Fractionals Lure in the Top Brands

Shared ownership is a crowd-pleaser lately in the luxury vacation market, according to Ragatz & Associates, among others. Private residence clubs – the developments that offer these fractional ownership opportunities – are thriving in diverse locations. From Telluride to Cabo and Tuscany, shared ownership opportunities are a smart solution for consumers who value vacationing at the same location year after year.

A private residence club (PRC) manages properties that are owned by multiple members in a tenancy-in-common agreement. Members own equity for a specific unit in the real estate development. The fully-furnished properties can be apartments, townhouses, villas and anything in between – depending on the club. Located in prime golf, ski, and beach resort destinations, units are typically sold in 1/8 or 1/12 increments.

Compared to destination clubs, membership in a private residence club buys members equity in a property rather than just access to it. Wholly-owned second homes are also worth comparing with the fractional model; fractional ownership optimizes investment in the vacation property, as members only pay for the time they use.

Top brand-names offering shared ownership include:

• Ritz-Carlton Club and Residences, San Francisco
• Fairmont Heritage Place, San Francisco
• Four Season Residence Club, Vail

Smaller multi-location clubs include:

• The Timbers Club
• Resort Equities

Location-specific properties can, however, be found across the globe. Notable examples include Ocotalito Resort in Playa Ocotal and Capella Pedregal in Cabo San Lucas. For a complete directory of available fractional ownership clubs please click here.

More on the shared ownership model can be found in our independent Decision Guide to Private Residence Clubs, or read more about fractionals here: