Destination clubs, condo hotels, and fractional ownership private residence clubs will be attractive to different types of travelers. When deciding what is right for you, consider what your needs are; How big of a group do you travel with? How important is the variety of locations and options? Do you want the potential upside (and downside) of equity ownership?

Variety of Destinations

Destination clubs offer the greatest variety of travel destinations and you can choose from many locations during any given year. Private residence clubs, however, are based in one location although some private residence clubs allow members to stay at partner private residence clubs, or exchange their usage rights for rights in another property. If you own a unit at a condo hotel, you may only be able to stay at that one resort. Your upfront costs are lower and you may choose to own at multiple condo hotels. When you outright own a vacation home, you may have the flexibility to engage in a house swap with another homeowner, but this may take some additional time and effort on your part.

Upfront Costs

Travelers should consider how much they want to pay upfront for their future travels. Destination clubs require a substantial deposit when you join, but this can still be redeemed later on. The upfront cost is usually bigger for a second home, but in general you can get easier access to financing for it. For destination clubs, the upfront investment can be substantial, but you escape the hassles of management and maintenance. Private residence clubs require a smaller upfront cost, and you only pay for the time you’re there. While condo hotels are high in price paid per night, they can generate some income when the hotel rents it out on your behalf. More on club costs here.

Building Equity

Destination clubs do not allow you to build any equity, but you avoid the potential downside if a property decreases in value. Private residence clubs, condo hotels and private home ownership offer opportunities to build equity while vacationing, but there are typical downside risks.

Property Management

Condo hotels offer real estate ownership with fewer hassles. The hotel manages repair and routine maintenance. Private residence clubs and destination clubs are also popular for this reason. Home ownership usually requires more attention and management on your behalf, although a property management company can manage this, too. A privately owned vacation home can also be rented out when you are not using it and be handled by a management firm.

Before making a final decision about which lifestyle investment you want to make, read through some of our decision guides, and read online member reviews of the properties you are researching.