Other interesting things from the same filing:
"Approvals for Expansion—Our ability to expand our vacation ownership business and remain competitive could be harmed if Starwood or Hyatt does not consent to our use of their trademarks at new resorts we acquire, develop or propose to franchise in the future.
Under the terms of our master license agreements, we must obtain Starwood’s approval to use Westin® and Sheraton® brands and Hyatt’s approval, to use the Hyatt® brand, in each case in connection with vacation ownership projects we acquire, develop or propose to franchise in the future. Starwood or Hyatt may reject a proposed project if, among other things, the project does not meet applicable brand standards or is reasonably likely to breach applicable contractual or legal restrictions. If Starwood or Hyatt does not permit us to use the brand in connection with our development or acquisition plans, our ability to expand our business and remain competitive may be materially adversely affected. The requirement to obtain consent to our expansion plans, or the need to identify and secure alternative expansion opportunities if we do not obtain approval, may delay implementation of our expansion plans and cause us to incur additional expense."
"Secondary Market—The sale of VOIs in the secondary market by existing owners could cause our sales revenues and profits to decline.
There is not currently an active, organized or liquid resale market for VOIs, and resale of VOIs generally are made at sales prices substantially below their original customer purchase prices. Existing owners have offered, and are expected to continue to offer, their VOIs for sale on the secondary market. As a result, these sales create additional pricing pressure on our sale of VOIs, which could cause our sales revenues and profits to decline. In addition, if the secondary market for VOIs becomes more organized or financing for such resales becomes more available, our ability to sell VOIs could be adversely impacted and/or the resulting availability of VOIs (particularly where the VOIs are available for sale at lower prices than the prices at which we would sell them) could cause the volume of vacation ownership inventory that we are able to repurchase to decline, which could adversely affect our sales revenues. Further, unlawful or deceptive third‑party VOI resale schemes involving VOIs in our resorts could damage our reputation and brand value or impact our ability to collect management fees, which may adversely impact its sales revenues and results of operations."
"Sufficiency of Maintenance Fee Collection and Budgeting—Our continued management of HOAs depends on their ability to collect sufficient maintenances fees.
Our management fees from HOAs are derived from maintenance fees levied on the owners by the associations. These maintenance fees also fund the operation, maintenance and improvements for the property. Many of the properties that we manage do not receive subsidies or resale services for foreclosed inventory from the developer. Once an association begins to experience a high default rate, if it is unable to foreclose and resell units to paying owners, the situation worsens as the maintenance fees on remaining owners continually increase to cover expenses. If the HOAs that we manage are unable to levy and collect sufficient maintenance fees to cover the costs to operate and maintain the resort properties, such properties may be forced to close or file bankruptcy and may terminate our management agreements."
"Permissions—Following the closing of the Vistana transaction, additional permissions may be required in order to market to potential customers....Because Vistana’s relationship with Starwood has changed as a result of the acquisition by ILG, for purposes of “do not call” and similar legislation in some jurisdictions, it may be more difficult for Vistana to utilize customer information it obtains from Starwood in the future, and as a result, maintain compliance with applicable legislation. This could diminish the effectiveness of existing marketing practices and adversely affect the business."
"Our Exchange and Rental segment results are susceptible to variations in economic conditions, particularly in its largest vacation rental market, Hawaii. According to the Hawaii Tourism Authority, visitor arrivals by air in Hawaii increased 3.1% while visitor expenditures increased 4.2% for the year ended December 31, 2016 compared to the prior year.
As of the latest forecast (February 2017), the Hawaii Department of Business, Economic Development and Tourism forecasts increases of 1.5% in visitors to Hawaii and 2.9% in visitor expenditures in 2017 over 2016."
"An increasingly important part of the value proposition we provide to our members consists of rentals. In the Interval Network, Getaways provide additional discounted vacation opportunities for members without the need to exchange their VOIs. Our proprietary clubs rent inventory in order to provide exchange opportunities to branded hotels through the SPG and Hyatt Gold Passport/World of Hyatt programs, as applicable. These rentals and our Aqua-Aston business are sensitive to general economic conditions, inventory supply and pricing in the applicable markets."
