081002 vacation trading

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RCI Global Vacation Networka Wyndham Worldwide Company

Vacation Trading

by Brenton BrownellDirector, LRE S.E.A.


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Global Leader in Vacation Exchange and European Rentals2

Worlds largest lodgingfranchisor as measured by thenumber of franchised hotelswith over 539,000 rooms andnearly 6,500 properties

Worlds largest lodging loyaltyprogram, based on number of

participating hotels.

26% of WYNs 2006 EBITDA

Worlds largest vacationownership business withover 20,000 units, approx. 150resorts and over 800,000owners

Leading provider of points-based timeshare

41% of WYNs 2006 EBITDA

Worlds largest vacationexchange network withmore than 3.4 millionmembers

Leading European

Vacation Rental Groupwith more than 60,000properties

33% of WYNs 2006EBITDA

Wyndham Worldwide

WYN

Wyndham Hotel GroupLodging

RCI Global Vacation NetworkVacation Exchange and Rental

Wyndham Vacation OwnershipVacation Ownership

Wyndham Worldwide

WYN

Wyndham Hotel Group

Lodging

Group RCI

Vacation Exchange and Rentals

Wyndham Vacation Ownership

Vacation Ownership

Wyndham WorldwideStrong, Global, Diverse


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Hotel rooms

Condo-hotelsVacationOwnership

FractionalOwnership

PrivateResidence

Clubs(PRC)

Wholeownership

DestinationClubs

Individual Investment Commitment

Shared Ownership Business Models


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Business modelsdemonstrate differentcharacteristics in termsof key parameters

A broad diversity ofproduct types to

maximise consumerappeal

How the Models Compare?

VacationOwnership

DestinationClubs

FractionalInterest

WholeOwnership

Condo Hotel

Usage Ownership

Lifestyle

Investment


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The Mixed Use Model

Product development has resulted in a tight fit between

the hotel and real estate business models, allowing for

the integration into a mixed use development.

Mixed use concept signifies the development of a variety

of accommodation offers alongside each other:

Hotel rooms

Rental units

Timeshare / Fractionals

Rental and Exchange (R&E)

Whole ownership Benefits

Marketing and lead generation

Shared services

Life time relationship

Timeshare /

Fractional / PRC

Rentals

Whole

ownership

Buy to use

& letHotel


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The unique opportunity

for hotel and / or condodevelopers companiesis to break currenttrends and mitigate

costs.

Mixed Use - A Winning Combination

MARGIN

OVERHEAD

COSTS

PRODUCT

COST

HISTORIC

MARGIN

PRODUCT

COST

CURRENT

OVERHEAD

COSTS

MARGIN

PRODUCT

COST

FUTURE

OVERHEAD

COSTS

Traditional Models Mixed Use


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. Optimize Asset Yield!

Smoothening against

seasonality

Occupancy

Year-long inventoryoptimization and resource

assignment

Protection against downturns

Business volume

Constant flow of maintenance fees andannual dues

Months Year

Fixed

income


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Resilience of VO!


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VO Trends


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ASSUMPTIONSVacation

OwnershipFractionalOwnership

Condo

Hotel (BTUL)

Whole

Ownership

Sales Price $250 USD $160 USD $115 USD $100 USD

ConstructionCosts

$75 USD $75 USD $75 USD $75 USD

Operating Costs 55% 20% 15% 10%

Occupancy Rates 85% 75% 70% 40%

Ancillary Income high Good good low

Interest Income high nil nil nil

Profit 35% 30% 20% 15%

Source: Ragatz Associates

Financial Principles

Optimizing Asset Yield


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Legal

Structure

Club

Servicing

Ancillary

BenefitsDesign &

FFEFee

Collection

Inventory

Management

Product

Design

Feasibility

Study

DevelopmentExchange

Rentals Financing

Key Elements Mixed Use Model

Overall Strategy

Resort

Operations

TravelServices

Concierge

Services

Consumer

Research

Sales &

Marketing


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Where Do They Play?

