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REGION: Welk opens third timeshare development

This article has been corrected since its original posting

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buy this photo A new group of timeshares, called Mountain Villas, is more luxurious and expensive than the existing two groups of timeshares at the Welk Resort north of Escondido. (Photo by John Koster — For the North County Times)

Welk Resort Group Inc. has moved further upscale and farther uphill with a third group of timeshares at its complex 10 miles north of Escondido.

The 80 units in the Mountain Villas opened earlier this year and were joined by a new recreation center and -- in late May -- a $5 million pool complex, the resort's sixth pool.

The development joins two groups of timeshares that are larger, with about 290 units each, and closer to Highway 395. General Manager Sean Coogan said the new units are more luxurious, afford better views of the valley and mountains and, correspondingly, are more expensive in terms of "points," credits for stays that Welk allots to its owners each year.

The new complex also showcases Welk's efforts to move beyond the piano-and-champagne image of its namesake, band leader Lawrence Welk. The pool has water slides for the kids, a feature similar to those the resort has highlighted on a nearby billboard along 395 and I-15.

"Lawrence Welk still stands for wholesome Americana," Coogan said. "The perception is that it's seniors, and obviously, while we appreciate that demographic, it's far from that."

The additions, which Coogan valued in the tens of millions of dollars, is part of a multi-front expansion for Welk. The group is adding timeshares to its resort in Branson, Mo., and building a new resort at Cabo San Lucas in Baja California. A fourth resort, Lawrence Welk Desert Oasis, is in Cathedral City.

The complex is a somewhat rare example of large-scale construction in an industry struggling with overcapacity and tight credit. North San Diego County has gained about 1,200 new hotel rooms in the last five years, according to Smith Travel Research. The larger supply and recession-induced decline in travel have conspired to drive average room occupancy down by about 10 percentage points from 2004 levels.

Coogan said the new timeshares, which are usually available for rental, nonetheless have been near full capacity. The complex prompted the resort to hire new employees, offsetting a round of layoffs among managers last year, Coogan said.

Vacationing is easier for people who already own a piece of a resort than for those who have to fork over hundreds of dollars even for a long weekend, he said. Timeshares cost tens of thousands of dollars up front, with the buyer receiving a fixed number of nights or points each year.

Timeshares can be bequeathed and sold, though they generally don't hold their value as well as full ownership of residential or commercial property, according to several vacation industry Web sites.

Call staff writer Chris Bagley at 760-740-5444. Read his blogs at bizblogs.nctimes.com.

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Correction: Welk was a band leader

Lawrence Welk, namesake of the resort 10 miles north of Escondido, was a band leader.

We apologize.

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