How Lemonjuice is Resuscitating Faltering Timeshare Resorts

After more than four decades since its launch in the U.S., the vacation ownership industry has continued to thrive. Through economic recessions, inflation, the 9/11 attack, and the COVID-19 pandemic, timesharing has proven resilient and remains a leader in the hospitality sector because of its constant evolution in response to ever-changing consumer vacation preferences. But is timesharing losing some of its luster?

Since the mid-1970s, timeshare resorts across the nation have provided a much-needed vacation break from regular routines, reconnecting loved ones and treasured friends. Today, almost ten million families own a timeshare week or points in a vacation club at approximately 1,600 U.S. timeshare resorts, representing a nearly $11 billion industry. Many of the first-generation resorts are in operation today. In fact, 75% of these resorts are over 30 years old with more than half of those 40 years old or more.

Moving Legacy Timeshare Resorts From Jeers to Cheers

Known as Legacy Resorts, a compelling number of these first-generation timeshare resorts are no longer operationally sound, due to a myriad of issues often beyond the Board or manager’s control, exacerbated by a lack of resources and support. As many Legacy Resorts have aged, Boards have deferred costly upkeep projects, which often escalates into more expensive resort management problems later. A diminishing owner base, uncollectable maintenance fees, and unscrupulous exit or relief companies have created the perfect storm. Less revenue means fewer repairs, under-funded reserves, and operational shortfalls. Many of these Legacy Resorts have a robust rental program but the revenue generated is simply inadequate to cover shortfalls to maintain quality and to effectively run the resort.

Enter Lemonjuice’s Resorts Reimagined

One company has quietly emerged as the leader in resuscitating Legacy Resorts badly in need of oxygen. Lemonjuice Capital and Solutions’ sole focus is to help these properties create positive outcomes for owners, boards, resorts, creditors, and surrounding communities. They seek solutions with all stakeholders in mind. By leveraging the 125 plus years of timeshare and related industry experience of the Lemonjuice 6-member executive team, Lemonjuice expertly identifies pathways to revitalize properties creating a sustainable owner base and making the resort operationally sound again. They have accomplished this for several properties in varying degrees of need – with many more on the reimagination drawing boards in diverse stages of completion.

Adds Scott MacGregor, Lemonjuice Executive VP and COO, “Every week of rental inventory is a week no longer owned by a satisfied, dues-paying owner. Rental weeks happen because of deed backs from and foreclosures of timeshare owners who are no longer willing or able to pay maintenance fees. Many of these Association-owned weeks are the result of exit program scams and others are necessitated by long-time owners who passed away, leaving heirs who do not want to inherit their grandparent’s vision of happiness.”

Timeshare Industry Trends

Industry-wide mergers, consolidations, and acquisitions have become ubiquitous within the timeshare sector with less than a half-dozen companies claiming as much as 80% of the market, dominating the timeshare industry. While big companies are expanding, independent Legacy Resorts struggle to keep afloat and to provide the same quality and conveniences of brand competition. Even larger developers need industry experts to navigate some of the more tenuous and delicate issues with restructuring properties that no longer meet their brand standards. Sadly, the list of Legacy Resorts and aging properties with serious problems continue to grow. So, what’s a distressed Legacy timeshare resort to do?

“Lemonjuice is unique to our industry,” says Scott MacGregor. “We reimagine resorts by helping Boards determine the highest and best use for their property and what is best for their owners and stakeholders. We then execute the Board’s decisions. In some cases, reimagining a resort involves a reduction of timeshare units, so the expense burden is shared by a smaller group of timeshare owners. This makes the resort more secure financially, allowing engaged owners to continue to enjoy their property. Our executive team’s expertise significantly improves the resort’s quality and operational efficiencies, limiting the risk of unplanned dramatic changes in the future. In other cases, we restructure a resort because a large segment of resort owners wants out. In each situation, Lemonjuice takes a consultative approach, leaving the Board in control.”

Owner-Centric Focus

The owners and Boards of each resort are always in the driver’s seat. “We begin our projects with an owner-centric focus,” shared Jan Barrow, Vice President of Business Development. “At Lemonjuice, we understand that owners cherish the memories created during their many years of timeshare vacations. We recognize that most owners have a long history as diligent, reliable dues-paying owners who deserve to be treated with the integrity they were promised when they initially purchased. If a family decides that their timesharing days are in the rear-view mirror, they have several options during the reimagination process. Boards and owners at resort properties that have been reimagined by Lemonjuice are strong advocates of the company, knowing they were treated fairly and professionally. For Legacy Resorts desiring to control their resort’s destiny, we invite them to be inspired by our successes and let us guide your resort into a viable future.”

Resort Financing: $20 Million Invested

Today, Lemonjuice Solutions is the respected leader and gold standard for “Reimagining Timeshares.” Their focus is on making the industry more sustainable, keeping owners happy who desire to continue their ownership and, for those who want to move on, providing a vehicle that will result in real and tangible financial payouts. Since 2016, Lemonjuice has invested more than $20 million in Legacy resorts by re-energizing staff, improving infrastructures, cleaning up defective titles, and returning about $15 million to timeshare owners.

The Big Question

So, the big question then maybe: Do Legacy timeshares still have value? Opines Scott MacGregor, “Yes, there is real value in legacy timeshares. Many families have determined that condo-style accommodations are their preference for many reasons … from spacious units with full kitchens, to continuing the tradition of creating happy memories during family vacations. There’s also value in the underlying real estate that can be unlocked by correcting flawed titles and repositioning the resort through the reimagination process, giving owners options to stay or go. The original premise – of buying 1/52nd of a condominium that would retain its real estate value – failed to consider long-term operational costs of managing many ownership interests, which ultimately reduced the value of the product itself. So did the fact that the industry failed to foster a secondary market with financing, leaving no ability for owners to resell their timeshare. Although owners wanted a more flexible vacation product, the real estate value has become further separated from ownership through clubs and points. One of our core competencies is unlocking each resort’s value for the greater good of the owners and all stakeholders, backed by the capital to create successful outcomes. Moving forward, Lemonjuice plans to capture this increasingly under-served market as more Boards begin to recognize the amazing opportunity that Lemonjuice presents to help reimagine their resorts.”

To learn more about Lemonjuice, contact Jan Barrow at 863-202-8804 or by email at Jan.Barrow@Lemonjuice.biz . or visit Lemonjuicesolutions.com

Author’s bio: Marge Lennon has been writing about the timeshare industry since forever. She welcomes ideas for new Resort Trades articles.