Membership Prospectus
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1 Membership Prospectus Consumer Research he Business Development Networking Advocacy The American Resort Development Association (ARDA) th Street, NW, Suite 400 Washington, DC Tel: Fax: Web: and
2 I ndus t r ymi l e s t o ne s 1 0.
3 Dear ARDA Member Elect: Are you ready to take advantage of an important opportunity to enhance your business success? The American Resort Development Association (ARDA) now invites you to become part of the ARDA Community. ARDA is the only organization of developers, property managers, homeowner associations and vendors specifically focused on resort development and management. ARDA is committed to the continued prosperity of the vacation ownership industry and to its unique opportunities. First, ARDA is recognized for cutting-edge resources and highly regarded events such as our Annual Convention & Exposition and Fall Conference. These events are invaluable business-to-business networking opportunities to ensure your company stays ahead of the competition. You will gain vital insight and exchange innovative ideas with industry colleagues at numerous first rate education sessions. In addition, as an ARDA member, you ll have an option to exhibit at the special member rate at the Annual Convention. As an exhibitor, you will have access to the industry s most powerful players with the most influential buying power. This is a prime opportunity to showcase your company s products and services. Second, ARDA fosters a vital communication process by providing key information through timely and relevant industry updates, including regular blasts, electronic newsletter, press releases, as well as Developments, the monthly magazine source for news and information for decision makers in the resort development industry. Our website will keep you abreast of all ARDA activities, and provide you with up-to-date industry news and information on all of our programs, services and events. ARDA provides the vital connection for you to position your company for success in the vacation ownership industry. We offer membership options and comprehensive benefits to help you expand your presence in the industry. If you have any questions, please contact us at (202) or by at rgoodhope@arda.org. Please refer to the enclosed application to establish your appropriate dues payment. We look forward to welcoming you to the ARDA community. Best regards, Randy Goodhope Robert Craycraft Randy Goodhope, RRP Robert Craycraft, RRP AVP, Member Services Vice President, Industry Relations Direct: Direct: rgoodhope@arda.org bcraycraft@arda.org American Resort Development Association (ARDA) th Street, NW, Suite 400 Washington, DC Tel (202) Fax (202)
4 Benefits of ARDA Membership: Invaluable networking opportunities with the top executives of resort development companies and suppliers Access to industry publications including our nationally released Developments magazine, research studies and more Listing as a new member in one issue of Developments member magazine (3,000+ readers) Inclusion on ARDA s on-line Resort Buyers Marketplace Directory Membership Main Contact List in Excel format may be requested 10 times annually Use of an ARDA Member logo $1,600+ member discount per 10x10 booth space at the annual ARDA Convention & Exposition Approximately $500 discount per page on Developments advertising, plus new members get 15% discount on advertising when they advertise within 90 days Opportunity to submit articles to Developments with bio and photo Consideration for speaking role on ARDA s panels and speaker bureaus Access to expert advisors Powerful legislative advocacy And much more! Testimonials: As a resort developer and long-time trustee member of ARDA, we continue to benefit from valuable legal and lobbying activities helping advance the industry s agenda on Capitol Hill, in state houses, and local government offices around the country. Donald Harrill, CEO, Holiday Inn Club Vacations And Chairman of the ARDA Board of Directors I find the ARDA staff to be very supportive, very engaged in the industry, and always ready to lend a helpful hand or to point new members in the right direction. Make the most out of the association and affiliation with thousands of other members in the industry. As you will learn, the timeshare industry is hugely relationship driven and, as such, taking advantage of all the benefits that ARDA has to offer will help you establish and maintain those relationships John E. Small, RRP~ Chairman, ResortCom International and Tapestry Resorts And Chairman of the ARDA Membership Development Committee
