There is no “cookie cutter” approach to fractional residence clubs.

Each location and project is unique and must be positioned and programmed to meet the needs of a specific target market.

Our approach is to customize business planning services to provide the client with recommendations meeting their specific needs.

However, the following outlines a general approach to the planning phases.

After each stage of the Planning Phase, a decision is made whether to proceed with the next step, or to pursue other real estate opportunities.


PLANNING PHASE

Site Evaluation
The Resort Advisory Team will conduct a site visit to assess the site’s potential for a fractional residence club. This is accompanied with a client meeting in order for the Team to gain a better understanding of the scope of the proposed project. After this initial introduction, the developer determines whether to move forward with a preliminary business plan or pursue other real estate opportunities.

Comprehensive Market Study
The purpose of the Market Study is to thoroughly analyze the local real estate market, leading to:

  • An accurate assessment of the local real estate market, including values and activity level
  • Determination of the value of comparable wholly owned residences
  • An accurate assessment of seasonality

The Market Study typically coincides with a preliminary business plan, of which many of the components are based on Market Study findings. The Market Study involves interviews with local real estate brokers, visiting other comparable projects in the area, collecting and analyzing sales data, and evaluating trends in the market.

Preliminary Business Plan
The purpose of a preliminary business plan is to provide a guideline for the planning and implementation stages of developing a fractional residence club, geared specifically to the subject property. The preliminary plan addresses the following, plus any exceptional circumstances which may be applicable:

  • The product type that would be most suitable for the subject property
  • The competitive advantages of the location and site
  • The primary market area
  • Seasonality and the resulting recommended fraction size
  • Recommended building style, unit size and mix
  • Recommended phasing plan
  • Recommended preliminary pricing
  • Suggested support facilities, amenities and services
  • Basic membership design and ownership structure
  • Preliminary estimates of absorption
  • Preliminary marketing and sales budget

After the Preliminary Business Plan has been completed and reviewed, the developer decides whether to proceed with Detailed Business Planning services.

IMPLEMENTATION PHASE

Detailed Business Plan
Once a decision has been reached to proceed, a Detailed Business Plan outlines the specifics of all major aspects of the fractional residence club development, as well as any additional issues specific to the subject property. The following is a list of the predominant topics addressed:

  • Refining the development program, including:
    • Floor plans
    • Unit mix and sizes
    • Clubhouse space and uses
    • Storage space
    • Additional back office space
    • FF&E package
  • Critique the architect’s designs, including
    • Concept
    • Site plan
    • Elevations
    • Floor Plans
    • Amenity locations and design
    • Adequate office and service areas
  • Assist in obtaining development and end-user financing
  • Refinements to membership design and ownership structure, including:
    • Fraction size, usage plan, reservation system, rotating priority plan
    • Refine sales targets
    • Refine and prepare a detailed pricing strategy which includes opening prices with projected increases
  • Club documentation
    • By-laws
    • CC&Rs
  • Work with the attorney on legal documents and agreements, including:
    • Club management policies
    • Sales escrow documents
    • Broker agreements
    • Employment agreements
    • Purchase contracts
    • Reservations policies
  • Club operations, including:
    • HOA fees
    • Start-up budget
    • Annual operating budget
  • Refined Marketing and Sales Plan
    • Marketing communications, public relations, data mining and direct mail program, design of printed collateral materials, promotion programs
    • Outside broker plan
    • Sales office design
    • Marketing and sales budget, including projections/targets for sales velocity and the timing and cost of marketing and sales programs
    • Sales management and sales staffing requirements, including recommendations for salary, bonuses and commissions
    • Sales training and sales reporting system
  • Office procedure systems

Sales and Marketing Plan – A complete Sales and Marketing Plan is a critical tool for launching and maintaining sales momentum for a fractional residence club. Hobson Advisors provides the most viable Sales and Marketing Plan possible based on realistic economic and market conditions and current industry trends.

After assisting with the planning phase, Hobson Advisors has a continued commitment to ensuring the success of your project. Through an extensive network of strategic alliances, we can assist with the all aspects of the implementation process, from obtaining financing to marketing and sales.

   
 
 
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Private Residence Club Development Process