(Acquisition by Apollo Global Management pending)
|Industry||Vacation Ownership, Timeshare|
|Headquarters||Las Vegas, Nevada, U.S.|
|Stephen J. Cloobeck, (Founder)
Michael Flaskey, (CEO),
|Products||Vacation Ownership, Timeshare|
|Revenue||$230.7 million (EBITDA, 2013)|
Diamond Resorts is a timeshare company headquartered in Las Vegas, Nevada. The company owns a network of 379 vacation destinations in 35 countries around the world and sells vacation ownership points.
On December 23, 2016 Arizona Attorney General Mark Brnovich announced a settlement of $800,000 with Diamond Resorts. As part of the settlement, customers who bought their timeshares under false pretenses could relinquish them.
On January 18, 2018, the company underwent a brand refresh, updating its logo and officially dropping International from its name to be known as Diamond Resorts.
In October 2015 DRI bought out Gold Key Resorts for $167.5 million. This acquisition added five vacation ownership resorts in Virginia Beach, Virginia, and one in the Outer Banks, North Carolina.
Diamond Resorts acquired Intrawest Resort Club Group in November 2015, adding nine resorts and 22,000 members. After the acquisition, Diamond Resorts re-branded the Intrawest Resort Club Group as Embarc Resorts. Diamond Resorts acquired Amber Vacation Club in March 2018 and will assume operations at Amber’s managed resorts.
Diamond Resorts launched the Diamond Resorts Invitational in 2013 to benefit Florida Hospital for Children. Through the golf tournament, the company has raised a total of more than $3.1 million to the children's hospital.
In October 2015, Diamond Resorts pledged to match all new donations made to the Diamond Resorts International Foundation, a recognized 501(c)(3) organization, in 2017 up to $1 million to support Hurricane Irma relief efforts.
The founder, Stephen J. Cloobeck, was featured in the fourth season premiere of the American reality television series Undercover Boss on January 15, 2012, marking the first time the head of a company previously featured in an earlier episode went undercover a second time.
Criticism and controversy
Diamond Resorts is notable for high-pressure sales tactics used to close sales and generate fees for consumers. Club members are charged yearly maintenance fees (including management fees), which are set by Diamond Resorts and which the FTC warns are likely to rise every year. Diamond Resorts's official 2014 SEC filing states that club members do not have the right to terminate membership, except in certain areas where consumers are protected by state law. Jeff Weir, a Diamond timeshare owner and journalist covering the timeshare industry, told the New York Times: "In my experience, Diamond is much more ambitious, aggressive and downright nasty in their sales presentations compared to Marriott and Westin. Diamond just has an amazing reputation of being tough on people."
David F. Palmer, Diamond’s chief executive, sees its sales methods in a very different light. In an interview, Mr. Palmer described how Diamond tries to bring fun to its customer interactions, both before an initial sale and once a member buys in. "The industry didn’t quite realize that you have to engage and create intimacy and pervasiveness with somebody that you don’t really know," he said. "Our lifetime subscription model creates a series of systems where you can track that engagement and make sure you are constantly providing a series of experiences that exceed their expectations over many, many years."
Settlement with State of Arizona over Allegations of Consumer Fraud
On December 23, 2016 Arizona Attorney General Mark Brnovich announced a settlement of $800,000 with Diamond Resorts over accusations that Diamond Resorts had violated the Arizona Consumer Fraud Act. Of the settlement funds, $650,00 were used for customer restitution. Under the settlement, customers who had purchased timeshares in Arizona between January 1, 2011 and July 23, 2017 could be released from their timeshare, provided they gave a detailed description of deceptive statements or false promises made by Diamond Resorts employees during the sale.
