Del Pacifico Starts New Residence Club

Del Pacifico, Costa Rica

Del Pacifico, a master-planned resort community on the central coast of Costa Rica near Quepos and Manuel Antonio, recently announced the launch of the Del Pacifico Club, a private residence club offering fractional real estate and carefree ownership.

Fractional real estate and residence clubs have grown in popularity because of the market conditions and buyers get much more home for the money, lower upkeep costs and the ease of ownership. Many consumers are finding it's the smarter way to own a second or third vacation home, especially overseas.

Owners can choose from one-, two- and three-bedroom villas at Del Pacifico Club, nestled on a hilltop overlooking the Pacific Ocean, and woven into the very fabric of Costa Rica's rich cultural heritage and stunning natural beauty. Owners at the Del Pacifico Club, located in Esterillos, Costa Rica, will have exclusive access to the amenities of its sister property the Alma del Pacifico Hotel, one of the top-rated hotels in Central America.

Club owners also will enjoy private beach access, restaurant and bars, fitness facilities and the resort's acclaimed spa.

"We are excited to add the Del Pacifico Club to the other real estate offerings at Del Pacifico", says Barry Strudwick, developer/partner at Del Pacifico. "The residence club will give the ability for people who love beautiful Costa Rica but realistically would only visit their home here 5-6 times per year. They'll enjoy a luxury home and the services of a boutique hotel for a fraction of the cost and none of the hassles associated with owning international real estate or a home in Costa Rica."

Del Pacifico Club will feature fractional ownership shares of one-bedroom Plaza Studios and two-bedroom and three-bedroom villas. All the Del Pacifico Club units come fully furnished with prices starting at $39,000.

Buyers receive a 1/10th-deeded real estate interest in this world-class Costa Rica vacation home without the hassles of full-ownership. Like other forms of real estate, fractional residence club ownership interests can be sold, willed, deeded or placed in a trust.

Residence Club Partners of Asheville, NC, the management company at Del Pacifico Club, feels this model will change the future of second home ownership in Costa Rica forever.

"In addition to a growing trend in fractional ownership and residence club home ownership versus whole ownership, owners are demanding more services and hassle free ownership that residence club owners enjoy at all of our clubs," says Mandy Allfrey of Residence Club Partners. "Owner services at our clubs include a club concierge, housekeeping, onsite management and very unique custom experience packages, things you don't get with the typical real estate purchase."

Happy Land-Buying Days Return to Beijing

Homes sales are up in Beijing more than a year after the government imposed tough regulations on property sales.

The real estate market in China's capital had cooled after the government announced a mix of credit and tax policies, restricted purchases of second or third homes in some cities and launched massive subsidized housing projects for low-income residents.

Premier Wen Jiabao vowed on July 7 the government will continue to monitor real estate market regulations, hoping that move will curb speculation in the property sector.

Still, China Daily reports, there have been signs of growth in recent weeks with increasing land sales.

Two land bids especially hit high points. In the southern suburb of Daxing, a 53,870-square-meter plot was auctioned for 2.2 billion yuan (about $346 million U.S.), according to the Beijing Land Reserve Center, a government body in charge of public land management.

The consortium that won the bid said it will develop the land for residential housing and supplemental commercial space normally reserved for shops, restaurants and offices.

In the city's remote northern suburbs, where property prices are low, another plot of primary residential land covering 113,816 square meters was auctioned for 428 million yuan. Developers told the Beijing Land Reserve Center they decided to bid on the dirt because of its size.

The bids came just one week after a record residential land bid -- 2.63 billion yuan for a 38,900-square-meter plot in Haidian district, home to the Zhongguancun tech business zone.

"The demand for top-rated land has grown as developers recover from cash shortages after a surge in home sales,"  Zhang Dawei, a chief market analyst with Zhongyuan Real Estate, a property agent, told China Daily.

The property market, particularly in Beijing's most sought-after locations, is expected to recover, Zhang told the newspaper. But the market in less-than-ideal locations will remain sluggish.

France, UK Commercial Markets Benefit From Investors Eurozone Debt Fears in Q2

Paris, France

According to global property adviser CBRE, commercial real estate investment activity rose significantly in France and the United Kingdom (UK) in the second quarter of 2012 (Q2 2012), as compared with both Q1 2012 and Q2 2011, as investors sought the most liquid markets at a time of further financial uncertainty.

Investment turnover in the European commercial real estate market showed a further slight downturn in Q2 2012, falling to €24 billion from the €27 billion recorded in the first quarter. The fall of just 3 percent quarter-on-quarter comes despite deepening financial anxiety in the eurozone and reflects the fact that prime real estate is seen as a safe haven at a time of heightened uncertainty.

The Q2 2012 activity shows a substantial shift in national trends compared to those that have been evident over the last couple of years. The main beneficiaries were France - largely as a result of three major transactions - and the UK, with both markets recording significantly higher levels of transactions in Q2 2012 compared to both Q1 2012 and Q2 2011. In particular, the London and Paris markets are seeing high levels of office investment transactions.

