DC4MS

The Second Annual Destination Club & Private Residence Club Industry Symposium
May 29-30, 2008
Trump International Sonesta Beach Resort, Sunny Isles, Miami, FL

Conference Day One, Thursday, May 29, 2008

7:30-8:50
Registration….Continental Breakfast

Optional Pre-Symposium Workshop

8:00-8:50
Optional Pre-Symposium Workshop: An Introduction To The Destination Club, PRC & Luxury Fractional Ownership Markets: Definitions, Differences &
Key Considerations
• Outlining industry definitions of Destination Clubs, PRCs and luxury fractional ownership and the requirements of each
• What are the key differences between Destination Club, PRC and luxury fractional ownership business models in usage plans, preferred locations, pricing methodology, success and failure factors?
• ‘Low-end’ Destination Clubs to the ‘ultra-luxury tier’ market overview: Defining the different tiers and quantifying the number of Clubs in each
• Weighing the pros and cons of the different business models: Destination Club, PRC, luxury fractional ownership
• What are the key operational issues and considerations of the different models?
• How does each model fit into mixed-use resorts?

Session Moderator:
David J. Schwartz, MS/MBA, Managing Principal, The Management Consortium, Inc.

Panelists:
Jim Walters, Vice President, Development, Bighorn Meadows Resort
Steve Greer, President & CEO, Lusso Collection
Pamela Temples, President, Pamela Temples Design Group
David Callaghan, Vice President, Resort Sales, Preferred Residences

General Sessions

8:50-9:00
Chairman’s Opening Remarks
Jim Tousignant, President & CEO, Ultimate Resort

Economist Perspective/Market Update/CEO Panel

9:00
Economist Perspective: Impact Of The Credit Crunch On The Destination
Club/PRC Industry & Its Consumers
• Are Destination Clubs/PRCs a recession resistant product? Examining how the credit crunch, the slow down in housing and the mortgage rate is impacting the Destination Club/PRC/Luxury Fractional market.
• How are consumers of these products being affected by the economic slow down?
• How willing are lenders to finance these markets?
• To what degree is the downturn in general real estate prices for vacation homes impacting Destination Club/PRC/luxury fractional ownership pricing?
• What geographical regions which have Club representation are being hardest hit by the decline in real estate prices?

Lawrence Yun, PhD, Chief Economist, National Association of Realtors

9:30
Real-Time Market Snapshot: Analyzing Key Developments Within The Destination Club, PRC & Luxury Fractional Market In The Past Year
• Examining Destination Club/PRC/Luxury Fractional sales and property acquisitions over the past year: What has been the take-up in each industry segment?
• Where are the hot markets? Which locations are not weathering the storm? Why?
• How do Destination Clubs/PRCs sales compare with sales in the buy-outright second-home market?
• Comparing market entry today vs. five years ago: What message does this give about the industry?
• Closures: Why have some Destination Clubs/PRCs gone out of business? How many are we talking about and in what quality tiers (low-end, mid-tier, ultra-luxury)? Has this number increased or decreased within the last year? How are we likely to see it change in the next 18 months?
• M&A activity: What is happening and what does this mean for the market?
• Examining how business models have changed over the past year: What hybrid models have emerged?

Howard C. Nusbaum, President & CEO, American Resort Development Association (ARDA)
Ann Barker, Director, Market Research, Ragatz Associates

10:00
CEO Panel: Responding To Market Conditions; Product Innovation; & Where The Greatest Opportunities Lie
• What models are likely to appear in the market as a whole over the next 18 months?
• What direction are you moving your Destination Club/PRC in?
• How is consolidation impacting the Destination Club market?
• What opportunities do you see in the PRC and Destination Club markets? What locations are you expanding into and exploring?
• Where do the greatest opportunities lie: Ultra-luxury, middle or lower end quality tiers? Has this changed over the last 12 months?
• What are the critical success criteria for Destination Clubs/PRCs? What are currently your biggest challenges?
• Mapping the future of the Destination Club/PRC/luxury fractional ownership markets: What are we likely to witness over the next 18 months to five years?

