Depending on location, number of bedrooms (usually two or three), and share
size, prices typically range from less than $200,000 to more than
$600,000—averaging about $1,000 to $1,300 a square foot. At more exclusive
locations, these prices may be higher. For example, at the newly opened St.
Regis Residence Club in Aspen, a 1/11 share (which equals four weeks of use a
year) runs to seven figures.
| A transaction balance sheet cannot account for pure love of a destination, contentment in a community, or the thrill of a new project. |
The services and amenities available to
members, however, truly differentiate residence clubs from other vacation
property options—particularly outright home ownership and time-shares. These
services typically include daily housekeeping, room service, valet parking,
priority tee times, baby-sitting services and free transportation, among others.
Resort staff stock units with our favorite food items and unpack clothing for us
upon arrival. At the end of each visit, the staff will pack and store such items
as skis, mountain bikes and golf clubs.
Savage was initially wary of
fractional ownership because he thought it would include some of the negative
aspects of time-share arrangements. “It is kind of like a time-share, and I
didn’t want any part of that,” he says. “But when you look at the amenities they
offer, like buying your groceries and washing your car while you are out on the
lake for the day, it is hard to turn down.”
Some fractional projects are
affiliated with an exchange service, meaning members can swap time with owners
in other locations around the world. Owners with a major brand, such as
Ritz-Carlton, enjoy priority exchange privileges within that company’s
portfolio. And if we ever tire of the place, we can sell our share, just as with
any other real estate holding.
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