Private residence clubs (commonly referred to in the industry as “PRCs”) are typically smaller residences ranging from 750 sq ft city apartments to 3000 sq ft resort villas. High-end hotel chains such as Ritz-Carlton, St. Regis, Four Seasons, and Fairmont offer the ability to buy a wholly-owned or fractional share of a condo that usually occupies the higher floors of their hotel properties.

Destination clubs, on the other hand, are more suited to families or groups who are looking for larger residences—usually 3 or more bedrooms and at least 2000 sq ft. The standard non-equity membership model provides members access to flats, townhomes, and luxury single-family homes in multiple destinations. The newer, equity or “deeded” destination clubs, provide an ownership stake in the club’s real estate portfolio and tend to be 3500 sq ft or larger.

Residence type	Size (sq ft)	Private Residence Club	Destination Club (non-equity)	Deeded Destination Club (equity)
2 BR apartment	750-1500
3 BR apartment	1500-1850
Attached townhome	1350-2500
Detached villas	1850-3300
Small, detached single family homes	2500-3500
Medium, detached single family homes	3500-4500
Large, detached single family homes	4500+
= real estate investment

The chart above compares the size of residences between private residences clubs and destination clubs. Since deeded club homes tend to be larger than the size profile of residence clubs, it seems natural that luxury hotel chains will eventually either (a) acquire equity clubs or (b) extend their portfolio into detached homes. Their consumer demographics overlap and hopsitality is a key component of success for both. The primary difference is the type of real estate investment.