Session Moderator:
Howard C. Nusbaum, President & CEO, American Resort Development Association (ARDA)

Panelists:
Jarvis J. Slade Jr., President, Abercrombie & Kent Residence Club
Kenneth May, CEO, Everlands
Jeff Potter, CEO, Exclusive Resorts
Steve Greer, President & CEO, Lusso Collection
Carl G. Berry, CEO, Star Resort Group
Jim Tousignant, President & CEO, Ultimate Resort

11:00-11:30
Refreshments

Market Demographics

11:30
Market Demographics: Who Is Buying Ownership/Membership in Destination Clubs & PRCs?
• Analyzing the demographics of the end buyer: Who is buying ownership at PRCs/luxury fractional ownership communities and membership at Destination Clubs?
• What are the key differences between those who are buying ownership in a PRC/luxury fractional ownership community vs. those who buy a membership in a Destination Club?
• Has the credit crunch impacted the demographics of buyers?
• Analyzing the trends in who is buying Destination Clubs/PRCs ownerships/memberships. Who has stopped buying?
• What future trends are we likely to see in the target market for each industry segment (Destination Club, PRC, luxury fractional ownership)?

Session Moderator:
Jim Walters, Vice President, Development, Bighorn Meadows Resort

Panelists:
Darla S. Zanini, Executive Vice President, ARDA International Foundation, American Resort Development Association (ARDA)
Christian V. Kirschner, President & CEO, High Country Club
Gregg Amonette, Senior Vice President, Business Development, Ultimate Resort

Attracting the International Consumer

12:15
Securing The Overseas Consumer Of Destination Clubs/PRCs/Luxury Fractional Ownership
The weakness of the US dollar has lead to a great opportunity to secure international business. In this session we explore the strategy and methodology behind how US Destination Club/PRC executives can better position themselves to attract and secure target overseas consumers. Among the issues discussed are:
• How the product and business plans needs to change to attract an international market
• Foreign buyer market demographics
• Steps for identifying and reaching your target consumers
• Marketing media and cultural considerations
• Local marketing presence: Is this necessary and if so, what kind of presence is needed?
• Where have you been successful in attracting overseas owners/members?

Session Moderator:
Randy H. Burgess, Executive Vice President – Sales, DCP International

Panelists:
Ben Addoms, Founder and Executive Vice President, Membership Development, Quintess
Mark Cain, Managing Director, Marketing, Solstice Collection
Gary W. Moore, Jr., Senior Vice President, Timbers Resorts, Project Director, Castello di Casole, Tuscany, Italy

1:00-1:30
Concurrent Roundtable Discussions
In the following segment, leading to luncheon, we have seven roundtables on different topics for attendees to choose from. Four of the roundtables focus on region-specific club discussions. All these roundtables run concurrently and seating will be on a first come, first served basis.

Among the issues addressed in the region-specific club roundtable discussions are level of demand; business models; cost/budgetary considerations; operational & management issues; pros & cons; and critical success factors.
Region-Specific Roundtables
1. Caribbean - Bill Orwig, Director of Sales, Pond Bay
2. Western Europe - Gary W. Moore, Jr., Senior Vice President, Timbers Resorts, Project Director, Castello di Casole, Tuscany, Italy
3. Asia - Rannie Tan, Managing Director, Banyan Tree Private Collection
4. Latin America/Central America - Gustavo de la Serna, Director, Business Development, Latam, Group RCI
5. Destination Clubs: Creating and Administering a True Five Star Concierge Service - Ed Powers, Executive Vice President, Private Escapes
6. Making Exchange Networks Work For Your Club: Key Considerations & Best Practices David Callaghan, VP, Resort Sales, Preferred Residences
Michelle DuChamp, Assistant Vice President, Business Development, Preferred Residences
7. Capitalizing On Internet/Website Marketing For Your Destination Club/PRC
Susan Kime, President & Founder, Kimedia, LLC

1:30-2:30 Luncheon

Concurrent Tracks - Choose Track “A” Or Track “B”

Track A: 2:30 Destination Club/PRC Sales

This session has two parts. First we discuss successful methodologies and techniques in getting prospective Destination Club/PRC owner/members to sign on the dotted line. In Part Two we address techniques for building the right sales team for your Club whether it be an in-house effort or an outsourced sales team.

