Alexander Krakovsky
Alexander Krakovsky is the CEO of Lemonjuice Capital and Solutions, where he’s spent seven years leading the company’s efforts to reimagine timeshare resorts with declining market value. Prior to that, he was an executive and a co-founder of ContourGlobal, an electric power company. He spoke with ARDA about his company’s value proposition, the benefits of ARDA membership, and his passion to raise support for his native Ukraine.
What value proposition does Lemonjuice offer the timeshare industry?
What I’m trying to do with aging timeshare properties is sort through the inefficiencies and deliver the highest and best value proposition to owners. This means delivering quality vacation options, and a reasonable and fair way for owners to exit their timeshares. Many aging timeshares are no longer as viable as when they were developed 30 to 40 years ago. Those are the ones I want to help. Certainly, there are many vacation clubs now trying to course-correct. The big brands have the right formula where people get quality product.
What led to the founding of your company, and how do you feel like your mission and approach have changed over the years?
I got introduced to a timeshare resale broker in Ocean City, Maryland, who convinced me to buy a couple of timeshares. These resorts were in great locations but worth much less than the underlying real estate. I discovered that the properties were very mismanaged. My plan was to replace the existing management company; or to say to owners, “Why continue with something that won’t yield positive outcomes for anyone? Let’s sell the property and share the proceeds amongst the owners.” Obviously, that’s a long game and requires a significant commitment but, in some cases, selling the property was the right thing to do. In other cases, better management and reimagining the operations and vacation experience was the right solution. At that time, I didn't have a management company, so we acquired one. Then we developed good systems and excellent operational and hospitality standards.
What services does your company currently provide?
We ensure clear, understandable and consistent accounting. We make sure that the property itself is well maintained and that there are good owner services. We also look at strategic development for the properties: what is the best thing for owners? Part of that is asking owners where they want to be and giving them a voice. Some properties we manage do well as legacy timeshares. Some properties need to be reimagined. Lemonjuice honestly assesses how they are currently structured, from the assessment of capital and property condition, all the way to the property’s ownership. We’ve completed a partial reimagination, where we sell some units, so it becomes a mixed-use property with condominiums and timeshares. We also have conducted full sales of properties, providing owners with significant distribution. Instead of exit companies preying on timeshare owners willing to pay to get rid of their timeshares, owners walk away happy.
What recent trends are you trying to stay in front of?
In the past, the industry sentiment was, “We don’t want fewer timeshares, but more timeshares.” The problem with that is, an unsustainable property becomes an eyesore for the community and gets poor consumer ratings. This affects how the market views timeshares. Putting owners first and giving them what they want becomes a positive story and leaves the well-performing timeshare resorts delivering great vacations to leisure travelers. We all want an industry known for great vacations, great experiences, and delivering on promises. It’s making sure that people who want to be in timeshare stay in timeshare and to have an opportunity to keep vacationing.
What prompted you to join ARDA, what have you been able to offer, and what have you gotten out of being a member?
We joined ARDA in 2018 because we wanted to ensure there was an understanding in the market about the service that we deliver. It is a valuable one, but it can almost seem counterintuitive. Why do we want fewer timeshares? We don’t want fewer timeshares—we want better timeshares and better vacation experiences. We’ve worked with ARDA to bring that message to the market. Our work with ARDA has led to improved legislation. We’ve made progress in diluting the stigma that so-called “timeshare relief” companies have generated. We’ve built an understanding of what we do, and we’ve educated the brands, developers, and homeowners association boards. Just like any industry, timeshare needs satisfied customers and compelling stories.
What are your goals in raising funds for your native Ukraine?
Our charity, Keep Ukraine Strong, was created in cooperation with Ukraine Congress of America. We have zero administrative costs, so all funds are delivered to help Ukrainian soldiers and their families make it through this horrible time. We have delivered non-lethal, legal gear and equipment to soldiers such as clothes, basic survival equipment, body armor (within the legal limits), trucks, and ambulances. We also deliver aid to the families of soldiers who were killed. I was born in Ukraine. I immigrated to the United States as a teenager with my parents. Although I’ve lived in the U.S. for 40 years, I am still very connected and have a deep affection for Ukraine.
What is your favorite place to travel and why?
I love to travel. Lately, I’ve favored northern New Mexico and Colorado, partly because my daughter lives and works in Los Alamos, including Santa Fe, Taos, and southern Colorado, but really all of Colorado. The skiing opportunities are fantastic, and there are wonderful places to stay. Last time I used my RCI points to stay at a Wyndham property in Colorado. There are amazing outdoor activities and experiences to keep you active and enjoying the outdoors. And that part of the country is steeped in both history and beauty.
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