The annual survey of destination clubs, private residence clubs and fractional interests from Ragatz Associates, shows total sales of $480m in 2017. This is down from $516m in 2016. The mix between the different components has varied a little over the years but the total has consistently been around $500m for the last 8 years.
The breakdown of these 2017 North American sales is shown in the table below:
|Private Residence Clubs||$132m|
Destination Club sales have consistently been the largest component over the last few years, with sales of just under $300m last year.
To calculate these numbers, Ragatz reached out to 312 fractional interest projects and private residence clubs, along with nine destination clubs. Of the 312 developments, 51 actually made some sales in 2017, as did all nine destination clubs. Most of the 261 inactive developments are older, sold-out fractional interest projects.
Of the total 51 active projects, just five of them had sales over $10 million, while nineteen had sales of less than $1 million.
The size of a share in each of these fractional developments can vary from 3 weeks of ownership, up to 12 weeks. The average development contains 31 units, with 2- and 3- bedrooms being the most common configuration and an average unit size of 1,570 square feet.
Looking at the destination clubs, Ragatz estimates there is a total of 17,600 members across the clubs. The average residence in the clubs has a reported value of $3.1 million and contains 3,150 square feet. So the destination club homes are significntly larger than the residence club or fractional homes.
The full report is available at the Ragatz Associates website.