In contrast, markets that had been growing strongly - Germany, the Nordics, and Central and Eastern Europe (CEE) - have seen a slowdown in real estate investment activity. This is particularly true in comparison to the same time last year, when these three regions were the main drivers of investment activity. Demand remains strong for high quality properties in these locations, illustrated by the high prices that are achieved when such stock comes to the market such as Maximilianhöfe, a prime mixed-use asset in Munich, which sold for approximately €270 million in Q2. However, the level of investment activity in these regions is being held back by the shortage of prime stock.

Jonathan Hull

Jonathan Hull, CBRE's Head of EMEA Capital Markets, tells World Property Channel, "While the lack of prime stock caused a slowdown in market activity in both Germany and the Nordics during Q2 2012, interest in these markets remains strong. Investors remain highly sensitive to the underlying economics of each market and their exposure to the eurozone crisis, benefiting the northern European markets and placing Germany, the Nordics and the UK at the top of investors' target lists."

Over the past two years, European investment activity has essentially been stable - aside from the high market turnover that is commonly seen around the end of the year - at about €25 to €27 billion per quarter while further growth in activity is constrained by limited prime stock and a lack of lending from banks. The market is therefore heavily dependent on investors that purchase assets with a high proportion of equity. Yields in the core markets that attract such investors are stable, but there has been some upward movement in smaller and more peripheral markets.

European Commercial Real Estate Investment Activity

Timeshare Industry Pumped $70 Billion into U.S. Economy in 2011

Panoramic winter view of Vail, Colorado (Photo by Jack Affleck)

The U.S. timeshare industry contributed an estimated $70 billion in consumer and business spending to the national economy in 2011, according to a study conducted by Ernst & Young for the American Resort Development Association (ARDA). That economic stimulus includes a total of 493,000 jobs with $23 billion in income.

Overall, the travel industry has been creating jobs 26 percent faster than the rest of the economy since March 2011, creating 271,000 new jobs in that time, according to the U.S. Travel Association.
The impact of the timeshare industry on the U.S. economy extends beyond timeshare resorts themselves. The overall economic boost also encompasses sales and marketing offices, corporate operations, the construction of new resorts and renovation of existing resorts - not to mention the significant impact of expenditures of vacationers during timeshare stays.

The purpose of the study was to estimate the comprehensive private and public sector benefits generated by the timeshare industry.

Panoramic summer view of Vail, Colorado (Photo by Jack Affleck)

Combined direct, indirect, and fiscal impacts in 2011 by the U.S. timeshare industry included $70 billion in consumer and business spending, 493,000 full- and part-time jobs, $23 billion in salaries and wages, and $7.7 billion in tax revenue.  There are over 194,200 units in 1,548 timeshare resorts in the United States, encompassing a significant portion of the U.S. hospitality industry.

Spending by timeshare owners and guests during timeshare stays was estimated at $9.3 billion in 2011. About $1.5 billion was spent on-site at resorts, while $7.8 billion was spent off-site in the communities where the timeshare resorts are located.

Arrabelle Plaza in Vail, Colorado (Photo by Jack Affleck)

In addition to private sector benefits, the timeshare industry contributes significantly more federal, state, and local tax revenue per employee than the average industry, totaling $7.7 billion in 2011.

The American Resort Development Association (ARDA) is the Washington D.C.-based professional association representing the vacation ownership and resort development industries.  Established in 1969, ARDA today has almost 1,000 members ranging from privately held firms to publicly traded companies and international corporations with expertise in shared ownership interests in leisure real estate.  The membership also includes timeshare owner associations (HOAs), resort management companies, and owners through the ARDA Resort Owners Coalition (ARDA-ROC).

.S. Travel Sector Creating Jobs 26% Faster Than Rest of Economy

According to David Huether, senior vice president of economics and research at the U.S. Travel Association, the U.S. travel sector is doing a better job at creating jobs than most other sectors of the economy.

Huether tells World Property Channel, "The Labor Department reported last week that the economy added just 80,000 new jobs in June, similar to the revised 77,000 gain in May. Meanwhile, the unemployment rate remained perched at 8.2 percent for a second consecutive month.  After creating 226,000 jobs per month in the first quarter, the economy was only able to boost employment by an average of 75,000 per month in the second quarter.  And, while some of this deceleration was due to an unseasonably warm winter, there's no denying that the recovery is in a soft patch.

"The slowdown has also extended to the travel sector of the economy, where after creating more than 13,000 jobs per month in the first quarter, travel jobs edged up just 2,600 per month in the second quarter, including an increase of just 1,300 in June to 7.6 million.

"Still, it is important to note that since the employment recovery began in March of 2011, the travel industry has created 271,000 new jobs and has created jobs at a pace that has been 26 percent faster than the rest of the economy."

