2. The Reserve Collection Partners
Olympus Resorts, Chicago/Vancouver, Focused on developing vineyard resort private
residence clubs:
• Financing
• Site Selection
• Negotiation
Bellstar Hotels & Resorts, Calgary/Vancouver, Leading resort developer & operator in
Western Canada:
• Development
• Project Management
• Design
• Procurement
DCP International, Chicago/Dallas/Park City/Vancouver/Florence, World’s largest
private residence club sales & marketing organization:
• Advertising & Marketing
• Sales
• Private Residence Club (PRC) Exchange
• Reservation & Processing System 2
3. The Reserve Collection
Introduction to The Reserve Collection
Vineyard property ‐ most desired location mentioned by members of leading private destination clubs (Membership
Surveys Q‐2, 2008)
Napa Valley is visited by as many as five million people each year (three million stay overnight), making it the second
most popular tourist destination in California, second only to Disney Land (Source – Cushman & Wakefield)
Napa Travelers – 50% of visitors reported incomes in excess of $100,000 & spent an average of $233/person/day
Success of comparable vineyard resorts: Spirit Ridge Vineyard Resorts & Spa (Bellstar), Okanagan Valley, B.C.; Calistoga
Ranch (Auberge Du Soleil), Napa Valley, CA; Inn at Carneros (Plump Jack Group), Napa Valley, CA
• Vineyard/Winery Property Owners: Many vineyard property owners are asset‐rich & cash‐poor
• “Second” home buyers: Have limited options to participate in the winery experience. Potential vineyard second/vacation home owners
face a number of issues: high real estate prices, limited time to use/seasonal use, maintenance
• Olympus Resorts in conjunction with its partners created a solution – PRC’s: Enables land owners to turn an illiquid asset into cash
without giving up control of their vineyard/winery
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5. The Reserve Collection
Executive Summary
MISSION STATEMENT:
Deliver exceptional vacation experiences to our owner/members & their guests by
providing access to the world’s premier vineyard locations & liquidity to
vineyard/winery property owners
EXECUTION:
1. Build Luxurious Homes on and/or around vineyards and wineries
2. Sell fractions of the home to wine connoisseurs – (PRC model)
3. Share profits with vineyard/winery owner
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6. The Reserve Collection
Executive Summary
BON ALLER
PRC Benefits to Stakeholders:
Vineyard/Winery Property Owner:
• PRC’s provide liquidity/cash to property owners –
participate in PRC’s development & sales profits
• Property owners maintain control of vineyard property
& wine operations
• Significant cross‐marketing opportunities between the
winery & PRC members – “Vintner’s Club”
• Strengthen brand/wine sales
• PRC drives business in off‐peak seasons
PRC Members:
• Lower cost of entry – opportunity to own real
estate/experience a vineyard/winery without the
management hassles at a fraction of the cost of buying a
vineyard second home
• Real estate professionally managed
• Participation in a “Vintner’s” club/exchange – access to
other premier vineyard properties
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7. The Reserve Collection
Executive Summary
PRC Benefits to Stakeholders:
Bellstar/Olympus Resorts/DCP:
• Established beneficial partnerships & strategic alliances
• Excellent purchasing & project management
• Industry leaders in marketing & media relations
• Utilize “wine” purchasers lists from respective
vineyards/wineries to target oenophiles interested in
purchasing real estate
• Cross marketing of similarly managed resorts
• Consistency in systems, training & controls
• Improved bottom line margin, profitability & return on
equity
• Expand Vintner’s Exchange: Temecula, Santa Barbara,
Napa/Sonoma, Oregon, Washington, Australia, New
Zealand, Argentina, Provence, Tuscany, South Africa, &
Spain
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8. The Reserve Collection
Executive Summary
PRC Execution/Implementation:
Vineyard/Winery Property Owner:
• Contributes a residence site located in a vineyard or
winery
• Provide list of “wine” purchasers & other contacts
• Assist in marketing presentations, tastings, & tours
• Commit to a fully integrated ownership & vacation
experience for the PRC member (“Vintner’s” club
benefits, participate in the growing, picking, &
winemaking process, private label product, private
tasting dinners, etc.)
