Timeshare Companies Selling Themselves Out of Business?

While this isn't good news for those that own these timeshares, having the entire timeshare industry disappear would be a positive development in my book. The poor economy seems to be hurting timeshare resorts full force although (surprise, surprise) they don't want you to think they are.

Timeshare companies, Westgate Resorts and Wyndham Vacation Ownership, are sending out mixed messages. They claim that sales are still going strong and growing but say they are selling themselves out of business because they can’t trade customer financing for funding.

Wyndham Vacation Ownership is cutting its workforce by one-fourth in an all out effort to restructure. The company relies on asset-backed securities to fund the building of new timeshares.

Westgate Resorts is also laying off more employees. Dave Siegel is working hard to quell the rumors that the company is on the verge of bankruptcy. -- M. Beddingfield

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Economy Hurts Timeshare Companies: Worst Shape in 20 Years

By M. Beddingfield

Central Florida Investments, Inc., a company with more than 10,000 employees and approximately 2 million timeshare owners, is feeling the financial squeeze "with the suddenness of a heart attack." According to David Siegel, CEO and president, they went from having a fantastic beginning of the year to "experiencing an unforeseen business emergency brought on by the collapse of the credit markets."

The company owns Westgate Resorts and has closed down its Houston premiere gallery, laying off all 106 staff members. Twenty-eight resorts in eleven states will also be affected with hundreds of sales associates losing their jobs.

Ed Hastry, president of the National Timeshare Owners Association, says the timeshare industry is in its worst shape in 20 years.

With credit no longer so easy to obtain, everyday Americans aren’t digging into their cash stash to purchase overpriced timeshares. Isn’t it funny that when money gets tight, people tend to become better judges of value?

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