CNNMoney.com recently published an associated press article regarding timeshares potentially being an economic "
Bright Spot" in the current economic state of the country.
This article is additional support of other recent indicators that the timeshare industry not being drastically affected by the sluggish economy. I have quoted some of the interesting selections of the article below and the complete article can be found
HERE.
Quote:
| Market Spotlight: Timeshares
Timeshares May Be a Bright Spot for Hotel Operators in Current Economic Slowdown
March 28, 2008: 04:23 PM EST
NEW YORK (Associated Press) - Lodging companies have not been immune to the economic slowdown, but the timeshare market may be an unexpected bright spot for the sector.
Hotel operators, along with many other sectors, have started to feel pressure as consumers tighten spending due to the continued housing downturn, escalating fuel costs, diminishing credit and recession fears.
Marriott International last month lowered its full-year revenue per available room growth target, while Starwood Hotels & Resorts in January projected revpar growth at same-store company operated hotels worldwide of 4 percent to 7 percent in 2008, down from 10.2 percent last year.
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Quote:
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Wyndham Worldwide reported fourth-quarter vacation ownership revenue climbed 4 percent to $576 million, while Marriott said timeshare sales and service revenue rose 2 percent in the same quarter.
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Quote:
Robert LaFleur, a gaming, lodging and leisure analyst for Susquehanna Financial Group, said in an interview that timeshares continue to be a very profitable business while also providing a way for companies to extend their brand.
Timeshare developments also offer some flexibility during softer market conditions, as projects are typically built in phases and can be scaled back if necessary, he explained.
In talking with industry executives, LaFleur said he did not get a sense of panic setting in, as most said their closing sales are still hanging in and that they are not experiencing significant weakness in any particular U.S. market.
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...and as always,
Timeshare Adventures welcomes your opinions, comments, questions!