 13 percent to an average $163 a night, pushing revpar -- revenue per available room -- up 11.1 percent to $150. Overall Oahu revpar rose 10.7 percent to $151.
Maui was 85.1 percent full, the same as last year, but rates rose 14.1 percent to a countywide average of $269 a night, and Wailea room rates rose to a remarkable $429 a night. West Maui rates were $261 on average. Maui revpar was $229, up $29 from last year, but it was $349 in Wailea, also up $29.

Kauai was 81.1 percent full, compared to 75.6 percent a year earlier, while rates rose 8.8 percent to $203 a night. Revpar: $165, up $3 from last year.
The Big Island was 77.4 percent full, down from 81.7 percent a year ago, but room rates rose 9.3 percent to $194 a night. Revpar: $150, up $5.
For the first seven months of the year, statewide occupancy has been 81.8 percent, close to the year-before level of 82.2 percent, with average rates up $21 and revpar up $17 from last year.

What You Need to Know About TimeShares

1. Timeshares are still a lousy investment. Forget what resort developers tell you. There's a glut of unwanted timeshares. Sell today and you can expect to get back only 30% to 50% of what you paid. But on the bright side, buying a previously owned timeshare could be a bargain because the largest depreciation has already occurred. You'll find listings of resale properties at Timeshare Users Group (www.www.eztimeshare.com; listings are free to view, but you must pay $50 for the first year of members-only information on local markets).

2. Selling agents may be of little help. You might be tempted to hire a company that promises to sell the timeshare on your behalf. But consumers have filed many complaints with the Better Business Bureau about companies that charge up-front fees and then fail to sell the properties. If reselling your timeshare is too much of a hassle, consider donating it with the help of the nonprofit Donate for a Cause. If you itemize, you can claim a federal tax deduction of the timeshare's fair market value (commonly $3,000 to $5,000), and the charity keeps nearly 65% of the proceeds of the timeshare sale.

3. Financing is a last resort. The cost of a one-week, two-bedroom timeshare in high season ranges from $10,000 in St. George, Utah, to $12,000 in Maui, Hawaii. If you can swing it, buy your timeshare outright. Banks are loath to lend money for timeshare purchases, and developers fill the breach with loans charging interest rates as high as 16%. Don't expect a tax write-off for your interest payments, either. These loans are usually unsecured, and interest payments on unsecured loans do not qualify for the home mortgage-interest deduction.

4. Trading spaces can be a headache. If you want to exchange your week for a week somewhere else, you could join a timeshare trading network. For example, Interval International lets you swap with about 2,000 resorts worldwide. Most such programs charge a membership fee of about $100 a year, plus a trading fee of about $150 per trade. Be aware that you may not get into, say, a Maui beachfront resort in January even if you plan a year ahead because such popular resorts are often overbooked. Luckily, trading networks offer an alternative: points that can be redeemed for hotel, cruise and other travel rewards.

5. A slice of a condo can be better than no condo at all. On the positive side, time shares are a convenient vacation option for many families. Condo-apartment time shares are roomier than many hotel rooms, and having a kitchen saves on pricey restaurant bills. What's more, timeshare resorts usually offer amenities, such as pools and tennis courts, that can make the average annual maintenance fee of $400 more palatable. Or you can enjoy those resort amenities without the commitment by renting a timeshare. In general, rental rates are cheaper than paying for comparable hotel accommodations. The largest timeshare rental listings site is www.eztimeshare.com.

Sticker Targets Timeshare Sales

Upon request, visitors will receive "Thank you, I've already been asked" stickers from businesses which are members of the Chamber of Commerce.

According to Vickie Simms, executive director of the chamber, visitors frequently complain to the chamber about the "repetitiveness and behavior" of timeshare sales people who solicit on the streets.

"This is an attempt to alert the acquisition agents of the visitors' lack of interest in the offer which they are making. The purpose of this sticker is not to discourage the visitors from electing to tour a timeshare company but to prevent the same visitor from being bombarded by offerings as they walk down the street," said Simms.

Simms stated that Gatlinburg Chamber of Commerce realizes that timeshares offer an affordable vacation alternative for many, and that they "continue to contribute to the growth of Gatlinburg, but the continual offering of these promotions by off-premise contacts on the streets of Gatlinburg can often lead to a bad experience for our visitors."

The hope, said Simms, is that the program will alleviate the complaints and provide visitors to this area the awareness that the city of Gatlinburg and the Gatlinburg Chamber of Commerce are working diligently to resolve this issue.

