Fractional Summit : Highlights Day One 11.15 - 12.00

11:15 Panel Discussion: Key Learnings From The Americas. Despite challenging market conditions, fractional real estate in North America has grown from nothing to a $1.6 billion dollar per annum business today. The majority of this growth has been attributed to the US consumer market. We are joined by an expert set of US fractional professionals who cumulatively have over 150 years experience managing within this growth phase.

The panel gives detailed insight about their fractional ownership journey: the ups and downs along the way, and their view on what the European marketplace can expect over the next few years.

Panel:

Wayne Sobien, Vice President, First American Title Insurance Company
Luca Franco, President, Luxury Leisure Properties International
Wally Hobson, Founder and President, Hobson Advisors
Gregg Anderson, Global Managing Director, The Registry Collection
Moderator: Dr Richard Ragatz, President, Ragatz Associates

Wayne Sobien, Division Vice President, First American Title Insurance Company. Wayne Sobien received his undergraduate and law degrees from the University of Florida. He has practiced law in Florida for over 27 years. Wayne is a member of the Executive Council of the Real Property, Probate and Trust Law Section of The Florida Bar, Chair of the Problem Study Committee and a member of the Condominium Law and Title Insurance Committees of the section. He is also a Trustee member of ARDA. He has been working in the vacation ownership field for 10 years and has authored numerous educational articles and materials on subjects relating to real estate and title insurance.

Luca Franco, President, Luxury Leisure Properties International LLC. Luca Franco is the founder of Luxury Leisure Properties International LLC. Luca oversees the complete portfolio of services offered by LLPI to leisure real estate developers, property investors and hotel companies.

Luca was previously JV Partner with Strategic Hotels & Resorts and Chartwell Grupo of the Ancira family; Luca was previously President of the European/Middle East Division of DCP Int'l, which specializes in the design, marketing and sale of equity residence club memberships at luxury resort and urban locations worldwide, and was responsible for expanding US operations into an international business based in London. Prior to this Luca was charged with establishing the European platform for Exclusive Resorts. He had also started and implemented several private residence clubs in Europe, which include, among others, the Four Seasons Private Residence Club Palazzo Tornabuoni (Florence, Italy) and Palazzo Pauly (Venice, Italy).

Wallace Hobson, Founder, Hobson Advisors.Wallace Hobson is a real estate advisor with more than 30 years of experience. For the last ten years, Mr. Hobson has specialized in the resort industry, domestically and internationally. He is the leading international expert on fractional real estate, having completed nearly 200 fractional assignments worldwide. He works extensively with developers, land planners and architects to create market driven master plans for large destination mixed-use resort communities. His forte is deriving creative strategic solutions designed to capitalize on market opportunities and maximize economic returns to investors.

Most recently, Mr. Hobson served as Managing Director of the Americas for NorthCourse Leisure Real Estate Solutions, a Group RCI and Wyndham Worldwide company, and was responsible for overseeing all advisory services in North, Central and South America and the Caribbean.

Gregg Anderson, Global Managing Director, The Registry Collection. As the global managing director, Mr. Anderson is the overall company lead and responsible executive for The Registry Collection brand, an elite exchange program linking more than 135 luxury shared vacation ownership resorts, representing over 160 developments worldwide. He provides strategic direction to a group of product managers in seven regional offices. He is a frequent speaker at conferences and is one of only a handful of authorities on the subject of luxury shared vacation ownership and the concept of reciprocal use programs for this niche segment.

Before joining Wyndham Exchange and Rentals, the parent company of The Registry Collection, his career included positions as Vice President of Acquisitions for Intrawest, Senior Vice President of Sales and Marketing for ClubCorp; and various positions in brand management with The Walt Disney Company in the United States and Japan.

Gregg holds a bachelor’s degree from Florida State University in the United States and attended graduate school in Florence, Italy. He lives with his wife and two teenage sons in Florida. In his spare time he is actively involved as an executive with The Boy Scouts of America.

Dr Richard Ragatz, Ragatz Associates Richard L. Ragatz, Ph.D. is President of Ragatz Associates. His academic background includes a Bachelor’s degree (1961) and a Master’s degree (1963) from the University of California, Berkeley, and a Ph.D. degree in City and Regional Planning (1969) from Cornell University.

Dr. Ragatz has achieved international recognition as the leading feasibility analyst and market researcher in the resort real estate industry. He has been involved in more than 2,500 studies in virtually every state and over 70 countries. Clients include most major developers and lenders in the resort industry. Areas of specialty include feasibility analysis, consumer and product research, economic impact analysis and project assessment.

