Luxury residence fund Equity Estates has residences around the globe for its members. Investors into the funds (the third fund is currently accepting new owner members) don’t just enjoy the homes for vacations; they also own them and benefit from any increase in property value once the fund sells the homes. Equity Estates has shared some insights into their reservation process and home usage statistics.
Types of Reservations
Equity investors have several options available to them when it comes to making reservations.
The number of nights available depends on their level of investment:
- "Advantage" investors are allotted 45 nights per year.
- "Elite" investors receive 30 nights per year.
- "Executive" investors are allotted 15 nights per year.
When ready to make a reservation:
- They can call or email their Personal Travel Concierge for assistance.
- They can use their 24/7 members-only online reservation system, known as Voyager. The Voyager system is undergoing upgrades and a new version is expected to launch in mid-2019.
As for how far in advance they can make a reservation, investors can reserve a property for tonight. Or, they can reserve as far into the future as they wish.
Equity Estates properties are owned by the investors and are not rented out elsewhere, meaning that availability is much higher than with most destination clubs. In fact, Equity Estates claims to have the best availability in the industry with 43% of time open and available - in other words a 57% occupancy rate. This means investors are free to travel when they want, even at short notice. Just as a comparison, upscale and luxury hotels typically run at a 70% to 80% occupancy rate.
A monthly email newsletter “Best Bets” is sent to members drawing attention to upcoming availability. "This often allows investors to plan a last-minute trip" said Julie Beard, Marketing Manager at Equity Estates.
Whereas some clubs charge a premium for using certain properties at peak times such as holidays or summer, Equity Estates does not. High-demand times (Thanksgiving, Christmas, New Year, Memorial Day) are awarded via a bi-annual lottery process with care taken to ensure that all allotments are shared in an equitable way. In the most recent lottery, 83% of investors received one of their top holiday choices.
Equity Estates does not place any minimums on length of stay, so an investor can stay for a little as one night. Maximum stay length is 18 consecutive nights in one location.
Often the length of a trip varies with the destination. For example, New York, San Francisco, and other cities are popular for weekends away, with trips averaging two or three nights. The same applies to many of the properties in ski locations, making them ideal for a quick trip to the slopes. On the other hand, destinations in the Caribbean or at the beach are more usually booked for a week to ten days, allowing for a longer family vacation.