Shares digital

Florida-based holiday home developer American Leisure (ALGL:AIM) has pushed back the opening of its first resort from July to Autumn 2008 after ongoing delays in securing debt financing for construction. The late opening means that earnings for 2008 will be below forecasts as a substantial part of expected revenue is pushed into the following financial year.

The value of pre-sold property at the Sonesta resort in Orlando has slipped to $275 million from $300 million. A spokesperson said this was American Leisure ‘being more precise’ about the numbers, but admitted that some buyers had also pulled out due to the construction delays.

The company is planning to develop a series of time share properties, although most plots sold to date – roughly 700 units – at Sonesta are buy-to-let transactions. It plans to participate in a ‘vacation points programme’ in which holidaymakers amass points through their investment in time share apartments, which can be used at 3,700 similar locations globally.

American Leisure is seeking revenue through selling the apartments and property management. Once the Florida developments have been established, it plans to expand to such locations as Hawaii and Las Vegas. Its share price has fallen over 20% to 93p since floating in August 2007.

Shares says: The financing problems shouldn’t surprise but investors will be disappointed with the late opening.

by: Dan Coatsworth