Resonance Recreational Real Estate Report

RECREATIONAL REAL ESTATE REPORT

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RESONANCE SPECIALIZES IN STRATEGIC PLANNING, BRANDING AND MARKETING FOR DEVELOPERS, DESTINATIONS AND COMMUNITIES. THE PRINCIPALS OF RESONANCE HAVE MORE THAN 20 YEARS OF RESORT REAL ESTATE EXPERIENCE, AND HAVE CREATED AND MARKETED DOZENS OF BRANDS FOR DEVELOPERS AND DESTINATIONS THROUGHOUT NORTH AMERICA, MEXICO AND THE CARIBBEAN.

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RECENT PROJECTS

• INTERNATIONAL MARKET DEVELOPMENT STRATEGY FOR THE REPUBLIC OF IRELAND

• STRATEGIC PLAN FOR ARUBA TOURISM AUTHORITY

• TOURISM MASTER PLAN FOR CITY OF VANCOUVER

• BRANDING AND MARKETING FOR KUKUI‘ULA COMMUNITY IN KAUAI

• BRANDING AND MARKETING FOR MOUNTAINSIDE COMMUNITY IN LAKE TAHOE

• DESTINATION DEVELOPMENT STRATEGY FOR CINCINNATI USA

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AS PART OF OUR ONGOING WORK TO CREATE SUCCESSFUL DEVELOPMENT STRATEGIES FOR A WIDE VARIETY OF DESTINATIONS AND DEVELOPMENTS, RESONANCE CONDUCTS CONSUMER RESEARCH TO HELP OUR CLIENTS UNDERSTAND THE EVOLVING PREFERENCES AND ASPIRATIONS OF CONSUMERS TODAY AND PUBLISHES REPORTS ON:

• PORTRAIT OF THE U.S. INTERNATIONAL TRAVELER

• PORTRAIT OF THE U.S. MILLENNIAL TRAVELER

• PORTRAIT OF THE U.S. AFFLUENT TRAVELER

• U.S. RECREATIONAL REAL ESTATE REPORT

• U.S. RETIREE TRAVEL & REAL ESTATE REPORT

OUR RESEARCH

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d.DESIRABLE

LUXURIES

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DESIRABLE LUXURIES

SIMILAR TO 2012 RESULTS, SMARTPHONES ARE CONSIDERED THE MOST DESIRABLE LUXURY AMONG U.S. AFFLUENT RESIDENTS, FOLLOWED BY FREEDOM TO WORK FROM HOME AND VACATION HOME IN THE MOUNTAINS.

Mean

Smartphone 7.7

Freedom to work from home 7.2

Vacation home in the mountains/beach 7.1

Extended time off work 7.2

Taking exotic vacations 7.0

Tablet/E-Reader 7.0

Gourmet kitchen at home 6.8

Owning your own business 5.5

Wife/husband that is able to stay at home with kids 5.5

Apartment in major metropolitan city 5.5

Home Theater 5.8

Luxury Swimming Pool 5.5

Sending your children to private schools 5.1

Home in private/gated community 5.5

Owning an expensive car 5.6

Fine jewelry and/or expensive watch 5.3

Base: All respondents (n=1,062)

C1. Changing topics slightly, on a scale of 1-10, rate the desirability of each of the following luxury items and experiences with 1 being “not desirable” and 10 being “extremely desirable.”

10 – Extremely desirable 9 – Very desirable

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DESIRABLE LUXURIES

MILLENNIAL TRAVELERS VIEW SMARTPHONES AND EXTENDED TIME OFF WORK AS THE MOST DESIRABLE LUXURIES, FOLLOWED BY FREEDOM TO WORK FROM HOME, TAKING EXOTIC VACATIONS AND VACATION HOME IN THE MOUNTAINS/BEACH.

Mean

Smartphone 8.0

Extended time off work 7.9

Freedom to work from home 7.8

Taking exotic vacations 7.8

Vacation home in the mountains or at the beach 7.7

Gourmet kitchen at home 7.4

Tablet/E-Reader 7.4

Wife/husband that is able to stay at home with kids 7.0

Owning your own business 6.9

Luxury swimming pool 6.9

Home theater 7.0

Your own home spa 6.7

Home in private, gated community 6.7

Apartment in major metropolitan city 6.5

Hybrid/electric automobile 6.6

Having your own foundation/making large donation 6.5

Base: All respondents (n=1,189)

C1. Changing topics slightly, on a scale of 1-10, rate the desirability of each of the following luxury items and experiences with 1 being “not desirable” and 10 being “extremely desirable.”

