Silverleaf Timeshare Resorts Bought Out for $94 Million

Alerted today by Reuters, Cerberus – a hedge fund and private equity firm – is buying timeshare operator Silverleaf Resorts. They are paying $2.50 a share, or a 75% premium with cash. Silverleaf  (SLVF.O) was trading at $1.43 yesterday.

So why would Cerberus want Silverleaf timeshare resorts? According to the report, “Private equity firms are looking to buy assets as the office and hospitality real estate sectors recover, and as concerns about inflation increase the interest in real estate as an investment.”

Ouch. There goes that bad word again, “investment”. Maybe a private equity firm would consider a low priced company like Silverleaf timeshares an investment. However, if you are thinking of buying a Silverleaf timeshare, or selling your Silverleaf timeshare, whatever you do, do not consider it an investment. Retail prices for Silverleaf timeshare resorts are unusually high especially from what I have seen in Texas.

As I have said in the past, a timeshare is only an investment from the perspective of using the timeshare long term as a discount on your regularly planned vacations. From that viewpoint, it is an investment in your family vacations.

If you think you will make a profit when you sell your own timeshare, you better think again! Especially if you paid the going price at the timeshare resort. Silverleaf timeshares can be bought for pennies on the dollar on the timeshare resale market. Especially from owners who are tired of the escalating timeshare maintenance fees.

So Cerberus is buying Silverleaf timeshare resorts? Ok. Good for them. What about you the owner of a Silverleaf timeshare? Time will only tell if Silverleaf’s practices and management will change.

Wait and see.

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3 comments to Silverleaf Timeshare Resorts Bought Out for $94 Million

  • Dwayne

    Just got back from meeting with Silverleaf and was told of buyout. Ask if any changes will be coming and if anyone will be laid off. NO. Well – when any investor buys ANYTHING – you can bet some will go and price will go up. Especially maint. fee. At the prices they want for a Presidential unit, who can afford the first price they show you. At the resort was at today, the previous manager was willing to work with you if you were there during your time and happended to have extra family in. He would help get another room for a few day. Well – new manager could care less. Forget it. We will split you week or we do not have anything when rooms are empty.
    Will be interesting to see what changes investors make.

  • Evelyn Kennedy

    Went to what supppose to be an informational meeting concerning new owners. I have always enjoyed my timeshare,but was told today changes are coming. We haves owned for 13 years one reason we bought was for bonus time. Was told today unless we buy a $55,000
    Week we might not get to use bonus time, also if you take your rv you will pay and charging for day use if you have more than 10 people. So yes changes and not for the good of owner .

  • ahchancey

    well i have been an active silverleaf member since 1989 and there have been some very dissapointing changes made at my local resort in Conroe Tx. They have decided that you can only bring in 10 people no matter how many accounts you have, are charging $5 per person over 4 and have applied for a liquor license for the resort. I am so sickened by the idea that they would decide to sell alcohol, when this a family oriented facility.. . . .

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