Bellstar/Olympus Resorts/DCP:
• Develops luxury residence on vineyard or winery site
• Fund, market, develop & manage a fractionalized single
residence PRC
• The residence would be complementary to the winery
architecturally & in quality in finish & fitting – review
the plan’s/spec’s with the landowner
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9. The Reserve Collection
Executive Summary
Initial targeted wine region:
Okanagan Valley, BC 14
19
13 17
Osoyoos
12 16 20
• Nk’Mip Cellars
• La Stella Winery 11
Similkameen 10 15 18
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3. K Mountain Vineyards
4. Herder Winery & Vineyards
5. Crowsnest Vineyards
Black Sage Bench/Golden Mile 8
6. Burrowing Owl Estate winery
7. Desert Hills Estate Winery 21
8. Black Hills Estate Winery 7
9. Golden Miles Cellars 22
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10. Antelope Ridge
11. Inniskillin Okanagan Vineyards 3
4
12. Hester Creek Estate Winery
13. Gehringer Brothers Estate Winery
14. Tinhorn Creek Vineyards 5
15. Church & State
16. Le Vieux Pin
17. Quinta Ferreira Estate Winery
Okanagan Falls
18. See Ya Later Ranch
19. Wild Goose 2
20. Noble Ridge
North Oliver
21. Dunham & Froese Estate Winery
22. Jackson‐Triggs Okanagan Estate
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11. The Reserve Collection
Private Residence Clubs (PRC’s)
History of the PRC:
• PRC – concept was born at prestigious Deer Valley Resort in Park City, Utah in 1991 (DCP)
• In the late 1980’s, Deer Valley vacation homes ranged in price from $500,000 ‐ $6,000,000, but owners would
only occupy these residences four to six weeks a year. In addition, the more expensive the home, the less
likely that it would be made available as a rental property.
• DCP believed the time had come for a new, upscale, shared ownership concept
Typical PRC Features:
• Sold in 1/8 units (1/4 – 1/10 range) – 4‐6 weeks of occupancy
• 1.6x – 2.0x price premium over whole ownership
• Equity ownership second home purchase
• Exchange rights – to other properties in DCP/Bellstar portfolios
• Membership fee ($200,000 ‐ $1,000,000) & annual HOA fees ($5,000 ‐ $15,000)
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12. The Reserve Collection
Private Residence Clubs (PRC’s) – Who buys Residence Clubs? Why?
People who: Why:
• Frequent a particular resort/destination • luxury/location
• Can afford a vacation home in that location • vacation frequency
• Want luxury, service, & amenities • club staff
• Don’t want the responsibilities of absentee ownership • personalized service
• Can’t rationalize the cost of whole ownership • deeded real estate
• Don’t want to be anchored to one destination • exchange
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14. The Reserve Collection
Vintner’s Club
Vintner’s Club – Exclusive to owners of The Reserve Collection:
• Viticulture activities (demonstrating planting, pruning, harvesting, etc.)
• Participation in the wine making & brand building process
• Instruction on wine‐related food & wine pairing & culinary arts (popular in Napa)
• “VIP Wine Makers Tasting Experience” tasting events for members only – sample reserve vintages
• Private dinner with vineyard owners & wine master
• Harvest Celebration – the opportunity to “volunteer” at the vineyard/winery during the harvest & crush
• Invitation to a private annual gala wine release
• A barrel of wine (25 cases) from one of the Vintner exchange wineries for the first five years of membership
• Private label wine
• “First Crush Club” to purchase up to two additional cases at regular prices before the wine is released each year to
the public
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15. The Reserve Collection
Exchange
Vintner’s Exchange – members will have the ability to use/exchange their time at any
Reserve Collection residence. Future locations may include:
• Argentina • Oregon
• Australia • Provence
• California: Mendocino, Napa Valley, Paso • South Africa
Robles, Sonoma, Santa Barbara – Clara ‐ • Spain
Cruz, Temecula • Tuscany
• Gulf Islands, B.C. Canada • Washington
• New Zealand
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17. The Reserve Collection
Strategic Partners
BON ALLER
Bellstar Hotels & Resorts
401, 8989 Macleod Trail S
Calgary Alberta, T2H 0M2
Leading resort developer & operator in Western Canada
• April 2008: 9 resorts & 409 resort units (63% increase over 2007)
• September 2011 – 18 resorts & 1,500 units projected (committed & in
development)
• Manage resorts, hotels & residences clubs
• Develop & manage condo/strata resorts
• Rental & property management
• Pre‐opening & marketing services