10 – Extremely desirable 9 – Very desirable

31%

30%

29%

28%

28%

25%

22%

22%

21%

21%

19%

18%

16%

17%

15%

16%

49%

47%

45%

45%

45%

40%

39%

38%

34%

33%

33%

32%

31%

31%

29%

29%

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CURRENT OWNERS

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% Own Now

All Travelers(n=3,379)

Timeshare 14%

Vacation home 14%

Private residence club membership 7%

Vacation condominium 7%

Home site to build vacation home in the future 6%

Destination club membership 6%

Hotel condominium 3%

Base: All respondents (n=3,379)C2. Which of the following do you own now, are considering purchasing, would like to own one day or would never consider purchasing?

VACATION PROPERTIES OWNED: SUB GROUP

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COMPARED TO THE TYPICAL TRAVELER, CURRENT VACATION HOME OWNERS HAVE HIGHER INCOMES AND HIGHER NET WORTHS.

GENDER HOUSEHOLD INCOME

<$50K

$50K to $100K

$100K to $200K

$200K+

54%50%

MALE

NET WORTH

46%50%

FEMALE

AGE

AVERAGE AGE49.750.1

Vacation Home Owners (n=636) Total Travelers (n=3,379) Higher than total Lower than total

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Vacation Home Owners

Owners Total(n=554)

Net Worth

<$250K(n=121)

$250K-$999K(n=206)

$1 Million+(n=201)

Less than 200 miles 26% 36% 23% 23%

200 to 299 miles 15% 18% 20% 12%

300 to 399 miles 19% 17% 22% 19%

400 miles or more 39% 29% 35% 45%

AFFLUENT VACATION HOME OWNERS’ VACATION HOMES ARE LOCATED FURTHER AWAY FROM HOME THAN THOSE WITH A LOWER NET WORTH.

VACATION PROPERTY DISTANCE FROM PRIMARY RESIDENCE

Base: Currently own vacation home/condo at C2 (n=554)C2c. Approximately how far is your vacation property from your primary residence? Statistically significantly higher than comparison group(s)

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Owners Total(n=554)

Net Worth

<$250K(n=121)

$250K-$999K(n=206)

$1 Million+(n=201)

13 days or less 17% 25% 16% 16%

2 to 4 weeks 36% 41% 44% 29%

5 to 8 weeks 21% 17% 23% 22%

2 months or more 26% 18% 18% 33%

VACATION HOME OWNERS WITH A HIGHER NET WORTH SPEND MORE TIME AT THEIR VACATION PROPERTY THAN THOSE WITH A LOWER NET WORTH.

Base: Currently own vacation home/condo at C2 (n=554)C2b. On average, how many days per year do you use your vacation property? Statistically significantly higher than comparison group(s)

VACATION PROPERTY USAGE

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PROSPECTIVE BUYERS

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COMPARED TO THE TYPICAL TRAVELER, VACATION HOME INTENDERS ARE MORE LIKELY TO BE YOUNGER MEN.

GENDER

65%50%

MALE35%50%

FEMALE

Vacation Home Intenders (n=637) Total Travelers (n=3,379)

<$250K

$250K to $1M

$1M+

Statistically significantly higher than comparison group(s)

<$50K

$50K to $100K

$100K to $200K

$200K+

HOUSEHOLD INCOME

NET WORTH

AGE

Millennials

Middle Age

Seniors

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COMPARED TO GENERAL TRAVELERS, VACATION HOME INTENDERS ARE MORE LIKELY TO HAVE A LARGER HOUSEHOLD SIZE WITH CHILDREN IN THE HOUSEHOLD.

PRIMARY RESIDENCE REGION

MARITAL STATUS

Own home/apartment

Rent home/apartment

Live with parents

Other

HOUSEHOLD SIZE CHILDREN IN HOUSEHOLD

Married

Single

Common law

Divorced/separated

Widowed

1

2

3-4

5-7

7+

Children34%

No children66%

Northeast29%26%

South26%30%

Midwest17%20%West

28%24%

Children56%

No children42%

AVERAGE SIZE3.22.8

Vacation Home Intenders (n=637) Total Travelers (n=3,379) Statistically significantly higher than comparison group(s)

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OWNERS VS. BUYERS

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Vacation Home Intenders

% DESIRABLE (10 – Very Desirable/9) (n=636) (n=637)

