NEWH - April 2004 - (Page 33)

exclusive lifestyle by design... by: Carl Ross, Carl Ross Design, Inc. Since the mid 1990’s, there has been a quiet and slowgrowing segment of the timeshare industry of the hospitality market - fractional ownership resorts and clubs, the uppermost portion of the timeshare world. As an alternative to second home ownership, the fractional has emerged to occupy an elite niche which continues to redefine itself with each new entrant into the market. Ritz-Carlton, Four Seasons, Hyatt, Marriott and Hilton have long maintained brands within the luxury and upscale hotel markets, and their participation in the fractional market has brought a once-lacking level of trust, credence and stability to this developing vacation ownership arena. Spurring this redefinition is an evolving understanding of the fractional buyer’s demographics and expectations. These buyers are young affluent families with a discriminating palate for exclusive, high quality luxury accommodations in exotic, elegant locations, locations ranging from the soft sandy beaches of Hawaii to the snowcapped peaks of the Colorado Rockies. They desire unique, life enriching experiences. Fractional and upscale buyers value consistent quality, location, comparable quality to other properties, and credibility of the developer/operator. Current industry attitudes toward the Private Resort Club (PRC)/fractionals concept range from a conservative belief that the market is in its infancy and is just beginning to awaken, to the more robust Field Of Dreams view that we need only build fractionals, and the buyers will come! What is clear is that the development of this upscale segment is catching the eyes and wallets of more and more people, on all sides of the industry, from prospective affluent buyers to owners and operators, service providers and vendors. The single major similarity between timeshare and fractionals is that ownership of both of these products is divided into time segments. Specifically, timeshare is (most, but not always) 1/52nd of a year, with buyers purchasing one or more of these segments. Timeshare is clearly marketed as “vacation ownership.” Beyond this, fractionals and standard timeshare are significantly different. They differ in durations of stay, villa/residence sizes, pricing structures, financing styles and options, quality of accommodation, density of the development, services, on-site amenities, in-villa amenities, and sales and marketing costs, to name a few. Fractional owners typically purchase longer segments of time, from 1/7th, to 1/12th of a year, in contrast to the 7-14 day increments for timeshare. Fractional owners purchase one- to five-bedroom condominiums ranging from 1,100 to 6,100 square feet, and their investment can range from $675,000 to $9 million. In addition to full sized bedrooms, these residences are also designed to include elegant dining rooms, family rooms, spacious, fully appointed eat-in kitchens, his/hers master baths, full baths with every bedroom (including dual sinks, separate toilet compartment), libraries, dens, rooftop terraces, and staff quarters. In direct contrast, pricing structures for timeshare average $16,050 (weighted average per timeshare week sold) with $85,000 and up for more upscale timeshare. In terms of quality of accommodations, the differences continue. Fractional and upscale finishes and furnishings are nothing less than exceptional; owners can expect Valdora Mountain Lodge Member’s Lounge Photos courtesy of Carl Ross Design 33

Table of Contents for the Digital Edition of NEWH - April 2004

NEWH - April 2004
President’s Letter
Calendar of Events
Contents
From the Editor
Hospitality News
In Memory - Thomas R. Durkan, Sr.
Top Hotel Developers - John Q. Hammons
On the Road Again
HD Expo at a Glance
Surviving HD
Did You Know
Exclusive Lifestyle by Design
If It Were Easy
The Best of Time
Talk About Fast Track
What to Expect From the Vacation Ownership Industry
A Look Back in History
The New Direction for Timeshares in Europe
Confronting the Disabilities Myth
Furnishing Today’s Timeshare
Art - The Final Piece of the Puzzle
Showcase Projects
Design Education Today
Designer Profile: Esther Dunbar-Cullum
Oh Canada, Oh Canada
Top Awards
From Across the Pond
Spotlight On...
Tips on Specs
Window Treatments 101
Hot New Products
We Want Your Projects
Bios

NEWH - April 2004