Owners of luxury fractional property buy a share of a single residence, that provides them with a couple of weeks to thirteen weeks of usage a year. The ownership period varies by development and can be expressed as a fraction (eg 1/10, 1/8, or ¼) or as a number of weeks (eg 5, 6 or 12 weeks).
Private Residence Clubs are the upper tier of the luxury fractional market, providing all the services of a five star hotel together with the ownership.
There are hundreds of fractional and Private Residence Club developments located in city, beach, mountain and resort destinations. Use our home directory to search through these locations.
They are sometimes compared to timeshares, although there are several key differences. For instance luxury fractionals are in better locations, are more luxurious and typically larger, providing 2, 3 or 4+ bedrooms. They also offer true, deeded ownership whereas timeshares usually just offer a "right to use."
The Boston Globe had it's lead real estate article on a new Private Residence Club, "The Vanderbilt", that is being created in Newport, Rhode Island. The building was originally built as a mansion by the Vanderbilts nearly a century ago.
The Globe interviewed some of the fractional owners at this new property and their reasons for buying were very typical of the comments we hear all the time, including:
the time to have fun without any of the normal work associated with owning property
When we go on vacation, we often feel at our most relaxed if the environment we're in seems like a 'home away from home'. But it's also nice to experience the luxury of a first class hotel. A private residence club offers a combination of both of these things. Located in prime vacation settings (beachfront, mountain, leisure resort, vibrant metropolis), private residence clubs offer luxury apartments and freestanding houses. Each property is furnished to the same high quality as a first class hotel and most importantly each property has several owners.
Destination Clubs and Private Residence Clubs have a lot in common. The terminology can be confusing and the lines between these two are getting increasingly blurry. In many cases the terms are used interchangeably so you'll find some companies that might fit closer to a Destination Club (definition), but which refer to themselves as Private Residence Clubs (definition).
The chart below lists several Private Residence Clubs. Some of these Clubs have just one location while others offer their members the ability to use other properties than the one that they own. The clubs have destinations throughout the world, so there is pretty well a location for everyone.
For an in-depth understanding of destination clubs and residence funds, download our free guide. This book offers details about the various types of clubs and membership plans, how reservations work, the financial aspects you'll need to know, how these two vacation home alternatives compare to luxury second home ownership in terms of cost and questions you should ask when looking to join a club. We do ask you to register to access the Guide.
