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This excerpt taken from the WYN 10-K filed Feb 27, 2009. Wyndham
Vacation Resorts
Wyndham Vacation Resorts markets and sells vacation ownership
interests in Wyndham Vacation Resorts’ portfolio of resort
properties and uses a points-based reservation system called
FairShare Plus to provide owners with flexibility (subject to
availability) as to resort location, length of stay, unit type
and time of year. Wyndham Vacation Resorts is involved in the
development or acquisition of the resort properties in which
Wyndham Vacation Resorts markets and sells vacation ownership
interests. Wyndham Vacation Resorts also often acts as a
property manager of such resorts. From time to time, Wyndham
Vacation Resorts also sells home lots and other real estate
interests at its resort properties.
Vacation Ownership Interests, Portfolio of Resorts and
Maintenance Fees. The vacation ownership interests that
Wyndham Vacation Resorts markets and sells consist of fixed
weeks and undivided interests. A fixed week entitles an owner to
ownership and usage rights with respect to a unit for a specific
week of each year, whereas an undivided interest entitles an
owner to ownership and usage rights that are not restricted to a
particular week of the year. These vacation ownership interests
each constitute a deeded interest in real estate and on average
sold for approximately $19,000 in 2008. As of December 31,
2008, approximately 515,000 owners held interests in Wyndham
Vacation Resorts resort properties. Wyndham Vacation Resorts
properties are located primarily in the United States and, as of
December 31, 2008, consisted of 71 resorts (six of which
are shared with WorldMark by Wyndham) that represented
approximately 12,700 units.
The majority of the resorts in which Wyndham Vacation Resorts
develops, markets and sells vacation ownership and other real
estate interests are destination resorts that are located at or
near attractions such as the Walt Disney
World®
Resort in Florida; the Las Vegas Strip in Nevada; Myrtle Beach
in South Carolina; Colonial
Williamsburg®
in Virginia; and the Hawaiian Islands. Most Wyndham Vacation
Resorts properties are affiliated with Wyndham Worldwide’s
vacation exchange subsidiary, RCI, which awards to the top 10%
of RCI affiliated vacation ownership resorts throughout the
world designations of an RCI Gold Crown Resort or an RCI Silver
Crown Resort for exceptional resort standards and service
levels. Among Wyndham Vacation Resorts’ 71 resort
properties, 53 have been awarded designations of an RCI Gold
Crown Resort or an RCI Silver Crown Resort.
Owners of vacation ownership interests pay annual maintenance
fees to the property owners’ associations responsible for
managing the applicable resorts. The annual maintenance fee
associated with the average vacation ownership interest
purchased ranges from approximately $400 to approximately $900.
These fees generally are used to renovate and replace
furnishings, pay operating, maintenance and cleaning costs, pay
management fees and expenses, and cover taxes (in some states),
insurance and other related costs. Wyndham Vacation Resorts, as
the owner of unsold inventory at resorts, also pays maintenance
fees to property owners’ associations in accordance with
the legal requirements of the states or jurisdictions in which
the resorts are located. In addition, at certain newly-developed
resorts, Wyndham Vacation Resorts enters into subsidy agreements
with the property owners’ associations to cover costs that
otherwise would be covered by annual maintenance fees payable
with respect to vacation ownership interests that have not yet
been sold.
FairShare Plus. Wyndham Vacation Resorts uses a
points-based internal reservation system called FairShare Plus
to provide owners with flexibility (subject to availability) as
to resort location, length of stay, unit type and time of year.
With the launch of FairShare Plus in 1991, Wyndham Vacation
Resorts became one of the first U.S. developers of vacation
ownership properties to move from traditional, fixed-week
vacation ownership to a points-based program. Owners of vacation
ownership interests in Wyndham Vacation Resorts resort
properties that are eligible to participate in the program may
elect, and with respect to certain resorts are obligated, to
participate in FairShare Plus.
