Developments - February 2020 - 39

A reference from Wyndham Destinations'
Q3 quarterly report: "In connection with
our focus on optimizing cash flow, we
are continuing our asset-light efforts in
vacation ownership by seeking opportunities with financial partners whereby they
make strategic investments to develop assets
on our behalf. We refer to this as JIT. The
partner will complete the development of
the project, and we may purchase finished
inventory at a future date as needed or as
obligated under the agreement."

eliminating any upfront capital spend by the
timeshare company. Further, this business
model unlocks incremental revenue streams
to be earned by the timeshare company in
terms of selling, management, and servicing
fees charged on the underlying resort assets.
By way of example, in an FFS transaction,
the vacation ownership company generates
a substantial fee income, charged as a
percentage of sales above their own internal
costs, to serve as sales and marketing agent
for the third-party developer. Additional fees
are also realized by the brand for managing
the property, renting unsold inventory,
and servicing the mortgage receivables
generated by the development partner.
In a true FFS transaction, the timeshare
company is selling inventory on behalf of
the capital-light developer and foregoes the
receivable financing element of the business
in exchange for the predictability of the
sales and marketing fee income and other
additional fee income.
Per Bluegreen Vacations' 2018 10-K annual
report: "While we continue to conduct such
sales and development activities, we now also
derive a significant portion of our revenue
from our capital-light business model, which
utilizes our expertise and infrastructure to
generate both VOI sales and recurring revenue from third parties without the significant

capital investment generally associated
with the development and acquisition of
resorts. Our capital-light business activities
include sales of VOIs owned by third-party
developers pursuant to which we are paid
a commission (fee-based sales) and sales of
VOIs that we purchase under JIT arrangements with third-party developers or from
secondary market sources."
JIT development requires a timeshare
brand to deploy capital to acquire inventory
for sale, but it allows the brand to better align
the timing of that capital spend over time to
only bring inventory on the balance sheet that
can be sold in the same year. Additionally,
since the timeshare company is acquiring the
inventory, the resulting financing element of
the business stays in house versus with a thirdparty developer under a FFS arrangement. In
this capital-light strategy, timeshare brands
and third-party capital partners work in
partnership to identify, acquire, and develop
world-class timeshare resorts in locations
that are desirable to the timeshare company,
with the quality of development the same as
that of an in-house developed product. Once
the project is ready for sale, the new offering
is then considered "developed" and sold on
a JIT basis from the developer entity to the
timeshare brand at an agreed upon price, over
a specified period of time.

Third-Party Mortgage Financing
Providing purchase financing to timeshare
purchasers has always been a necessary and
lucrative aspect of the timeshare industry.
With the income generated from these
financing activities being realized over time
and subject to external market factors like
cease-and-desist activity, some of the larger
branded timeshare companies have looked
to another capital-light variant by selling a
portion of their timeshare loan originations
to a third-party purchaser. Although this
reduces a portion of their arbitrage income
derived from receivables financing, it
provides increased cash at the time of sale
and more certainty around future income
projections as a result of decreased loan
portfolio risk.
Similar to an FFS arrangement, this
strategy allows timeshare companies to earn
additional fee income from providing the
third-party financier with the servicing and
portfolio management capabilities that they
already provide in their day-to-day business.
Capital Light: A Bright Future From the Equity
Partner's Perspective
With nearly 20 years of industry-specific
experience working with timeshare developers, Accelerated Assets has seen firsthand
how capital-light strategies have evolved
and the significant positive impact they
have had for branded timeshare companies
that have adopted these strategies.
Accelerated is confident that the
value generated for branded timeshare
companies from off-balance sheet, capital
light will only continue to evolve in the
coming years.

