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New NorthCourse Research Examines Fractional Interest Industry in North America

SAN DIEGO, CA – May 17, 2006 – NorthCourse, RCI Global Vacation Network’s newly named leisure real estate solutions business, is presenting its latest research report under the NorthCourse brand at the Fractional Interest Symposium, taking place May 17 –19 in San Diego, CA.

The 2006 Fractional Interest Report from NorthCourse Advisory Services, the company’s consulting arm, is an analysis of the state of North America’s fractional interest industry, which includes traditional fractional interests, high-end fractional interests, private residence clubs and destinations clubs. The study is based on interviews with developers, resort managers, marketing and sales directors, and other appropriate contacts at all identified fractional interest projects closing sales or conducting presale activity during 2005.

“NorthCourse is uniquely positioned to provide the shared ownership industry with insightful studies while also offering developers innovative strategies to see projects to fruition,” said Kevin Wallace, chief executive officer of NorthCourse Advisory Services. “We are committed to advancing the fractional interest business through industry research, such as this report on North America.”

Highlights of the NorthCourse findings: Industry Performance: Total sales volume for the overall fractional interest industry in North America in 2005 was approximately $2 billion. This represents an increase of 27 percent from 2004 and an increase of 283 percent from 2003.

Industry Size and Configuration: Approximately 188 total fractional interest projects, plus 22 destination clubs, were active in sales during 2005. Approximately 4,700 units are located within the 188 projects and among the 4,700 units, approximately 4,100 are in the United States.

Developers: Of fractional interest projects selling during 2005, 74 percent were developed by private developers. Only 18 percent were developed by hotel companies and eight percent by other public companies.

Destinations: Fractional interest resorts exist in five primary types of destinations – ski (51 percent), beach (27 percent), golf (13 percent), urban (four percent), and wine (four percent).

Access Arrangements: Fractional interest projects employ several use plans, or access arrangements, for determining when owners and guests may occupy units. The majority (53 percent) of traditional fractional interest projects selling during 2005 use a rotating calendar plan. With a rotating priority system, owners use a priority or lottery system for making reservations. This is the most common use plan for high-end fractional interests (56 percent) and private residence clubs (50 percent).

Costs: On a price-per-fraction basis by unit size, sales prices for traditional fractional interests in 2005 averaged from $60,750 for a studio unit to $163,985 for a three-bedroom unit, or $115,650 overall. High-end fractionals averaged from $102,333 for a studio unit to $303,333 for a four-bedroom unit, or $187,500 overall. Private residence clubs averaged from $106,300 for a studio unit to $649,564 for a four-bedroom unit, or $290,000 overall. The overall average price for all three tiers was $215,000.

Destination Clubs:

NorthCourse Advisory Services specializes in market analysis and feasibility studies while NorthCourse Turnkey Solutions aids developers in the implementation of new shared ownership businesses. NorthCourse has an international presence with a team of shared ownership experts in offices in the United States, the United Kingdom, Germany, Spain, the United Arab Emirates, China and Singapore.

About NorthCourse
NorthCourse supports the global leisure real estate industry with consulting and turnkey solution services specialized in shared ownership business models and mixed use developments including timeshare, fractionals, private residence clubs, destination clubs and condo hotels. NorthCourse offers all elements of business advice from in-depth feasibility studies, business modeling, product design, consumer and market research to fully integrated turnkey solutions for developers. NorthCourse has offices in the United States, the United Kingdom, Germany, Spain, the United Arab Emirates, China and Singapore.

About RCI Global Vacation Network
RCI Global Vacation Network is the global leader in leisure accommodations with exclusive access for specified periods to nearly 55,000 vacation properties. Organizationally, RCI Global Vacation Network is comprised of RCI, a global leader in vacation exchange and travel membership products, and various leading vacation rental brands for the marketing of vacation rental accommodations, primarily in Europe. Collectively, the company represents developers, owners, managers and marketers of outstanding vacation properties, sending consumers on dream vacations to the world’s great tourism destinations through brands that are global market leaders within their business segment. RCI Global Vacation Network is a subsidiary of Cendant Corporation (NYSE: CD), a provider of travel and residential real estate services.

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