More timeshare units expected at Sheraton Steamboat
February 22, 2015
Steamboat Springs — Additional units at the Steamboat Sheraton Resort may become timeshares, following an announcement earlier this month from property owner Starwood Hotels and Resorts.
Starwood announced in a news release Feb. 10 that it was spinning off its vacation ownership business into a separate publicly traded company, and that it anticipated turning existing inventory at Steamboat Sheraton and five other properties into timeshares.
"Valuations for timeshare companies are at attractive levels," said Starwood CEO Frits van Paasschen in the news release. "As a stand-alone business, the new company will have ready access to capital to invest in both existing and potential new properties."
Currently, Steamboat Sheraton Resort has 287 units, including 22 condominiums and 21 vacation ownership, or timeshare, units.
No immediate changes to the Steamboat Sheraton are expected, and the same 244 hotel units will remain available for nightly rentals in the immediate future, according to a Starwood spokesperson.
Starwood does plan to transfer ownership of the property to its timeshare company, Starwood Vacation Ownership.
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More information about the future management and ownership structure of the units and whether all of the units will be converted to timeshares will be determined as Starwood gets closer to the completion of the timeshare business spin-off, a spokesperson said.
Steamboat Sheraton Manager Daniel Pirrallo said he was unable to comment on the change in ownership or structure, referring questions to Starwood.
Starwood purchased the hotel in May 2007 and began major renovations on the property in 2008, including eliminating some hotel rooms and adding two- and three-bedroom vacation ownership villas.
In 2013, Starwood invested an additional $16 million in the hotel renovations.
Currently Starwood Vacation Ownership has 22 timeshare resorts in destinations including Hawaii, Mexico, and the Caribbean. The company reported timeshare revenues of about $640 million in 2014.
The Feb. 10 announcement said additional timeshares would be added to the company from inventory at Steamboat Sheraton and resorts in Mexico and Kauai, Hawaii.