Fractional Ownership on the Rise

This is not your grandma's timeshare.

It's "fractional ownership." Or "interval ownership." Or a "private residence club." Or even simply, a "vacation club."

Call it what you will, the concept of purchasing a share of a luxury vacation residence-in beach resorts, golf communities and upscale mountain towns throughout the United States and in foreign countries-has exploded in recent years, and shows no signs of slowing down.

According to the 2006 Fractional Interest Leisure Real Estate Market Report, total sales volume in the overall fractional interest industry in North America 2005 was a whopping $2 billion.

These sales mark an increase of 27 percent from 2004 and 283 percent from 2003.

It's no wonder the fractional ownership is growing by leaps and bounds. It's a chance to own a slice of real estate in high-end vacation communities for a fraction of the price.

Instead of plunking down $1 million to upwards of $10 million for a vacation home in the glorious Rocky Mountains or prime oceanfront real estate on the California coast, buyers spend closer to $200,000 to $500,000 (or sometimes more, depending on the fractional arrangement and how ultra-luxe the property is) for the use of two- or three-bedroom furnished condominium-type unit.

Fractional amenities galore

In typical, high-end fractional-ownership communities, owners have access to upscale amenities like swimming pools, fitness centers, tennis courts and kids' activities. At the most high-end fractional ownership residences, such as those developed by such upscale hoteliers as Grand Hyatt, Ritz-Carlton and St. Regis, concierges are available to wait on owners hand and foot-even before vacationers arrive, with pre-arrival grocery stocking. Owners can store personal belongings-resort wear and personal photos-on site, and the concierge will decorate your condo before you arrive, as well.