ORLANDO? With its flagship timeshare resort here approaching sellout, Vistana is taking some innovative approaches to expansion plans within the Florida vacation-ownership market. Following the close in the fourth quarter of its acquisition by Starwood Hotels and Resorts, the company has begun construction on what Raymond ?Rip? Gellein, chairman and co-CEO, calls ?son of Vistana.? Located three miles from the company?s original resort on the International Drive tourism corridor, Vistana Vacation Villages will add an estimated 1,450 villas representing approximately $1 billion in inventory. ?We?re building 200 units in the first phase together with a large amenity package, and reception and sales centers,? said Gellein. ?We expect it will take us seven years? for build out. The first phase is scheduled to be completed this summer and also incorporate an exercise facility, game room basketball court and two swimming pool complexes. Gellein added interval costs would ?probably? range from $11,000 for one-bedroom units to $18,000 for two-bedroom lock-off units. As part of its strategy to create distinctive resort environments, Vistana will incorporate specific styles of Floridian architecture for each section it builds. Themes would derive from the original settlement of St. Augustine, Spanish and Moorish elements, folk Victorian influences, Key West?s ?conch? architecture, and the stylized Art Deco features that mirror Miami?s South Beach section. ?It?s a much more heavily themed resort experience than we?ve developed in the past and we?re very excited about it,? said Gellein. ?It?s really a way to enhance the vacation experience for our customers.? Unit owners will be able to move among sections as they are built out, so ostensibly vacationers can buy in and have numerous ?theme? intervals. ?This concept comes out of some things we had seen executed elsewhere, where people really do want to have different experiences despite the fact that they are coming back to the same physical location. It?s an added twist we don?t think has been done in our industry,? said Gellein. Each villa will feature a fully equipped kitchen, large master suite with whirlpool tubs, separate living and dining rooms, stereo, CD player and an in-room washer/dryer. Construction is proceeding on schedule, he added, and Vistana expects to bring in its first unit owners this summer. In nearby Port St. Lucie, Vistana also has begun construction on a vacation ownership resort that will operate alongside PGA Village, a state-of-the-art golf facility run by PGA of America. Distinct from PGA Tours, which represents the touring pros, e.g., Tiger Woods, PGA of America represents teaching professionals and clubs nationwide. ?We have an exclusive arrangement with PGA of America to develop resorts adjacent to their golf courses,? said Gellein, who noted this was the premier venture for both parties. In 1998, Vistana opened a resort at World Golf Village in St. Augustine, FL, in association with PGA Tours. ?Golf is a major focus of Vistana as an independent company and quite a focus of Starwood now,? noted Gellein, ?so those strategies meld nicely.? PGA Village opens this month and is offering four golf courses, plus a short course, and a learning center. It will serve as a prototype for PGA technique facilities nationwide. Vistana will build 387 villas between the golf courses and the learning center, and will be available on an interval ownership basis, as well as nightly. Owners and guests will have priority tee times to all the courses and access to the learning center. Costs are expected to ratchet downward from Vacation Village, with one-bedroom buy-ins at around $5,000, with a two-bedroom lock-off in high season going for about $17,000. Each villa will offer similar amenities as Vacation Village. Construction of the first 30 villas is scheduled for completion this summer. Vistana?s other current project is offshore in the Bahamas on Paradise Island where it is