February 2020 Developments

- 39



Developments - February 2020

Table of Contents for the Digital Edition of Developments - February 2020

UP FRONT: New Decade, New Improvements
FIRST WORD: ARDA's Priorities for 2020
AROUND ARDA: Meet Elizabeth Baker, ARDA's Newest Staff Member
FACES FROM THE FRONTLINES: ARDA Fall Conference Wrap-Up
MEETINGS: WIN's Pinktober Event Raises Nearly $15,000 for Breast Cancer Research
TRUSTEE SPOTLIGHT: Sam Pontius, Timeshares Only and Fidelity Real Estate
VIP SPOTLIGHT: Mike Samet (Trustee) and Chris Clark (Chairman's League), Digital-Ignite
KEEPING PACE WITH DISRUPTION
PARTNER SHOWCASE: Capital Vacations: Filling an Industry Void with Sales Solutions and Resort Management
CREATING UNIQUE WORK-LIFE BALANCE BENEFITS TO ATTRACT AND RETAIN EMPLOYEES
BRANDS MATTER – AND MUST EVOLVE TO SURVIVE
‘CAPITAL LIGHT,’ AN INCREASINGLY COMMON PHRASE IN TIMESHARE – BUT WHAT EXACTLY IS IT?
ACCEPTING CRYPTOCURRENCY PAYMENTS: PROS AND CONS FOR BUSINESSES TODAY
HONORING THE SELF-OPINION OF OTHERS
AROUND THE INDUSTRY
MEMBER UPDATES: ARDA's Trustee and Chairman's League Members and New Corporate Members
LAST WORD: We are ARDA Strong
Developments - February 2020 - Cover1
Developments - February 2020 - Inside
Developments - February 2020 - 1
Developments - February 2020 - 2
Developments - February 2020 - 3
Developments - February 2020 - 4
Developments - February 2020 - 5
Developments - February 2020 - UP FRONT: New Decade, New Improvements
Developments - February 2020 - 7
Developments - February 2020 - FIRST WORD: ARDA's Priorities for 2020
Developments - February 2020 - 9
Developments - February 2020 - AROUND ARDA: Meet Elizabeth Baker, ARDA's Newest Staff Member
Developments - February 2020 - 11
Developments - February 2020 - FACES FROM THE FRONTLINES: ARDA Fall Conference Wrap-Up
Developments - February 2020 - 13
Developments - February 2020 - 14
Developments - February 2020 - 15
Developments - February 2020 - MEETINGS: WIN's Pinktober Event Raises Nearly $15,000 for Breast Cancer Research
Developments - February 2020 - 17
Developments - February 2020 - 18
Developments - February 2020 - 19
Developments - February 2020 - TRUSTEE SPOTLIGHT: Sam Pontius, Timeshares Only and Fidelity Real Estate
Developments - February 2020 - 21
Developments - February 2020 - VIP SPOTLIGHT: Mike Samet (Trustee) and Chris Clark (Chairman's League), Digital-Ignite
Developments - February 2020 - 23
Developments - February 2020 - KEEPING PACE WITH DISRUPTION
Developments - February 2020 - 25
Developments - February 2020 - 26
Developments - February 2020 - 27
Developments - February 2020 - 28
Developments - February 2020 - 29
Developments - February 2020 - PARTNER SHOWCASE: Capital Vacations: Filling an Industry Void with Sales Solutions and Resort Management
Developments - February 2020 - 31
Developments - February 2020 - 32
Developments - February 2020 - 33
Developments - February 2020 - CREATING UNIQUE WORK-LIFE BALANCE BENEFITS TO ATTRACT AND RETAIN EMPLOYEES
Developments - February 2020 - 35
Developments - February 2020 - BRANDS MATTER – AND MUST EVOLVE TO SURVIVE