Owners who participate in FairShare Plus assign their rights to
use fixed weeks and undivided interests, as applicable, to a
trust in exchange for the right to reserve in the internal
reservation system. The number of points that an owner receives
as a result of the assignment to the trust of the owner’s
right to use fixed weeks or undivided interests, and the number
of points required to take a particular vacation, is set forth
on a published schedule and
Table of Contents
varies depending on the resort location, length of stay, unit
type and time of year associated with the interests assigned to
the trust or requested by the owner, as applicable. Participants
in FairShare Plus may choose (subject to availability) the
Wyndham Vacation Resorts resort properties, length of stay, unit
types and times of year, depending on the number of points to
which they are entitled and the number of points required to
take the vacations of their preference. Participants in the
program may redeem their points not only for resort stays, but
also for other travel and leisure products that may be offered
from time to time. Owners of vacation points are able to borrow
vacation points from the next year for use in the current year.
Wyndham Vacation Resorts offers various programs that provide
existing owners with the opportunity to “upgrade,” or
acquire additional vacation ownership interests to increase the
number of points such owners can use in FairShare Plus.
Depending on the vacation ownership interest, Wyndham Vacation
Resorts not only offers owners the option to make reservations
through FairShare Plus, but also offers owners the opportunity
to exchange their vacation ownership interests through our
vacation exchange business, RCI, or through Interval
International, Inc., which is a third-party international
exchange company.
Program and Property Management. In exchange for
management fees, Wyndham Vacation Resorts, itself or through a
Wyndham Vacation Resorts affiliate, manages FairShare Plus, the
majority of property owners’ associations at resorts in
which Wyndham Vacation Resorts develops, markets and sells
vacation ownership interests, and property owners’
associations at resorts developed by third parties. On behalf of
FairShare Plus, Wyndham Vacation Resorts or its affiliate
manages the reservation system for FairShare Plus and provides
owner services and billing and collections services. The term of
the trust agreement of FairShare Plus runs through
December 31, 2025, and the term is automatically extended
for successive ten year periods unless a majority of the members
of the program vote to terminate the trust agreement prior to
the expiration of the term then in effect. The term of the
management agreement, under which Wyndham Vacation Resorts
manages the FairShare Plus program, is for five years and is
automatically renewed annually for successive terms of five
years, provided the trustee under the program does not serve
notice of termination to Wyndham Vacation Resorts at the end of
any calendar year. On behalf of property owners’
associations, Wyndham Vacation Resorts or its affiliates
generally provide day-to-day management for vacation ownership
resorts, including oversight of housekeeping services,
maintenance and refurbishment of the units, and provides certain
accounting and administrative services to property owners’
associations. The terms of the property management agreements
with the property owners’ associations at resorts in which
Wyndham Vacation Resorts develops, markets and sells vacation
ownership interests vary; however, the vast majority of the
agreements provide a mechanism for automatic renewal upon
expiration of the terms. At some established sites, the property
owners’ associations have entered into property management
agreements with professional management companies other than
Wyndham Vacation Resorts or its affiliates.
This excerpt taken from the WYN 10-K filed Feb 29, 2008. Wyndham
Vacation Resorts
Wyndham Vacation Resorts markets and sells vacation ownership
interests in Wyndham Vacation Resorts’ portfolio of resort
properties and uses a points-based reservation system called
FairShare Plus to provide owners with flexibility (subject to
availability) as to resort location, length of stay, unit type
and time of year. Wyndham Vacation Resorts is involved in the
development or acquisition of the resort properties in which
Wyndham Vacation Resorts markets and sells vacation ownership
interests. Wyndham Vacation Resorts also often acts as a
property manager of such resorts. From time to time, Wyndham
Vacation Resorts also sells home lots and other real estate
interests at its resort properties.
Vacation Ownership Interests, Portfolio of Resorts and
Maintenance Fees. The vacation ownership interests that
Wyndham Vacation Resorts markets and sells consist of fixed
weeks and undivided interests. A fixed week entitles an owner to
ownership and usage rights with respect to a unit for a specific
week of each year, whereas an undivided interest entitles an
owner to ownership and usage rights that are not restricted to a
particular week of the year. These vacation ownership interests
each constitute a deeded interest in real estate and on average
sold for approximately $18,600 in 2007. Of the more than 800,000
owners of vacation ownership interests in Wyndham Vacation
Resorts and WorldMark by Wyndham resort properties as of
December 31, 2007, approximately 496,000 owners held
interests in Wyndham Vacation Resorts resort properties. Wyndham
Vacation Resorts resort properties are located primarily in the
United States and, as of December 31, 2007, consisted of 68
resorts that represented approximately 15,000 units.
