Timeshare Stock Watch

The Timeshare Cash Cow!

**See Update At End Of Article**

This recent article on InvestorPlace.com entitled “3 Cash Cow Stocks To Buy: Timeshare Stocks” grabbed my attention for many reasons. It is not too often that you hear any stock market expert extoll the virtues of timeshares. But this is not from the aspect of owning the timeshare – they’re talking about owning shares of the timeshare developers. The big three they mentioned on InvestorPlace.com were Marriott (VAC), Interval Leisure Group (IILG), and Diamond Resorts International (DRII).

Several other timeshare company stocks are publicly traded including Starwood (STAR), Wyndham Worldwide (WYN), Hyatt Hotel Corp (H), and Hilton Worldwide Holdings, Inc (HLT).

Diamond’s IPO – On July 19, 2004 “The IPO for Diamond Resorts International, Inc. (NYSE: DRII) opened at $14.56 after pricing 15,500,000 shares of its common stock at a price of $14.00 per share. The company is selling 14,000,000 of these shares of common stock and a selling stockholder is selling the remaining 1,500,000 shares of common stock.”

Major timeshare developers that are still privately held include Westgate and Bluegreen. Both have been around a very long time, have a steady profitable business, and no one can foresee either of them going public.

Investors like what they see in the timeshare sales world. Sales are significantly stronger over previous years and there is room for growth. Not only are sales growing, but the financing being offered by the timeshare developers is far stronger than in years past. Plus, the sales prices are far higher than in previous years. There also seems to be a huge pent up demand for timeshare products from baby boomers who meet the exact profile of timeshare buyers.

All this bodes well for those investing in the timeshare companies.

Timeshare developers with significant purchasing, construction, or renovation projection projects underway include:

Disney Resorts: Renovation of the Polynesian Resort to include timeshares. Renovations also underway at Caribbean Beach, Wilderness Lodge Pools, Beach Club Villas.

The Grandview at Las Vegas timeshare resort

Marriott – Marriott Vacation Club announces the start of construction on the third tower at Marriott’s Grand Chateau. It will be 37 stories tall!

The Hilton Grand Vacations unit of Hilton Hotels &Resorts purchased 300 units at the Trump International Hotel to add to its luxury timeshare portfolio.

Construction of a new tower at Grandview at Las Vegas, near South Point, taking it from 1,556 units to 1,856.

Construction has resumed on the Desert Blue timeshare, planned at 281 units, after a four-year hiatus. Wyndham Worldwide sold the project to another developer in June for $117 million.

**Update**

While remaining the largest privately held timeshare mega-developer, Westgate has taken over the Hilton Las Vegas and large scale renovations are underway: “Just 90 days after taking over the former LVH, Westgate Las Vegas chieftain David Siegel says his unprecedented renovation project is already underway.” (source)

 

 

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