Differences Between

Condo Hotels & Fractionals

Q: Can you summarize the differences between condo hotels and fractionals so that I can determine which one is right for me?

A: The price ranges for condo hotels are from roughly $200,000+ up to $1.5 million. Fractionals typically range from $100,000-$800,000 more or less.

Most of the condo hotels are in South Florida. This real estate concept is rather unique to this area. The fractionals, (also called private residence clubs) on the other hand, are here in Florida, in the Caribbean, Canada but more predominantly in western states like Colorado, Arizona, Utah and California.

The rental program typically applies to condo hotels, but may apply to some fractionals. If you purchase a unit and place it in the condo hotel program, it is maintained for you, marketed for you and rented out for you by the hotel management. You share the revenue, typically on a 50-50 basis or some other formula. Each property is different.

Condo hotels are typically studios, one and two bedroom units, but fractionals are typically luxury 2-5 bedroom private homes.

One more key difference. If you own a condo hotel, you can pretty much use it as often as you want and whenever you want. If you own a fractional interest in a private residence club, you are only guaranteed a set number of days (usually no more than 90 days) in which to use it each year, although you may have some other opportunities to use the residence depending on availability.

The above question was submitted via e-mail by a visitor to www.condohotelcenter.com. The answer was prepared by Joel Greene, a licensed real estate broker with Condo Hotel Center which specializes in the sale of condo hotel units and fractional ownerships in private residence clubs.