The majority of the resorts in which Wyndham Vacation Resorts
markets and sells vacation ownership and other real estate
interests are destination resorts that are located at or near
attractions such as the Walt Disney
World®
Resort in Florida; the Las Vegas Strip in Nevada; Myrtle Beach
in South Carolina; Colonial
Williamsburg®
in Virginia; and the Hawaiian Islands. Most Wyndham Vacation
Resorts properties are affiliated with Wyndham Worldwide’s
vacation exchange subsidiary, RCI, which awards to the top 10%
of RCI affiliated vacation ownership resorts throughout the
world designations of an RCI Gold Crown Resort or an RCI Silver
Crown Resort for exceptional resort standards and service
levels. Among Wyndham Vacation Resorts’ 68 resort
properties, 53 have been awarded designations of an RCI Gold
Crown Resort or an RCI Silver Crown Resort.
Owners of vacation ownership interests pay annual maintenance
fees to the property owners’ associations responsible for
managing the applicable resorts. The annual maintenance fee
associated with the average vacation ownership interest
purchased ranges from approximately $400 to approximately $800.
These fees generally are used to renovate and replace
furnishings, pay operating, maintenance and cleaning costs, pay
management fees and expenses, and cover taxes (in some states),
insurance and other related costs. Wyndham Vacation Resorts, as
the owner of unsold inventory at resorts, also pays maintenance
fees to property owners’ associations in accordance with
the legal requirements of the states or jurisdictions in which
the resorts are located. In addition, at certain newly-developed
resorts, Wyndham Vacation Resorts enters into subsidy agreements
with the property owners’ associations to cover costs that
otherwise would be covered by annual maintenance fees payable
with respect to vacation ownership interests that have not yet
been sold.
FairShare Plus. Wyndham Vacation Resorts uses a
points-based internal reservation system called FairShare Plus
to provide owners with flexibility (subject to availability) as
to resort location, length of stay, unit type and time of year.
With the launch of FairShare Plus in 1991, Wyndham Vacation
Resorts became one of the first U.S. developers of vacation
ownership properties to move from traditional, fixed-week
vacation ownership to a
Table of Contents
points-based program. Owners of vacation ownership interests in
Wyndham Vacation Resorts resort properties that are eligible to
participate in the program may elect, and with respect to
certain resorts are obligated, to participate in FairShare Plus.
Owners who participate in FairShare Plus assign their rights to
use fixed weeks and undivided interests, as applicable, to a
trust in exchange for the right to reserve in the internal
reservation system. The number of points that an owner receives
as a result of the assignment to the trust of the owner’s
right to use fixed weeks or undivided interests, and the number
of points required to take a particular vacation, is set forth
on a published schedule and varies depending on the resort
location, length of stay, unit type and time of year associated
with the interests assigned to the trust or requested by the
owner, as applicable. Participants in FairShare Plus may choose
(subject to availability) the Wyndham Vacation Resorts resort
properties, length of stay, unit types and times of year,
depending on the number of points to which they are entitled and
the number of points required to take the vacations of their
preference. Participants in the program may redeem their points
not only for resort stays, but also for other travel and leisure
products that may be offered from time to time. Wyndham Vacation
Resorts offers various programs that provide existing owners
with the opportunity to “upgrade,” or acquire
additional vacation ownership interests to increase the number
of points such owners can use in FairShare Plus.
Depending on the vacation ownership interest, Wyndham Vacation
Resorts not only offers owners the option to make reservations
through FairShare Plus, but also offers owners the opportunity
to exchange their vacation ownership interests through our
vacation exchange business, RCI, or through Interval
International, Inc., which is a third-party international
exchange.
