Sheraton proposal would convert more than half of remaining hotel rooms into timeshares
Steamboat Springs — The Steamboat Springs Planning Commission on Thursday will consider a proposal to convert more than half the remaining hotel rooms at the Sheraton Steamboat Resort into 112 timeshares.
The 188 rooms that will be converted are in the West Tower of the 244-room property.
City staff is recommending approval of the project, which also includes renovations to the exterior of the resort.
Sheraton General Manager Dan Pirrallo said Wednesday he could not yet publicly discuss future plans for the entire property.
He said he’s been told by executives from his parent company, Vistana, that he should be able to make some public announcements in the next 60 to 90 days.
“The plan has not been officially approved or blessed by Vistana yet,” Pirrallo said. “I’m still waiting for direction on this.”
Some members of the business community have said they heard during the summer the resort would be converting more of its hotel rooms into timeshares and getting out of the group conference business.
The Sheraton’s plans are of particular interest to business leaders and City Finance Director Kim Weber.
When the city’s Urban Renewal Authority was setting its budget for next year, Weber consulted with Pirrallo to determine how much of an impact the conversion of some units to timeshares might have on the URA’s budget.
Pirrallo told Weber a $200,000 reduction in sales tax revenue is possible next year as hotel rooms are renovated into timeshares.
Weber said the property tax impact that would occur if rooms are converted into timeshares would be greater if the common areas of the hotel are changed from commercial to residential, because commercial spaces are taxed at a higher rate.
The possible changes to the Sheraton have drawn mixed reactions in the community.
Some have worried if the conference rooms are repurposed into amenities for timeshare owners, the city would lose out on tax revenue from hosting large group conferences.
But other community members think the changes could have a positive economic impact.
Some speculated in August that adding more timeshares at the base of the Steamboat Ski Area could lead to a higher occupancy rate and allow some other hotels to raise their rates in a market with less competition.
As of last year, the Sheraton was composed of 244 hotel units, 22 condominiums and 21 timeshares.
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