The partial article below pretty much cuts to the chase. Bluegreen's main focus is sales. Not providing owners with happy vacations but selling more VOIs or Vacation Ownership Intervals, so they can pay dividends to their stockholders who in turn can take you money and go on vacation themselves. I'm betting they do not own Bluegreen points. To read the entire article visit: http://money.cnn.com/news/newsfeeds/articles/marketwire/11G025179-001.htm
The following provides financial and other information regarding our
assets, including our investment in Bluegreen and acquired operating
businesses, our real estate joint ventures, and our BankAtlantic legacy
portfolio of loans and foreclosed real estate.
Bluegreen Overview for the Third Quarter, 2014 Compared to Third Quarter 2013
Bluegreen Corporation: On April 2, 2013, BBX Capital acquired a
46% interest in Woodbridge Holdings, LLC ("Woodbridge"). BFC Financial
Corporation ("BFC"), BBX Capital's parent company, owns the remaining
54% of Woodbridge. Woodbridge's principal asset is its 100% ownership of
Bluegreen Corporation ("Bluegreen").
For the quarter ended September 30, 2014, net income attributable to
Woodbridge was $16.6 million, of which $17.2 million related to the
operations of Bluegreen. BBX Capital recognized 46% of the net income
attributable to Woodbridge, or $7.6 million, for the quarter ended
September 30, 2014. For the nine month period ended September 30, 2014,
net income attributable to Woodbridge was $47.8 million, of which $49.7
million related to the operations of Bluegreen. BBX Capital recognized
46% of the net income attributable to Woodbridge, or $22.0 million, for
the nine month period ended September 30, 2014.
During the third quarter of 2013 and the first, second and third
quarters of 2014, Bluegreen paid cash dividends of $18.0 million, $14.5
million, $19.0 million, and $19.0 million, respectively, to
Woodbridge. Woodbridge paid cash dividends to BBX Capital of $ 3.7
million, $6.4 million, $8.4 million, and $8.5 million, respectively,
during September 2013, April 2014, June 2014, and August 2014, based on
BBX Capital's pro rata 46% interest in Woodbridge.
Bluegreen Highlights for the Third Quarter, 2014 Compared to Third Quarter, 2013
(1) Bluegreen's sales of VOIs under its capital-light business
strategy include sales of VOIs under
fee-based sales and marketing arrangements, just-in-time
inventory acquisition arrangements. Bluegreen enters into agreements
with third party developers that allow Bluegreen to buy VOI inventory
from time to time in close proximity to the timing of when Bluegreen
intends to sell such VOIs and refers to this as "Just in Time"
arrangements. Bluegreen also acquires VOI inventory from resorts'
property owner associations ("POAs") and other third parties close to
the time Bluegreen intends to sell such VOIs. Such VOIs are typically
obtained by the POAs through foreclosure in connection with maintenance
fee defaults, and are generally acquired by Bluegreen at a significant
discount. Bluegreen refers to sales of inventory acquired through these
arrangements as "Secondary Market Sales."
System-wide sales of VOIs, net include all sales of VOIs, regardless
of whether Bluegreen or a third-party owned the VOI immediately prior to
the sale. The sales of third-party owned VOIs are transacted as sales
of timeshare interests in the Bluegreen Vacation Club through the same
selling and marketing process Bluegreen uses to sell its VOI
inventory. The growth in system-wide sales of VOIs, net during 2014 as
compared to 2013 reflects an increase in the number of tours and an
increase in the sale-to-tour conversion ratio. During the three months
ended September 30, 2014, the number of tours increased by 9% compared
to the same period in 2013. The increase in the number of tours reflects
efforts to expand marketing to sales prospects through new marketing
initiatives. Additionally, during the three months ended September 30,
2014, Bluegreen's sale-to-tour conversion ratio increased 1% compared to
the same period in 2013.
