The Ragatz Associates survey of residence clubs, fractional interests and destination clubs shows total sales of $505m in 2015.
These total figures, which include pre-sales and in-house resales across all three categories, have been at around the same level for the last four years. 2012 had $497m, 2013 was $517m and 2014 was $516m.
The breakdown of the 2015 sales is shown in the table below:
|Private Residence Clubs||$129m|
Looking back over the last four years, the biggest changes have been the drop in sales at private residence clubs from $196m in 2012 to the current $129m. Overall sales of private residence clubs are now at about 10% of their peak year of 2007, when sales reached $1.2bn. The last two years have produced about the same revenue levels, so potentially the market has levelled off.
Destination club sales have grown over the last four years, from $230m in 2012. The overall sales of destination clubs are at about 50% of their peak year of 2007, when sales totaled $610m. The mix of destination clubs has changed in this time, with new clubs like Inspirato offering a lower entry price and some of the equity based clubs offering an appealing alternative investment.
For the fractional interests and private residence clubs, Ragatz estimates that about 1,150 shares were sold in 2015. This is down slightly from 1,175 in 2014, and down significantly from the peak year of 2007 when 6,450 shares were sold. About 42,700 shares have been sold in the last 13 years.
Ragatz estimates that of the $505 million, about 83.0 percent was from new closed sales, 7.5 percent was from presales, and 9.5 percent was from resales
There were 62 fractional and residence club developments that were in active marketing and sales and actually made some sales in 2015. These included 44 fractional interest projects and 18 private residence clubs. In 2015 the average fractional or residence club development had a sales volume of $3.1 million, or about $255,000 per month. However, these figures decrease to $1.8 million and $150,000 when the three projects selling more than $10 million are excluded. Looking at the shares, the annual average number of shares sold was 18.5, representing a monthly average of about 1.5.
Ten of these developments had sales of more than $5m. The total sales volume of these 10 was $121 million, representing 63.7 percent of the total sales volume of all fractional interest projects and private residence clubs in North America.
The full report is available at the Ragatz website.