The Attorney General's website states that alleged misrepresentations were related to:
- The amounts maintenance fees could increase annually (in some cases up to 25% each year);
- Consumers' ability to resell timeshares to the public;
- The existence of Diamond buy-back programs;
- Consumers' ability to rent out their timeshares for a profit; and
- Discounts on other travel needs.— Attorney General Press Release
- Bluegreen Corporation
- Disney Vacation Club
- Hilton Grand Vacations Company
- Marriott Vacation Club International
- Westgate Resorts
- WorldMark by Wyndham
- Wyndham Vacation Resorts Asia-Pacific
- Diamond Resorts Holdings, LLC
- DRII Board of Directors
- Diamond Resorts International, Inc. (DRII)
- "Timeshare developer Diamond Resorts acquires rival for $85 million". Las Vegas Review-Journal. Retrieved 29 March 2016.
- Diamond Resorts International, Inc.
- "UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 10-K". NASDAQ. Retrieved 29 March 2016.
- Diamond Resorts
- Apollo Global to Buy Diamond Resorts for $2.2 Billion
- Anderson, Ryan. "Attorney General Brnovich Announces $800,000 Settlement with Diamond Resorts". Arizona Attorney General. State of Arizona. Retrieved 29 March 2018.
- Diamond Resorts Announces Senior Management Promotions
- "Breaking from the Routine: Diamond Resorts Announces Brand Refresh". PR Newswire. Retrieved 1 February 2018.
- Gold Key Resorts
- Diamond Resorts International Expands East Coast Vacation Destinations Through Gold Key Resorts Acquisition
- Diamond Resorts International to Acquire Intrawest Resort Club Group
- Diamond Resorts Acquires Amber Vacation Club
- Third Annual Diamond Resorts Invitational™ Reunites PGA Tour Champions Players, LPGA Stars, Sports/Entertainment Celebrities in Golf’s Most Unique Competition, January 12-14
- Diamond Resorts Invitational Raises $570,000 for Florida Hospital for Children
- Diamond Resorts Pledges to Match Donations Up to $1M for Victims of Las Vegas Massacre, Recent Hurricanes
- Undercover Boss Features Cloobeck of Diamond Resorts and Brand USA
- Undercover Boss. Diamond Resorts International: Stephen J. Cloobeck Archived 2012-01-18 at the Wayback Machine.
- Undercover Boss Season 3 Sneak Peak: Premiere Shares the Softer Side of Diamond Resorts International's Stephen Cloobeck Archived 2012-01-13 at the Wayback Machine.
- Riviera Shores Resort
- Riviera Beach Resort
- Daytona Beach Regency
- Grande Villas Resort
- Grand Beach
- The Point at Poipu
- Point at Poipu owners file complaint with AG TimeSharing Today issue № 109 Jan/Feb 2010
- Polo Towers Suites
- Polo Towers Villas
- Great Wolf Lodge is Newest Diamond Resorts International Property in Williamsburg
- Embarc® Panorama
- Embarc® Ucluelet
- Embarc® Whistler
- Embarc® Vancouver
- Embarc® Blue Mountain
- Embarc® Tremblant
- Grand Palladium Imbassai Resort & Spa
- White Sands Beach Club
- Winners of 2011 Sword and Globe of Honour announced
- Hoium, Travis. "Why Diamond Resorts International Inc.'s Stock Plunged 11% Today". The Motley Fool. Retrieved 28 February 2016.
- O'Donnell, Jayne. "What smart buyers should know about time shares". USA Today. Retrieved 28 February 2016.
- "Timeshares and Vacation Plans". Federal Trade Commission. Retrieved 28 February 2016.
- "FORM 10-K". U.S. Securities and Exchange Commission. Retrieved 28 February 2016.
- Penman, Andrew; Greenwood, Michael. "Diamond Resorts sends in debt collectors as the fee strike spreads". The Daily Mirror. Retrieved 28 February 2016.
- Frank, BrieAnna. "Arizona settlement releases time-share owners from contracts with Diamond Resorts". azcentral. Retrieved 29 March 2018.
- Garcia, Mia. "Deadline to Get Out of Timeshare Agreement Approaching". Arizona Attorney General. State of Arizona. Retrieved 29 March 2018.