Part One: 2:30-3:15
Destination Club/PRC Membership Sales: So You Have Their Attention, Now What? Converting A Prospective Owner/Member Into A New Club Owner/Member
• How to sell in the current market: What methodologies are working?
• Educating prospective Destination Club/PRC owners/members on the impact of the credit crunch in relation to their investment in the Destination Club/PRC
• Educating and selling prospective members on the PRC/luxury fractional ownership concepts: What techniques are particularly successful for
• Selling luxury real estate?
• Selling luxury lifestyle/services?
• Examining the questions you can expect in the sales room from the end buyer
• Strategies to overcome objections in the sales room

Part Two: 3:15-3:45
Building The Right Sales Team For Your Destination Club/PRC
Sales directors from different Destination Clubs/PRCs discuss which direction they chose and why and how it is working out for them, along with other key considerations for building an effective sales team. Among the issues addressed are:
• In-house vs outsourcing the sales function: examining the key considerations of each, along with their pros and cons
• Building effective sales team: Critical success factors
• How to train/educate brokers and best get them to understand the Destination Club/PRC concept
• Sales materials: What works?

Session Moderator:
Bob McGrath, Vice President, Business Development, Group RCI

Panelists:
Rannie Tan, Managing Director, Banyan Tree Private Collection
David M. Disick, Co-Founder, Élan Collection, LLC
Lisa Manley, Director of Sales, Fairmont Heritage Place, Ghirardelli Square
Greg Shove, CEO & Co-Founder, Halogen Guides
Bill Orwig, Director of Sales, Pond Bay
R.J. Gallagher, Jr, Managing Director, Marketing & Sales, The Residences at The Little Nell

Track B: 2:30 Club Quality Tiers

This session has two parts. First Senior Representatives from Destination Clubs specializing in different quality tiers compare the opportunities, risks and demand in their respective categories. In Part Two the roundtable discussions explore the different quality tiers in greater depth. Among the issues addressed in each are definitions; level of demand; business models; cost/budgetary considerations; client communications; operational & management issues; pros & cons; and critical success factors. The discussion roundtables run concurrently.

Part One: 2:30-3:15
From Low-End Clubs To The Ultra-Luxury Tier: Comparing Opportunities, Risks & Market Demand
• Examining ownership/membership take-up among the different quality tiers:
 Are some tiers more attractive than others?
 Where is the demand coming from?
 How do the demographics of the owners/members of the tiers differ?
• How does the quality tier impact the structure of the Destination Club?
• Assessing the risks within each tier: Are there differences?
• Where do opportunities remain within the tiers?
• To what extent are the ultra exclusive customers willing to buy a fractional interest?
• Assessing the ease of obtaining development capital for the different tiers
• Marketing considerations: costs and lead-time. How do these compare for the various quality tiers?
• Client communication and relationship management considerations for each tier

Session Moderator:
Mark Cain, Managing Director, Marketing, Solstice Collection

Panelists:
James Millership, Chief Strategic Officer, Everlands
Christian V. Kirschner, President & CEO, High Country Club
Greg M. Loeber, Vice President, Operations, One Key
Richard Keith, CEO, Private Escapes

Part Two: 3:15-3:45
Roundtable Discussions: The Different Quality Tiers Of Destination Club
• Low-End Clubs - Christian V. Kirschner, President & CEO, High Country Club
• Mid-Tier Clubs - Richard Keith, CEO, Private Escapes
• Ultra-Luxury Clubs - James Millership, Chief Strategic Officer, Everlands

Track A: 3:45 Financing

Sourcing Financing For Destination Clubs & PRCs Against The Backdrop Of The Current Credit Crunch: Debt and Equity/Joint Ventures
• How are lenders viewing Destination Clubs/PRCs in the current market?
What types of deal are being offered?
What percentage are lenders expecting developers to invest in projects?
What are lenders looking for? Identifying their points of consideration for Club financing
• Is Wall Street ready? Exploring the investment opportunities in Destination Clubs and PRCs. How does Wall Street view Destination Clubs and PRCs? What are seen as their pros and cons? Is the industry ready for Wall Street?
• Who are the financial sources for debt?
• Equity sources: who make good investors and how to attract them?
• Joint ventures: critical success factors for making the partnership work
• Where to go for equity: institutional vs. private equity sources
• To what extent will institutions be involved in this market?
• Routes to obtaining financing pre-sales
• Making it happen: Best practices in ‘selling’ your Destination Club/PRC to equity sources:
• Financing for the Destination Club/PRC Owner/Member:
 What has been the trend in prospective Destination Club/PRC owners/members seeking financing?
 Determining the impact of the current mortgage environment on Destination Club/PRC owners securing financing
 Examining financial sources for end buyers of Destination Club/PRC ownership/membership
 Highlighting lender requirements
 Determining how Destination Clubs/PRCs can best support their customers in their financing efforts