Fractional Summit attracts Middle East developers

Next month’s Fractional Summit will be attended by a delegation of Middle Eastern developers keen to learn more about the fractional ownership property model.

Michael J. Tolan of World Class Group is bringing delegations from Dubai, Egypt, Lebanon and Cyprus to attend Europe’s largest fractional property business-to-business event to see how other successful developers have included a fractional component into to their overall real estate offering.

The conference will be powered by some of the world’s key experts on fractional real estate, and case studies will shared with the audience. Last year, over 200 attendees from 23 countries were on hand and this years conference promises to shine with success stories from Spain, Thailand, and many other resort destinations that typically sold whole ownership in the past.

Legal experts will also be hand to field questions as to how consumer protection and structures that provide integrity must be created to attract consumers to invest in this newest alternative in property ownership.

Tolan believes that once the educational process meets the mindsets of both consumers and developers, more home grown fractional developments will begin to spring up in a new frontier market, the backyard of property development locations. This will be possible when the developers understand that this type of product must be up market, seamless in usage plans and well managed. Companies such as the Registry Collection are leading the market of more stylish top end fractional developments by adding a portfolio of spectacular year round lifestyle benefits as icing on the cake.

World Class Group will be releasing a complimentary buyers introduction guide to fractional ownership at the close of the Fractional Summit conference, The Power of Property Partnerships, as a free download from their website.

“Fractional Ownership provides a perfect solution to consumers who desire to have a foothold in there ideal getaway destination, without having to foot the entire acquisition costs, as this is also shared by other partners who also share the usage of the asset” he said. “ Typically a consumer will acquire from 1/4 to 1/15 of the equity of the property, allowing them to use the holiday home only for the time they actually would need it, or have the added advantage of placing it into a rental revenue pool” he said. “ This asset sharing concept is simply where the smart money is moving” said Tolan.

Fractional Summit Highlights Day One 10.00-10.30

10:00 State Of The Industry - An Update On The European Fractional Ownership Marketplace 2009. An update on the findings from Northcourse's 2009 study on trends in European fractional real estate and projections for the future.

Claud Attalla, Managing Director, Northcourse Leisure Real Estate Solutions

Claude Attala is Global Managing Director of NorthCourse Advisory Services, a subsidiary of Wyndham Worldwide Corporation and the leading global specialist in comprehensive research, consulting and project management in all sectors of the leisure real estate industry. Attala joined NorthCourse in 2005 as the Managing Director of Business Development in the Middle East. In that role, Attala was responsible for setting up partnerships with real estate developers on mixed-use projects in the Middle East region. In addition to setting up NorthCourse's Middle East regional office in Dubai, Attala was involved in setting up a joint venture agreement between NorthCourse and Qatari Diar Real Estate Development Company to establish a luxury real estate brokerage company in parts of the Middle East and North Africa.

Prior to joining NorthCourse, Attala was the Head of Planning and Operations for the Qatar Tourism Authority, where he was responsible for the development of a long-term strategic master plan for tourism as well as the classification system for hotels and tour operators. In addition, he set up the business development team to assist potential investors and developers with tourism-related projects in Qatar.

Throughout his more than 15-year career, Attala has also held various operational, sales and marketing positions with leading hospitality companies based in Jordan, the United Arab Emirates, Qatar, Saudi Arabia, the United Kingdom, and Luxembourg, including Radisson SAS, Intercontinental Hotels, and Sheraton.
Attala is fluent in English and has a good understanding of both French and Italian. He holds a Bachelor's degree in business administration.

Fractional Real Estate Report

*Trends In Fractional Real Estate Report Europe 2009 - £99.00

Commissioned by FractionalLife.com and Northcourse Leisure Real Estate Solutions and published in April 2009, this 92 page research paper is the first dedicated report on the growing fractional real estate market in Europe. The key findings were presented by Claude Attala, Global Managing Director, Northcourse Advisory Services at Fractional Summit 2009 in London http://www.fractionalsummit.com and is exclusively available here to purchase.

CONTENTS

1.0 EXECUTIVE SUMMARY

2.0 INTRODUCTION
2.1 Objectives of Report
2.2 Approach and Methodology

3.0 FRACTIONAL REAL ESTATE OVERVIEW
3.1 Introduction
3.2 Private Residence Clubs
3.3 Traditional Fractions
3.4 Product Summary
3.5 Fractional Ownership Opportunities
3.6 The European Legal Approach to Fractional and Shared Real Property
3.7 Country Specific Real Property Legislation
3.8 SWOT Analysis

4.0 FRACTIONAL REAL ESTATE IN EUROPE
4.1 Current Supply in Europe
4.2 Current and Emerging Players
4.3 Estimated Sales and Growth of the Market
4.4 Prevalent Industry Challenges
4.5 Predictions for the Future