Program and Property Management. In exchange for
management fees, Wyndham Vacation Resorts, itself or through a
Wyndham Vacation Resorts affiliate, manages FairShare Plus, the
majority of property owners’ associations at resorts in
which Wyndham Vacation Resorts markets and sells vacation
ownership interests, and property owners’ associations at
resorts developed by third parties. On behalf of FairShare Plus,
Wyndham Vacation Resorts or its affiliate manages the
reservation system for FairShare Plus and provides owner
services and billing and collections services. The term of the
trust agreement of FairShare Plus runs through December 31,
2025, and the term is renewable if FairShare Plus is extended by
a majority of the members of the program (including Wyndham
Vacation Resorts). The term of the management agreement, under
which Wyndham Vacation Resorts manages the FairShare Plus
program, is for five years and is automatically renewed annually
for successive terms of five years, provided the trustee under
the program does not serve notice of termination to Wyndham
Vacation Resorts at the end of any calendar year. On behalf of
property owners’ associations, Wyndham Vacation Resorts or
its affiliates generally provide day-to-day management for
vacation ownership resorts, including oversight of housekeeping
services, maintenance and refurbishment of the units, and
provides certain accounting and administrative services to
property owners’ associations. The terms of the property
management agreements with the property owners’
associations at resorts in which Wyndham Vacation Resorts
markets and sells vacation ownership interests vary; however,
the vast majority of the agreements provide a mechanism for
automatic renewal upon expiration of the terms. At some
established sites, the property owners’ associations have
entered into property management agreements with professional
management companies other than Wyndham Vacation Resorts or its
affiliates.
This excerpt taken from the WYN 10-K filed Mar 7, 2007. Wyndham
Vacation Resorts
Wyndham Vacation Resorts markets and sells vacation ownership
interests in Wyndham Vacation Resorts’ portfolio of resort
properties and uses a points-based reservation system called
FairShare Plus to provide owners with flexibility (subject to
availability) as to resort location, length of stay, unit type
and time of year. Wyndham Vacation Resorts is involved in the
development or acquisition of the resort properties in which
Wyndham Vacation Resorts markets and sells vacation ownership
interests. Wyndham Vacation Resorts also often acts as a
property manager of such resorts. From time to time, Wyndham
Vacation Resorts also sells home lots and other real estate
interests at its resort properties.
Vacation Ownership Interests, Portfolio of Resorts
and Maintenance Fees. The vacation ownership interests
that Wyndham Vacation Resorts markets and sells consist of fixed
weeks and undivided interests. A fixed week entitles an owner to
ownership and usage rights with respect to a unit for a specific
week of each year, whereas an undivided interest entitles an
owner to ownership and usage rights that are not restricted to a
particular week of the year. These vacation ownership interests
each constitute a deeded interest in real estate and on average
sold for approximately $17,600 in 2006. Of the more than 800,000
owners of vacation ownership interests in Wyndham Vacation
Resorts and WorldMark by Wyndham resort properties as of
December 31, 2006, approximately 518,000 owners held
interests in Wyndham Vacation Resorts resort properties.
Wyndham Vacation Resorts resort properties are located primarily
in the United States and, as of December 31, 2006,
consisted of 79 resorts that represented approximately
15,000 units. In 2006, Wyndham Vacation Resorts expanded
its portfolio in Orlando, Florida, Myrtle Beach, South Carolina,
Wisconsin Dells, Wisconsin, Fairfield Glade, Tennessee and
Sevierville (Smokey Mts.), Tennessee and added resort properties
in new locations, such as Honolulu, Hawaii and San Diego,
California.
The majority of the resorts in which Wyndham Vacation Resorts
markets and sells vacation ownership and other real estate
interests are destination resorts that are located at or near
attractions such as the Walt Disney
World®
Resort in Florida; the Las Vegas Strip in Nevada; Myrtle Beach
in South Carolina; Colonial
Williamsburg®
in Virginia; and the Hawaiian Islands. Most Wyndham Vacation
Resorts resort properties are affiliated with Wyndham
Worldwide’s vacation exchange subsidiary, RCI, which awards
to the top 10% of RCI affiliated vacation ownership resorts
throughout the world designations of an RCI Gold Crown Resort or
an RCI Silver Crown Resort for exceptional resort standards and
service levels. Among Wyndham Vacation Resorts’ 79 resort
properties, 55 have been awarded designations of an RCI Gold
Crown Resort or an RCI Silver Crown Resort.
Owners of vacation ownership interests pay annual maintenance
fees to the property owners’ associations responsible for
managing the applicable resorts. The annual maintenance fee
associated with the average vacation ownership interest
purchased ranges from approximately $300 to approximately $650.
