Frequently Asked Questions

What is a Residence Club?

The Private Residence Club concept, while conceived only a decade ago, has become the fastest growing segment of the luxury second home market. Most domestic five-star hotel groups (Ritz-Carlton, Four Seasons, St. Regis, Rosewood, Auberge) are either developing or actively planning the development of Residence Clubs.

A Residence Club offers its members the ability to pay for and own only that portion of a luxury vacation home they use. With its unique reservations system, a member can use their Residence Club whenever space is available much like members reserve tee times at their private golf club. These Residence Clubs additionally offer their members superior levels of hotel services and amenities.

Where are the best locations for a Residence Clubs?

Resort or urban settings where there is a strong demand for luxury vacation homes and/or strong demand for luxury hotel offerings. A site on an amenity such as a beach, golf course or spectacular view is preferable. Resort areas with land scarcity and a difficult entitlement process are particularly attractive.

Why do Residence Clubs appeal to developers?

A developer can build luxury real estate product, expect high occupancies and avoid the stigma and regulatory hurdles that a typical timeshare development presents while experiencing significant profit margins.

Why is a Residence Club development more than just construction of luxury condominiums?

The success or failure of Residence Club developments have hinged on the design of the club facilities, the membership structure, the membership usage program and the implementation of the marketing/sales program. There is no “cookie cutter” plan from which all Residence Clubs can be designed. Each potential Residence Club development location presents individual opportunities and challenges.

Who are the purchasers of Residence Club memberships?

The average age of a Residence Club member is 40 to 55. The average member has an annual income in excess of $250,000 per year and a net worth in excess of $3,000,000. They typically already own a vacation home or aspire to own a vacation home.

What has been the history of Residence Clubs?

The first fractional private residence club (Deer Valley Club) was introduced in 1992. Since then, approximately 60 Luxury Residence Clubs have been constructed and an estimated 40 more are under construction or in the active planning stages.

What is the first step in evaluating the potential of Residence Club development?

An experienced Residence Club development advisor can make an initial assessment of the potential of a location in a day or two.


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