Diamond Resorts

Diamond Resorts
Private
(Acquisition by Apollo Global Management pending)[1]
Industry Vacation Ownership, Timeshare
Founded 1992 (1992)
Headquarters Las Vegas, Nevada, U.S.
Area served
 Worldwide
Key people
 Stephen J. Cloobeck, (Founder)
Michael Flaskey, (CEO),[1][2]
Products Vacation Ownership, Timeshare
Revenue Increase$230.7 million (EBITDA, 2013)[3]
Website diamondresorts.com

Diamond Resorts is a timeshare company[4] headquartered in Las Vegas, Nevada, with regional offices in Orlando, Florida, Lancaster, United Kingdom.[5] The company has a network of more than 379 vacation destinations in 35 countries around the world and sells vacation ownership points.[6][7] The company sponsors numerous celebrities, including LPGA professional Brittany Lincicome,[8] PGA Tour professional Brian Gay[9] and MLB Hall of Famers Gaylord Perry and Reggie Jackson.[10] The company also pairs with country music artists, including Cole Swindell,[11] Lauren Alaina[12] and Jana Kramer[13] to host private concerts for its members.

Diamond Resorts announced in March 2018 that the company was partnering with the LPGA to launch the Diamond Resorts Tournament of Champions.[14] The tournament begins the LPGA's 2019 season and features tournament winners from the previous two LPGA seasons, along with celebrity participants.[15] The Diamond Resorts Tournament of Champions replaces the golf tournament the company previously sponsored, the Diamond Resorts Invitational.

On June 29, 2016, Apollo Global Management made a successful offer to purchase Diamond Resorts International.[16]

Michael Flaskey was named chief executive officer of the company in March 2017.[17]

On January 18, 2018, the company underwent a brand refresh, updating its logo and officially dropping International from its name to be known as Diamond Resorts.[18]

On December 23, 2016 Arizona Attorney General Mark Brnovich announced a settlement of $800,000 with Diamond Resorts. As part of the settlement, customers who bought their timeshares under false pretenses could relinquish them.[19]

Acquisitions

In October 2015 DRI bought out Gold Key Resorts[20] for $167.5 million. This acquisition added five vacation ownership resorts in Virginia Beach, Virginia, and one in the Outer Banks, North Carolina.[21]

Diamond Resorts acquired Intrawest Resort Club Group in November 2015, adding nine resorts and 22,000 members. After the acquisition, Diamond Resorts re-branded the Intrawest Resort Club Group as Embarc Resorts.[22]

Diamond Resorts acquired Amber Vacation Club in March 2018 and will assume operations at Amber’s managed resorts, Sunrise Ridge Resort in Pigeon Forge, Tennessee and Alhambra Villas and Alhambra at Poinciana in Kissimmee, Florida.[23]

In April 2018, Diamond Resorts announced it had acquired The Modern Honolulu, a boutique hotel in Honolulu, Hawaii.[24] The 353-room hotel is the company's first owned and managed property on Oahu.

Philanthropy

Diamond Resorts launched the Diamond Resorts Invitational in 2013 to benefit Florida Hospital for Children.[25] Through the golf tournament, the company has raised a total of more than $3.1 million to the children's hospital.[26] In March 2018, the company announced it was sponsoring a new golf tournament, the Diamond Resorts Tournament of Champions, with the LPGA as an official season event. The company has said charity will continue to be a piece of the tournament.[27]

In October 2015, Diamond Resorts pledged to match all new donations made to the Diamond Resorts International Foundation, a recognized 501(c)(3) organization, in 2017 up to $1 million to support Hurricane Irma relief efforts.[28]

Undercover Boss

The founder, Stephen J. Cloobeck, was featured in the fourth season premiere of the American reality television series Undercover Boss on January 15, 2012, marking the first time the head of a company previously featured in an earlier episode went undercover a second time.[29][30][31]

Properties

United States

StateHotels
Alabama Alabama
Arizona Arizona
California California
Colorado Colorado
Florida Florida
Hawaii Hawaii
Idaho Idaho
Indiana Indiana
Louisiana Louisiana
Michigan Michigan
Missouri Missouri
Nevada Nevada
New Mexico New Mexico
North Carolina North Carolina
Ohio Ohio
Pennsylvania Pennsylvania
Tennessee Tennessee
Texas Texas
Utah Utah
Virginia Virginia
Washington (state) Washington
Wisconsin Wisconsin
Wyoming Wyoming

International

LocationResorts
Canada Canada
Mexico Mexico
Netherlands Netherlands
Austria Austria
Brazil Brazil
France France
Greece Greece
Republic of Ireland Ireland
  • East Clare Golf Village
  • Dangan Lodge Cottages
  • Fisherman's Lodge
Italy Italy
Malta Malta
Portugal Portugal
Spain Spanish Mainland
Balearic Islands Balearic Islands
Canary Islands Canary Islands
United Kingdom United Kingdom
New Zealand New Zealand
Indonesia Indonesia

