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International Guild of Hospitality & Restaurant Managers
Silverleaf Resorts, Inc: OTC SVLF
Silverleaf Resorts, Inc.
is in the business of marketing and selling Vacation Intervals. A Vacation
Interval entitles the owner to use a specific unit for a designated one-week
interval each year. The Company also sells a biennial (alternate year) Vacation
Interval, which allows the owner to use a unit for a one week interval every
other year with reduced dues. Its principal activities in this regard include:
acquiring and developing timeshare resorts; marketing and selling one week
annual and biennial Vacation Intervals to prospective first time owners as well
as leasing unsold Vacation Intervals; marketing and selling upgraded Vacation
Intervals to existing owners of Silverleaf Vacation Intervals (Silverleaf
Owners); providing financing for the purchase of Vacation Intervals; and
operating timeshare resorts.
The Company currently owns and/or operates 14 drive-to resorts in
Each Existing Resort has a timeshare owners' association (a Club). Each Club operates through a centralized organization, either Silverleaf Club or Crown Club (collectively Management Clubs), to manage the Existing Resorts on a collective basis. Crown Club consists of several individual Club agreements which have terms of two to five years with a minimum of two renewal options remaining. The Management Clubs, in turn, have contracted with the Company to perform the supervisory, management, and maintenance functions at the Existing Resorts on a collective basis. All costs of operating the Existing Resorts, including management fees to the Company, are to be covered by monthly dues paid by Silverleaf Owners to their respective Clubs as well as income generated by the operation of certain amenities at the Existing Resorts.
Drive-to Resorts are primarily located in rustic areas offering Silverleaf Owners a quiet, relaxing vacation environment. Furthermore, the resorts offer different vacation activities, including golf, fishing, boating, swimming, horseback riding, tennis, and archery. Destination Resorts are located in or near areas with national tourist appeal. The Company's 's Drive-to Resorts are located within a two-hour drive of a majority of the target customers' residences, which accommodates the growing demand for shorter, more frequent, close to home vacations. This proximity facilitates use of Silverleaf's Endless Escape Program, allowing Silverleaf Owners to use vacant units for no additional charge, subject to availability and certain limitations. Silverleaf Owners can also conveniently enjoy non-lodging resort amenities year round on a "country-club" basis.
The Company's Endless Escape Program offers Silverleaf Club members a benefit not typically enjoyed by many other timeshare owners. In addition to the right to use a unit one week per year, the Endless Escape Program allows Silverleaf Club members to also use vacant units at any of the Company's owned resorts for no additional charge. The Endless Escape Program is limited based on the availability of units. Silverleaf Owners who have utilized the resort less frequently are given priority to use the program and may only use an interval with an equal or lower rating than the owned Vacation Interval.
Even when not using the lodging facilities, Silverleaf Owners have unlimited year round day usage of the amenities located at the Existing Resorts, such as boating, fishing, miniature golf, tennis, swimming, or hiking, for little or no additional cost. Certain amenities, however, such as golf, horseback riding, or watercraft rentals, may require a usage fee.
The Company offers financing to the buyers of Vacation Intervals at its resorts. These buyers typically make a down payment of at least 10% of the purchase price and deliver a promissory note to the Company for the balance. The promissory notes generally bear interest at a fixed rate, are generally payable over a seven year to ten-year period, and are secured by a first mortgage on the Vacation Interval.
The Company's competitors in the timeshare industry include: Sunterra Corporation, Fairfield Communities, Inc., Starwood Hotels & Resorts Worldwide Inc., Ramada Vacation Suites, TrendWest Resorts, Inc., and Bluegreen Corporation. The Company may also compete with companies entering the timeshare industry, such as Marriott Ownership Resorts, The Walt Disney Company, Hilton Hotels Corporation, Hyatt Corporation, and Four Seasons Resorts.
The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.
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