The Timeshare Industry

TimeshareA term used to describe the joint ownership of a resort property shared with others. AKA - Vacation Ownership

Each owner owns a specific periods of time usually by the week

A timeshare can take on a variety of formsCondominium, Hotels, Cabins, Cruise ships, Houseboats, Motor homes. A timeshare can be bought, sold, or traded Largest timeshare exchange companies: Resort Condominiums International (RCI) & Interval International (II)

Timeshare (con.)Timeshares began in the 1960 with families sharing vacation homes in the French Alps The concept spread to North America in the 1970s in the form of 7 day stays at resorts or condominium properties

About 5,100 timeshare resorts in 110 different countries 6 million timeshare owners residing in 270 countries Cost range from $7,800 to $85,000/week (average = $14,500/week) Average owner is older, educated, and has higher income (e.g. baby boomers)

Mixed-UseThe scenario describes timeshare in a hotel environment

Mixed-use facilities have been soaring in popularity since the mid 1990s

Integrate golf courses, restaurants, swimming pools, etc. with a hotel and timeshare component to maximize returns

Marriott, Disney, Hyatt, Starwood, Four Seasons, Ritz-Carlton, and Hilton are companies adding the timeshare concept to their hotel businesses

Leverage hotel brand names and create cross-utilization opportunities between traditional hotel products and timeshare services and products

Creates stability and profitabilityCustomers pay a sizable lump sum in advanceCustomers pay an annual contribution

Less affected by a downturn in the economy than conventional resort hotels

Help lower marketing, operational, and development costs, and maximize the yield of the operation through shared assets and staffAdvantages of Mixed-Use

Comparing Timeshare Ownership to Hotel Rental

Typical Hotel RentalTypical Marriott Vacation Club VillaAccommodations2 persons, roll-aways on request6 to 8 in specious comfortCommon Usable Area350 sq ft1100 sq ftTypical Floor PlanOne room with bath Separate living and dining areas Multiple baths and balcony availableIn-Room Dining OptionsDine out, room serviceFull kitchen with service for 8FeaturesOne TV set, Valet/Laundry ServiceMultiple TV sets, VHS or DVD player Washer / DryerLong-term Financial RewardRentingOwningCostADR = $87Ave. Cost/week = $14,500 Maintenance Fee: $385/year

Have space and luxury of a resort villa or condominium apartment instead of a cramped hotel room

Exchange your timeshare for similar accommodations in desirable destinations all over the world

Have access to a lifetime of extraordinary vacation opportunities - pass your ownership on to family or friends

Customize vacations (time & place)Consumers Benefits

The Bed-and-Breakfast Industry

B&B is a term for accommodations operated inprivate homes or historic buildings with distinctive rooms, where breakfast is usually the primary meal provided by the innkeeper ~Bed-and-Breakfast (B&B)

Home-StayBreakfast is the only meal served3 or fewer rooms Bed-and-Breakfast Breakfast is the only meal servedOwner is most likely the innkeeper and lives on site3 to 10 guest rooms Country Inn / Bed-and-Breakfast InnServe an evening meal in addition to breakfastMany cases that the owner hires an innkeeper10 to 20 roomsMore services (e.g. weddings, small meetings, birthday party, etc.)Types of B&B

Size Distribution of B&Bs and Country Inns 1 to 4 guest rooms 33%5 to 8 guest rooms 33%9 to 12 guest rooms 14% 13 to 20 guest rooms 11%21 or more guest rooms 9%Number of Rooms Percentage of Total

Approximately 20,000 licensed B&B and country inns in the United States Nearly 170,000 rooms Financial BenefitsIRS allows B&B owners to deduct certain costs (water, sewer, electricity, mortgage interest, and real estate taxes)

B&B Facts

No one B&B is the sameDistinctive rooms decorated according to an appropriate local themeRomantic get-away, Historic buildings, Antique furniture, Ornate gardens, etc.http://www.woodrowhouse.com/ Personal TouchHomelike atmosphereExperienced & knowledgeable innkeeperLocal attractions, events, restaurants, activities, etc.Tour planning

Uniqueness of B&B

B&B Industry Statistics (2004)

Average Occupancy RateAverage Daily RateRevPar

Hotel61%$86$52

B&B41%$143.9$59.57

Average Occupancy Rate (2000 ~ 2004)

Chart1

0.42

0.38

0.4

0.41

Year

Occupancy %

Sheet1

200042%128.87

200238%136.7

200340%142.73

200441%143.9

Sheet1

0

0

0

0

Year

Occupancy %

Average Occupancy Rate (2000~2004)

Sheet2

Sheet3

Average Daily Rate (2000~2004)

Chart2

128.87

136.7

142.73

143.9

Year

ADR

Sheet1

200042%128.87

200238%136.7

200340%142.73

200441%143.9

Sheet1

Year

Occupancy %

Average Occupancy Rate (2000~2004)

Sheet2

Year

ADR

Sheet3

B&B WebsitesProfessional Association of Innkeepers International (PAII): the largest association of innkeeper professionals http://www.paii.org/

BedandBreakfast.com http://www.bedandbreakfast.com/Index.aspx Historical & Hospitality Accommodation of Texashttp://www.hat.org/

B&B in Taiwan

B&B in Taiwan

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