Criticism and controversy

Sales Tactics

Diamond Resorts is notable for high-pressure sales tactics used to close sales and generate fees for consumers.[51][52] Club members are charged yearly maintenance fees (including management fees), which are set by Diamond Resorts and which the FTC warns are likely to rise every year.[53][54] Diamond Resorts's official 2014 SEC filing states that club members do not have the right to terminate membership, except in certain areas where consumers are protected by state law.[52][55][56] Jeff Weir, a Diamond timeshare owner and journalist covering the timeshare industry, told the New York Times: "In my experience, Diamond is much more ambitious, aggressive and downright nasty in their sales presentations compared to Marriott and Westin. Diamond just has an amazing reputation of being tough on people."[52]

Mike Flaskey, the company's current chief executive officer, spoke on Fox Business about how the company is shaking up its sales and marketing model to better meet traveler's desires.[57]

To help improve customer transparency, the company launched Diamond Clarity,[58] a program that ensures customers understand their rights and improves many operational issues that previously arose during the sales process.

Settlement with State of Arizona over Allegations of Consumer Fraud

On December 23, 2016 Arizona Attorney General Mark Brnovich announced a settlement of $800,000 with Diamond Resorts over accusations that Diamond Resorts had violated the Arizona Consumer Fraud Act. Of the settlement funds, $650,00 were used for customer restitution.[19] Under the settlement, customers who had purchased timeshares in Arizona between January 1, 2011 and July 23, 2017 could be released from their timeshare, provided they gave a detailed description of deceptive statements or false promises made by Diamond Resorts employees during the sale.[59]

The Attorney General's website states that alleged misrepresentations were related to:[60]

  • The amounts maintenance fees could increase annually (in some cases up to 25% each year);
  • Consumers' ability to resell timeshares to the public;
  • The existence of Diamond buy-back programs;
  • Consumers' ability to rent out their timeshares for a profit; and
  • Discounts on other travel needs.
    — Attorney General Press Release

In response to the settlement, Diamond Resorts launched a relinquishment program in fall 2017 called Transitions.[61] The program allows eligible owners to give back their timeshare to Diamond Resorts.