Visit to a beach resort 50% 52%

Visit to a major metropolitan city 38% 40%

Vacation with friends 39% 35%

Family vacation with kids 30% 43%

Cruise 30% 29%

Multi-generational vacation 26% 24%

Visit to a mountain resort 22% 22%

Quiet countryside holiday 21% 23%

Combining business trip with leisure vacation 23% 24%

Other 9% 3%

TYPES OF FUTURE VACATIONS

Base: All respondents (3,379)A6. What types of vacations will you take in the next 12 – 24 months? Statistically significantly higher than comparison group(s)

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Safety 58% 63% 56%

Favorable climate/weather 47% 54% 53%Cost 44% 44% 43%English spoken 40% 45% 38%Scenery and nature 38% 45% 49%U.S. currency accepted 37% 40% 39%Easily accessible by commercial flights 35% 45% 47%Opportunities to learn something new 32% 40% 44%Close to beach, access to water 28% 41% 41%Good cultural attractions 27% 35% 42%Friends/family members have had positive experiences there 25% 35% 38%Iconic landmarks 22% 31% 36%Passport not required to visit 22% 30% 27%Exciting city environment 21% 32% 34%Fun attractions 20% 27% 31%Can drive to 20% 26% 26%Online peer reviews and ratings 20% 29% 37%All inclusive pricing 18% 28% 30%Quiet countryside location 16% 27% 33%Off the beaten path location not often frequented by tourists 16% 25% 31%Professional printed guidebook reviews 12% 24% 27%Magazine/Newspaper articles 10% 22% 24%

Base: All respondents. A7. On a scale of 1-10, what are the most important factors you take into account when deciding on a vacation destination, with 1 being not important at all and 10 being extremely important? Statistically significantly higher than comparison group(s)

KEY DECISION FACTORS WHEN DECIDING ON A VACATION DESTINATION: SUB GROUP

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Base: All respondents A8. While on vacation what activities do you enjoy regularly, enjoy occasionally, would like to try, or do not enjoy? Statistically significantly higher than comparison group(s)



Vacation Home

Intenders


Dining 95% 94% 90%

Sightseeing 94% 92% 90%

Learning new things 88% 89% 88%

Fun attractions 87% 88% 88%

Visiting cultural attractions 85% 85% 87%

Shopping 84% 81% 87%

Engaging with nature 83% 88% 88%

Attending cultural events/performances 78% 82% 84%

Nightlife 67% 72% 80%

Attending music festivals 63% 72% 78%

Watching live sports 60% 67% 75%

Health & fitness 60% 74% 79%

Participating in outdoor sports 57% 70% 78%

Participating in ‘once-in-a-lifetime’ activity 51% 64% 70%

Volunteering 43% 54% 66%

Personally participating in athletic competitions 31% 45% 61%

ACTIVITIES ON VACATION: SUB GROUP

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Vacation Home Owners Vacation Home Intenders Owners

TotalNet Worth Intenders

TotalNet Worth

<$250K $250-$999K $1 Million+ <$250K $250-$999K $1 Million+(n=643) (n=127) (n=235) (n=258) (n=649) (n=180) (n=272) (n=182)

Marriott Hotels & Resorts 23% 20% 16% 22% 19% 18% 14% 16% 23%

Hilton 21% 21% 21% 24% 18% 17% 16% 18% 18%

Sheraton 20% 22% 21% 22% 24% 19% 20% 20% 14%

Westin 17% 18% 17% 10% 27% 13% 12% 12% 17%

Wyndham 16% 17% 22% 13% 19% 8% 14% 6% 3%

Holiday Inn 14% 9% 8% 10% 8% 11% 11% 11% 10%

Hampton Inn 13% 8% 6% 8% 8% 9% 13% 7% 10%

Embassy Suites 12% 12% 12% 14% 10% 8% 12% 4% 11%

JW Marriott 11% 11% 6% 7% 16% 9% 6% 9% 14%

Waldorf Astoria 11% 13% 11% 10% 16% 13% 12% 12% 13%

Hyatt 10% 12% 9% 17% 7% 13% 14% 15% 9%

W Hotels 10% 10% 8% 7% 13% 12% 12% 11% 12%

Best Western 10% 10% 18% 12% 5% 11% 14% 12% 6%

Ritz-Carlton 9% 9% 3% 7% 13% 12% 5% 12% 17%

Comfort Inn 9% 6% 9% 7% 4% 7% 12% 5% 4%

St. Regis 9% 11% 13% 10% 10% 13% 11% 16% 13%

Disney 8% 6% 8% 4% 6% 9% 10% 8% 11%

Four Seasons 8% 9% 6% 6% 14% 12% 9% 13% 13%

Courtyard 7% 9% 8% 11% 9% 8% 5% 10% 9%

Doubletree 7% 6% 6% 5% 6% 5% 6% 4% 6%

Fairfield Inn 5% 6% 4% 9% 4% 3% 4% 4% 1%

MARRIOTT, HILTON AND SHERATON ARE THE PREFERRED BRANDS OF BOTH OWNERS AND INTENDERS, BUT INTENDERS ARE MORE INTERESTED IN BRANDS SUCH AS RITZ-CARLTON, ST. REGIS AND FOUR SEASONS.