"It is the hope of the chamber that those soliciting on the streets of Gatlinburg will acknowledge the visitors' wish to enjoy the streets of the city by avoiding those who wear the sticker. As the tourism industry is the lifeline of the business community, it is the chamber's goal to provide our visitors with the most gratifying and memorable experience possible," said Simms.

Tanner & Haley Bankruptcy Incenses Timeshare Industry

When Tanner & Haley Resorts filed for bankruptcy protection earlier this summer, it put into question the business model in which the emerging timeshare club industry is based. Now the company is struggling to continue serving its 874 members even as it recently disclosed it suffered an operating loss of $64 million in 2005.

Just last week its founder and CEO Rob McGrath resigned and casting further down on the viability of Tanner & Haley, which enticed prospective members to join one of its three clubs with luxury vacations in such places such as Aspen and Cabo San Lucas.

To join destination clubs such as Tanner & Haley, new members provide the club with a deposit ranging from anywhere between $80,000 to more than $800,000 depending on the club. While consumers are promised they’ll receive the money back (less an administration fee that could be as high as 20 percent), this bankruptcy puts those deposits in peril for Tanner & Haley members. However, most clubs don’t actively market that members wanting to leave the club must wait for three new members to join. Additionally, members pay annual maintenance fees and daily use fees for access to each company’s luxury homes.

Many destination clubs base financial models on maintaining their timeshares with annual dues while member deposits are invested in real estate, which is then owned by the club rather than individual members. The club banks on the appreciation of real estate to make money.

Though the media and consumer market has lumped the destination club industry in with timeshare, it’s not an accurate assessment. Whereas timeshare has a real estate ownership component, destination clubs do not. So while timeshare or fractional owners actually own a portion of a deeded property, destination club member own nothing but the right to stay in their respective club’s homes.

And because destination clubs have been so closely linked with timeshare, the timeshare industry has been rallying for years to put into place consumer protections. At the American Resort Development Association’s (ARDA), President Howard C. Nusbaum has always feared that if and when one of these clubs went broke, the headline would read “Timeshare For Rich Fails,” casting a negative light on an industry that has worked diligently to foster a positive image. According to Nusbaum, when a destination club fails, the timeshare industry suffers.

“We believe this business model is fundamentally flawed,” Nusbaum told Hotel Interactive. “It is based on speculation [of real estate]. That scares us.”

Tanner & Haley got into financial hot water because of its guarantee to allow members to stay anytime, anyplace in one of its homes. If that home wasn’t available, the company would have to rent a suitable alternative, costing Tanner & Haley dearly as it scrambled to satisfy member demand by entering into costly short term leases.

Nusbaum is calling for the industry to be regulated like timeshare and have appropriate consumer protections. For example, he believes non-equity destination clubs should be required to have a third party insurance vehicle for membership reimbursements in case a club goes bust and also to be more transparent with their record keeping.

“We love entrepreneurship and we love new ideas, but we need to make sure promises that are made are promises kept. This model has no failsafe,” said Nusbaum.

Dr. Wayne Thorburn, CEO of the Texas Real Estate Commission and Commissioner of the Texas Appraiser Licensing and Certification Board agreed with Nusbaum’s assessment. His organization oversees and licenses all real estate transactions in the state, including any timeshare products that are to be sold or promoted directly to people in Texas.

He believes the destination club model does have its compelling side since it provides access to multi-million dollar homes and luxury hotel amenities, but insists regulation is necessary. He is calling for new rules to be put into place either under existing timeshare acts or separate legislation specifically written for non-equity clubs.

“It’s a little dangerous to be playing the real estate market and think appreciation of real estate is the way to make money,” said Thorburn “I am not surprised something like this happened.”

On its website, Tanner & Haley the company said it intends “to continue to meet substantially all travel commitments previously made to Members and to continue to provide Members with a wide range of destinations and services.”

The notice added they will use the Chapter 11 process to “stabilize the company’s finances, put the company on a sound financial footing and develop a more viable business model.”

Cool Off For The Night Before You Buy A Timeshare

The sale of timeshares in the UK is regulated by the Timeshare Act 1992 (amended in 2001) and enforced by local trading standards officers.

Buyers must be given a 14-day "cooling-off" period' it is illegal for selers to take a deposit during this time.

Reputable agents, even within the UK, can be hard to find. And anyone contemplating buying a timeshare abroad should tread with utmost caution.

Buyers must make sure their money and the certificate of ownership are held in an independent, third-party account, and that the purchased "week" is free of al debt. Be aware, too, that there are no regulations about the ownership - rather than the sale - of timeshares. The Organisation for Time-share in Europe (OTE), the industry body, has a limited arbitration scheme for consumers. There is no clear-cut compensation scheme.

