AOCAP 2009

Phuket Shared Ownership“State of the Invasion”

Bill Barnett, Managing Director C9 Hotelworks

October 12, 2009

2009 Trends

Sleeping giant with over THB2 billion sales 2008

Total market size of 554 units as of H1 2009

Natural accompaniment to destination’s tourism market

Evolving from timeshare model; more global brands

Notable component of Phuket real estate sector

Market Watch

Vacation Ownership (VO) core sector Yacht Fractional Ownership (YFO) sales launched 2007 Property Fractional Ownership (PFO) 2009

Market Watch

PFO marked 13% of sales 2009 VO market share 2009 decreased from 95% to 83%

Existing Projects

Project Pipeline

Vacation OwnershipAt a Glance Critical mass of units (92%) in Bangtao and Mai Khao Week-based members (68%) vs. point-based (32%) Vacation clubs and point memberships popularity increasing 20% Thai members in favor of local club, shorter duration and

lower entry price Innovative features:

Vacation exchange partnership (RCI, II and DAE) Reward program / privilege card Membership repurchase or resale programs

Pricing Analysis

Point programs attaining higher selling price

Branding Penetration Effect

International brands 62% price premium;dominating sales volume

Property Fractional Ownership

PFO in Phuket Context: Sales started late 2008; a few projects in Patong and vicinity Wide range of week ownership, unit size, and price points All foreign buyers; mostly Australian, British, South African

and Malaysian Purchase on leasehold and share basis Innovative features:

Rental pooling Branded hotel management Exchange affiliation (Register Collection)

Price and Period Relationship

No significant influence of ownership period on price

Price and Unit Size Relationship

Smaller units higher price per square meter

Yacht Fractional Ownership

YFO in Phuket context: 10 fractional ownership shares; each with 28 day entitlement

Local entity developers/sellers with related businesses

All foreign buyers; mostly British, French and Scandinavian over half residing in Asia

Private charter rental during non-usage periods

Relevant expenses i.e. maintenance, insurance, food & beverage, and fuel charges

Pricing Trend

Price growth slowing down as 2009 sales volume dropped

Forward Outlook

Emphasis on lower entry products, domestic buyers and financing options

More developers attracted to conversions; pipeline increasing

Branded luxury and mixed use projects to offer fractional options

Rising niche fractional products i.e. yachts, private aircraft and luxury automobiles

Resale market to develop, testing appreciation viability

Today’s Takeaway

Shared Ownership’s Greatest Advantage is -

“Its Ability to Innovate New Products”

You can download the report and this presentation atwww.C9hotelworks.com market research