Annual Timeshare Benchmarking Studies
Apr 10, 2019
Download our Annual Timeshare Benchmarking Study reports for 2017 and 2018. These studies encompass years of historical data from over 100 timeshare resorts. Compiled by Withum's Hospitality Services Group, the study conducts a comparative analysis of Florida timeshare associations' financial performance, including comparisons of accounts receivable and bad debt performance, liquidity, developer involvement, assessment rates, expenses, and other metrics.
What makes these studies unique is the use of externally verified data from audits, rather than self-reported data. The metrics presented in these benchmarking reports are intended to help resorts identify potential problem areas and assist them in asking questions about differences to aid in improving resort health.
Specific findings in the 2018 report include:
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- Average gross accounts receivable as a percentage of total assets decreased slightly in 2017 over 2016.
- The average budgeted and actual bad debt expense both saw a decrease in 2017 from 2016. In addition, the gap between the average actual bad debt expense and average budgeted bad debt expense decreased. This suggests that resorts are consistently under budgeting bad debt expenses in comparison to the actual expense.
- In terms of the percentage of associations sampled, the liquidity metrics showed some modest improvements in 2017 compared to the previous year. Although budgeting appears to continue to improve, associations are not increasing maintenance fees sufficient enough to put an end to spending “next year’s money”.
Specific findings in the 2017 report include:
DOWNLOAD 2017 REPORT
- As resorts are aging and operating costs continue to increase, resort operators and managers need to maintain a careful watch to ensure that resorts can operate at a break-even point and continue to save for future major capital replacements.
- Bad debts and delinquencies, while fairly stable, need to be monitored constantly to identify whether projections are accurate and to address problems as they arise, not after it is too late.
- Budgeting efforts should be realistic and not designed to keep assessments artificially low, which can cause operating deficits, special assessments, borrowing from replacement reserves and using more of “next year’s money” than the year before.
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