A New Type Of Timeshare: Stadium Seats

Fractional ownership of luxury services has been growing rapidly in recent years. There's NetJets, which sells fractional aircraft ownership. Denver-based Exclusive Resorts sells luxury vacation rentals.

Now, Sports Shares, a Greenwood Village company, is applying the time-share concept to sports and entertainment venues.

Retired Denver Broncos wide receiver Ed McCaffrey is lending his celebrity status to the new company by serving as vice president, said Gary Ebel, a company spokesman.

Sports Shares plans to sell 40 memberships that entitle participants to four tickets at up to 35 events a year, plus concierge service and parking at the venues.

Those venues include a Pepsi Center suite, a Coors Field box and a Castle Pines Golf Course skybox, said Mike Regent, chief executive of the company, which is partly financed by Denver-based Tivis Ventures.

"It gives the members a chance to buy a luxury suite environment without buying the entire piece of inventory," Regent said.

Regent declined to disclose what a Sports Shares membership costs.

Annual rental of a Pepsi Center suite costs $115,000 to $250,000, according to the Pepsi Center website. Coors Field skyboxes cost about $50,000 to $130,000 per year.

approached the Broncos and was turned down, Regent said.
"We just don't do that," said Jim Saccomano, vice president of public relations for the Broncos. "We're fortunate enough to be in a sell-out situation all the time and have no need to have a partner to help us sell tickets."

Because Sports Shares sells memberships, it's not re-marketing Pepsi Center suites, so it does not violate a licensing agreement, said Paul Andrews, executive vice president of Kroenke Sports Enterprises, which owns the Pepsi Center, the Avalanche and the Nuggets.

Timeshare Trade May Be Best Strategy For Buyer's Remorse

In the pressured environment of the 90-minute timeshare sales pitch and captivated by movie-theater scale videos showing idyllic getaways, many consumers who bought on the spot suffered serious buyer's remorse six months later. And then, they just wanted to get rid of the thing.

Although that sentiment is understandable, it's best to avoid acting in haste twice -- and to first consider trading. Here's why. Unloading a timeshare can take much time and effort, and sellers who don't want to hassle with the details may have to pay a hefty fee -- up to 25 percent of the purchase price -- to a resale agent.

The new era of timeshares -- and the allowable purchase structures -- feature far more flexibility than the timeshare of even 10 years ago. That's why a trade may be a better way to avoid losing one's shirt.

Two major time share exchange companies, Resort Condominium International (RCI) and Interval International (II), are making disgruntled time share owners a little happier. For a nominal annual membership fee (about $80), owners can trade their timeshare use time (not the ownership of their share) through these companies for time at a property that's either closer or more desirable.

The basic concept is this: RCI or II assigns a point value to a given timeshare based on its desirability (location, week of the year and unit size, among other factors). The timeshare is then color coded -- red for the most desirable (Aspen in December, for example), white for middle-of-the-road (the central coast in late autumn) and blue for least desirable (Orlando in scorching, muggy mid-September).

The catch is that participants can only trade straight across for similarly colored/rated vacation slot. And an exchange fee of about $100 is charged in addition to the membership fee. But that's still better than practically giving away a $9,000 purchase.

The choices through both networks are abundant, but RCI, the larger of the two, claims more than 2 million members and lists 3,500 resorts worldwide.

To make the exchange as advantageous as possible, consider the following:

• Recognize the true value of the timeshare being put into the pool (don't expect to obtain a nice "red" week for a white-level unit).

• Plan as far in advance as possible to allow for the most flexibility, up to one year with 45 days before a planned vacation at the minimum, or the pickings are likely to be very slim.

• Take advantage of incentives exchange companies offer; some allow members to trade in their timeshare week unused one year to bank more "points" on the trading market the following year.

No Timeshare Worries For Levy

Developer Bill Levy put out a press release stating that construction on his controversial timeshare condo project on lower State Street will begin within 60 days, even though one of his key financers – Mountain Funding – has issued a notice of default charging that Levy and his partners are delinquent on a loan to the tune of $35 million.

The loan was issued last year to secure the property, which may be cleared to construct 62 Ritz-Carlton time-share units. Levy’s longtime partner Roy Millender stated he had hoped Mountain Funding would work out its differences with Levy privately, but pledged that the legal dispute “will in no way affect the construction financing or the progress and completion of the Ritz-Carlton Club in Santa Barbara.” Levy has caused City Hall a great deal of anxiety about the timeshare project’s financial viability many times already, repeatedly missing deadlines to begin construction and seeking extensions. According to Community Development Director Paul Casey, if construction does not begin by December 12, no more extensions are legally permissible and the timeshare project will officially be dead.

