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The New York-based Luxury Institute just completed a survey of wealthy individuals
and asked them about branded private residence clubs. In this Luxury Brand Status
Index (LBSI) the St. Regis Residence Club won top honors.
We spoke to Milton Pedraza, CEO of the Luxury Institute to gain extra insight into
the survey results. He explained to us that 513 survey respondents were recruited
and screened to selectively include those age 30 or older with a minimum gross
annual income of $200,000 and a minimum net worth of $5 million. The average income
of this group was $789K and their average net worth was $15.1 million.
The survey included several branded residence clubs, but Fairmont Heritage Place,
St. Regis Grand Residence Club, Four Seasons Residence Club, The Ritz-Carlton Club,
and Marriott Grand Residence Club were the only ones that these affluent consumers
were truly aware of.
Of course not all 513 surveyors were intimately familiar with every club. The level
of awareness of each of the club brands varied quite a bit amongst the people surveyed,
percentage breakdown for awareness of each club was: 42% Ritz-Carlton, 30% Marriott,
27% Four Seasons, 13% St. Regis and 8% Fairmont Heritage Place. Similarly the following
percentages of respondents held club memberships: 7.5% Ritz-Carlton, 4.2% Four Seasons,
3.4% Marriott, 1.6% Fairmont Heritage Place and 1.4% St. Regis.
How Clubs Were Rated
Participants rated the clubs based on four distinct aspects: Quality, exclusivity,
social status and self-enhancement. The LBSI is the average of each indices presented
on a 0 to 10 scale, with 10 being the highest. The LSBI ratings are then compared to
the following questions asked under the headings of Price Worthiness, Recommendations
and Purchase Preference: "Is this fractional club and resort worthy of a significant
price premium?" "Based on your perceptions, would you be willing to recommend this club
to people you care about?" "Which fractional club and resort would you be most likely to consider?"
Survey Results
As a result of the survey, LBSI named The St. Regis Grand Club as the most prestigious
fractional club. Respondents cited St. Regis Grand Club for "their great service and
nice amenities," "excellent quality" and for being "very upscale."
The Ritz-Carlton Club finished a close second with the highest score for quality
and tied for exclusivity, as well as receiving the highest score for willingness
to recommend.
In a recent press release, Pedraza was quoted saying: "This is the first time that
we have rated Private Residence Clubs, known as Luxury Fractional Clubs. We rated
only hotel brands with multiple fractional destinations to see how they compare
with their competitors."
He continued to qualify the report by stating that, "Our impartial surveys are
conducted with independent panels weighted to reflect national results, and the
results are tabulated by external analytical experts to ensure objectivity. In a
transparent world, where consumers define your brand, and you are simply a steward,
these surveys provide quantitative metrics, as well as extensive consumer comments,
as to why they will, or will not, recommend each brand."
The Luxury Institute plans on broadening their survey to include more private residence clubs and
assess consumer awareness. There will be plenty to choose from for sure. In fact,
Ragatz identified 254 luxury fractional and private residence clubs in North America
in 2006. And the industry continues to flourish today.
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Private Residence Clubs 
