Friday, February 06, 2004
Copyright © Las Vegas Review-Journal
Hilton adds third Las Vegas time share
Market rebounds after shedding bad reputation
By HUBBLE SMITH
REVIEW-JOURNAL
Photos by Cariño Casas.
Greg Birch watches the Lakers-Cavaliers basketball game Wednesday in the game room. The room has couches around a large TV as well as game tables, a pool table, air hockey and foosball.
A table in the bedroom holds a game set in a model suite of Hilton Grand Vacations Club.
Antoine Dagot, president and CEO of Hilton Grand Vacations Club, talks Wednesday about creating memorable vacation experiences. He's flanked by Stephen Bollenbach, left, CEO of Hilton Hotels Corp., and Tony Piccaino, senior vice president for Hilton Grand Vacations Club in Las Vegas.
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The time-share industry in Las Vegas is beginning to mature and will only get stronger as the city evolves into a total vacation experience, the chief executive officer for Hilton Hotels Corp. said.
Stephen Bollenbach, in Las Vegas Wednesday night for the grand opening of the $128 million Hilton Grand Vacations Club on the Strip, said the company plans to build three more towers on the 10-acre site near Circus Circus.
The 28-story, 283-unit time share is Hilton's third in Las Vegas. The Grand Vacations Club at the Flamingo, built in 1993, has 200 units and the one at the Las Vegas Hilton has 230 units.
Bollenbach said the time-share industry has shed the negative image created by high-pressure sales pitches and a sizeable financial commitment that wasn't always in the best interest of the traveler.
"That was the old days," he said. "It changed when big hotel corporations came into the business with a real concern for doing the right thing for customers. You'll see that this is a beautiful, high-quality facility."
With a desert deco design, Hilton's newest resort offers spacious accommodations in one- to three-bedroom units. Fully equipped kitchens come with granite countertops, wood cabinetry and high-end appliances.
Entertainment features include remote-controlled color televisions, digital video disk players, surround-sound systems and high-speed Internet access.
Resort amenities include a serpentine pool and whirlpool spas, fitness center, poolside bar and grill, deli and sundry store and interactive water fountain play area for children.
"This is a gorgeous property, and it's really given a new name to the time share populace," said Van Heffner, president and chief executive officer of the Nevada Hotel and Lodging Association. "It carries the style and elegance that the most discriminating traveler wants. It's close to all the action and has all the amenities. The surroundings really create a new ambience."
The Las Vegas vacation ownership market has grown tremendously in the past few years and has yet to reach its peak, Bollenbach said.
"We've got a 10-year project here, to build out this site," he said. "After that, we'll probably look for another one."
Industry pioneers in Las Vegas include the Polo Towers, Jockey Club and the Carriage House. Then came a wave of major national time-share operators such as Trendwest Resorts, WorldMark and Fairfield.
Nevada ranks No. 7 in the United States in vacation ownership resorts with 56. The industry has experienced double-digit growth nationally and internationally during the past two decades.
Research by Eugene, Ore.-based Ragatz Associates shows Las Vegas vacation ownership buyers stay in the city longer and spend on average 5.3 hours a day gambling during their vacation, which is significantly more time than the average of 3.7 hours for all Las Vegas visitors.
Buyers paid an average of $11,100 for one-week time-share intervals purchased in Las Vegas between January 2002 and February 2003, the research showed. That's significantly below the national average of $14,200.
The Hilton time shares average about $15,000 for a week, said Antoine Dagot, president and CEO of Hilton Grand Vacations.
He said sales are "way ahead" of projections and the product has been received positive feedback from prospective members.
"This hasn't been exactly an easy task," Dagot said. "We started on it before Sept. 11, (2001), then we stopped construction. We didn't know where we were going. So we're happy to see it open."
Real estate on some parts of the Strip is worth as much as $15 million an acre, but Bollenbach said Hilton paid less than $5 million an acre for the land previously owned by the late Bill Bennett.
Bollenbach said he doesn't think rising land prices will curtail development.
"Las Vegas is such an exciting destination. Our experience is that new properties do very well here. I don't think anybody should think that Las Vegas won't continue to add new properties," he said.
Lt. Gov. Lorraine Hunt, who's also chairwoman of the Nevada Commission on Tourism, said the time-share industry is adding a "new mix" to Nevada's economy.
She recently returned from a trip to China promoting tourism in Nevada.
"When the Chinese people see this, there's going to be billions of them wanting to come here, trust me," Hunt said. "This is an exciting city and it will continue to be exciting."