PREFERRED BRAND FOR HOTEL ON VACATION: SUB GROUP ANALYSIS

Base: All respondents. A13. When choosing a hotel for a vacation, which brands would be your top 3 choices, if available? Statistically significantly higher than comparison group(s)

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Base: All respondents. A10. Please indicate how much you agree or disagree that each of the following statements describes you personally when it comes to vacations. Statistically significantly higher than comparison group(s)




(n=643) (n=649)

I go on vacation to escape everyday life 79% 80% 83%

I am much more indulgent and carefree while on vacation than I am at home 76% 80% 82%

I do a lot of research on the destination prior to going on vacation 75% 76% 84%

Vacations are a time to reconnect with family and friends 75% 82% 80%

I go on vacation to really slow down and relax 74% 79% 82%

I go on vacations that allow me to try new things that I wouldn’t otherwise do 74% 80% 83%

Exploring new cultures and their traditions while on vacation is important to me 71% 82% 84%

When I go on vacation, I like to visit all the ‘must-see’ sites and attractions 69% 76% 76%

High quality food and drink are critical while on vacation 68% 78% 80%

KEY VACATION MOTIVATIONS AND ASPIRATIONS: SUB GROUP ANALYSIS

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Base: All respondents. A10. Please indicate how much you agree or disagree that each of the following statements describes you personally when it comes to vacations. Statistically significantly higher than comparison group(s)




(n=643) (n=649)

While at my destination, technology is an important way to find my way around and search for things to do

61% 69% 75%

While on vacation, I want to ‘live like the locals do’ 57% 66% 76%

Learning and personal development are a priority for me in choosing a vacation

50% 62% 71%

I want to be completely pampered while on vacation 50% 58% 70%

Vacations are a time to meet and have fun with other tourists 50% 61% 70%

I want to participate in adventure activities that take me out of my comfort zone when on vacation

48% 60% 70%

I prefer to stay at international brand hotels while on vacation 45% 61% 68%

Participating in sports and outdoor activities is an important part of a good vacation

41% 56% 67%

KEY VACATION MOTIVATIONS AND ASPIRATIONS: SUB GROUP ANALYSIS

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PRODUCT PREFERENCES

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Intenders Total(n=600)

Net Worth

<$250K(n=209)

$250K-$999K(n=251)

$1 Million+(n=130)

Near a beach 42% 38% 43% 40%

In the mountains 16% 19% 10% 24%

In the countryside 13% 14% 14% 12%

In a major metropolitan city 12% 11% 13% 11%

In another country 8% 8% 10% 6%

In a small town 9% 10% 10% 7%

Other <1% 1% <1% -

FUTURE VACATION PROPERTY: LOCATION TYPE

Base: Considering/would like to own vacation home/condo (n=2,179)C2f. Which of the following best describes the type of location you would prefer for your second home?

LIKE THE TYPICAL TRAVELER, VACATION HOME INTENDERS PREFER TO HAVE THEIR VACATION PROPERTY NEAR A BEACH. THOSE WITH A HIGHER NET WORTH ARE MORE LIKELY TO PREFER BEING IN THE MOUNTAINS.


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Net Worth

<$250K(n=209)

$250K-$999K(n=251)

$1 Million+(n=130)

Less than 200 miles 11% 13% 11% 9%

200 to 299 miles 23% 41% 21% 9%

300 to 399 miles 21% 15% 25% 18%

400 miles or more 46% 30% 43% 65%

VACATION PROPERTY DISTANCE FROM PRIMARY RESIDENCE

Base: Considering/would like to own vacation home/condo (n=2,179)C2e. Approximately how far would you consider purchasing a vacation property from your primary residence?


AMONG THOSE WHO ARE CONSIDERING A FUTURE VACATION HOME/CONDO, THOSE WITH A HIGHER NET WORTH ARE MORE INTERESTED IN PURCHASING A PROPERTY FURTHER AWAY FROM HOME.