PRC/Luxury Timeshare/

Fractional Model

Condo Hotels / Personal Use Extension Destination Clubs
http://www.btprivatecollection.com/home.html


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Vacation Ownership

An ownership to a resort property or unitthat is shared by others

Each owner has their own time period inwhich they can utilize the facilities,amenities, accommodations and allattributes associated with the resort

Also known as a second home

Share-time, Share-cost


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Shared-Ownership Global Statistics

So how many worldwide shared owners are there?

And how many shared ownership resorts?

Finally, whats the annual timeshare exchange and rentalrevenue?

Roughly 7 million shared owners

From more than 270 countries

About US$39 billion

Shared ownership sales of almost US$13 billion

5,500 resorts

Located in more than 100 countries


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Ownership Models

Condo Hotel / BTUL - Investment

Fractional - Lifestyle/Investment

Time-Share - Lifestyle

Rental PoolGroup RCIWorldwideVacationNetwork

Usage plan

One week increments


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Market leader with proven track record in the

vacation exchange and rental industry

30+ year operating history

The Premier Global Vacation Provider

More than 3.5 million members worldwide

Nearly 60,000 vacation properties in 100 countries, serving nearly four millionleisure-bound families a year

Network of 20 vacation accommodation brands and 50 worldwide offices notdependent on one region

Who is Group RCI?

7 out of 10 timeshare resorts affiliated with RCI


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Aspen Highlands Bachelor Gulch J upiter

Kapalua BaySt. ThomasSan FranciscoSouth Beach Miami

Diversified Experiences


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Vacations in Asia

Karuizawa Gangwon-do

Phuket

Selangor

Pahang BaliKyoto


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Group RCIs Offerings

RCI Weeks: traditional weeks-based exchange program offering over 3,800 resort

selections worldwide

RCI Points: the worlds premiere membership program designed for ultimate resort and

travel flexibility

The Registry Collection: luxury membership program exclusively for high-end consumers

and discerning travelers offering vacations to exclusive leisure assets

Vacation Rentals: vacation rental management and rental distribution through more than30 brands and 63,000 units

Endless Vacation: comprehensive, user-friendly travel magazine with the largest paid

circulation in the world

NorthCourse: top-tier consulting and full-service turnkey business solutions that are

offered to Network partners, including real estate developers, tourism investors and

hospitality companies

Weeks

Points


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Innovative Luxury Product Models


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Ever Increasing Circles

Amazement!(TRC)

ConciergeExchange

Flexibility

Investment

Appreciation

Service

AmenitiesProperty Asset

Lifestyle


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Global Network (Brand)

Call Centers

3.5 million customers4000 affiliate properties

14 centers worldwide16 languages in Asia

Developer

diversify marketquicker return

higher ROI

Asset Monetization

Consumer

informed consumerIncreased lifestyle

lower price point

Inventory Fusion

Group RCIFractionalOffering

RCI

Customer Care30+ years exchanging

80% of exchange market

The Group RCI Value


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Tripartite Relationship

ResortDeveloper

RCIConsumer

AffiliationAgreement

2 ,3, or 5 years EnrollmentFee for RCI Membership

Maintenance Fee

Marketing Co -- -- In-House

TRC/RCIExchangePlatforms


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N P ti


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New Perspective

Market leader in the

vacation exchange andrental industry

Market leader in the

vacation brokeragebusiness

Were in the Vacation Brokerage Business

Think Brokerage from a market maker perspective

Think stock exchange from an operations & execution perspective

We are in the business of matching supply and demand of vacation

destinations and accommodations worldwide

which we do through an exchange-like market mechanism thatwe refer to as our global vacation network

G RCI S


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Group RCI Structure

N thC


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NorthCourse

Delivers shared ownership& mixed use solutions to

projects globally


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What can we do for

you to unlock your

value proposition?

G RCI F ll S i M d l


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Global Leader in Vacation Exchange and European Rentals31Source: Tourism Malaysia.

Group RCI Full Service Model

Pre-Engageme

nt &

Feasibility

Branding &Collaterals

Training

New ProductConsulting

FeeCollections

TechnologyPlatforms

ExchangeNetworks

MemberServices &Marketing

SalesCertification

Partner/concierge

LeadGeneration

Marketing B2B B2C ClubMment

QualityAssurance

CategoryExpansion

Yield Mment

Feasibilityand best use

ProductDesign

Consulting

ProjectMment

081002 vacation trading

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