Marriott To Buy Welk Resorts: Cathedral City, N. County San Diego

SOUTHERN CALIFORNIA — Welk Hospitality Group, which owns vacation resorts in Cathedral City, North County San Diego, and other locales around the globe, has entered into an agreement with Marriott Vacations Worldwide Corporation to sell its properties and other assets for approximately $430 million, including approximately 1.4 million MVW common shares, it was announced Tuesday.

MVW intends to rebrand the Welk-branded vacation resorts in California, Colorado, Missouri, New Mexico and Cabo San Lucas, Mexico as Hyatt Residence Club properties, according to a joint statement.

The acquisition is expected to close early in the second quarter of 2021; the integration and rebranding process is expected to be complex and subject to final approval from Hyatt Hotels Corporation, according to the statement.

“It is bittersweet after 57 wonderful years of memories and accomplishments to be welcoming a new owner for Welk Resorts," said Welk Resorts President and CEO Jon Fredricks, grandson of the late Lawrence Welk.

Welk, a television bandleader, started the Welk hospitality business in North County San Diego, near what is now Interstate 15.

"We are confident in MVW and its shared commitment to excellence," Fredricks said. "Our board and family recognized that its vision, resources and globally-recognized brand ensure the best long-term future for our valued team members and owners.”

The acquisition of the Welk properties brings the Hyatt Residence Club portfolio to 24 "upper-upscale resorts and complements its existing locations in Arizona, California, Colorado, Florida, Hawaii, Nevada, Puerto Rico and Texas," according to the joint news release.

“We appreciate that Welk Resorts’ leadership has entrusted MVW to build on the solid foundation laid by generations of the Welk family and the company’s team members,” said MVW CEO Stephen Weisz. “We have been in the vacation ownership industry for decades and have deep respect for the strength of the Welk name, operation and legacy.”

Welk Resorts got its start in 1964 when the famous bandleader bought a motel and nine-hole golf course near San Diego as a place where he and his wife, Fern, could vacation with their kids and grandkids. Since 1999, the company has been led by Fredricks.

In addition to Fredricks, Welk’s son, Larry Welk, is chairman of Welk Resorts’ board and his great-grandson, Robert Segall, also works as a sales and marketing director for the business.

Larry Welk launched Welk Resorts’ vacation ownership business in 1985 with Lawrence Welk Resort Villas in Escondido, Calif., and, today, he is also CEO and chairman of a sister Welk company in the real estate and entertainment business, which is not a part of the acquisition.

Also not included in the transaction is The Lawrence Welk Family Foundation, which funds non-profit organizations serving families in need and is managed by its president and Welk granddaughter, Lisa Parker.

Welk Hospitality Group is majority-owned by members of the Welk family with a 12 percent share owned by its employees through an employee stock ownership plan.

The original North County San Diego resort location between Temecula and Escondido has expanded over the years. It currently sits on 450 acres with two 18-hole golf courses, seven swimming pools, state of the art fitness center, five recreation centers, two waterslides, two escape rooms, a spa, theater, restaurants and more.

There are seven more Welk Resorts in the western U.S. and Cabo San Lucas, Mexico.