| Fractional ownership is rapidly growing as an | | | | to upper middle-income households. |
| alternative to full ownership of vacation homes. | | | | In response to a desire for more use of an |
| Fractional vacation homes are not a new concept. | | | | upscale vacation property than is offered by |
| Vacation homebuyers have, for decades, split | | | | timeshare, but without the cost and responsibilities |
| ownership and use of second homes to defray | | | | of a wholly-owned second home, fractional |
| costs for vacation properties that are often used | | | | interest in luxury condominiums are experiencing |
| infrequently. Historically, the one-quarter fractional | | | | strong untapped demand. |
| vacation home has been the time-tested resort | | | | The luxury fractional home buyer can often times |
| product and has sold successfully for many years | | | | afford a wholly owned vacation home, but may |
| to unrelated parties. In these developments, | | | | have difficulty justifying the investment due to |
| however, services, project amenities, and | | | | infrequent use. The fractional buyer wants |
| management are often minimal, particularly at the | | | | extensive amenities (near a beach, golf coarse or |
| lower and mid-range of the market. | | | | ski resort, a fitness center, club room, barbeque |
| Within the last few years, a new and refined | | | | area, luxurious pool, Jacuzzi and landscaping, bikes, |
| variation of the fractional vacation home | | | | kayaks and laundry facilities and hotel services |
| ownership has taken root. This new concept is | | | | (daily maid service, on-site maintenance and |
| evolving rapidly with accelerating interest from the | | | | management) that are usually not available with |
| market. The new fractional product is an upscale | | | | wholly owned homes or condos. The fractional |
| luxury home that often incorporates a private | | | | buyer is a repeat visitor to the resort area in |
| residential club (PRC) to appeal to the affluent | | | | which the property is located, often visiting more |
| buyer at the highest end of the household income | | | | than once per year. Many upscale fractional |
| scale (Ritz Carlton - Hyatt - Four Seasons). There | | | | ownership resorts have arrangements for |
| are also new mid-priced fractional products being | | | | reciprocating trading privileges among their owners |
| developed that are designed and priced to appeal | | | | for like kind facilities at other locations. |