Private residence clubs: A new concept for second home ownership

The resort industry is entering a period of explosive growth, and luxury fractional second homes, also called private residence clubs (PRCs), are the latest craze in the continued evolution of the resort industry. The market is currently untapped and is demonstrating pent-up demand. The PRC appeals to affluent vacation homebuyers who are reluctant to invest a substantial amount of capital in a second or third home that receives infrequent use. A PRC offers a viable alternative to whole ownership for these buyers. This paper describes fractional resort products in their current evolutionary cycle. Included are the key features of a luxury fractional home that set it apart from traditional timeshare and fractionals positioned in the low or moderate tiers of the market. The concept and function of a PRC, the product features that meet the needs of a sophisticated discerning consumer and emerging trends in the industry are addressed in this paper.