Hilton Grand Vacations (HGV), a sub-brand of the $8.7 billion revenue Hilton Worldwide group, has opened its first exclusively timeshare property in Europe, Craigendarroch on Deeside, following a £4.1 million refurbishment that has turned the former 45-bedroom Hilton hotel into 32 "vacation club suites".
The move is seen as a response to the increasing recession-defying popularity and profitability of luxury timeshares, with HGV claiming that enrolment to its 200,000-member worldwide "club" is growing by between 15,000-16,000 new members every year. An expected 30% of Craigendarroch's ownership will be from Scotland, 40% from the rest of the UK, and 30% from overseas, with the US a key target market.
A VisitScotland spokesman has welcomed the growth of the sector in Scotland, saying that it "practically guarantees visitors will spend [time] in the country, [providing] a clear injection of money for local businesses."
Richard McIntosh, managing director of Europe and the Middle East and Asia for HGV, who is based at Craigendarroch, described the timeshare concept as "generally recession-resistant as once people have purchased [a share in the property], they continue to use it. The existing timeshare part of this property had around 90% occupancy, whereas in the hotel the figure would have been 70-75%.
"We are definitely seeing the market move towards the shorter stay, the two-to three-night break," McIntosh added.
"Consumers are probably having more breaks in the year, which is a good thing as the suites product is geared towards that. We have invested a lot in new bar and restaurant and leisure facilities which we expect to attract an additional 5000 tourists a year and significantly boost spend in the area."
Like other upmarket operators, Hilton operates a points system, allowing purchasers to amass and exchange entitlement to nights at different times of year, grades of suite, resort and country. The average week at Craigendarroch is £13,000, though suites range from £3500 for a small suite in "silver season" to £23,000 for a two-bedroom apartment at "platinum time".
A Stakis hotel until bought by HGV in 1999, Craigendarroch was built in 1891 as the country home of the Keiller family of Dundee marmalade magnates, after whom the new brasserie is named. The resort employs 130 people, 70 of them permanent.
Napier graduate McIntosh is charged with growing HGV's business from an existing three resorts in Scotland (also Dunkeld and Coylumbridge) and one in Portugal.
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