Session Moderator:
Andrew S. Robins, Partner, Proskauer Rose

Panelists:
David M. Disick, Co-Founder, Élan Collection, LLC
Todd Nelson, Head of Business Development, FirstAgain
Dave Lucas, Partner, Hospitality /Sales and Marketing Practice, Penn Valley Group
David C. Osborne, Director, SV Capital
Jim Tousignant, President & CEO, Ultimate Resort

Track B: 3:45 Roundtables
Concurrent roundtable discussions: Attendees have a choice between the following two roundtable discussions.

Converting Failed Condo-Hotel & Whole-Ownership Unit Projects into PRCs: Opportunities, Risks & Key Considerations
• Where is this happening? How many projects are we talking about? Is this an upward trend?
• Is this a viable approach as an exit strategy? In what markets/locations? What are the pros and cons of this as an exit strategy?
• What types of buildings make good luxury fractional projects?
• What are the legal/regulatory issues to be aware of?
• Key considerations for converting failed condo-hotel and whole-ownership unit projects into PRCs
• Lender considerations for development
• Consumer-side lending considerations

Jeff Heilbrun, Executive Vice President, Chief Operating Officer, North America DCP International
Mel S. Weinberger, Esq., Partner, Holland & Knight LLP

Legal/Regulatory Roundtable: The Impact of Zoning/Land Use Restrictions on Destination Clubs
The session will highlight an actual zoning/land use restrictions proposal targeted at Destination Club use to facilitate a discussion of the importance of locating Destination Club properties in the appropriate communities. Discussion will focus on:
• Understanding the permissible land uses that govern the community. Is transient use permitted? Is Destination Club use different from other permissible uses in the community?
• Educating local government resort developer/operator and/or prospective neighbors: How do Destination Clubs benefit the resort community?
• Strategies: Ways to ensure Destination Club operations comply with existing zoning/land use regulations.

Daniel Nestel, Vice President, Government Affairs, Exclusive Resorts

4:30-4:45 Refreshment Break

Track A: 4:45 First-Time PRC Developer Panels
This session has two parts. In the first panel we discuss the start-up considerations for new PRC ventures. In Part Two we explore the necessary market research and feasibility study processes that any developer needs to undertake when assessing if/when to enter the PRC market

Part One: 4:45-5:30
Business Planning, Market Entry, Budgeting & Operational Considerations For Single-Site And Multi-Site PRCs
• What makes a good luxury fractional product?
• Understanding what it takes to start a PRC (single site and multi-location)
• Determining the size of the fractional: What key factors must be considered?
• An overview of the key operational issues:
• The start up phase
• Staffing issues
• Technology and operations
• Reservation systems
• Operational war stories
• Adequately budgeting for project development & post-sale operations
• Cost management & ongoing cost evaluation to maintain service levels
• How important is it to have an outdoor pool during the winter? Determining what is and isn’t necessary during a time of cost constraint
• What do you do when you are 50% sold and you want to cut down on services?
• Examining exit strategy options while fulfilling member obligations

Part Two: 5:30-6:00
When Do I Jump In…Or Not? Best Practices In Market Research & Feasibility Studies For New PRC Ventures
Against the current economic backdrop, developers need extra assurances that any PRC venture undertaken is thoroughly vetted for robustness. In this session we take delegates through the key market research and feasibility studies processes necessary to ascertain the profitability and viability of a new PRC venture. Issues addressed include:
• Highlighting what you need to know
• Making the most of focus groups
• Qualitative/quantitative research outside of focus groups
• Market feasibility:
• How to translate the idea into dollars
• When to pull the trigger on a project

Panelists
Randy H. Burgess, Executive Vice President – Sales, DCP International
Jim Marmorstone, President, Tenstar Development Group
David J. Schwartz, MS/MBA, Managing Principal, The Management Consortium, Inc.
Gary W. Moore, Jr., Senior Vice President, Timbers Resorts, Project Director, Castello di Casole, Tuscany, Italy

Track B: 4:45
This session has two parts. First Senior Representatives from Destination Clubs specializing in different niches/themes focused on different lifestyle-orientated products compare the opportunities, risks and demand in their respective categories. In Part Two the roundtable discussions explore different service/lifestyle offerings in greater depth. Among the issues addressed in each are definitions; level of demand; business models; cost/budgetary considerations; operational & management issues; pros & cons; and critical success factors. The discussion roundtables run concurrently.

