Fairfield fires back at Polo Towers in timeshare war

Grace Leong

Tuesday, Jan. 25, 2000 | 10:33 a.m.

Carnival deal

Carnival Corp. of Miami said today it will buy Fairfield Communities Inc. in a $725 million deal that will give the world's largest cruise company a stake in the time-share market.

Fairfield, one of the largest vacation ownership companies in the United States, offers time-share vacations at 28 locations in 11 states and the Bahamas. The company has been selling Carnival brand cruises through its vacation program since 1996.

Carnival chairman and CEO Micky Arison said the transaction will give Carnival access to a large pool of seasoned travelers, many of whom are experienced cruisers.

Accused of disparaging Las Vegas timeshare sales rival Polo Towers, Fairfield Communities denied the allegations and accused its rival of identical conduct.

Polo Towers officials could not be reached for comment on Fairfield's allegation.

Polo Towers, a lodging property on the Las Vegas strip, filed a federal lawsuit in December against Fairfield, alleging it disparaged and spread misinformation about Polo Towers.

Fairfield was accused of saying that Polo Towers is "financially bankrupt, Polo Towers' management is inept and conducts its business through motivation by intimidation" and that Polo Towers is on the verge of being sold to Fairfield.

In its court response, Fairfield denied Polo Towers' charges of defamation.

Fairfield also said Dean Parker, its vice president of sales for Las Vegas, made a telephone call to Edna Kenyon of Polo Towers because she allegedly tried to hurt Fairfield's relationship with its client Harrah's Las Vegas hotel-casino by disparaging Fairfield.

Fairfield said Kenyon is a former Fairfield employee who was fired for unsatisfactory performance.

Fairfield also challenged Polo Towers' allegations that the two companies didn't have a business relationship, alleging it had a series of verbal agreements from 1996 through 1999 with Polo Towers to trade blocks of rooms.

Fairfield said the agreements allowed its guests to stay at Polo Towers' Las Vegas property and in return, Polo Towers' guests could stay at three Fairfield locations in Orlando, Fla.; Williamsburg, Va.; and Branson, Mo.

In Las Vegas, Fairfield is developing a $120 million timeshare resort at the corner of Harmon Avenue and Koval Lane.