5 Fast Facts: ARDA & Vacation Ownership Who are ARDA s Members? Developers Property Management Entities Home Owners Associations Suppliers Public Agencies o Universities o Related Industry Associations o Municipalities/ States The US Vacation Ownership Market Includes: 1,548 resorts in 2009 Over 170,200 units o Over 490,000 rooms o Over 316,000 bathrooms o Over 158,000 kitchens Refurbishment cycle are 1-3 years shorter than hotels o Higher expectations of owners versus transient guests Key ARDA Meetings Annual Convention Orlando, Florida (2013, 2015, 2017) Las Vegas, Nevada (2012, 2014, 2016) 3400 attendees 200+ exhibitors Why Participate? It s the world s largest timeshare gathering with all of the top industry companies represented. Fall Conference Washington, DC ~ October/November annually 350+ top executives in attendance Why Participate? Network with the top 10% of the industry leadership Regional Meetings in key leisure markets attendees Why Participate? Access to resort operations professionals, HOA Board Members and top regional developers
6 The American Resort Development Association (ARDA) is the Washington D.C.-based professional association representing the vacation ownership and resort development industries. Established in 1969, ARDA today has almost 1,000 corporate members ranging from privately held firms to publicly traded companies and international corporations with expertise in shared ownership interests in leisure real estate. The membership also includes timeshare owner associations (HOAs), resort management companies, and owners through the ARDA Resort Owners Coalition (ARDA-ROC). ARDA promotes the growth and development of the timeshare industry in the following roles: Advocacy Actively involved in local, state and national governmental affairs, ARDA monitors regulatory issues impacting timeshare and engages in lobbying efforts focused on the establishment of a legislative environment that further enhances consumer confidence and fosters industry growth. Networking ARDA offers the industry educational and networking opportunities through its Annual Convention, Fall Conference, Committee Meetings and a variety of regional educational seminars over the course of the year. Knowledge Through a variety of informational tools including published research summaries, news updates and alerts, Developments magazine and the ARDA Website, ARDA shares market intelligence and seeks to keep its members informed of industry trends and current events. Business partnerships/bridge building Via relationship alliances with related and complementary national and international industries, ARDA pursues business and growth opportunities on behalf of vacation ownership participants. Outreach Through education, communications and public relations, ARDA generates consistent, proactive image enhancement efforts on behalf of its association members. Support and development The ARDA International Foundation offers professional and educational development through publications covering the industry s ethical, legal, regulatory and operational intricacies; study courses; tests which assess industry knowledge; and recognition of continuing educational efforts. For more information about ARDA, visit the Web site at or contact the membership department at (202)
7 STATEOFTHEVACATIONTIMESHAREINDUSTRY Therewere1,548timeshareresortsintheUnitedStatesin2009,representingapproximately170,200unitsforanaverageresortsizeof110 units.ofthese,6% werestudiounits;23% wereone-bedrooms;66% weretwo-bedrooms;and6% percentwerethreebedroomsormore.there were7.2milionintervalsowned. Florida,CaliforniaandSouthCarolinaremainasthethreestatesthathavethemostresorts,representing39% of alu.s.timeshareresorts. Thepredominantresortcategorywasa beachdestination,reportedby31% of respondingresorts.thiswasfolowed by country/lakesresorts(18%),and golfandskiresortseachat10%.
8 2of2 Year2009salesvolumetotaled$6.3bilion,decreasingby35% from 2008.Therewereabout306,200timeshare intervalssoldatanaveragepriceof$20,468. Thisyear ssalesdropisequaltoanannualizedfour percentdeclinefortheperiodfrom 2004to2009.Compoundedannualgrowthratesforsalespriceandaverage resortsizeinthesametimeframewere5% and3%, respectively. Occupancycontinuestobestrongat79.7%. Clearly,theindustryoutlookfor2010istiedcloselyto theoveraleconomicpicture,butthereiscautious optimism amongstkeytimeshareindustryexecutives thattheworstmaybebehindtheindustry. StateoftheVacationTimeshareIndustry:UnitedStatesStudy,2010Edition ARDAInternationalFoundation(AIF) Ernst& Youngconductedasurveyof1,548recognizedtimeshareresortstoprovideanoverviewof thestateofthetimeshareindustryintheu.s.