Tanner & Haley Timeshare Resorts CEO Resigns

The chief executive of Tanner & Haley Timeshare Resorts resigned Tuesday, three weeks after the 62 corporate entities operating under that trade name sought bankruptcy protection, according to a published report.

Rob McGrath resigned from the Westport-based company, The Wall Street Journal reported on its Web site. McGrath, a former trader at J.P. Morgan Chase & Co. and Nomura Holdings Inc., started the first destination club in 1998, offering different vacations to the wealthy.

The company's chief restructuring officer, Holly Etlin, said in a statement e-mailed to members Tuesday that McGrath "concluded that he could best enable the company he founded to successfully complete its financial reorganization by stepping down," The Journal reported.

Messages seeking comment weren't immediately returned Tuesday night by the company's media department in Kansas City, Mo., and reorganization media office in New York.

Tanner & Haley drew corporate executives, entrepreneurs, real-estate developers and other wealthy customers. Members of Tanner & Haley clubs vacationed in luxury homes around the world for deposits of between $85,000 and $1.3 million for more recent offerings.

The deposits were in addition to annual dues and property-use fees.

The company filed for bankruptcy protection on July 23 in federal court in Bridgeport. It disclosed an operating loss of $64 million in 2005.

As unsecured creditors, many of the 874 timeshare members fear they could lose most of their membership deposits. The deposits were refundable under certain conditions, but Tanner & Haley stopped returning deposits shortly before the bankruptcy filing, The Journal reported.

On Tuesday, the American Resort Development Association repeated its call for destination clubs to comply with timeshare regulations or support regulations that include a third-party guarantee of a membership refund promise and "comprehensive disclosures."

Citing the Tanner & Haley bankruptcy filing, the trade group said destination clubs that do not guarantee refund obligations or comply with state timeshare laws "pose serious dangers to consumers and to the integrity of all prepaid vacation products."

Timeshare Project Uproots Renters

Timeshare units that may not be built for up to 12 years will cost two city women their homes by the end of the month.

Karen Adkins and Pamela Jenkins, who live on Penniman Road, said they received an eviction notice this week. The letter, from Colonial Penniman LLC, was dated July 31 and required Adkins and Jenkins to vacate the property by Sept. 1.

The women were puzzled because they didn't know what Colonial Penniman LLC was. Adkins said her landlord for the 17 years she's lived in the modest house on Penniman has been Hunter Vermillion.

Vermillion sold the property to Colonial Penniman in anticipation of the timeshare development.

Adkins works at King's Arms Tavern, and has worked for Colonial Williamsburg for 15 years. Jenkins works at Historic Jamestowne.

Adkins said she was surprised because based on their dealings with BlueGreen Corp., the company that will develop the 400-unit timeshare project that will take the land their house is on, they thought they had at least a year.

“This gives us less than a month,” she said.

The timeshare project has a buildout of 12 years.

Adkins and Jenkins were put in touch with BlueGreen executive Virginia Polinski by Kyra Cook, a neighbor on Penniman Road who's had concerns about the timeshare project. Cook said Friday that at a meeting with Jim Bennett, the spokesman for Colonial Penniman and Polinski, she brought up the fact that Adkins had lived in the house that was going to be demolished for the project for 17 years.

“She said she wasn't aware that anyone lived in that house,” Cook said. “But she said they weren't interested in evicting anyone right away because it was better for them to have someone in the house than to have it vacant.”

Cook said she informed Adkins of that and gave Adkins' contact information to Polinski.

Jenkins said she had talked to Polinski and that she said that if BlueGreen was their landlord, “we wouldn't just give you 30 days' notice.

“Then she kind of laughed, so I expected we would get 30 days' notice,” she said.

Adkins said they'd had a further conversation with BlueGreen to ask for an extension because, although they've found a new place to live, they can't move in there until Sept. 15.

“They said they couldn't do that,” Adkins continued. “It's not just that the new house won't be ready until September 15, we need that long to secure our belongings.”

She said she was done talking to them.

“I'm not communicating with them anymore,” Adkins said. “I can't spare the emotional energy. I've got to get ready to leave here.”

Reached for comment Friday, Polinski said corporate policy prohibited her from talking to the press. She referred all inquiries to a corporate spokesman.

Asked about the eviction and the denial of an extension, spokesman Lisa Thornhill said those were all good questions.

“Unfortunately, we can't answer them for you,” she said. “We aren't evicting anybody because we don't own the property yet. We haven't closed

Asked if getting the tenants out was a prerequisite for the closing, Thornhill said she didn't know.