Developments - February 2020 - 37
Developments - February 2020 - ‘CAPITAL LIGHT,’ AN INCREASINGLY COMMON PHRASE IN TIMESHARE – BUT WHAT EXACTLY IS IT?
Developments - February 2020 - 39
Developments - February 2020 - ACCEPTING CRYPTOCURRENCY PAYMENTS: PROS AND CONS FOR BUSINESSES TODAY
Developments - February 2020 - 41
Developments - February 2020 - HONORING THE SELF-OPINION OF OTHERS
Developments - February 2020 - 43
Developments - February 2020 - AROUND THE INDUSTRY
Developments - February 2020 - 45
Developments - February 2020 - 46
Developments - February 2020 - 47
Developments - February 2020 - 48
Developments - February 2020 - 49
Developments - February 2020 - 50
Developments - February 2020 - 51
Developments - February 2020 - 52
Developments - February 2020 - 53
Developments - February 2020 - 54
Developments - February 2020 - 55
Developments - February 2020 - 56
Developments - February 2020 - 57
Developments - February 2020 - 58
Developments - February 2020 - 59
Developments - February 2020 - MEMBER UPDATES: ARDA's Trustee and Chairman's League Members and New Corporate Members
Developments - February 2020 - 61
Developments - February 2020 - 62
Developments - February 2020 - 63
Developments - February 2020 - LAST WORD: We are ARDA Strong
Developments - February 2020 - Cover3
Developments - February 2020 - Cover4
https://www.nxtbook.com/ygsreprints/ARDA/developments-winter-2021
https://www.nxtbook.com/ygsreprints/ARDA/1120_ARDA_Nxtbook
https://www.nxtbook.com/ygsreprints/ARDA/SUM20_ARDA_Nxtbook
https://www.nxtbook.com/ygsreprints/ARDA/arda_trusteedirectory_2020
https://www.nxtbook.com/ygsreprints/ARDA/0520_ARDA_Nxtbook
https://www.nxtbook.com/ygsreprints/ARDA/0420_ARDA_Nxtbook
https://www.nxtbook.com/ygsreprints/ARDA/0220_ARDA_Nxtbook
https://www.nxtbook.com/ygsreprints/ARDA/G112065_arda_novdec2019
https://www.nxtbook.com/ygsreprints/ARDA/G398743_arda_oct2019
https://www.nxtbook.com/ygsreprints/ARDA/G110069_arda_sept2019
https://www.nxtbook.com/ygsreprints/ARDA/0919_arda_50thSup
https://www.nxtbook.com/ygsreprints/ARDA/G109015_arda_aug2019
https://www.nxtbook.com/ygsreprints/ARDA/G108120_arda_jul2019
https://www.nxtbook.com/ygsreprints/ARDA/G107369_arda_jun2019
https://www.nxtbook.com/ygsreprints/ARDA/arda_trusteedirectory_2019
https://www.nxtbook.com/ygsreprints/ARDA/G105240_arda_apr2019
https://www.nxtbook.com/ygsreprints/ARDA/G104323_arda_mar2019
https://www.nxtbook.com/ygsreprints/ARDA/G103171_arda_feb2019
https://www.nxtbook.com/ygsreprints/ARDA/G102857_arda_jan2019
https://www.nxtbook.com/ygsreprints/ARDA/G100505_arda_novdec2018
https://www.nxtbook.com/ygsreprints/ARDA/G993377_arda_oct18
https://www.nxtbook.com/ygsreprints/ARDA/G98243_arda_sept2018
https://www.nxtbook.com/ygsreprints/ARDA/G97455_arda_aug2018
https://www.nxtbook.com/ygsreprints/ARDA/G96594_arda_july2018
https://www.nxtbook.com/ygsreprints/ARDA/G93341_arda_may2018
https://www.nxtbook.com/ygsreprints/ARDA/G92771_arda_apr2018
https://www.nxtbook.com/ygsreprints/ARDA/G91395_arda_mar2018
https://www.nxtbook.com/ygsreprints/ARDA/G90172_arda_feb2018
https://www.nxtbook.com/ygsreprints/ARDA/G88761_arda_jan2018
