A membership concept in which a distinctive bundle of services and amenities are offered and provided to members/owners of a high end real estate development; typically second homes or condominium resorts in which the members/ owners have a fractional/interval ownership interest. Shares of the fractional ownership interests are generally 1/4th 1/13th of full interest in a given parcel or unit. Ownership of each fractional interest is usually evidenced by a deed representing a fee simple fractional interest in a specific housing unit, plus an undivided interest in the common areas. PRC’s generally offer and deliver services and amenities consistent with high end vacation resort hotels but generally not found in traditional time share resorts. Examples of such services and amenities found in PRCs are: bell/luggage service, valet parking, ski storage (where appropriate), room service, daily housekeeping, year round storage of personal property, concierge service and vacation planning services. PRCs are further defined by the ‘‘Club’’ rules and regulations, unique to each PRC, that govern the reservation process, owners association and associated fees of membership in the PRC. It should be understood that a private resident club is not a timeshare due to the percent of interest in the underlying real estate which is drastically higher in terms of ‘share’ than is the timeshare product because the typical timeshare is sold as one week out of 52 weeks for a 1/52nd interest.
Ferry, Hobson, & Associates (2003). Industry overview of luxury fractional and private residence club. Land Use Economics, October 2000.
Ragatz, & Associates (May 2003). Fractional interest symposium, Boca Raton Florida.