When first contacted Friday, Jim Bennett, spokesman for Colonial Penniman, was unaware of the eviction notice.

Later, he said that he understood that evicting the tenants was “a legal matter that was necessary for the sale of the property.”

“I understand that the tenants have had some conversations with BlueGreen, I'm not sure how productive they were,” he said. “In any event, BlueGreen is not the owner of the property, Colonial Penniman is.”

Asked about the tenants' request for an extension until Sept. 15, Bennett said he couldn't answer for the owner of Colonial Penniman, who he declined to identify.

“It sounds reasonable to me,” he said. “But I can't speak for the owner.”

Bennett said the owner was out of town and that he'd get in touch with him next week.

Cook, who has been critical of the way Colonial Penniman and BlueGreen have operated, said this was another example of their not cooperating with people in the community.

“It's not so much the eviction that bothers me,” Cook said. “It's the way that it was done. Karen and Pam deserve to be treated with more dignity than that.”

Dubai Prepares To Pass First Timeshare Legislation

The Dubai government’s Department of Economic Development (DED) is preparing to pass the emirate’s first timeshare law later this year. The groundbreaking legislation will pave the way for international timeshare brands such as Marriott Vacation Club International (MVCI) to enter the burgeoning hospitality sector in the emirate, and will provide yet another revenue avenue for would-be investors.

Timeshare professionals from 19 companies, including the two largest timeshare exchange companies RCI and Interval International, have been working with the DED since 2003 to create a first draft of the timeshare legislation, which was submitted for approval at the end of June.

“The DED asked [the timeshare] industry to form a work group to take a look at the first draft legislation and make comments. We have just completed that. It is a very good draft. We made suggestions on how to change the draft to tighten it up,” said Vivienne Noyes-Thomas, managing director of RCI Middle East.

“We are making a unified effort from an industry standpoint to create a timeshare legislation that protects the consumer’s rights as well as offering the legitimate developer the right to develop their business,” added David Clifton, managing director, Europe, Middle East, Africa & Asia, Interval International.

The aim of the legislation is to avoid some of the mistakes made in Europe in the 1980s and 1990s with regards to timeshare marketing.

“The EU got it wrong. The developers there never embraced regulations early on. Instead they fought it. The EU overreacted by bringing in legislation against taking deposits,” Clifton told Hotelier Middle East.

“With the Dubai regulations, this will stop the bad people from coming in. Also the quality of product here will be superior. It is an upscale vision. Then there is Dubailand, which is aiming at a younger audience. There is no question that we will see timeshare there. We will see it all over Dubai,” he stated.

The first DED draft looks at how to protect the consumer, by offering a cooling-off period on all contracts, while enabling sales teams to still take deposits. The law will also provide protection for purchasers investing in properties still under construction, in the form of an Escrow account or bank guarantee.

Operators will have to get a licence to run a timeshare resort and to sell it. They have to be bonded to the amount of AED1 million (US $275,000).

“There has to be disclosure in all documents: disclosure of what you are selling, and if you are offering an inducement to join. This legislation is great; it is very laudable. We hope to get it ratified as soon as possible,” said RCI’s Noyes-Thomas.
Operators are also keen to see the legislation get passed. MVCI has been in negotiations with Al Futtaim to sign an agreement to operate and market a timeshare resort at Dubai Festival City for the past 12 months, but is holding off on inking the deal until the timeshare legislation is passed.

“Our Festival City announcement is dictated by legislation,” admitted Ed Kinney, vice president, corporate affairs and brand awareness, MVCI. “That [will be] determined by the ability for the legislation to be formalised and executed as quickly as possible. Without that, the ability for companies such as us to commit to that market is damped somewhat.”

When the new legislation will come into effect is still not certain, although Interval’s Clifton is hopeful that the new law will be in place by the new year. “We are hopeful that we will see timeshare legislation as soon as possible. However, the reality is that Dubai has to finish its land law first,” he said.

Escape From Timeshare Hell

Despite their unwillingness to travel just weeks after the Sept. 11 terrorist attacks, Dowell Multer and his wife made the trip to their mid-October timeshare at the LaCabana Beach and Racquet Club in Aruba. "Things had changed a lot," Multer says. "It was a much quieter place." The couple vacationed there for two more years before deciding they did not want to return.

But after three years on the market, Multer, who is now 73 years old, still hasn't found a buyer. Granted, there was interest from companies that specialize in timeshare resales, but they all demanded hefty upfront fees. "One person wanted $1,500 upfront and swore up and down it's a great market," Multer says. Another asked for $599, promising to advertise the property world-wide. A third wanted $300. Multer politely declined. Yet, with the $900 maintenance fee due each year, he's desperate to sell. "Right now, we would be very happy if we could just give it away to somebody," he says.

