Owners of luxury fractional property buy a share of a single residence, that provides them with a couple of weeks to thirteen weeks of usage a year. The ownership period varies by development and can be expressed as a fraction (eg 1/10, 1/8, or ¼) or as a number of weeks (eg 5, 6 or 12 weeks).
Private Residence Clubs are the upper tier of the luxury fractional market, providing all the services of a five star hotel together with the ownership.
There are hundreds of fractional and Private Residence Club developments located in city, beach, mountain and resort destinations. Use our home directory to search through these locations.
They are sometimes compared to timeshares, although there are several key differences. For instance luxury fractionals are in better locations, are more luxurious and typically larger, providing 2, 3 or 4+ bedrooms.
This article covers the reasons people buy fractionals and PRCs, and if you're looking to buy read the list of questions to ask before buying your fractional. For easy reference there is a glossary of terms.
The latest news and research on luxury fractionals and Private Residence Clubs is available below.
Fractional or shared ownership vacation homes are a rapidly growing segment (over 30 percent in 2006) of the real estate market. Fractional real estate sales were about $1.6 Billion in 2006 and are expected to continue to grow over the next several years. Most of these fractional real estate sales may be attributed to resort and niche fractional projects rolled out by large hotel operators, such as Marriott, Four Seasons, Starwood, and Ritz Carlton (resort fractionals).
In theory, the condo-hotel purchase sounds like a solid investment. Pay an amount up front, and get money back monthly when the hotel rents out your unit. Many investors couldnt wait to get into this market. They whole-heartedly believed that their monthly costs would not only be covered, but that they would have money to put back in their pockets.
We did an article on fractional mortgages a year ago, but with the overall economic climate and particularly the changes in the mortgage market, with mortgage lenders generally applying much stricter lending standards, it's time for an update.
Ragatz Associates just released their latest annual survey of fractional homes, private residence clubs and destination clubs in North America. The overall combined sales were $2.3 billion in 2007, up 8.3 per cent from 2006.
The New York-based Luxury Institute just completed a survey of wealthy individuals and asked them about branded private residence clubs. In this Luxury Brand Status Index (LBSI) the St. Regis Residence Club won top honors.
An emotional experience is quintessential for a memorable vacation. Renowned hotelier Tom LaTour believes this with all his heart and created LaTour Signature Group to bring a relationship-based vacation experience to the world of fractional ownership.
Under a headline that read "A light shines amid the gloom" the Financial Times reported that private residence clubs are retaining investors interest.
Are you in the market for a Luxury Fractional or Private Residence Club (PRC)? Do your homework and ask the following questions to help ensure blissful vacations for years to come.
The luxury fractional home ownership market has its many benefits: flexibility of travel dates, ability to invite family and friends, limited maintenance responsibilities, and the list continues. But for people looking to add a wide variety of destinations to their repertoire, fractional ownership can fall short of some travelers' lofty expectations.