Vacation Hotdeal Companies, Inc.

Fractional ResalesJason TremblayFounder & CEO, Vacation HotDeal Companies, Inc.

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• We are seeing growing demand for fractional properties in the secondary market.

• Fractional buyers tend to be very savvy and use the internet to do their research prior to making a purchase.

• Many buyers look for resales as an opportunity to save on a purchase they have already decided to make.

• We are selling more and more fractionals “accidentally.”• We have made a decision to enter the space more formally.• We want to be part of your resale solution.

What’s a timeshare resale guy doing here?

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• Fear of “retail cannibalization” led to most developers actively suppressing the resale market for decades.

• Lack of liquidity in resale market created estimated $30B overhang in resale supply.

• Over-supply created environment ripe for fraud.• This compounded by huge price disparity driven by

timeshare’s bloated marketing costs now exceeding 50%.• The more the resale market is weakened, the more resale

values and product price integrity erode.• Internet bringing increasing access to the secondary market,

further disrupting the primary market.• The resale problem is approaching crisis level in the

timeshare industry... It isn’t too late for fractionals.

Resales – A Timeshare Case Study

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1) Create internal resale program– Allows you to control the process– Can provide access to needed low-cost inventory if in active sales

2) Partner with a local broker– Can create owner referral program with a local broker

• Key to train broker on product and establish formal relationship (may already be doing this in primary sales)

– Advantage is local resale presence gives retail buyer peace of mind– Possible disadvantage is resale inventory may compete with retail

sales

3) Partner with an “online” timeshare/fractional resale broker– Creating resale referral program with online broker will reach into

demand outside local market– Advantage is online resale broker already experienced in selling

vacation ownership and fractional real estate

Ways to Address Resales

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All the above!

What should YOU do?

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Online Fractional Interest Stabilizing

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Still Abundant Online Interest and Traffic

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Clear Behavioral Intent Converts Higher

8

Internet Exposure is Key

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• www.luxuryfractionalguide.com – Excellent website with strong internet exposure– A leading directory of fractional ownership properties– Advertising opportunities available– Limited resale listings

• www.fractionalindex.com– Newer and fast growing directory of fractional properties– Section dedicated to resale listings– Advertising opportunities available

• www.sellmytimesharenow.com– Very strong website dedicated to vacation ownership resales– Growing fractional resale demand and inventory– Brokers can list fractional resales at no upfront cost– Dedicated fractional resale website launching in January

Fractional Resale Websites

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Don’t be this guy

Don’t put your head in the sand – have a plan for resales

Vacation Hotdeal Companies, Inc.

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Jason TremblayFounder & CEO

Vacation HotDeal Companies, Inc.Mobile: 603.553.2592

jasontremblay@sellmytimesharenow.com