US firm buys into Marama Resort

By KELLY BLANCHARD in Rotorua
One of the world's largest operators of timeshares has bought a big chunk of Rotorua's Marama Resort.

The purchase by US-based Trendwest South Pacific has been touted as a huge plus for Rotorua tourism, promising to bring hundreds more visitors to the city each year.

The swanky condominium-style resort, which borders Lake Rotorua and the Ohau Channel, has had a chequered history since its Auckland developers went belly up.

Now 20 of 77 privately-owned resort homes have been sold to Trendwest. About 50 are still privately owned and are managed by Christchurch-based hotel management company Scenic Circle Hotels, which took over management of its portion of the condominiums in June this year.

The resort was developed by Auckland company Taradale Properties which subsequently ran into financial trouble.

Two companies associated with Taradale were placed in liquidation at the end of 2002.

Trendwest South Pacific is a subsidiary of Cendant Corporation - the company that owns brands such as Century 21, Budget and Avis.

President and chief executive Barry Robinson said the company wanted to enter the New Zealand market and felt Rotorua was an ideal location.

Another Trendwest property will open in Coromandel and a third is being sought in Queenstown.

Mr Robinson said Trendwest would spend several thousand dollars on each apartment to bring them up to the standard expected by the company's clients.

Although the units were only three years old, Mr Robinson said the interior and furniture were not yet at a high enough standard for Trendwest customers.

Mr Robinson did not want to divulge how much Trendwest spent buying the properties but the investment is a significant one considering each unit has in the past sold for up to $300,000.

Those who buy into Trendwest timeshares pay an upfront fee of $12,300, which entitles them to 76 years of free accommodation for a week every year in a one-bedroom apartment at any of the Trendwest timeshares throughout the world.

Trendwest has about 500 New Zealand owners so far but plans to improve on that number when the Marama Resort properties open next year following the upgrades.

Mr Robinson said research had shown timeshare visitors spent more on dining out and activities than average visitors to an area because they did not need to pay for accommodation.

He said although there had been a lot of changes in ownership at Marama Resort, Trendwest rarely sold properties.

"We are in for the long haul. If we do sell, we have to acquire a similar asset in the same location, which means we would have to buy in Rotorua."