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Net Worth

% Considering<$250K (n=215)

$250-$999K (n=265)

$1 Million (n=146)

Vacation home 61% 59% 59% 63%

Home site to build vacation home in the future 54% 55% 52% 57%

Vacation condominium 46% 48% 48% 40%

Destination club membership 36% 40% 40% 27%

Timeshare 32% 37% 35% 24%

Private residence club membership 31% 36% 34% 20%

Hotel condominium 29% 37% 32% 17%

AMONG VACATION PROPERTY INTENDERS, VACATION HOMES AND HOME SITES TO BUILD FUTURE VACATION HOMES ARE THE TOP PROPERTY TYPES FOR CONSIDERATION.

Base: All respondents (n=3,379)C2. Which of the following do you own now, are considering purchasing, would like to own one day or would never consider purchasing?

ARE CONSIDERING: SUB GROUP ANALYSIS

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Net Worth

<$250K(n=209)

$250K-$999K(n=251)

$1 Million+(n=130)

<$500K 51% 65% 44% 48%

$500K to $1M 29% 26% 32% 25%

$1M to $2M 14% 8% 19% 14%

$2M to $5M 5% 1% 4% 11%

$5M+ 1% - 1% 2%

AMONG THOSE WHO ARE CONSIDERING A FUTURE VACATION HOME/CONDO, THE MAJORITY WOULD BE WILLING TO SPEND LESS THAN $500K. NOT SURPRISINGLY, THE HIGHER THE NET WORTH, THE MORE THEY ARE WILLING TO SPEND ON A VACATION PROPERTY.

FUTURE VACATION PROPERTY: AMOUNT WILLING TO SPEND

Base: Considering/would like to own vacation home/condo (n=2,179)C2d. How much would you be willing to spend on a vacation property? Statistically significantly higher than comparison group(s)

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Current Owners(n=311)


Intenders Total

(n=600)

Net Worth

% Importance (10 – Very Important/9) <$250K (n=209)

$250-$999K (n=251)

$1 Million (n=130)

Proximity to beach 50% 44% 43% 44% 48%

Guestrooms for friends and family 53% 41% 38% 40% 49%

Outdoor living area 46% 39% 35% 42% 40%

Access to swimming pool 46% 41% 36% 47% 37%

Proximity to restaurants, shopping and nightlife 44% 38% 39% 38% 40%

Garage 42% 41% 40% 40% 47%

Open plan for entertaining 43% 36% 36% 38% 35%

Availability of services to rent my home when not in use 36% 32% 30% 37% 27%

Property management services 34% 35% 30% 36% 39%

Gourmet kitchen 40% 32% 36% 34% 27%

Access to walking trails 39% 35% 38% 32% 35%

Sustainability/energy efficiency ratings 35% 34% 34% 32% 35%

VACATION HOME BUYERS ARE MOST INTERESTED IN PROXIMITY TO BEACH, GUESTROOMS FOR FRIENDS AND FAMILY, ACCESS TO SWIMMING POOL, GARAGE AND OUTDOOR LIVING AREAS.

Base: Considering/would like to own vacation home/condo (n=2,179)C2h. On a scale of 1-10, how important are each of the following features in your decision to purchase a vacation home?


IMPORTANCE OF FUTURE VACATION HOME FEATURES: SUB GROUP ANALYSIS

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Current Owners(n=311)


Intenders Total

(n=600)

Net Worth

% Importance (10 – Very Important/9) <$250K (n=209)

$250-$999K (n=251)

$1 Million (n=130)

Within driving distance of my primary residence 34% 27% 28% 32% 19%

Access to fitness facilities 41% 30% 28% 33% 29%

Is within a private, gated community 27% 27% 27% 27% 30%

Home Theater 30% 26% 25% 30% 22%

Access to spa facilities 31% 27% 35% 25% 24%

Formal dining room 33% 27% 30% 31% 20%

Features a community clubhouse 30% 26% 27% 29% 21%

Home office 28% 24% 27% 24% 21%

Proximity to golf course 29% 23% 27% 25% 16%

Availability of kids programs 24% 25% 29% 27% 21%

Proximity to skiing 26% 21% 25% 21% 19%

HIGH NET WORTH BUYERS ARE LESS INTERESTED IN HOMES WITHIN DRIVING DISTANCE OF PRIMARY RESIDENCE, FORMAL DINING ROOMS AND PROXIMITY TO A GOLF COURSE.

Base: Considering/would like to own vacation home/condo (n=2,179)C2h. On a scale of 1-10, how important are each of the following features in your decision to purchase a vacation home?


IMPORTANCE OF FUTURE VACATION HOME FEATURES: SUB GROUP ANALYSIS (CONT’D)

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The full version of this report is available atresonancereport.com

THANK YOU!

Contact

[email protected]

+1.604.681.0804

@resonanceco @crfair