9 Timeshare Milestones at a Glance In 1963, a developer named Hapimag built a 13-unit resort in Graubuenden, Switzerland. This modest venture marked the inception of the vacation ownership industry. Today, timeshare stands as a $10.6 billion hospitality giant. The industry s nearly half-century evolution includes a number of benchmarks and milestones. (Industry Trends, courtesy copyright of RCI University) 1963 The first timeshare resort is built in Switzerland Hapimag s Sut Baselgia Resort, with 13 units 1960s 1968 Interstate Land Sales Full Disclosure Act passed in Congress 1969 The American Land Development Association (ALDA) is established Trends: In the 70 s 1970 The industry s first national land conference takes place 1974 RCI, the world s first exchange company, opens for business; the first U.S. points-based program, Vacation Internationale, Ltd., is established; the first national timesharespecific conference is launched 1976 ALDA creates the Resort Timesharing Council which becomes known as the National Timesharing Council; Interval International opens for business 1978 Richard Ragatz publishes U.S. Resort Timeshare Purchasers: Who They Are, Why They Buy; Developments magazine is launched 1970s 10 ARDA 40 th Anniversary
10 In 1983, Marriott Corporation was attracted to the timesharing business by American Resorts Corporation and its Monarch at Sea Pines Resort development at Sea Pines Plantation, Hilton Head Island, SC. Monarch Resort had won four national awards in 1982 and 1983 for excellence in design, hospitality, and sales and marketing, which attracted Marriott s attention and led them to purchase American Resorts. [Photo: Monarch at Sea Pines receiving the National Nurserymen s Award presented by Nancy Reagan in the Rose Garden at the White House. Receiving the award are founders of American Resorts: Bob Miller, senior vice president and chief financial officer (left), and Ed McMullen, Sr., president Floating-time concept is introduced; regulators establish rescission, disclosure, and escrow requirements 1982/83 First purpose-built timeshare, American Resorts 1982 International Foundation for Timeshare begin 1983 The Model Timeshare Act is adopted; ARDA-Florida begins to form 1984 Marriott becomes the first hospitality brand to enter the vacation ownership industry; fractional sales are introduced 1985 ALDA becomes American Resort & Residential Development Association (ARRDA); ARRDA helps organize new association, AMDETUR, for resort developers in Mexico; $1.0 billion in U.S. sales 1987 First research study on fractionals is published 1988 ARRDA Education Institute (AEI) is created, offering qualification and exam to award professional designations; United States has approximately 1050 resorts, Europe has ARRDA becomes American Resort Development Association (ARDA); Resales Model Act passed Trends: In the 80 s 1980s th Anniversary ARDA 11
11 Familiar Faces: Craig M. Nash Chairman/CEO Interval Leisure Group Deborah L. Linden, RPP President/CEO Island One Resorts Harry E. McCoy II, RRP Senior Counsel Ballard Spahr Andrews & Ingersoll, LLP 1990s Trends: In the 90 s 1990 The timeshare industry is growing at a rate of 15 percent annually; $1.2 billion in U.S. sales; International Foundation for Timesharing publishes first research study on the international resort timesharing industry 1994 The Model Vacation Club Act is adopted 1995 The Vacation Club Model Act of 1995 is enacted; $1.9 billion in U.S. sales ion in U.S. sales 12 ARDA 40 th Anniversary
12 Then & Now J.P. Ottino III, RRP Vice President, Corporate Development The Berkley Group John M. Burlingame, RRP Senior Vice President Hyatt Vacation Ownership, Inc $4.1 billion in U.S. sales; RCI launches its global points-based exchange system 2001 Organization for Timeshare in Europe releases first study of timeshare in Europe 2005 $8.6 billion in U.S. sales 2007 $10.6 billion in U.S. sales; there are 1,641 timeshare resorts in the United States with 6.5 million intervals owned by 4.7 million owner households 2009 ARDA celebrates its 40 th Anniversary! Trends: In the 2000s 2000s th th Anniversary ARDA 13