The Multers aren't alone. While there are no official statistics on the number of timeshare owners looking to unload their investment, the sheer size of the marketplace suggests there are thousands — if not hundreds of thousands — of unhappy timeshare owners looking to get out.

With timeshares, you typically buy the right to stay at a resort for a week each year, as long as you live. (And because this is a deeded property, your timeshare will be passed over to your heirs after you die.) That may sound great at the developer's presentation: Buying a timeshare from the developer directly usually comes with incentives like discounted weeks at the resort or free lunches, and is often something of an impulse purchase. But it also means you've bound yourself to an annual maintenance fee, which can run as high as $1,500 and can increase if the timeshare management decides to do improvements upgrades on the property.

Needless to say, life doesn't always agree with such arrangements. People's circumstances change and, for one reason or another, they can no longer use their timeshares. That's where reality kicks in: Selling the timeshare is tough. Unfortunately, recouping your original costs — especially if purchased from the developer — is next to impossible.

Successfully unloading your property is a matter of adjusting your expectations and knowing what your options are when it comes to the sale. Here's some advice:

When trying to sell your timeshare, going to your resort is a logical first step: Some resorts have buy-back programs, where they will offer to buy your timeshare week or points at a certain price. The practice, known as "right to first refusal," is meant to help preserve the value of timeshare properties, explains George Marine, a real-estate investor and timeshare owner from Long Island, N.Y. What it basically means is that if you want to sell your timeshare, the resort will offer to buy it back at a certain price, typically lower than the purchase price but still higher than what the owner may get at the resale market. While most brand-name resorts — such as Disney and Marriott Vacation Clubs — have right of first refusal clauses in their contracts, how often they exercise it will vary by resort.

If your resort doesn't have a right of first refusal or any other resale program, they may at least refer a reputable broker or resale agent.

However you approach the resale of your timeshare, one thing's for sure: Never pay an upfront fee to a broker. "This is a wide-scale scam," says Caroline Lindholm, president of the Greater New York Timeshare Owners' Group (GNYTOG). "There are so many agencies out there that will take $395 or so, and promise you the moon. And the prices [they say you can get for your listing] are totally unrealistic."

Pat Teal, a 72-year-old timeshare owner from Myrtle Beach, S.C., learned that the hard way. Back in 2003, she contacted several resale companies about selling her timeshare at the Fairfield Beach Ocean Ridge in South Carolina. She was quoted a $300 upfront fee, which she paid using a credit card, and a $200 commission after the sale was complete. But two months later she called to inquire about any interest in her property, and the company had disappeared. "I kept calling and calling, but I couldn't get a hold of them," she says. (According to Better Business Bureau records, the company — Freedom Resorts International in Hudson, Fla. — has gone out of business.) Teal figured out her $300 fee was a lost cause, but imagine her dismay when her credit card was charged another $200. She appealed the charge with the credit-card company and her $200 was refunded, but still, the experience was sobering. "I would be more than happy to pay a commission, once the timeshare sold, but I hesitate to pay money upfront again," she says.

The only fee you should feel comfortable paying upfront is a small charge — usually around $20 to $50 — that some online timeshare services (such as www.Eztimeshare.com or www.us-time-share.com ) charge to list your property, says President Howard Nussbaum, president of the American Resort Development Association (ARDA), an industry group. "If you're dealing with a reseller, make sure they're a licensed agent and they don't make money from upfront fees instead of actual sales."

Marriott International Offers Second Phase Of Timber Lodge Timeshare Resort

A bed is not just a bed when you're traveling. And just to prove it, Marriott International has not only replaced its bedding at all its hotels. It sells the feather beds billed as some of the most fluffy, sinking sleep aids available today.

The beds have even made it to South Lake Tahoe, where Marriott Vacation Club - a subsidiary of the world's giant hotelier - has set up in its first two phases of Timber Lodge at Heavenly Village near Stateline. The third phase will begin construction in summer of 2007.

A vernacular filled with 300-thread-count sheets, feather duvets and matching duvet covers have become a part of the Marriott timeshare life. A guest getting between the sheets will find the hotel chain has also upgraded from five down pillows to three down and three euro pillows. The hotelier once boasted 200-thread-count linen.

Lauren Epstein owns one week a year of a Timber Lodge unit and waited long and hard for the chain's new feather beds to make it to Tahoe. She learned about them on the Internet.

"A bed is important to me. When I'm not at home and comfortable with my own bed and I'm on vacation, the bed needs to be comfortable and the bedding needs to be right or I don't sleep under the covers," the Los Angeles woman said, while she sprawled out on the comfy bed. She arrived a week ago and has enjoyed a good night of z's ever since.

