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The ResortClub Residence

Premier Vacation Home Ownership
A ResortClub Residence is more than a luxury vacation home; it is ownership of a five star resort residence. This revolutionary concept takes the vacation home ownership experience to a new level of effortless enjoyment, uncompromised luxury and personal pampering.

Ownership in a residence at a CloudNine Resort gives you not only the benefit of a solid investment in a prestigious condominium resort but the enjoyment of the pampering lifestyle found only in a five star boutique resort.

The founder of CloudNine Resorts has been involved since 1990 in pioneering the systems and procedures that have been used to integrate condominium residences into a luxury resort properties. These efforts resulted one of the first operating model, Robert Redford’s Sundance Resort, which incorporated the specialized requirements of deluxe condominium vacation home ownership with the full range of personal services, luxury guest amenities and operational standards of a high end boutique resort.

Typical Fractional Ownership Model

Shared ownership of vacation homes by a group of friends or relatives has existed for as long as the market for vacation homes. However, in the past 20 years a more structured approach to shared ownership has evolved with the formalization of use and access rights and the employment of a professional management company to ensure that the operation and maintenance of the residence is done in a consistent and even handed manner. Typically this real estate shared ownership model is known as Fractional Interest Ownership, or simply Fractional Ownership.

In the past decade the notion of Fractional Ownership has gained wider acceptance amongst vacation home buyers and has continued to evolve into a much more luxurious, lifestyle oriented product. The highest end of the fractional market, with five star services, appointments, and amenities are known as Private Residence Clubs (PRC).

Private Residence Clubs

Ragatz Associates, headquartered in Portland, Oregon, is the premier research group and industry authority for Fractional Ownership. Each year they compile a broad range of market statistics and consumer trends on the fractional real estate market place. The statistics and market preferences detailed below reflect the findings from the “Fractional Interests – A Market Profile, 2005 Edition” released by Ragatz in May of 2005.

Current PRC Resorts

Has grown from 4 resorts in active sales in 1995 to 77 in 2005.
The growth rate for new resorts was up 16% in 2004.
The total closed fractional sales in the USA for 2004 were over $1 billion doubling the previous record set in 2003.
PRC’s generated 67% of the total fractional sales activity in 2004

Demographics
Household	Virtually all are couples – 93%
Children under 18 in Home	No – 85%
Age	Average age 52 / 50% of owners 45 to 59
Household Income	$530,000 (US median 2004 = $46,000)
Net Worth	$1 million = 90% / $10 million+ = 25%

Top Five Motivations for Purchase
Location	97%
Quality of Finishes	90%
On site Amenities	83%
Personalize Services	77%
Credibility of Management Company	72%
Top Five Hesitations about Purchasing
May not always receive preferred time	46%
Concerned about ability to resell	31%
Annual Dues and Fees	27%
Not sure would use enough	25%
Prefer flexibility of renting	18%
Satisfaction with Purchase
Very Satisfied	71%
Somewhat Satisfied	22%
Neutral	4%
Dissatisfied	3%

The ResortClub Residence

The ResortClub Residence is a natural evolution of the upscale resort real estate product offering. The ResortClub is a boutique Condo Hotel that provides individual buyers the ability to purchase shared ownership interests in each of its luxury residences. CloudNine Resorts, having identified the key consumer concerns unaddressed by current vacation ownership programs, built into the ResortClub Residence model innovative solutions to these problems.

Ownership Benefits – ResortClub vs. Other Shared Ownerships

*Resort Amenities & Services*	ResortClub	Vacation Condo	Private Residence Club	Condo Hotel
Professional five star resort operator	Yes	No	Maybe	Yes
In house restaurants, spa, fitness facilities.	Yes	Maybe	Maybe	Yes
Twice Daily housekeeping, concierge,& room service	Yes	No	Maybe	No
Airport & Resort transportation	Yes	No	Yes	Yes
Daily activities programs and events	Yes	No	No	Yes
*Owner Use Benefits*
Flexible, owner driven reservation system	Yes	No	No	No
Guaranteed use of purchased unit	Yes	No	No	Maybe
Unlimited lodging use based upon availability	Yes	Maybe	Maybe	No
10% blanket discount on all resort charges	Yes	No	No	No
Exclusive exchange program with other clubs	Yes	Maybe	Maybe	No
Dedicated Owner Concierge staff	Yes	Maybe	Yes	Yes
Sense of exclusivity and privacy protection	Yes	Maybe	Yes	No
*Owner Investment Benefits*
Active on site program to facilitate resale of ownership shares.	Yes	No	No	No
Deeded real estate ownership	Yes	Yes	Maybe	Yes
Ability to use rental income from unused time to offset monthly carry costs.	Yes	No	No	Yes
Long term investment in resort by Resort Operator	Yes	No	No	Maybe