During the three months ended September 30, 2014 and 2013, cost of
VOIs sold as a percentage of sales of VOIs was 12% and 14%,
respectively. The decrease in cost of sales generally and as a
percentage of sales during 2014 is a result of a higher proportion of
Secondary Market sales, which typically carry a relatively lower
acquisition cost. Cost of VOIs sold as a percentage of sales of VOIs
varies between periods based on the relative costs of the specific VOIs
sold in each period and the size of the point packages of the VOIs sold
(due to offered volume discounts, including consideration of cumulative
sales to existing owners). Additionally, the effect of changes in
estimates under the relative sales value method, including estimates of
project sales, future defaults, upgrades and incremental revenue from
the resale of repossessed VOI inventory, are reflected on a
retrospective basis in the period the change occurs. Therefore, cost of
sales will typically be favorably impacted in periods where a
significant amount of Secondary Market VOI inventory is acquired and the
resulting change in estimate is recognized.
As a percentage of system-wide sales, net, selling and marketing
expenses increased from 45% during the third quarter of 2013 to 48%
during the third quarter of 2014. Generally, the increase in selling and
marketing expenses and the increase in selling and marketing expenses
as a percentage of sales during the 2014 periods compared to the 2013
periods was a result of Bluegreen's continued focus on increasing its
marketing efforts to new customers as opposed to existing owners. Sales
to existing owners generally involve lower marketing expenses than sales
to new customers. Bluegreen expects to continue to increase its focus
on sales to new owners and, as a result, sales and marketing expenses
generally and as a percentage of sales may continue to increase.
KIMBERLING INN AND RESORT - Kimberlng City, MO
Just returned from Missouri and drove through Kimberling Inn, it appears only two or the motel type units were damaged in the tornado. I looked at all the other condos and they seemed fine. Stay tuned for pictures. I just wondering if they are intending to rebuild the motel type or assess the owners to build nice new townhomes. I wil be forwarding information to my Kimberling Inn clients.
2013 Banner Year for U.S. Vacation Timeshare Industry Industry Shows Significant Growth
The U.S. timeshare industry enjoyed significant growth in 2013, according to the
State of the Vacation Timeshare Industry: United States Study 2014
Editionconducted by Ernst & Young. Compared to 2012, sales volume increased
nearly 11 percent, average sales price rose nine percent, and there are 29 percent more
resorts planned for the upcoming year.
"With 8.5 million intervals owned and a substantial increase in our key metrics, it's clear that timeshare growth is back," said Howard Nusbaum, president and CEO of the American Resort Development Association (ARDA). "The results of this study are further proof that the incremental growth that we have been witnessing over the last 18 months is sustainable."
There were 1,540 timeshare resorts in the United States in 2013, representing about 192,420 units for an average resort size of 125 units. The sales volume rose from $6.9 billion in 2012 to $7.6 billion in 2013, an 11 percent increase. The average sales price increased/climbed nine percent to $20,460. Occupancy remained steady at around 76 percent, compared to a 621percent hotel occupancy rate.
Other interesting findings from the study include:beach resorts are the most common
type of resort, with urban resorts claiming the highest occupancy. Island resorts have
the highest average sales price and Florida has the most resorts (23% of the national
total) and highest total sales volume ($2.3 billion). Nevada has the largest average
resort size (283 units on average), and Hawaii has the highest average sales price
($27,712) and occupancy rate (85.2%).
The report was conducted by Ernst & Young and commissioned by the American Resort Development Association (ARDA) International Foundation. For more details, see ARDA's State of the Industry infographic and for a copy of the full State of the Industry Study, visitwww.arda.org/foundation.
"With 8.5 million intervals owned and a substantial increase in our key metrics, it's clear that timeshare growth is back," said Howard Nusbaum, president and CEO of the American Resort Development Association (ARDA). "The results of this study are further proof that the incremental growth that we have been witnessing over the last 18 months is sustainable."
There were 1,540 timeshare resorts in the United States in 2013, representing about 192,420 units for an average resort size of 125 units. The sales volume rose from $6.9 billion in 2012 to $7.6 billion in 2013, an 11 percent increase. The average sales price increased/climbed nine percent to $20,460. Occupancy remained steady at around 76 percent, compared to a 621percent hotel occupancy rate.
Other interesting findings from the study include:
The report was conducted by Ernst & Young and commissioned by the American Resort Development Association (ARDA) International Foundation. For more details, see ARDA's State of the Industry infographic and for a copy of the full State of the Industry Study, visitwww.arda.org/foundation.
