Fractional ownership of vacation homes, also called private residence clubs, allows owners to enjoy up to three months of home ownership privileges at a top-of-the-line, luxury resort but at a fraction of the cost of whole ownership. It is ideal for people who want the benefits of owning an impressive second home complete with personalized services and located in a very exclusive community but can't justify the investment because of limited use.
Unlike a hotel residence which has only one owner, there can be as many as four to six owners for a fractional home. Therefore, fractional owners must reserve use of their home for the dates they want and may need to take other owners’ schedules into consideration.
Also, most fractionals are located in resort areas and cater to the vacation traveler. Most hotel residences are located in major cities and cater to the business traveler.
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.