These fees generally are used to renovate and replace
furnishings, pay operating, maintenance and cleaning costs, pay
management fees and expenses, and cover taxes (in some states),
insurance and other related costs. Wyndham Vacation Resorts, as
the owner of unsold inventory at resorts, also pays maintenance
fees to property owners’ associations in accordance with
the legal requirements of the states or jurisdictions in which
the resorts are located. In addition, at certain newly-developed
resorts, Wyndham Vacation Resorts enters into subsidy agreements
with the property owners’ associations to cover costs that
otherwise would be covered by annual maintenance fees payable
with respect to vacation ownership interests that have not yet
been sold.
FairShare Plus. Wyndham Vacation Resorts uses a
points-based internal reservation system called FairShare Plus
to provide owners with flexibility (subject to availability) as
to resort location, length of stay, unit type and time of year.
With the launch of FairShare Plus in 1991, Wyndham Vacation
Resorts became one of the first U.S. developers of vacation
ownership properties to move from traditional, fixed-week
vacation ownership to a points-based program. Owners of vacation
ownership interests in Wyndham Vacation Resorts resort
properties that are eligible to participate in the program may
elect, and with respect to certain resorts are obligated, to
participate in FairShare Plus.
Owners who participate in FairShare Plus assign their rights to
use fixed weeks and undivided interests, as applicable, to a
trust in exchange for the right to reserve in the internal
reservation system. The number of points that an owner receives
as a result of the assignment to the trust of the owner’s
right to use fixed weeks or undivided interests, and the number
of points required to take a particular vacation, is set forth
on a published schedule and
Table of Contents
varies depending on the resort location, length of stay, unit
type and time of year associated with the interests assigned to
the trust or requested by the owner, as applicable. Participants
in FairShare Plus may choose (subject to availability) the
Wyndham Vacation Resorts resort properties, length of stay, unit
types and times of year, depending on the number of points to
which they are entitled and the number of points required to
take the vacations of their preference. Participants in the
program may redeem their points not only for resort stays, but
also for other travel and leisure products that may be offered
from time to time. Wyndham Vacation Resorts offers various
programs that provide existing owners with the opportunity to
“upgrade,” or acquire additional vacation ownership
interests to increase the number of points such owners can use
in FairShare Plus.
Depending on the vacation ownership interest, Wyndham Vacation
Resorts not only offers owners the option to make reservations
through FairShare Plus, but also offers owners the opportunity
to exchange their vacation ownership interests through our
vacation exchange business, RCI, or through Interval
International, Inc., which is a third-party international
exchange.
Program and Property Management. In exchange for
management fees, Wyndham Vacation Resorts, itself or through a
Wyndham Vacation Resorts affiliate, manages FairShare Plus, the
majority of property owners’ associations at resorts in
which Wyndham Vacation Resorts markets and sells vacation
ownership interests, and property owners’ associations at
resorts developed by third parties. On behalf of FairShare Plus,
Wyndham Vacation Resorts or its affiliate manages the
reservation system for FairShare Plus and provides owner
services and billing and collections services. The term of the
trust agreement of FairShare Plus runs through December 31,
2025, and the term is renewable if FairShare Plus is extended by
a majority of the members of the program (including Wyndham
Vacation Resorts). The term of the management agreement, under
which Wyndham Vacation Resorts manages the FairShare Plus
program, is for five years and is automatically renewed annually
for successive terms of five years, provided the trustee under
the program does not serve notice of termination to Wyndham
Vacation Resorts at the end of any calendar year. On behalf of
property owners’ associations, Wyndham Vacation Resorts or
its affiliates generally provide
day-to-day
management for vacation ownership resorts, including oversight
of housekeeping services, maintenance and refurbishment of the
units, and provides certain accounting and administrative
services to property owners’ associations. The terms of the
property management agreements with the property owners’
associations at resorts in which Wyndham Vacation Resorts
markets and sells vacation ownership interests vary; however,
the vast majority of the agreements provide a mechanism for
automatic renewal upon expiration of the terms. At some
established sites, the property owners’ associations have
entered into property management agreements with professional
management companies other than Wyndham Vacation Resorts or its
affiliates.
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