• Manage whole & fractional real estate marketing
• Owner accounting & reporting
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18. The Reserve Collection
Strategic Partners
BON ALLER
DCP International
2121 Waukegan Road, Suite 100
Bannockburn, IL 60015
World’s largest private residence club sales &
marketing/management organization
• 30 private residence clubs in the U.S. & Europe
• Over 7,000 members
• DCP residence clubs have generated more than $700 million in sales to
date ($115 million in 2006)
• Capabilities:
• Product Design
• Legal Documentation Oversight
• Marketing & Sales
• Financial Planning
• Elite AllianceTM – international exchange
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19. The Reserve Collection
Strategic Partners
BON ALLER
Olympus Resorts
333 W. Wacker, Suite 1720
Chicago, IL 60606
First in the fractional real estate market to exploit
niche markets outside of beach or ski resorts:
• Raised over $700 million in real estate projects
• Deployment experience worldwide
• North America
• Napa Valley, CA (vineyard/winery)
• Okanagan, BC (vineyard/winery)
• Europe
• Provence, France (vineyard/winery)
• Tuscany, Italy (vineyard/winery)
• Birr, Ireland (equestrian estate)
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21. The Reserve Collection
Fractionals – Market Research
Ernst & Young US 2008 Lodging Report – “Top 10 Thoughts:
• Fractional residences have garnered less interest from speculators and, as a result, are weathering a declining
real estate market better than condominium‐hotels. Developers indicate that fractionals are generating price
premiums of 100% to 200% per square foot over full‐ownership products, although with higher marketing
costs & longer absorption periods.
• The credibility of a well‐known professional operator & sales team in addition to the flexibility of an exchange
program, allows owners to trade time in any destination where the operator has a property & makes these
programs more appealing than those offered by independent projects
• Fractionals generally fare better when developed alongside established hotels, as the hotels may encourage
potential buyers, as well as critical mass for the development & associated guest services
• While the various second‐home hybrids are expected to be tested by a softening U.S. housing market in 2008,
the underlying fundamentals of the baby boomer generation – their upcoming wealth transfer & time to enjoy
it will lead to continued growth in the second‐home sector
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22. The Reserve Collection
Fractionals ‐ Market Research
The Shared Ownership/Use Resort Real Estate Industry in North America 2008 – Ragatz
Conference – March 18‐20th, San Francisco
Top 5 Findings (2007):
• 300 total developments, 153 in active sales plus 22 destination clubs
• $2.3 billion of total sales volume
• Increase of 8.3% from 2006
• Growth primarily at equity residence club level, but mostly due to more projects
• Remaining market depth: Estimated that 50,000 households have purchased shared ownership. This
represents about 1.5% of all households in the U.S. with incomes over $200,000.
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23. The Reserve Collection
Fractionals: Market Research
New York Times, April 13th, 2007 – “Fractional real estate or shared ownership, is growing rapidly,
increasing to $1.65 billion in sales last year for the United States, Canada, & the Caribbean, up more
than 30% from 2005”
PriceWaterhouse Study Finds Growing Awareness of Luxury Fractional Ownership, December 7, 2006
– “Affluent households (41%) have heard of fractional, & one‐sixth of affluent households indicate they
may consider purchasing a fractional ownership resort within the next five years” 23
25. The Reserve Collection
Branding
• re∙serve
1. To keep back, as for future use or for a special
purpose
2. To set or cause to be set apart for a particular
person or use
3. To keep or secure for oneself; retain
• col∙lec∙tion
1. That which is collected; as: A gathering or
assemblage of objects or persons
2. A group of objects or works to be seen,
studied, or kept together
3. Manège. An act of bringing or coming into a
collected attitude
4. Several things grouped together or considered
as a whole
The Reserve Collection evokes images of...
Reserve wine – wine that is higher quality than
usual, or a wine that has been aged before being
sold, or both
Fine property ‐ the best locations, the finest
vineyards, Canada’s premiere wine region
…brought together to create an exceptional collection
of Private Residence Clubs
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