1. #ARDAne Trends in the Industry W. John Funk, Esq., RRP, Gallagher, Callahan & Gartrell, PC Tara Bergeron, RCI Miles Gifford, VRI

2. #ARDAne Challenges for Legacy Resorts Challenges for Small Owner Operated Resorts (Legacy Resorts) o First Generation Timeshare Documentation o Older Owner Base o Older Facilities o Older Board of Directors o Resort Manager and Staff

3. #ARDAne Challenges for Legacy Resorts o Long Term Staff Members who Are More Costly than Those at Newer Resorts o Older Technology and Systems o Competition from National and Regional Brands o Threats from Timeshare Transfer Companies

4. #ARDAne Solutions to Challenges Analysis o Sustainability  Condition of Facilities  Exchange Standards  Cost of Improvements  Owner Trends  Income

5. #ARDAne Solutions to Challenges  Maintenance Fees  Delinquent Inventory  Unsold Inventory  Use Patterns  Indebtedness  Market Value of Property

6. #ARDAne Solutions to Challenges o Strategic Alternatives  Improve and Continue  Professional Management  Change Form of Ownership (Deed v. Trust)  Right-Size Resort  Merge with Local Competition  Dissolve and Re-Purpose Resort

7. #ARDAne Approvals for Solutions o Required Approvals  Owners  Local Authorities  State Regulatory Agencies  Exchange Companies

8. #ARDAne Foundation for Success Understanding of the Market –Target Audience & Demographic Understand yourself as much as you understand your customer –Location Demand and Activity Seasonality and Proximity ‘Wow Factors’ –Product Type Mixed Use Deeded Right to Use Trust Weeks and/or Points/UDI

9. #ARDAne Sustainability for Existing Resorts Planning Communication –Newsletters –Website –Annual Meetings Owner Involvement –Referral –Sense of Community/Value of Ownership

10. #ARDAne Sustainability for Existing Resorts Standards –Comment Cards – ‘voice of the customer’ –Action plan (vendor solutions – lease vs. own) –Utilization (exchange & rental) –Quality & maintenance, drives maintenance fee payments and owner attachment All Resort are Resorts in ‘Sales’ –Address the inevitable – is there a plan? –If you don’t take control of your destiny, your destiny will take control of you

11. #ARDAne Resort Perspective - Present Aging population of ownership Increase in delinquency Significant decrease in sales volume Increase in collections, foreclosures, and deed back requests What are our current solutions? Rentals Clubs/Wholesale Inventory Companies Trusts Is this sustainable?

12. #ARDAne Resort Perspective – Future Rental Marketing –Discount sites and review based success –Social media –Package plans –Focus on repeat business Owner Relationships –Owner Marketing –Education

13. #ARDAne Resort Perspective – Future Refurbishment Plans –Creating a dream home away from home –Showing owners and guests where their money is going Amenity Creep –Increasing the “Hotel Experience” –More services included, reduction of “Nickel & Diming” –Quality soaps and in-room amenities

14. #ARDAne Resort Perspective - Future Defining our Target Market –Who are we targeting? –How do we get them to purchase? Industry Marketing –Education to the general population –Reducing negative stigma Exit Strategies –Termed ownership –Evaluation of association solvency

15. #ARDAne Resort Perspective - Future Customized Ownership –Trusts/Alternative Ownership –Adjusting ownership to meet the needs of the customer Conversion –Focus on educating guests on products, services, and benefits of ownership. –Increase in marketing designed to convert exchange and rental guests to owners