All predictors pointed to success in building a national brand for the fast growing vacation rental segment, so why did ResortQuest fail? And is the idea of building a national brand still achievable in the vacation rental industry?
This eBook provides an in-depth look at the strategies utilized throughout ResortQuest’s history and examines what is takes to create a successful multi-destination brand for vacation rentals.
eBook Summary
ResortQuest International, Inc. was formed in 1998 through the acquisition of 13 companies, including 12 vacation rental management companies and one software company, representing approximately 10,000 vacation rental units and creating the first national brand in the U.S. vacation rental industry.
After going public in May of 1998, ResortQuest International grew quickly with 28 subsequent acquisitions adding approximately 10,000 vacation rental units between 1998 and 2001. The company’s inventory peaked in mid-2001 with over 20,000 reported units before hitting its decline. In 2002, with falling stock prices, management discord and the aftermath of 9/11, ResortQuest International began to lose revenue and investor confidence.
In 2003, ResortQuest (15,784 units) sold to Gaylord Entertainment on hopes of bringing new management, more customers and necessary resources to the company. Unfortunately, the challenges also proved to be insurmountable for Gaylord. In the end of 2004, Gaylord sold First Resort Software to Instant Software. By 2007, Gaylord split ResortQuest International in two and sold the Hawaii property management (4,500 units) to Interval Leisure Group, Inc. (NASDAQ: IILG) and the remaining ResortQuest Mainland to Leucadia National (NYSE: LUK) (9,300 units).
After Leucadia’s attempts to change management, attract and retain owners, and reduce expenses, ResortQuest was still operating at a loss. Leucadia found a buyer for ResortQuest Mainland in Wyndham Worldwide Corp. (NYSE: WYN).
In September 2010, Wyndham purchased ResortQuest Mainland, whose inventory had decreased to 6,000 units. To further punctuate the decline of ResortQuest, Interval retired the ResortQuest name of the Hawaii properties and returned to the original Aston brand in 2009, and Wyndham began rebranding the ResortQuest trade name to the Wyndham Vacation Rentals brand in 2012.
All predictors pointed to success in building a national brand for the fast growing vacation rental segment, so why did ResortQuest fail? And is the idea of building a national brand still achievable in the vacation rental industry?
This eBook examines the history of ResortQuest in the following sections:
- May 1998-December 1999 (David Sullivan, CEO)
- December 1999-October 2002 (David Levine, CEO)
- October 2002-August 2003, (Jim Olin, CEO)
- August 2003-July 2007, Gaylord Entertainment
- July 2007-September 2010, Leucadia
- September 2010-present, Wyndham Worldwide
- What went wrong?
- Is a national brand achievable?
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