New Fractional Ownership Properties to Open in Florida

Florida is the most sought timeshare vacation destination in the United States. The vacation ownership industry is responding to consumer demand with plans to build some fabulous new properties. Here's a peek at what the future holds.

Watson Island on Biscayne Bay off the coast of Miami will be the home of 105 new fractional ownership residences. Hong Kong-based Shangri-La Hotels and Resorts is in the process of developing a 10-acre site on the island with a 147-room hotel, suites and poolside villas. The Residences at Island Gardens (left) will be housed at the top of an impressive 39-story tower designed to resemble a stylized lighthouse. One- to four-bedroom units will be offered in 1/8 shares at prices ranging from $195,000 to $765,000 per fraction.

Designed by architects Eric Kuhne & Associates with interiors by renowned Piero Lissoni & Associati, residences will feature floor-to-ceiling, wall-to-wall windows with fabulous views of Miami's skyline and Biscayne Bay. Sangri-La's signature beds and bed linens, luxury bathrooms, wireless internet service and 24-hour butler service are among the planned amenities.

The Shangri-La hotel is part of the $480 million mixed-use Island Gardens project being developed by Flagstone Property Group. Expected to open in 2010, planned features include sophisticated shops and restaurants and a 50-slip super-yacht harbor in a galleried garden setting.

Hyatt Siesta Key Beach Residence Club will rise in place of the demolished Sea Castle motel on the beach of Siesta Key near Sarasota. Hyatt Vacation Ownership will break ground on the 6-story, 44-unit vacation ownership property this spring. Phase I of the Triton Companies development, with expected occupancy in 2009, will offer 11 luxuriously furnished residences of 1,600 to 2,600 square feet to be sold in 1/8 fractional shares at a cost of $200,000 to $750,000.

Like most Hyatt properties, the Siesta Key will offer hotel-like amenities such as full-time front desk and staff, concierge services, pool, fitness center, spa, massage and valet parking. Fractional owners will enjoy privileges at an adjoining beach club.

Understanding Vacation Ownership Lingo

If you're new to vacation property ownership, you may find the language confusing. Timeshares, fractional ownership, vacation clubs: What do they mean and how do you tell them apart? In choosing the vacation home best suited to your lifestyle needs, budget and vacation goals, it's important to understand the terminology. Timeshare Giant is here to help.

• Timeshares include deeded property, right-to-use and points-based programs. Owners purchase one-week intervals at a property on either a fixed or floating calendar. Properties range from studios to multi-bedroom villas with many timeshares located at resorts that offer a wide variety of amenities. In addition to the one-time purchase price, owners pay an annual property maintenance fee.


• Fractional ownership is the shared purchase of a vacation property with other parties. Each buyer is allotted use of the property commensurate with the portion (fraction) of the property purchased. For example, 50% ownership would allow you to use the property for 6 months out of the year. Fractional properties are generally affiliated with high-end hotel companies so owners enjoy personalized services and other luxury amenities. In addition to the purchase price, owners pay an annual property maintenance fee.


• Vacation club members do not purchase actual property, instead their membership fee and annual dues buy them the right to use any of the vacation properties owned or operated by the club company. Club companies offer members a wide range of vacation properties, most with concierge services.


• Condo hotels sell a portion of their room inventory to the public. For an annual fee, owners may use their room for vacation purposes, corporate housing or rent it to generate income. Rentals are typically managed by the hotel, though proceeds go to the room owner. Buyers and their renters or guests enjoy hotel services and amenities.

Private Residence Clubs Take Timeshare Living To a Whole New Level

Like a timeshare, people purchasing ownership in a Private Residence Club (or PRC) are buying into shared real estate.

Sometimes PRC owners are people who considered purchasing a second home, but decided that it might be better to go for partial ownership in a PRC. Although PRC owners still pay annual fees, that is nothing compared to the cost and effort of having a second home. If you were to buy a second home with features like a pool, spa, and tennis courts, it would be your responsibility to maintain the grounds. PRCs have the features and you can use them without being burdened with upkeep. Buying PRC membership gives you the luxury of having a vacation home minus the more time-consuming aspects of ownership, leaving you more time for fun and frolic!