The second phase will add 192 timeshare of these villas to add to the Marriott's weekly options in South Lake Tahoe. This includes the three-bedroom villas that allow for separate groups.

"You can split these into two, and you have a guest room," Marriott Timber Lodge marketing team leader Tania Pilkinton said on a tour this week.

Some units offer three bedrooms that can be split into two separate quarters with a guest room that also comes with a pull-out sofa bed.

Refrigerators and microwaves and other accents give the units the amenities of a full-service vacation home - all in a traditional timeshare package.

With mahogany-looking furniture and recessed lighting, it's the spare-no-expense offering that Marriott plans to sell in its next round of sales. Prices begin at $14,650 per deeded week. The three-bedroom villas start at $27,000 - something new to the second phase in the $250 million public-private timeshare redevelopment project next to Park Avenue.

Timeshare Boat Tragedy

A holidaymaker has died after falling from a narrowboat and becoming trapped in its propeller on a canal near Lichfield.

The 59-year-old man was on a timeshare boat holiday with his wife, daughter and son-in-law when he plunged into the water and became caught under the vessel at Alrewas.

Paramedics battled to save him but he died at the scene, on the Trent & Mersey Canal alongside The Old Boat restaurant, off Kings Bromley Road.

The man, from Somerset, was manoeuvring the Canaltime Narrowboats Timeshare boat below a lock when he fell into the water at about 4pm on Tuesday.

A member of his family and a fellow boater managed to pull him out of the water and onto the canal bank where paramedics battled to save him but he died at the scene.

Fellow timeshare holidaymaker Julian Yates, who was on another Canaltime boat behind, was one of the first people to arrive at the incident. He said:"The man on the back of the narrowboat had somehow pitched into the water and was trapped under the boat.

"The paramedics were here very quickly and they did all they could to save him but, unfortunately, he died. It is very sad and upsetting.

"I didn't see how he fell into the water but I think he was probably trying to moor up in front of the lock and got into a bit of a muddle.

"The boat was across the canal when I saw it, so he may have been trying to reverse and then the boat bumped the bank when he went forward, which could have been enough to tip him into the water."

Staffordshire Ambulance spokesman Bob Lee said:"It is a rare occurrence to have a boating incident like this. Generally, boating is quite a safe pastime."

The County Air Ambulance, two land ambulances, a doctor, the paramedic response unit, fire crews and police were all called to the scene. A Staffordshire Police spokesman said there were no suspicious circumstances.

Officers cordoned off the scene while inquiries began into how the incident happened, and health and safety officers from Lichfield District Council have launched an investigation.

Representatives from British Waterways and the Canaltime Narrowboats timeshare company also attended the scene.

Mick Finlan, who lives alongside the canal, said: "I don't think we've ever heard of an accident like this happening on the canal here before. It is all very sad."

Tim Matthews, Environmental Health Manager at Lichfield District Council, said: "On Tuesday August 1, our Health and Safety team were called out to an accident on the canal at Alrewas, where a man tragically died.

"We are currently examining the facts surrounding the timeshare death, and in the case the accident occurred during a work activity, we will consider carrying out an investigation under the Health and Safety at Work Act."

Brit Girl, 6, Burned Alive At Timeshare Resort

A BRITISH girl was burned alive when a prop exploded during a fire-eating act at a holiday timeshare resort.

Eden Galvani-Skeete, six, was engulfed in flames in front of her mum and other tourists.

Three other British children and several adults were injured when a fireball shot into the crowd.

Some leaped into a pool to douse their blazing clothes — but chlorine in the water made their skin blister even more severely.

Fire-eater Tahir Akalin, who was unlicensed, will be quizzed by cops on suspicion of causing death or injury as a result of negligence when he has recovered.

Eden, from Ilford, East London, was on holiday with mum Helen Zachariou and an aunt at the Gemini Park timeshare resort in Altinkum, Turkey.

She was among up to 40 guests watching Akalin in a bar and restaurant.

When a baton he used as a prop failed to light, a passing waiter doused it with ethyl alcohol Akalin used in his act, causing the blast. Eden was rushed to hospital, where she died.

Injured sisters Shona, and Sarah Hunter, 13, from Carlisle, Cumbria, were still there yesterday where mum Kathryn was keeping vigil. Another British child was still in hospital, but all the adults had been released.

One witness, named Mustafa, said: “When the fire-eater appeared on stage many children ran to the front for a better view, as the timeshare resort was packed.

“When the waiter tipped the bottle of alcohol on the baton and there was a huge explosion.