13 Know Did You g In 1963, the first vacation ownership resort was built in Switzerland. g ARDA s first national conference took place in 1970, under the American Land Development Association (ALDA) name. g New Orleans hosted one of the first urban timeshare resorts in the United States. g Developments magazine was launched in g The 2008 Annual Convention attracted nearly 4,000 attendees. g From 2001 through 2008, the ARDA International Foundation has invested over $3 million in industry research. g Close to one quarter of all U.S. timeshare resorts are located in Florida. g Ninety-nine percent of timeshare resorts in the United States are affiliated with Interval International or Group RCI. g There are more than 1,600 timeshare resorts in the United States. g ARDA has close to 1,000 corporate members. g There are 4.7 million owner households in the United States. g There are 6.5 million timeshare intervals owned in the United States. g It is estimated that 8,000 new timeshare units were built in g More than half a million timeshare intervals were sold in g The average sales price of an interval unit in 2007 was $19, 216. g The industry is running at an 80-percent occupancy rate. Exchange Company Contributions 1976 RCI goes international, opening an office in Mexico 1977 Interval has 60 affiliated resorts and 10,000 members; RCI automates exchange 1980 Interval has 80,000 members and 250 resorts; Interval installs an IBM computer; both Interval and RCI install toll-free lines 1982 RCI confirms more than 54,000 exchanges and has 682 resort affiliates 1984 Interval hits the 500-member mark 1985 RCI has 1,000 resort affiliates 1987 RCI confirms 300,000 exchanges 1989 Interval goes international opening offices in Europe, Asia and Latin America; RCI has one million member families 1994 More than 1.6 million timeshare exchanges are recorded; RCI celebrates 20 years of exchange 1995 RCI has two million member families 1996 Interval celebrates its 20th anniversary and services a membership approaching 700, Interval welcomes its one-millionth member 2000 RCI launches its global points-based exchange system 2002 Approximately 851,500 timeshare intervals sold; RCI reaches the three-million member mark 2003 More than 3.3. million timeshare exchanges are recorded 2005 IAC/InterActiveCorp acquires Interval International 2006 At its 30th anniversary mark, Interval has a membership base of 1.8 million; Group RCI becomes part of Wyndham Worldwide 2007 RCI membership reaches nearly 3.7 million with 4,000 resorts in 160 countries 2009 RCI celebrates its 35th Anniversary 14 ARDA 40 th Anniversary
14 Your Resource in the Vacation Ownership Industry Active & Affiliate Membership Application 2012 Active Members: For real estate and timeshare developers, condo-hotels, vacation clubs, resale companies, resort property exchange and reciprocal use organizations. Dues are based on gross annual dollar income from industry-related sales and leases. Use revenues from previous calendar year. Class Revenues Dues Class 1 Over $100 million $13,500 Class 2 $50 million to $100 million $8,500 Class 3 $20 million to $50 million $5,500 Class 4 $5 million to $20 million $4,000 Class 5 Less than $5 million $1,875 Affiliate Members Class S Home Owners Associations, $300 Property Owners Associations Class P Public Agencies, Officials, Trade $260 or Hospitality Association, Universities Class I International $615 Companies not marketing or having offices in North America or US territories COMPANY INFORMATION: Company Mailing Address DUES: $ Yearly dues include member discounts for all of your company s representatives. PAYMENT Information (Please check) Charge my credit card: American Express Diner s Club MasterCard VISA Name on Card Card Number Exp. Date Signature City State or Prov Postal/Zip Code Country Main Contact Name Title Company Web Site Telephone Please list an industry reference Fax ARDA and its members are committed to the highest standards and ethics in resort, vacation, recreational, residential and community development for the benefit of the public. To demonstrate that commitment, ARDA has adopted a Code of Ethics which all members and all those who use ARDA services agree to comply. Now and in the future, I agree on behalf of my company to observe and abide by the ARDA Code of Ethics. Signature: Date: The complete ARDA Code of Ethics can be found online at Check enclosed (Payable to ARDA in U.S. Dollars on U.S. Bank) Check Number: While contributions or gifts to ARDA are not deductible as charitable contributions for federal income tax purposes, they may be deductible as ordinary and necessary trade or business expenses. We estimate that 11.76% percent of members 2012 dues will be allocable to lobbying and political expenses. Therefore, you should deduct only the remaining 88.24% of your ARDA dues for federal tax purposes. Once your application has been received, a membership representative will contact you for additional information to make sure you receive full member benefits. Please send application and payment to: American Resort Development Association th Street, NW Suite 400 Washington, DC Tel: (202) Fax: (202) membership@arda.org
