STATEMENT: Lawyer Catalina Arroyo talks about the problems of timeshare ownership: differences between Spain and the US

(Information sent by the signatory company).

STATEMENT: Lawyer Catalina Arroyo talks about the problems of timeshare ownership: differences between Spain and the US

(Information sent by the signatory company)

Timeshare, or timeshare, has evolved since its inception in the 70s, adapting to market trends and consumer preferences. This evolution stands out for the differences between the United States and Europe, with a focus on flexibility in the US and regulation and consumer protection in Europe

Malaga, March 4, 2024.- Differences between Spain and the US The timeshare industry has experienced a revolution with the introduction of points products. This innovation brought with it unprecedented flexibility, allowing owners to choose from single-night stays to several weeks at a variety of resorts. Large hotel chains such as Marriott, Hilton, Wyndham and Holiday Inn have joined this model. This expansion not only brought about product improvements, but also offered more exclusive and personalized experiences, thus attracting a younger generation of owners, who were looking for more than just accommodation. At the same time, the emergence of platforms such as Airbnb has had a notable impact on the tourist accommodation industry in the United States. Far from representing a threat, Airbnb has offered an opportunity for owners who have taken advantage of it to make their unused weeks profitable, while at the same time, Airbnb has served as a showcase for new users to acquire this product. In Spain, the process of Renting timeshare weeks through platforms such as Airbnb is made difficult by the bureaucracy of the autonomous communities, including obtaining tourist licenses, and by the regulations of the resorts, which often establish restrictions to benefit themselves. Most timeshare owners in the country own weeks during the winter season, which generate less tourist interest compared to the high summer season. This combination of factors, added to the prevalence of winter weeks in the hands of Spanish owners, significantly limits the possibilities of obtaining profitability through timeshare rentals. Timeshare problems in Spain Among the most prominent problems are perpetual contracts, that have chained owners to long-term commitments, often beyond what is desired. These contracts, combined with high maintenance fees, have caused palpable discontent among owners, calling into question the sustainability of the model. Additionally, the absence of a resale market has exacerbated the timeshare situation in Spain. Owners have found themselves trapped, unable to exit the timeshare and with few options to recover their investment, even having a negative value and having to pay to exit the timeshare. Added to this is the lack of a generational change in the ownership of the weeks, which is leading many complexes to be left without owners. This situation results in a progressive increase in maintenance fees for the remaining owners, further increasing expenses and decreasing viability and attractiveness. The ruling of the Spanish Supreme Court has worsened the situation of the complexes. And the justice has decreed the nullity of purchases after 1999 of the so-called floating systems and those with a duration greater than 50 years, the vast majority in perpetuity. In many cases, by exercising actions to annul the sales, those affected can recover a significant part of what was invested. Issuer: Reclamalia

Contact Contact name: Catalina Arroyo Contact description: Lawyer at Reclamalia Contact phone: 900525939