Part One: 4:45-5:30
Assessing Niche/Themed & Hybrid Clubs Focusing On Lifestyle-Orientated Products: Is This The Future Of Destination Clubs?
As the Destination Club and PRC industry evolves, we are seeing a movement from First Generation Clubs where the residences themselves were the most important factor to where the experiences within the destinations are the most significant element: Adventure travel; medical services; luxury tour offerings; private home; themed; equity/hybrid Clubs and Clubs that offer life memberships This session brings together senior executives from such Clubs to address this trend and to explore the key considerations in the planning, launch and operations of such Clubs
• Are we seeing a rise in demand for niche/themed and hybrid Clubs? From what market segments? What lifestyle pursuits are they serving?
• What further lifestyle pursuits are niche/themed and hybrid Clubs likely to address?
• Examining the pros and cons of developing niche/themed and Clubs
• Marketing, costs & lead-time considerations
• Due diligence and evaluating the demand side

Session Moderator:
Susan Kime, President & Founder, Kimedia, LLC

Panelists:
Kenneth May, CEO, Everlands
Jay Sapovits, Founder & CEO, One Key
Jim Rossi, Managing Partner, Saratoga Polo

Part Two: 5:30-6:00
Roundtable Discussions: Club Service/Lifestyle Offerings
In the following roundtable discussions we
• Themed Clubs - Jim Rossi, Managing Partner, Saratoga Polo
• Equity/Hybrid Clubs - Sheryl Hunter, Vice President, Business Development, Ultimate Resort
• Life Memberships - Jay Sapovits, Founder & CEO, One Key

6:00 Cocktail Reception

Conference Day Two, Friday, May 30, 2008

Optional Pre-Symposium Workshop

7:50-9:00
Continental Breakfast

Usage Programs

8:10-9:00
Designing An Attractive Usage Program That Meets The Needs Of Your Customer Base
So you have already decided upon the size of your fractional, now how do you determine the usage plan that will meet the needs of your client base? This session takes delegates step by step through the key considerations when designing a usage program
• A rotating calendar or a rotating priority system? How long should the duration be? Considerations when designing a program to suit the customer in different markets
• Designing a program as a science: Researching:
• Frequency of use amongst your client base
• Who is likely to stay
• Vacation patterns of your client base
• Determining what exchange network to have and how to track it
• Examining the management and technology involved:
What software computer programs to use for tracking
How to do accounting and how to create an effective paper trail

Session Moderator:
Carl G. Berry, CEO, Star Resort Group

Panelists:
Jim Walters, Vice President, Development, Bighorn Meadows Resort
David McDonald, Director, Business Development, Group RCI
Michelle DuChamp, Assistant Vice President, Business Development, Preferred Residences
Jim Marmorstone, President, Tenstar Development Group

General Sessions

Marketing

9:00
Marketing To Prospective Club Owners/Members: What Is And What Isn’t Working In A Crowded Market?
Now the early adopters have signed on, Destination Clubs/PRCs are left with reaching everyone else who want to ‘touch and feel’ the product and have more doubts, concerns. How are Destination Clubs/PRCs marketing to this new and much larger group of buyers? In this session we hear from Destination Clubs/PRCs and independent marketing experts on what techniques work to reach prospective Club owners/members
• Direct mail? Internet? Print ads? Personal networking? What works in reaching the affluent prospective Destination Club/PRC member?
• What are the key factors for successfully marketing online to the affluent target market?
• Exploring second-generation marketing/new media (Internet, events, digital magazines and client symposia) for lead generation and lead conversion: How effective is it for the Destination Club/PRC/luxury fractional ownership community?
• What has happened to lead-time? Analyzing ideal time-frames
• How important is it to brand your Destination Club/PRC to effectively attract your target end-buyer and to distinguish yourself in a crowded market?
• Industry-wide initiatives: How are Destination Clubs/PRCs marketing themselves as an industry and how successful is this?
• Highlighting marketing techniques that Clubs are successfully using to stand out in the crowd