https://www.nxtbook.com/ygsreprints/ARDA/G85176_arda_novdec2017
https://www.nxtbook.com/ygsreprints/ARDA/G83609_arda_october2017
https://www.nxtbook.com/ygsreprints/ARDA/G81545_arda_september2017
https://www.nxtbook.com/ygsreprints/ARDA/G80017_arda_august2017
https://www.nxtbook.com/ygsreprints/ARDA/G79156_arda_july2017
https://www.nxtbook.com/ygsreprints/ARDA/G77028_arda_june2017
https://www.nxtbook.com/ygsreprints/ARDA/G74802_arda_aprmay2017
https://www.nxtbook.com/ygsreprints/ARDA/G73958_arda_mar2017
https://www.nxtbook.com/ygsreprints/ARDA/minidigest2017_interval
https://www.nxtbook.com/ygsreprints/ARDA/minidigest2017_rci
https://www.nxtbook.com/ygsreprints/ARDA/G72702_arda_feb2017
https://www.nxtbook.com/ygsreprints/ARDA/G70973_arda_jan2017
https://www.nxtbook.com/ygsreprints/ARDA/arda_NovDec2016
https://www.nxtbook.com/ygsreprints/ARDA/G66901_October2016
https://www.nxtbook.com/ygsreprints/ARDA/G66137_September2016
https://www.nxtbook.com/ygsreprints/ARDA/g64853_august2016
https://www.nxtbook.com/ygsreprints/ARDA/g63556_arda_july16
https://www.nxtbook.com/ygsreprints/ARDA/arda_may16
https://www.nxtbook.com/ygsreprints/ARDA/arda_april16
https://www.nxtbook.com/ygsreprints/ARDA/arda_march16
https://www.nxtbook.com/ygsreprints/ARDA/minidigest2016_interval
https://www.nxtbook.com/ygsreprints/ARDA/minidigest2016_rci
https://www.nxtbook.com/ygsreprints/ARDA/arda_feb16
https://www.nxtbook.com/ygsreprints/ARDA/g56444_arda_0116
https://www.nxtbook.com/ygsreprints/ARDA/g55471_arda_1115
https://www.nxtbook.com/ygsreprints/ARDA/g54352_arda_1015
https://www.nxtbook.com/ygsreprints/ARDA/g53078_arda_0915
https://www.nxtbook.com/ygsreprints/ARDA/g52346_arda_aug15
https://www.nxtbook.com/ygsreprints/ARDA/g51820_arda_july2015
https://www.nxtbook.com/ygsreprints/ARDA/g50568_arda_june2015
https://www.nxtbook.com/ygsreprints/ARDA/g48582_arda_aprmay2015
https://www.nxtbook.com/ygsreprints/ARDA/g48198_arda_mar2015
https://www.nxtbook.com/ygsreprints/ARDA/ARDA/arda_minidigest15
https://www.nxtbook.com/ygsreprints/ARDA/ARDA/arda_minidigest15_rci
https://www.nxtbook.com/ygsreprints/ARDA/arda_minidigest15_interval
https://www.nxtbook.com/ygsreprints/ARDA/g47739_arda_feb2015
https://www.nxtbook.com/ygsreprints/ARDA/g47155_arda_jan2015
https://www.nxtbook.com/ygsreprints/ARDA/g45549_arda_nov14
https://www.nxtbook.com/ygsreprints/ARDA/g44747_arda_oct2014
https://www.nxtbook.com/ygsreprints/ARDA/g44047_arda_sept2014
https://www.nxtbook.com/ygsreprints/ARDA/g43314arda_aug2014
https://www.nxtbook.com/ygsreprints/ARDA/g42697_arda_july2014
https://www.nxtbook.com/ygsreprints/ARDA/g42010_arda_jun2014
https://www.nxtbook.com/ygsreprints/ARDA/g40308_arda_aprmay2014
https://www.nxtbook.com/ygsreprints/ARDA/g39858_arda_mar2014
https://www.nxtbook.com/ygsreprints/ARDA/arda_minidigest_interval14
https://www.nxtbook.com/ygsreprints/ARDA/arda_minidigest_rci14
https://www.nxtbook.com/ygsreprints/ARDA/g39339_arda_feb2014
https://www.nxtbook.com/ygsreprints/ARDA/g38847_arda_jan2014
https://www.nxtbook.com/ygsreprints/ARDA/g37182_arda_novdec2013
