With a crippling credit freeze thawing out, the time-share industry predicted improved results for 2011 as its executives gathered in Orlando for their annual convention.
Time-share experts at the American Resort Development Association's conference reported that financing was flowing again, especially for experienced, well-known operators such as Wyndham Vacation Ownership, which announced a particularly attractive financing deal just this week.
Time-share development, which had been largely on hold during the recession, has started to pick up. And the industry said last year wasn't as bad as some had feared it would be.
"We survived, we're beginning to thrive," said Jim Lewis, president of Celebration-based Disney Vacation Club and the time-share association's outgoing chairman. "We might not be there yet — we're clearly not all the way there — but there are some encouraging signs."
The time-share business, largely based in Central Florida, is climbing out of a deep hole. The industry fell from a high of more than $10 billion in sales in 2007 to $6.3 billion in 2009. Final numbers have not yet been released for 2010, but sales are expected to be on par with or slightly higher than those of the previous year.
"As an industry, we're back in a growth mode," said Don Harrill, the association's incoming chairman and the president and chief executive officer of Kissimmee-based Holiday Inn Club Vacations.
But while bigger resorts may be having an easier time getting financing, some smaller developers and newcomers may still find it difficult to make a case with lenders.
Other issues involve how the time-share industry weathered the economic storm. For example, many companies focused on selling more product to existing owners who were already loyal customers. Now, some of those buyers are highly leveraged and having problems making payments, said Shawn Brydge, a senior vice president with Wellington Financial.
As they search for ways to grow, time-share developers are looking not only within the U.S. but overseas, as well. Areas such as the Middle East and South Africa, with favorable regulatory climates and a growing middle class, may prove to be attractive locales for both new customers and development.
Already, one-fourth of Orlando-based Hilton Grand Vacations' 165,000 time-share owners reside outside the U.S.
"I think there's incredible opportunity on the international front," said Mark Wang, the company's president.
Timeshare Industry On the Upswing? 
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