Copyright © 2012 John Wiley & Sons, Inc.

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RESORTS:
AN INTRODUCTION
Learning Objectives
Identify the major factors influencing the
development of the resort industry.
Identify the various ways resorts can be classified.
Place different types of resort offerings on a time-
equity continuum.

Copyright © 2012 John Wiley & Sons, Inc.

21st Century
Lodging, Recreation and Entertainment concepts are
merging.
Long weekends are replacing long vacations.
Increased popularity of multi-generational family
gatherings.
More multi-use resort destinations.
Resort waterparks are growing and getting bigger.

Copyright © 2012 John Wiley & Sons, Inc.

21st Century
Adventure sports are going mainstream.
Movement from natural to man-made facilities.
Every outdoor sport will have an indoor version.
New structures and enclosures cover large spaces
affordably.

Copyright © 2012 John Wiley & Sons, Inc.

Lessons
The history of transportation has, to a large extent,
determined where, when, and what types of resorts have
evolved.
The desire for pleasure travel is deep-rooted.
Resorts began as seasonal operations. To minimize the
risk of relying on one season of the year, resorts developed
year-round attractions and appealed to the group market.
Resorts develop through life cycles. To be successful,
resorts have had to adapt to changes in transportation,
consumer tastes, demographics, and competition.

Copyright © 2012 John Wiley & Sons, Inc.

Types of Resorts
Proximity to Primary Market
Setting and Primary Amenities
Residential and Lodging Properties
traditional lodging
timeshare or vacation ownership
condominium hotels
destination clubs

Copyright © 2012 John Wiley & Sons, Inc.

Timeshare
Locations
Growth
Attractive to hotel companies
Europe
Important features
Purchase motivation

Copyright © 2012 John Wiley & Sons, Inc.

Timeshare Options
Fixed week option
Floating week option
Points-based memberships
Club concept

Copyright © 2012 John Wiley & Sons, Inc.

Condominium Hotels
Guests buy fee-simple equity in the unit
Ownership structure
Mixed-use project with a hotel and a primary residence
piece
Mixed-use in a resort area with a hotel where the condo
can be used as a second home

Copyright © 2012 John Wiley & Sons, Inc.

Other
Destination Clubs
Mixed-Use Developments
high cost of amenities.
Second-Home Developments
primarily of second homes and does not include a resort
hotel.
 Resort condominiums.
 Small, low-density residential communities
 Single-family developments
 Large planned communities

Multiuse Resort Communities

Combines two or more of the above categories of
facilities
Fractional ownership

Copyright © 2012 John Wiley & Sons, Inc.

Time-Equity Continuum
PURE TIME
 No equity – no responsibility
 Vacation rental
 Time share
 Destination club
 ______________________________________________________
 Fractional and Private Residence Club
 Elite Fractional
 Pure Ownership
PURE EQUITY
 100 percent real estate ownership – 100 percent responsibility
 

Copyright © 2012 John Wiley & Sons, Inc.