https://www.nxtbook.com/ygsreprints/ARDA/g36850_arda_oct2013
https://www.nxtbook.com/ygsreprints/ARDA/g36032_arda_sep2013
https://www.nxtbook.com/ygsreprints/ARDA/g35644_arda_aug2013
https://www.nxtbook.com/ygsreprints/ARDA/g34942_arda_jul2013
https://www.nxtbook.com/ygsreprints/ARDA/g34203_arda_jun2013
https://www.nxtbook.com/ygsreprints/ARDA/g32965_arda_developments-aprmay2013
https://www.nxtbook.com/ygsreprints/ARDA/g32413_arda_mar2013
https://www.nxtbook.com/ygsreprints/ygs/arda_minidigest
https://www.nxtbook.com/ygsreprints/ygs/arda_minidigest_rci
https://www.nxtbook.com/ygsreprints/ygs/arda_minidigest_interval
https://www.nxtbook.com/ygsreprints/ygs/g31739_arda_feb13
https://www.nxtbook.com/ygsreprints/ygs/g31264_arda_developments_jan2013
https://www.nxtbook.com/ygsreprints/ygs/g29933_arda_developments_novdec2012
https://www.nxtbook.com/ygsreprints/ygs/g29207_arda_developments-oct2012
https://www.nxtbook.com/ygsreprints/ygs/g28427_arda_developments_sept2012
https://www.nxtbook.com/ygsreprints/ygs/g27671_arda_developments_aug2012
https://www.nxtbook.com/ygsreprints/ygs/7091_arda_developmentsjuly2012
https://www.nxtbook.com/ygsreprints/ygs/g26491_arda_june12
https://www.nxtbook.com/ygsreprints/ygs/g24897_arda_dev_aprilmay12
https://www.nxtbook.com/ygsreprints/ygs/g24629arda_dev_march2012
https://www.nxtbook.com/ygsreprints/ygs/g24005arda_dev_feb12
https://www.nxtbook.com/ygsreprints/ygs/g23471_dev_jan12
https://www.nxtbook.com/ygsreprints/ygs/g22146_arda_novdec11
https://www.nxtbook.com/ygsreprints/ygs/g21696ardaoct11
https://www.nxtbook.com/ygsreprints/ygs/arda_sept11_nxtbk
https://www.nxtbook.com/ygsreprints/ygs/g20778_arda_august2011
https://www.nxtbook.com/ygsreprints/ygs/g20046arda_nxtbook
https://www.nxtbook.com/ygsreprints/ygs/g20045arda_nxtbk
https://www.nxtbook.com/ygsreprints/ygs/G18220_ARDA_aprmay11
https://www.nxtbook.com/ygsreprints/ygs/g18768_arda_march2011
https://www.nxtbook.com/ygsreprints/ygs/g18289arda_feb11
https://www.nxtbook.com/ygsreprints/ygs/g17975_arda_jan11
https://www.nxtbook.com/ygsreprints/ygs/g16746arda_novdec10
https://www.nxtbook.com/ygsreprints/ygs/ARDA/arda_flashadcompilation
https://www.nxtbook.com/ygsreprints/ygs/p16572_arda_2011mediakit
https://www.nxtbook.com/ygsreprints/ygs/g16282arda_oct10
https://www.nxtbook.com/ygsreprints/ygs/g15671_arda_sep10
https://www.nxtbook.com/ygsreprints/ygs/g15375_arda_aug2010a
https://www.nxtbook.com/ygsreprints/ygs/g14892_ardajuly10_final
https://www.nxtbook.com/ygsreprints/ygs/g14484_arda_june
https://www.nxtbook.com/ygsreprints/ygs/g13575_arda_may10_cvt
https://www.nxtbook.com/ygsreprints/ygs/p14395_ARDA_MemberKit
https://www.nxtbook.com/ygsreprints/ygs/g13153_ARDA_marchaprl10
https://www.nxtbook.com/ygsreprints/ygs//g12797_arda_feb10
https://www.nxtbook.com/ygsreprints/ygs/g12360_jan10nxtbook
https://www.nxtbook.com/ygsreprints/ygs/G11457ARDA2
https://www.nxtbook.com/ygsreprints/ygs/G10696_arda_oct
https://www.nxtbook.com/ygsreprints/ygs/2010sponbroc_nxtbook1
https://www.nxtbook.com/ygsreprints/ygs/developements_sept09
https://www.nxtbook.com/ygsreprints/ygs/Developments2010_MK1
https://www.nxtbookmedia.com