The latest edition of the Annual Timeshare Benchmarking Study has been released. This study encompasses fifteen years of historical data from over 100 timeshare resorts. Compiled by Withum’s Hospitality Services team, 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 the study unique is the use of externally verified data from audits, rather than self-reported data. The metrics presented in the benchmarking report 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 this year’s report include:
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 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 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”.
Download the report to learn more.
|Lena Combs, CPA, CGMA, RRP, Partner
(407) 308 3434
|Thomas V. Durkee, CPA, CGMA, Partner
(407) 308 3441