Session Moderator:
Greg Shove, CEO & Co-Founder, Halogen Guides

Panelists:
Rannie Tan, Managing Director, Banyan Tree Private Collection
Steven D. Greco, Vice President, Business Development, Focus 360
Susan Kime, President & Founder, Kimedia, LLC
R.J. Gallagher, Jr, Managing Director, Marketing & Sales, The Residences at The Little Nell
Neal Rubin, Senior Vice President, Marketing, Ultimate Resort

Regulation & Legislation

9:45
PRC & Destination Club Regulatory Overview: Emerging Legal Issues; Destination Club Association Update & Industry (Self-)Regulation
• Examining the current regulatory environment: What federal, state and local regulations will affect Destination Clubs/PRCs and when?
• Home owner associations: What impact are they having on luxury fractionals?
• Consumer Lending Legislation: Will it have an impact on luxury fractionals, and if so, what?
• PRC Registration: Efforts to streamline process? Continuing Issues?
• Destination Club Association (DCA)
• Overview of Association and membership requirements
• Self regulation: Code of Responsible Business Conduct
• Other regulatory efforts

Session Moderator:
Mel S. Weinberger, Esq., Partner, Holland & Knight LLP

Panelists:
Jason C. Gamel, Vice President, State Government Affairs, American Resort Development Association (ARDA)
Adam Wegner, General Counsel, Exclusive Resorts

10:30-10:45 Break

Product & Service Differentiation & Innovation/Extending The Value Proposition

10:45
Extending The Value Proposition: What Services/Lifestyle Offerings Club Owners/Members Want And How Clubs Are Responding To Demand
Clubs need to evolve as their owner/member leisure/lifestyle interests evolve. In this session we explore what kind of services and amenities Destination Clubs/PRCs owners/members expect as standard and how their interests are evolving. We explore how Clubs are responding to this evolution in lifestyle pursuits with new partnerships and new service offerings
• Exploring the offerings/services that Destination Clubs/PRCs owner/members are now demanding:
• What trends can be seen and what differences are there between the different quality tiers?
• What amenities and services are expected as standard?
• What luxury offerings and lifestyle options are Destination Clubs/PRCs expanding into as a result of demand?
• Examining the key steps and issues for integrating lifestyle benefits into ownership/membership
• Highlighting strategic alliances being forged between Destination Clubs/PRCs and other complementary entities to expand service/amenity offerings to Club owners/members
• What are the key considerations for such joint ventures/alliances?
• Assessing the operational challenges in broadening services and amenities: How to maintain quality/service levels and availability during expansion

Session Moderator:
Ben Addoms, Founder and Executive Vice President, Membership Development, Quintess

Panelists:
Kevin Ceneviva, President, Destination Club Management, LLC
Julian Hutton, President, Everlands Management Company
Robert Minnigan, Vice President, Business Development, Group RCI
Jim Rossi, Managing Partner, Saratoga Polo

Mixed-Use Resort Opportunities

11:30
Mixed-Use Resort/Combination Property Developer And Destination Club/PRC Developer Panel
• Examining trends in PRC/Destination Club developers partnering with mixed-use resort/hotel/combination property developers: Will we see more deals?
• Analyzing the trend in hotels having a PRC component
• Examining the benefits of mixed-use resort/hotel developers partnering with Destination Clubs and PRCs
• What does a mixed-use/hotel developer look for in a Destination Club/PRC partner?
• Examining best practices in working together:
• Operational and management issues
• Purchase and property acquisition issues
• Sale and marketing initiatives: Should a property be marketed as a PRC or as condo hotel unit? Examining the pros and cons of the different unit types from the developer viewpoint
• Documentation and CC&Rs

Session Moderator:
Michelle Tanzer, Senior Counsel, Holland & Knight LLP

Panelists:
Adam Wegner, General Counsel, Exclusive Resorts
Jim Marmorstone, Executive Director, Fairmont Raffles Hotels International
David C. Osborne, Director, SV Capital
David J. Schwartz, MS/MBA, Managing Principal, The Management Consortium, Inc.

12:15
IMN’s Destination Club & Private Residence Club Industry Symposium Concludes