Orlando partner John Melicharek was quoted in the June 12, 2009, New York Times article, "And Now, It's Crunch Time for Timeshares."
According to the article, many timeshare owners are scrambling to get rid of their units, even at a considerable loss, to escape fees and, in some cases, mortgages. Affected by the turbulent economic climate, timeshare sales dropped 8 percent last year, the first time sales have fallen since the American Resort Development Association began tracking sales 34 years ago, according to the article. In 2007, timeshare sales rose 6 percent from 2006, to $10.6 billion.
The outlook has dimmed for prospective buyers, too. Before the bust, hotel companies routinely offered financing up to 90 percent of the purchase price on timeshares. "If you could sign your name and you wanted to buy it, they would sell it to you," said Melicharek, Baker Hostetler's Hospitality Industry Team Leader. Timeshare companies now demand that buyers have higher down payments and good credit scores to qualify for a loan, according to the article.