5.0 TOURISM TRENDS
5.1 Introduction
5.2 The Current Economic Situation
5.3 Global Tourism Performance
5.4 Europe Tourism Related Trends
5.5 Leading Destinations in Europe
5.6 Conclusion

6.0 MARKET DYNAMICS
6.1 Generic Demographic Behaviour
6.2 Conclusion

7.0 SECOND HOME OWNERSHIP TRENDS
7.1 Introduction
7.2 Residential Price Change
7.3 Second Home Ownership Trends
7.4 Key Outbound Buyer Markets Trends
7.5 Key Inbound Destinations for Second Home Ownership in Europe
7.6 Transportation Trends
7.7 Conclusion

8.0 FRACTIONAL INDUSTRY TRENDS
8.1 Introduction
8.2 Fractional Industry Trends

9.0 KEY FINDINGS FOR FRACTIONAL REAL ESTATE
9.1 Demand for Fractional Real Estate
9.2 Fractional Buyer Profile for Europe
9.3 Outlook and Opportunities
9.4 Conclusion

10.0 KEY FACTORS TO FRACTIONAL RESORT SUCCESS
10.1 Introduction
10.2 Factors for Success
10.3 Considerations
10.4 Fractional Marketing Appeals

11.0 CONCLUSION

12.0 NORTHCOURSE PRODUCTS AND SERVICES

13.0 FRACTIONAL LIFE

1.0 EXECUTIVE SUMMARY

Developers, planners, architects, and others working in the resort development industry are faced with the most challenging environment in generations in light of the recent turmoil in the financial markets. Opportunities still exist for well-funded developers not reliant on credit markets and the survivors in the resort industry will be those who successfully invent entirely new business models to cater to changing and developing consumer demands and trends. The fractional market has only recently entered the European market and many developers unable to sell whole-ownership units in appealing destinations are increasingly looking at fractional opportunities to generate sales.

The fractional real estate market is thought to be less affected by the credit crunch due to the following reasons:

• Many purchasers of fractional ownership are cash buyers and are therefore not dependent on obtaining a mortgage. If they do need to raise mortgage finance against their primary home, they are most likely to fall into the category of consumers which banks are still willing to lend to (high value in home and a sound credit rating).
• Trends in the past have illustrated that the people purchasing fractional ownership are not principally motivated by investment factors. It is predominantly sought as a lifestyle investment.
• A traditional second home purchase exposes the purchaser to the full purchase price, all the annual upkeep and maintenance costs and potentially long periods in which the property will remain unused. These are negatives aspects under the current market conditions.
• Under the current market conditions, trends have shown purchasers to be more cautious when considering an overseas property purchase. Whilst there are still undoubtedly strong levels of desire in the market, purchasers are now considering the purchase costs of the property with the furniture and annual running costs and comparing that to the usage and rental incomes they are likely to have. Many are deciding that that these costs are not acceptable which has resulted in a proportion opting not to buy whole ownership.
• Travel to destinations closer to home, including domestic travel is expected to be favoured against longhaul travel (UNWTO, 2009).

Fractional Summit Highlights Day One 9.15-10.00

09:15 Fractionals 101 – The Beginners Guide: A Complete Introduction To The Spectrum Of The Fractional Ownership Real Estate Industry.

An introduction to the industry definitions of fractional ownership, Destination and Private Residence Clubs and the basic characteristics of each. Outlining the key differences between fractional ownership, Destination and Private Residence Club business models including usage plans, preferred locations, pricing methodology and the success criteria for each.

Speaker : Sarah Rezak Glasgow, Rezak Resort Consulting

Sarah Rezak is founder of Rezak Resort Consulting, an international resort consulting and market research firm. She has conducted over 400 consulting assignments for resort developments in most U.S. states and over 12 countries.

Sarah began her career at Ragatz Associates in 1997. Her contributions there, including annual intensive study of the fractional interest and destination club industries, the creation of the firm’s annual Fractional Interest Conference, and numerous feasibility analyses, led to her recognition as a leading expert in fractional real estate.

In 2004, Sarah became director of business development for Storied Places, Intrawest’s fractional interest development and operations subsidiary. By 2006 she was managing director of Storied Places responsible for expansion and operations of four private residence clubs. When Intrawest decided to exit the industry, Sarah negotiated the sale of Storied Places to Fairmont Heritage Place and then managed all aspects of the transition for the new operator, the developer, owners associations, onsite resort teams, and the corporate office.

Sarah earned her M.B.A. from University of Southern California and her B.A. in Psychology from Wake Forest University. She lives in Los Angeles with her husband.