Similar programs

See also

References

  1. 1 2 "Diamond Resorts Holdings, LLC". businessweek.com.
  2. ↑ "DRII Board of Directors". diamondresorts.com.
  3. ↑ "Diamond Resorts International's CEO Discusses Q4 2013 Results - Earnings Call Transcript". www.nasdaq.com.
  4. ↑ "Timeshare developer Diamond Resorts acquires rival for $85 million". Las Vegas Review-Journal. Retrieved 29 March 2016.
  5. ↑ "The right business connection is just a click away with Data.com Connect - Data.com". www.jigsaw.com.
  6. ↑ "UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 10-K". NASDAQ. Retrieved 29 March 2016.
  7. ↑ Diamond Resorts
  8. ↑ "Diamond Resorts International Announces Brand Ambassador Brittany Lincicome, LPGA Tour Professional". Business Wire.
  9. ↑ "Brian Gay Partners". Brian Gay.
  10. ↑ "Diamond Celebrities". diamondresorts.com. 9 September 2015.
  11. ↑ Desk, BWW News. "Cole Swindell Extends Entertainment Sponsorship with Diamond Resorts". broadwayworld.com.
  12. ↑ "Lauren Alaina Serenades Diamond Resorts Members at Private Concert". www.prnewswire.com.
  13. ↑ "Jana Kramer Defends Taking Jolie to Discovery Cove Amid Backlash". eonline.com. 27 March 2017.
  14. ↑ "LPGA introducing Diamond Resorts Tournament of Champions as its season-opener in 2019 - Golf Channel". golfchannel.com.
  15. ↑ "Diamond Resorts Tournament of Champions to Kick Off 2019 LPGA Season - LPGA - Ladies Professional Golf Association". lpga.com.
  16. ↑ Jarzemsky, Matt; Mattioli, Dana (29 June 2016). "Apollo Global to Buy Diamond Resorts for $2.2 Billion" – via www.wsj.com.
  17. ↑ "Diamond Resorts Announces Senior Management Promotions". diamondresorts.com. 3 March 2017.
  18. ↑ "Breaking from the Routine: Diamond Resorts Announces Brand Refresh". PR Newswire. Retrieved 1 February 2018.
  19. 1 2 Anderson, Ryan. "Attorney General Brnovich Announces $800,000 Settlement with Diamond Resorts". Arizona Attorney General. State of Arizona. Retrieved 29 March 2018.
  20. ↑ "Diamond Resorts". Diamond Resorts.
  21. ↑ "Diamond Resorts International Expands East Coast Vacation Destinations Through Gold Key Resorts Acquisition". diamondresorts.com.
  22. ↑ "Diamond Resorts International to Acquire Intrawest Resort Club Group". businesswire.com.
  23. ↑ "Diamond Resorts Acquires Amber Vacation Club - Hotel Business". hotelbusiness.com. 4 April 2018.
  24. ↑
  25. ↑ "Third Annual Diamond Resorts Invitational™ Reunites PGA Tour Champions Players, LPGA Stars, Sports/Entertainment Celebrities in Golf's Most Unique Competition, January 12–14". diamondresorts.com. 10 October 2017.
  26. ↑ "Diamond Resorts Invitational Raises $570,000 for Florida Hospital for Children". diamondresorts.com. 1 March 2017.
  27. ↑
  28. ↑ "Diamond Resorts Pledges to Match Donations Up to $1M for Victims of Las Vegas Massacre, Recent Hurricanes". businesswire.com.
  29. ↑ "Undercover Boss Features Cloobeck of Diamond Resorts and Brand USA". uptake.com.
  30. ↑ Undercover Boss. Diamond Resorts International: Stephen J. Cloobeck Archived 2012-01-18 at the Wayback Machine.
  31. ↑ Undercover Boss Season 3 Sneak Peak: Premiere Shares the Softer Side of Diamond Resorts International's Stephen Cloobeck Archived 2012-01-13 at the Wayback Machine.
  32. ↑ "Riviera Shores Resort - California". diamondresorts.com.
  33. ↑ "Riviera Beach Resort - California". diamondresorts.com.
  34. ↑ "Daytona Beach Regency, Daytona Beach, Florida Timeshare Resort - RedWeek". www.redweek.com.
  35. ↑ "Grande Villas Resort - Florida". diamondresorts.com.
  36. ↑ "Grand Beach - Florida". diamondresorts.com.
  37. ↑ The Point at Poipu
  38. ↑ Point at Poipu owners file complaint with AG TimeSharing Today issue № 109 Jan/Feb 2010
  39. ↑ "Polo Towers Suites - Nevada". diamondresorts.com.
  40. ↑ "Polo Towers Villas - Nevada". diamondresorts.com.
  41. ↑ "Great Wolf Lodge is Newest Diamond Resorts International Property in Williamsburg". timesharesbyowner.com.
  42. ↑ Embarc® Panorama
  43. ↑ "Embarc® Ucluelet - British Columbia". diamondresorts.com.
  44. ↑ "Embarc® Whistler - British Columbia". diamondresorts.com.
  45. ↑ "Embarc® Vancouver - British Columbia". diamondresorts.com.
  46. ↑ Embarc® Blue Mountain
  47. ↑ Embarc® Tremblant
  48. ↑ palladium/apsl. "Official Page - Grand Palladium Imbassaí Resort & Spa". www.palladiumhotelgroup.com.
  49. ↑ "White Sands Beach Club - Balearic Islands". diamondresorts.com.
  50. ↑ "Winners of 2011 Sword and Globe of Honour announced". britsafe.org.
  51. ↑ Hoium, Travis. "Why Diamond Resorts International Inc.'s Stock Plunged 11% Today". The Motley Fool. Retrieved 28 February 2016.
  52. 1 2 3 Morgenson, Gretchen. "The Timeshare Hard Sell Comes Roaring Back". The New York Times. Retrieved 28 February 2016.
  53. ↑ O'Donnell, Jayne. "What smart buyers should know about time shares". USA Today. Retrieved 28 February 2016.
  54. ↑ "Timeshares and Vacation Plans". Federal Trade Commission. Retrieved 28 February 2016.
  55. ↑ "FORM 10-K". U.S. Securities and Exchange Commission. Retrieved 28 February 2016.
  56. ↑ Penman, Andrew; Greenwood, Michael. "Diamond Resorts sends in debt collectors as the fee strike spreads". The Daily Mirror. Retrieved 28 February 2016.
  57. ↑ "Lauren Alaina attracting millennials to Diamond Resorts' time share business". Fox Business. 15 May 2018.
  58. ↑ "Diamond Resorts Launches New National Customer Service Program". businesswire.com.
  59. ↑ Frank, BrieAnna. "Arizona settlement releases time-share owners from contracts with Diamond Resorts". azcentral. Retrieved 29 March 2018.
  60. ↑ Garcia, Mia. "Deadline to Get Out of Timeshare Agreement Approaching". Arizona Attorney General. State of Arizona. Retrieved 29 March 2018.
  61. ↑ "Transitions™ by Diamond Resorts". diamondresorts.com. 27 December 2017.
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