Wholesale Vacation Club Program
"Significantly Increase cash flow, bottom line and financial leverage"
The Wholesale Vacation Club Program aids developers with monthly cash flow, increased profits, increased sales, as well as providing their lenders peace of mind.
Several developers have started working with the Hospitality Representation LLC Wholesale Vacation Club Program. The results have been extremely positive for everyone.
Previously we only worked with developers of resort properties who benefitted by being able to pre-reserve blocks of inventory. This enabled the properties to become profitable faster and enabled them to show guaranteed revenue to their lenders and investors.
Recently, developers of condo and residential home projects have started to work with us. These developers had an inventory of unsold completed units whereby their new sales were equal to or less than the number of units that they complete in the same time frame. This meant that they had a block of inventory that could in fact be used in the program to add cash flow as well as to increase their bottom line. In addition to those benefits, they also found that having more people in the community, gave prospective buyers a more positive feeling about the community as well as the possibility of a ‘rental program’ for those potential buyers. That helped their sales while of the added cash flow not only benefitted the developer but also pleased their lenders.
Although completed units tend to be unfurnished, our developer clients found that their cost to furnish and set up a block of units is offset fairly quickly by the added revenue of the rentals.
Since most developers already have an on premises sales office, they can easily utilize a staff member once or twice a week to handle check ins, check outs, and to arrange housekeeping. One developer offers concierge services to guests twice weekly and earns significant commission income which they share with their staff member who handles this. In another case, the developer does not have an onsite sales office but arranges for a staff member to attend each check in and such, as above.
Basically, the advantages that we have been made aware of so far include:
• Adds income while units sit empty lowers the carrying costs of the project or produces revenue;
• Adds comfort to lenders as the project brings in higher income than originally projected;
• Added marketing exposure and captive new potential buyers as members staying in units get first-hand experience of property and may purchase or recommend to others;
• Added activity in the complex may offer a more secure feeling to potential buyers;
• Immediate income for property;
• Ease of substituting similar units at almost any time in the program, if a unit is sold;
• Added selling tool of having a guaranteed rental program;
• Possibility to add units as they are completed (on mutual consent);
• Some developers decide to retain some units as an investment knowing they will be producing guaranteed income;
• Some developers may build additional units as an investment knowing that they will be producing guaranteed income;
• Single point of contact for all units combined;
• Better long term planning for property and lower overstaffing risk;
• Higher gross and net revenues from elimination of vacancy factor, marketing, and broker costs;