Huether concludes, "Two reasons why employment growth in the travel sector has been outpacing the rest of the economy in recent years are that jobs in the travel industry cannot be outsourced abroad or easily replaced through automation.  With the travel industry more internationally engaged than most sectors of the economy, the current slowdown unemployment growth has likely been due partly to the economic slowdown in Europe, which is why it is important for U.S. policymakers to enact sensible long-term reforms that will make it easier for travelers from other areas of the world, such as Latin American and Asia, to visit the United States.  And with the spending of every 33 overseas visitors supporting one U.S. job, more visitors will equal more jobs in America."

B Hotels & Resorts in Expansion Mode

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B Hotels & Resorts

South Florida-based B Hotels & Resorts is on the move with two additions to their portfolio and a new 'value-full-service' category, b2 hotels, within 18 months of their first hotel opening.

"The growth B Hotels & Resorts has experienced over the past year is very exciting," said CEO and President Ayelet Weinstein. "We are developing the brand to offer distinctive benefits to the consumers, associates, hotel management companies, hotel owners, and the communities we do business in. The combination of the lifestyle self-expression experience, the unique open-source operation models, and the fresh owner-friendly terms, delivers tangible value."

B Hotels & Resorts' next hotel will be located in the Downtown Disney Resort area next year. The B in Lake Buena Vista, Florida, is going to offer a family-friendly lifestyle experience within one of the most popular tourist destinations in the world, the Walt Disney World Resort. The B resort, currently the 394-room Royal Plaza, is ideally situated within walking distance to Downtown Disney, and offers easy access to all Walt Disney World and Orlando theme parks, as well as numerous shopping, dining, entertainment and nightlife venues.

The property was acquired by InSite Group and Cube Capital in December 2011 and will remain operational during a complete renovation and repositioning. It will be officially launched as part of the B Hotels & Resorts family in the fourth quarter of 2013, joining the AAA Four Diamond-rated B Ocean Fort Lauderdale which opened March 2011, and the B South Beach which is planned to open first quarter of 2013.

"The B in the Walt Disney World Resort is going to be a unique venue for visitors who are looking for an upscale lifestyle experience, tranquility and relaxation after and between fun-filled days at the adventure parks," said Weinstein. "It is being designed to allow interaction of families, couples, groups and individuals in an inspiring and stylish environment, with great amenities including international culinary concepts and a full service spa, while implementing the B brand approachable service culture."

The company's first b2 hotel will debut in downtown Miami at the site of the former Continental Bayside Hotel located at 146 Biscayne Boulevard. The 243-room property, which will undergo an extensive renovation and open as b2 Miami Downtown, is steps from the Port of Miami, the shops and restaurants of Bayside Marketplace, world-class cultural and arts venues, and the American Airlines Arena (home of the NBA champion, Miami Heat). The property was acquired by InSite Group and affiliates of The Carlyle Group in September 2011. The hotel is expected to open as b2 hotel in the first quarter of 2013.

"We've continued to garner genuine interest amongst travelers and industry experts as the portfolio of B Hotels & Resorts expands and as we enter new markets," said Christopher Tompkins, senior vice president of Marketing and Brand Programs. "We are thrilled to announce our third B hotel, which will debut in Orlando in the fall of 2013, and Miami as the destination for the first b2 hotel, a few weeks after unveiling the new value-full-service category. Like our properties in Fort Lauderdale and South Beach, these hotels will cater to a variety of business and leisure travelers, offering warm, approachable service and amenities."

London's Luxury Market Home Prices Up as Much as 10% in 2012, Olympic Games Driving International Demand

Strong demand from abroad drives upward price trend

London 2012 Olympic Stadium

There is no sign of any fall in demand here. London is one of the most important financial centers in the world. Many banks have increased their presence here recently, which has led to an even greater demand for high-end homes. In the very top segment, wealthy foreign buyers are responsible for the upward price trend. Many buyers work in the finance industry. Residential property at a prime London address is also a status symbol for many affluent individuals. Approximately 58 percent of buyers have sufficient equity to not have to rely on any form of mortgage lending. 55 percent are private investors, while 45 percent are institutional investors.

The unrest in the Eurozone is leading to yet another significant rise in interest from investors based in continental Europe. Around 60 percent of buyers are foreign nationals who are looking to invest their money outside of the Eurozone. This was particularly true of Greek nationals in 2010 and 2011, followed by wealthy Spanish and Italian buyers.

London 2012 Olympic Village

The level of demand from Russian, Kazakh, Chinese and Middle Eastern clients is also growing all the time. But Engel & Völkers in London is also registering a high level of interest from France and Germany, as many regard an investment in the city as a safe haven for their wealth. The demand for tenancies is being driven predominantly by British nationals, closely followed by other Europeans.

In addition to rising prices, demand is leading to a reduction in the property's time to market. Exclusive properties in prime locations are usually on the market for no longer than a month. Besides a sought-after address, a prerequisite here is a very high standard of finish.