Private Residence Clubs
Owners of luxury fractional property buy a share of a single residence, that provides them with a couple of weeks to thirteen weeks of usage a year. The ownership period varies by development and can be expressed as a fraction (eg 1/10, 1/8, or ¼) or as a number of weeks (eg 5, 6 or 12 weeks). Private Residence Clubs are the upper tier of the luxury fractional market, providing all the services of a five star hotel together with the ownership. There are hundreds of fractional and Private Residence Club developments located in city, beach, mountain and resort destinations. Sitting comfortably in the upper tier of the luxury fractional market, Private Residence Clubs are the seamless combination of a five star hotel-level of service with all the advantages of home ownership.
For many, traveling to a place that feels like a “home away from home” is the most relaxing vacation. However, it’s still nice to experience the luxury and services that a first-class hotel provides. Is it possible to have both? Yes. A private residence club (PRC) combines vacation home ownership with boutique hotel amenities and services. Each PRC residence is furnished at the same level as a first-class hotel.
What Is the Purchase Price and Annual Cost?
According to the 2018 Ragatz Associates report, the average price per share for all active private residence club developments is about $234,225, ranging from $163,500 for a studio to $472,000 for a four-bedroom residence. However, at the Timbers Kauai PRC ownership can be as much as $810,000. It shouldn’t be a surprise that PRC pricing varies depending on the number of owners per residential unit, location, size, type of property, and the services and amenities that are provided.
For comparative purposes, annual fees for private residence clubs can be calculated on a per-week basis to normalize the fees among different sizes of ownership shares, e.g. six owners per unit versus ten means eight weeks per year versus five. Annual maintenance fees average to $1,975 for PRCs, but can be as low as $925 for studios and as high or higher than $2,800 for four-bedroom units.
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