Bluegreen Vacations CEO on IPO Day: Why Timeshare is Winning

November 17, 2017

Bluegreen Vacations, a timeshare company that sells vacation ownership interests and manages resorts, opened for trading Friday on the New York Stock Exchange.

After pricing at $14 a share, shares got off to a rough start and opened lower at $12.55. Shawn Pearson, CEO of Bluegreen Vacations, joined us on set to explain why now was the right time for the company to go public.

With the rise of Airbnb, some question the impact the unicorn is having on the hospitality market. While it may be an issue for traditional hotel companies, Pearson says he actually sees Airbnb as an opportunity because they are drawing people away from traditional hotels.

The CEO believes the company's best growth opportunity is in the west and northeast regions of the U.S. While he thinks overseas markets could eventually pay off, Pearson says the focus for now is domestic.

Bluegreen is capitalizing on consumers' shifting demand toward experiences. He thinks the best destinations for those seeking a good time are those such as Charleston, not necessarily LA or NY. Pearson emphasized the company's focus is on Middle America.

FULL TRANSCRIPT

MALE_1: Wanting to have those consistent experiences. And I think, when you look at the younger demographic, they wanna travel. And- and having this kind of system that they can go in different regions and different markets to have different experiences throughout, uh, throughout the year, you know, that's a sweet spot for the industry, and I think, you can continue to see that grow.

FEMALE_1: Uh, can you tell me a little bit about the regulation concerns that did, um, happen earlier this year in terms of the selling, the financing of timeshares? Uh, do tho- do those worry you at all?

MALE_1: No, I- I- I think, you know, we- we continue with a consistent message, uh, you know, through our sales process, and- and we're very consistent with, uh, um, you know, with our approach, you know, our, our. I can speak on behalf of our competitors, but we're comfortable with the- with the way that we go to market, and we're excited about the growth opportunities.