1. 2013 West Regional Meeting HOA Inventory: An Interactive Workshop Christopher McGill, Interval International Clark Rowley, SmartChoice Timeshare Resales R. Scott MacGregor, CaryMacGregor

2. 2013 West Regional Meeting Your Discussion Leaders  Clark Rowley Director of Sales, Marketing & Public Relations SmartChoice Timeshare Resales DBA Luxury Residence Club Resales Authorized Resale Broker for Four Seasons Residence Clubs  Christopher McGill Director, Resort Sales & Service – Western Region  R. Scott MacGregor Principal, CaryMacGregor Welcome!

3. 2013 West Regional Meeting 1. HOA Inventory: Why does it matter? 2. YOU are the experts: What do you think?  What is the role of the Board of Directors and Management Team in facilitating a successful HOA Resale Program?  What product are you offering and is what modern consumers want to buy?  What professional resources do you need to make your resale program effective? 3. We collaborate: Best Practices Session Format

4. 2013 West Regional Meeting 1,550 timeshare resorts in US 1 –Approximately 1,100 developed before 1989 –Average size 1989: 56 units; 2010: 110 units –HOA’s own 22% of inventory (Resorts pre-1995) Unsold inventory = Special Assessments 2 –25.7% inventory unsold in HOA resorts –21% had levied special assessment in last 3 yrs. Scale of problem is increasing 3 –HOA inventory increased 338% from 2003-2011 –Average allowance for bad debt is 25% of A/R HOA Inventory: Why does it Matter? 1: ARDA 2012 State of the Industry 2: ARDA 2011 Survey of HOA-controlled Resorts 3: Averett Warmus Durkee 2012 Financial Trends & Benchmarking Study

5. 2013 West Regional Meeting HOA Inventory: Why does it Matter?

6. 2013 West Regional Meeting Fiduciary and ethical responsibilities of the Board of Directors and Management: –Maintain the value of ownership Give away = $0 value Provide exit options for owners? Prevent scams? –Cost of ownership: Maintenance Fees plus special assessments –Long-term stability of resort The resort is always in sales! –Compliance with Resort Documents & laws What are you selling, and how? HOA Inventory: Why does it Matter?

7. 2013 West Regional Meeting HOA Inventory: Why does it Matter? Consumers want: Flexible use programs Exit options These may not be what your resort’s documents provide!

8. 2013 West Regional Meeting  Table assignments & table leaders  20 Minutes: 2 or 3 “Best Practice” statements  What are the roles of the Board of Directors and Management Team in facilitating a successful HOA Resale Program?  How do you align the products you offer and deliver with what modern consumers want to buy?  What professional resources do you need to make your resale program effective?  Collect most compelling & concise statements YOU are the experts: what do you think?

9. 2013 West Regional Meeting What are the roles of the Board and Management in facilitating a successful HOA Resale Program?  Preparing the resort for sales:  Does the resort deliver a great vacation experience?  Do you have a great web & social presence?  Does it have a viable, long-term financial plan?  What is the inventory? Is it clear, and clearly identified?  Are the owners ready, informed and involved?  Is the resort “sales friendly?”  How will you support the sales program?  How will you welcome and on-board new owners? We Collaborate: Best Practices Clark Rowley & Christopher McGill: Subject Matter Experts

10. 2013 West Regional Meeting How do you align the products you offer and deliver with what modern consumers want to buy?  Who are your target markets?  What products do your document currently allow?  Can you offer other product types?  Points  Document amendments  HOA Inventory Trust alternatives?  Internal exchange  Split week / nightly use options  Third-party Club options We Collaborate: Best Practices Clark Rowley & Christopher McGill: Subject Matter Experts

11. 2013 West Regional Meeting What professional resources do you need to make your resale program effective?  Legal assistance with documentation, licensing, marketing issues, etc.  Foreclosure, title, & escrow  Marketing collateral: Websites, rack cards, brochures, etc.  Exchange partners: Enhance the buying and ownership experiences  Sales: Brokers & sales professionals: on-site and/or offsite? We Collaborate: Best Practices Clark Rowley & Christopher McGill: Subject Matter Experts

12. 2013 West Regional Meeting  Collect all statements for compilation and distribution  Feedback from the field: What were your experiences? We Collaborate: Best Practices

13. Thank You! Please fill out the evaluation form and return to the registration desk. 2013 West Regional Meeting