A typical PRC offers:

Extended stay
A PRC owner may get 4-5 weeks during peak season and this time must be reserved in advance. In addition to this, each owner is eligible to bid on the weeks that remain after all of the owners have reserved their guaranteed vacation time. Depending on how your PRC is operated, you may be able to allow family or friends to take advantage of some of your vacation time if you find that you are not able to use all of it.

Exclusivity
You can expect top-notch, five star hotel service from the staff at your PRC. They often have a very nicely equipped clubhouse and concierge services. For example you may get assistance with making dinner or theater reservations, grocery shopping, same-day dry cleaning, and setting tee times. Many PRCs offer year-round storage and will ready the unit before your arrival.

Your unit in a PRC comes fully furnished, and of course PRCs are exquisitely furnished, so there is no need to work about that. In fact, while staying at a PRC, your worries are few since a dedicated staff is on hand to make arrangements for you and assist with daily tasks.

Persian Gulf Fast Becoming Timeshare Vacation Mecca

Americans may not consider the Middle East a vacation hot spot, but luxury tourism is flourishing in the Persian Gulf region. The second annual Middle East Leisure Real Estate Symposium just concluded in Dubai, vacation mecca of the Middle Eastern elite. Hosted by timeshare giants Group RCI and NorthCourseSM Leisure Real Estate Solutions, the symposium gave Middle Eastern developers a master class in leisure site development with "access to some of the best brains in the business," said Claude Attala, Managing Director of NorthCourse's Dubai division.

The timeshare and fractional ownership industries in the Persian Gulf region are expected to surge over the next decade, bringing in revenues of $1.2 billion. Recent research shows that 68% of Persian Gulf nationals are interested in purchasing timeshares or fractional ownerships.

Diamond of the United Arab Emirates, Dubai is perhaps the most elite tourist destination on the Persian Gulf. Once the unassuming home of Bedouin traders, the modern gem is an eclectic and exciting mix of the new and old. Its ultramodern skyscrapers thrusting into the clear blue Gulf sky, Dubai's storied beaches and throbbing nightlife beckon the rich and chic of the Middle East, Africa, India and an increasing number of Europeans. Westerners will feel at home in the modern city where English is as easily spoken as Arabic.

Drawn by Dubai's renowned tax-free shopping, tourists browse chic shops of all kinds from high couture fashions to high-end electronics. The pristine beaches and clear turquoise water of the Persian Gulf make Dubai a top water-sport destination and world-class diving center. At the Nad al Sheba racetrack you can bet on camel races by day and sleek thoroughbreds at night. More than 400 restaurants showcase Dubai's ethnic diversity. Gorgeous golf courses, beautiful beaches, premium shopping, exciting nightlife, pampering spas and fascinating historic sites provide tourists with endless choices in Dubai.

Shown at top right is Dubai's famous Palm Island, home of the exclusive Royal Club at Palm-Jumeirah, a premium timeshare destination.

What Is a Fractional Timeshare?

Fractional timeshare ownership guarantees you the use of a timeshare property or resort during several weeks of the year -- that is, for a fraction of the year. Typically, fractional interests range from a minimum of 2 to 13 or more weeks per year, far more than the one week per year common in most timeshare plans.

Many owners choose to purchase a fractional timeshare as opposed to a second or vacation home. With fractional ownership, you need only pay for the time you actually plan to be in residence, a considerable savings over purchasing a second home, which generally goes unused for a considerable portion of the year. Whether you're in residence or not, you pay to maintain, heat, insure and provide utility services for a second home. With a second home, you also pay for mortgage and taxes for a full year. With a fractional interest in a timeshare, you share all those expenses with other owners, prorated to reflect the actual fraction of the year the timeshare is available for your exclusive use.

Fractional ownership originated in the U.S. in 1994 with groups of family members or close friends pooling their resources to buy vacation properties. The average fractional owners are married empty-nesters in their mid-50s with an average household income of $500,000. Generally, ownership is divided into fourths, eighths or 13ths with each owner enjoying an equal number of weeks at the property. With fewer restrictions than most timeshares, fractionals can be rented out, shared with family and friends, sold or left to your heir in your will. Like timeshares, fractionals can be exchanged, allowing owners to vacation in other locales.

Fractional ownership offers vacationers some distinct advantages, including the opportunity to vacation longer and more often and the opportunity to vacation in multiple seasons. Many fractional owners enjoy the seasonal delights of both summer and winter at their timeshare.