Hyatt cuts prices on Siesta Key

The Hyatt Siesta Key Beach, the fractional ownership resort under construction along a stretch of the island just south of Stickney Point Road, is lowering its prices to attract buyers in the struggling economy.

The 44-unit, $100 million resort is expected to be completed by this summer. It is being constructed on the site of the former Sea Castle resort.

The Hyatt property initially began selling six-week segments last year ranging from $250,000 to $750,000. Certain summer months in the off-season also were available in three-week segments as well.

Hyatt has now decided to reduce its asking prices, with some units now being offered starting at $150,000.

The company said its decision to offer "significantly adjusted pricing" was made after conducting a four-month market analysis of luxury beachfront real estate.

Fractional ownership is similar to traditional time-shares, but the big difference is owners actually receive a deed to their portion of the property -- they own that piece, pay taxes on it and can sell it as they would an actual condo or home. The structure of the purchase arrangement can vary across different resorts -- Hyatt's Siesta Key property provides for buyers to purchase a specified period of weeks during the year.

Part of the time can also be traded out for stays at other qualifying Hyatt resorts and hotels elsewhere. Hyatt has more than a dozen other "vacation ownership" locations in the United States, including in Key West and Bonita Springs; Carmel and Truckee, Calif.; Aspen, Beaver Creek and Breckenridge, Colo.; San Antonio, Texas; Lake Tahoe, Nev.; Sedona, Ariz.; and Dorado, Puerto Rico.

Hw is it that the Hyatt Siesta Key is even able to move forward in this economy ?

It's simple: money up front.

The Hyatt project is being built more like a hotel. When it comes to hotels, financing up front is usually secured to complete construction, with the assumption being that it may take several years for the project to break even and begin turning a profit.

Therefore pre-sales are not needed for the Hyatt project to move forward, and Lehrman initially said the goal for selling out all of the shares was four years. He said the money from any sales so far have not gone to construction costs, as those costs are being borne by the developer, Hyatt and the partners involved.

The Hyatt project also has the deep pockets of the Carlyle Group from which to draw. Carlyle, with billions in assets around the world, is a partner in the Siesta Key development, and is providing a still-undisclosed portion of the $100 million price tag.

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