“Flames tore into children and adults standing nearby and their clothes caught fire. They were screaming from the pain and terror. They looked like they had been in a bomb blast.”

Mustafa, who was selling timeshare at the Aegean Sea resort, added: “One little girl was lying motionless. Her body was charred from head to foot.”

Neighbours near Eden’s Ilford home — which had a bunch of pink roses outside — described her as “bright and bubbly”.

One said her mum, also known as Ellie, went to see them on her return home.

She said: “She was crying and whispered, ‘My darling Eden has been taken’. She told us Eden bore the full brunt of the explosion.”

Shona and Sarah’s dad Mark Hunter, 42, said: “Sarah has second degree burns to 30 per cent of her body. The backs of her legs are badly burned and she is in a lot of discomfort.

“Shona suffered burns to her legs and a burn right across the left side of her face. They just really want to go home.”

The timeshare resort is run by Premier Homes, a Turkish-based company run by UK businessmen. Some timeshare flats belong to holiday firm Seasons based in Laugharne, Carmarthen.

Managing director Michael Foundly said: “We’re shocked.”

Timeshare Crusader To Speak At Convention

Lisa Ann Schreier, a.k.a. "The Timeshare Crusader" and author of both "Surviving a Timeshare Presentation...Confessions from the Sales Table" and "Timeshare Vacations for Dummies," will be speaking at THETRADESHOW Consumer Day on Sept. 10, 2006, at the Presentation Pavilion in Orlando.

According to Schreier, "Surviving a Timeshare Presentation...Confessions from the Sales Table" created a stir upon its release when it revealed the average price of a timeshare for the first time to the general public. "Consumers need to know what the average price is because without that information it is next to impossible to make an educated choice about purchasing the product," said Schreier. She followed the success of her first book with "Timeshare Vacations for Dummies," a more in-depth book about timeshares, exchanging and financing. Schreier says she is neither pro- nor anti-timeshare, only decidedly pro-consumer.

"Timeshare can be a great product for some people and a total waste of money for others. Since most timeshare purchases are made during a 2- to 3-hour timeshare presentation or ‘pitch’, it’s vital that consumers have the information that they need ahead of time so that they can ask pertinent questions and make informed choices. There is no such thing as the ‘best’ timeshare location, type or brand. There are a multitude of products out there and ‘best’ will be different for each individual. I`ve been extremely fortunate to have earned the trust of the public by refusing to be aligned with one specific timeshare, or even getting involved with any actual buying or selling," said Schreier.

Schreier is a guest lecturer at both the University of Central Florida and the University of Nevada-Las Vegas. In addition, she has been a frequent guest on many radio stations including National Public Radio, WOR-AM in New York City, "The Frankie Boyer Show" in Massachusetts and the ABC Radio Network. She also has written articles for Grand Magazine, the in-flight publications of both AirTran and Alaska Airlines and was recently featured on a segment of the Showtime series "Penn and Teller`s Bullshit!" In April, Schreier was a guest speaker at the Miami Herald Travel Show, and she also has addressed the Chicago Adventure and Luxury Travel Show.

Timeshares Seem To Be A Money Pit With Few Returns

You can't walk through the lobby of any Orlando hotel these days without seeing signs for reduced rates or free tickets to the area's amusement parks. Of course, there's a hitch: You have to hear the pitch of salespeople who want you to buy a timeshare.

The dream they're selling is having a place at a luxurious resort where you can vacation each year. You buy either a specific week or points that can be exchanged for any week. There are people who adore this system, so much so that they buy multiple weeks at various places.

They like that it forces them to take a vacation when they may not otherwise have left town. Other people love that you can buy a share in a particular place but use it like a voucher for another place anywhere in the world.

Owning a timeshare means having a perpetual obligation. You own it forever, and you can pass it on through your will. It's fine as long as you want it. But that's the end of the good news.

The shock sets in when people see their maintenance fees go up or get hit with assessments that leave them with no rights to appeal. When you buy a timeshare from a developer, most of what you pay for is marketing, sales, promotions and commissions. Almost none of the money goes to the value of the timeshare. Typically, timeshares lose 80 percent of their value immediately. What other purchase would you want to make that loses that much?

Another problem arises when you want to sell. Most people find that it's almost impossible to do. I get a lot of calls and e-mails from people who want to give their timeshare away, and nobody will take it! Because they lose so much value and are so difficult to sell, I consider timeshares to be a defective purchase.

People who are still sold on the idea would do well to buy one from someone who's desperately trying to get rid of it. Some buyers have found good deals on eBay, but I'd suggest doing a lot of study on the timeshare resort before you buy.