BRANSON'S ANYTIME VACATIONS AND ST LOUIS AREA RED ROCK TRAVEL SUED BY ATTORNEY GENERAL
Attorney General Chris Koster is suing a Taney County travel-club company for allegedly deceiving consumers about the benefits of memberships.
The suit in Taney County Circuit Court alleges that Anytime Vacations promised consumers discounts on airfare, hotel accommodations, cruises, and other travel
benefits for joining its travel club and paying fees of hundreds and
even thousands of dollars. After joining, however, consumers found the
“discounts” were nonexistent, and that they could get better deals going
through standard, free services such as Travelocity and Orbitz.Koster said his office received 50 complaints against Anytime Vacations
,
alleging that consumers paid fees to the companies totaling more than
$140,000. In one case, a consumer paid $6,995 to join the club. Anytime
Vacations refused to cancel the consumer’s contract and refund his money
after he discovered it cost more to book a flight through Anytime
Vacations than through routine travel websites.The lawsuit also alleges that the company violated Missouri law by failing to register with the state or provide proof of sufficient reserve funds
to provide the services it promised. In addition, the travel-club
company told consumers they had just three days to cancel contracts,
when consumers legally had three years to cancel because the club was
unregistered.Koster is seeking restitution for consumers, as well as civil penalties and the costs of the investigation and prosecution. "Some travel clubs use high-pressure tactics to make it difficult for consumers to say ‘no’, and then put up roadblocks for consumers to cancel,” Koster said. “My office will pursue travel-club businesses that cheat Missouri consumers and violate our state’s laws.”
Koster said that before signing a contract, consumers can check with his Consumer Protection Hotline at
800-392-8222
to determine whether there are complaints filed against the travel
club, if the travel club is registered in Missouri, and if it has
demonstrated the financial ability to provide the discounted benefits
they are offering.The second suit, involves Red Rock Travel, LLC, doing business in Missouri as Endless Travel Vacations, and its owners, Jack Keefe and Sherri Wolff, in St. Louis County Circuit Court for the same type of fraudulent business practices.
The Attorney General's office received five complaints about Endless Travel Vacations, totaling $19,000 in fees paid.
Tenn. AG sues timeshare club Festiva
Cooper
NASHVILLE, Tenn. (Legal Newsline) – Tennessee Attorney General Bob Cooper announced a lawsuit on Tuesday against multiple entities operating a timeshare and membership vacation club that allegedly used deceptive techniques to market the operation’s products.
The lawsuit against the entities operating Festiva alleges the operators used fraudulent and deceptive telemarketing and direct mail tactics to lure Tennesseans into attending high-pressure sales presentations to buy vacation memberships. Festiva allegedly misled consumers into believing they won or were selected for a valuable prize, but the company failed to disclose multiple requirements, including the lengthy sales presentation.
In December, the states of Louisiana and Maine also filed suit against Festiva.
“If you are tempted by a travel or vacation company that uses high pressure sales, it’s probably best to take your time and do your homework before you pay thousands of dollars and commit to paying maintenance fees and special assessments,” Cooper said.
Festiva also allegedly used confusing terms and conditions to make membership to the vacation club difficult to use and to sell more products, made it almost impossible to book a vacation at Festiva resorts and surprised consumers with bills for increasing maintenance fees and special assessments.
The lawsuit, which was filed under the Tennessee Consumer Protection Act and the Federal Telemarketing Act, named multiple associated businesses, affiliates and principal operators as defendants in the lawsuit.
The defendants include Escapes! Inc., Escapes Travel Choices LLC, Etourandtravel Inc., Festiva Development Group LLC, d/b/a Festiva Adventure Club, Festiva Real Estate Holdings LLC, formerly known as Festiva Resorts LLC, Festiva Resorts Adventure Club Members Association Inc., Human Capital Solutions LLC, formerly known as Festiva Resort Services LLC, Resort Travel & Xchange LLC, also known as RTX, formerly known as Festiva Travel & Xchange LLC, also known as FTX, Patton Hospitality Management LLC, formerly known as Festiva Management Group LLC, Zealandia Capital Inc., formerly known as SETI Marketing Inc., Zealandia Holding Company Inc., formerly known as Festiva Hospitality Group. Inc., Donald Clayton, Herbert Patrick and Richard Hartnett.
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