- Mixed-Use Projects. Projects including a mix of vacation ownership, hotel, and residential uses are increasing. Although mixed-use projects can be more complicated to develop and operate, they afford much greater operating flexibility and appeal to a wider audience of consumers.
- Increasing Demand for Luxury. Demand for higher-end products is the fastest growing segment of the vacation ownership industry. The distinction between high-end timeshare and traditional "fractional" projects is getting smaller and less meaningful with consumers demanding better product.
- Experiential Opportunities. With the growing demand for higher-end vacation ownership and mixed-use vacation product comes a demand for increased flexibility in how the vacation product can be used and for greater and enhanced experiential vacation opportunities. Partnerships with a variety of travel providers are available to developers and are becoming an important part of the overall product offering. As vacation ownership reaches out to a younger buying audience, active lifestyle offerings are increasingly important.
- Continued Consolidation and Just-in-Time Inventory. The vacation ownership segment of the hospitality industry will continue to see increased consolidation with major brands searching for quality acquisition opportunities. This demand for consolidation though acquisition is creating unique opportunities for new and start-up developers looking to find exit opportunities as alternatives to operating projects long term. Many branded developers hold large pools of unsold inventory, driving them to seek out finance partners to create just-in-time inventory project funding.
- Increased Demand for Branded Offerings. Consumers are increasingly turning to trusted brand names in vacation ownership, however they will consider high quality independent offerings in desired locations. Nontraditional hospitality brands are also finding increased acceptance from consumers of vacation ownership, giving developers greater options for branding relationships.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.