15 Your Resource in the Vacation Ownership Industry Associate Membership Application 2012 Associate Members are primary providers of goods and services, including but not limited to: property management firms, lenders, financial brokers, consultants, attorneys, accountants, manufacturers and suppliers of resort goods, resort property services, sales and marketing providers, lead generation and more. Your $1750 yearly dues include member discounts for all of your company s representatives. COMPANY INFORMATION: Company Mailing Address City State or Prov Postal/Zip Code Country Main Contact Name Title Company Web Site Telephone Please list an industry reference Fax Once your application has been received, an ARDA member representative will contact you regarding additional company contacts to receive Developments magazine, your company s products & services code options to appear within the ARDA online New Member Directory and the Resort Buyers Marketplace. ARDA and its members are committed to the highest standards and ethics in resort, vacation, recreational, residential and community development for the benefit of the public. To demonstrate that commitment, ARDA has adopted its Code of Ethics with which all members and all those who use ARDA services agree to comply. Now and in the future, I agree on behalf of my company to observe and abide by the ARDA Code of and Ethics. Signature: Date: The complete ARDA Code of Ethics can be found online at DUES: $1750 per year PAYMENT Information (Please check) Charge my credit card: American Express Diner s Club MasterCard VISA Name on Card Card Number Exp. Date Signature Check enclosed (Payable to ARDA in U.S. Dollars on U.S. Bank) Check Number: While contributions or gifts to ARDA are not deductible as charitable contributions for federal income tax purposes, they may be deductible as ordinary and necessary trade or business expenses. We estimate that 11.76% percent of members 2011 dues will be allocable to lobbying and political expenses. Therefore, you should deduct only the remaining 88.24% of your ARDA dues for federal tax purposes. Please send application and payment to: American Resort Development Association th Street, NW Suite 400 Washington, DC Tel: (202) Fax: (202) membership@arda.org
16 Fractional/PRC Developer Membership Application 2012 Your #1 Resource in the Vacation Ownership Industry Fractional/PRC Members: For real estate fractional and private residence club developers, related resort property exchange and reciprocal use organizations. Dues are based on gross annual dollar income from industry-related sales and leases. Use revenues from previous calendar year. Class Revenues Dues L1 Over $150 million $13,999 L2 $85 million to $150 million $8,000 L3 $30 million to $85 million $5,000 L4 Zero to $30 million $2,000 Fractional/PRC Member Class: (Please Check Most Applicable) Fractional Project in active sales or under development. PRC Other Projects in active sales or in development. Please Explain: COMPANY INFORMATION: DUES: Yearly dues include member discounts for all of your company s representatives. PAYMENT Information (Please check) Charge my credit card: American Express Diner s Club MasterCard VISA Company Mailing Address City/State/Zip Country Name on Card Card Number Exp. Date Signature Main Contact Name Title Company Web Site Telephone INDUSTRY REFERENCE: Fax Name: Company: ARDA and its members are committed to the highest standards and ethics in resort, vacation, recreational, residential and community development for the benefit of the public. To demonstrate that commitment, ARDA has adopted its Code of Ethics with which all members and all those who use ARDA services agree to comply. CODE OF ETHICS: Now and in the future, I have read and agree on behalf of my company to observe and abide by the ARDA Code of Ethics. Signature: Check enclosed (Payable to ARDA in U.S. Dollars on U.S. Bank) Check Number: While contributions or gifts to ARDA are not deductible as charitable contributions for federal income tax purposes, they may be deductible as ordinary and necessary trade or business expenses. We estimate that 11.76% percent of members 2012 dues will be allocable to lobbying and political expenses. Therefore, you should deduct only the remaining 88.24% of your ARDA dues for federal tax purposes. Once your application has been received, a membership representative will contact you for additional information to make sure you receive full member benefits. Please send application and payment to: American Resort Development Association th Street, NW Suite 400 Washington, DC Tel: (202) Fax: (202) membership@arda.org Date: *Membership year runs through 9/30/07. The complete ARDA Code of Ethics can be found online at
17 Membership Contacts Randy Goodhope, RRP AVP, Member Services (202) Bob Craycraft, RRP VP, Industry Relations (202) Joel Nepomuceno Manager, Industry Sales (202) ARDA Headquarters th Street, NW Suite 400 Washington, DC Tel (202) Fax (202) ARDA State Government Affairs Office 4901 Vineland Road Suite 635 Orlando, FL (407) Fax: (407)
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