A: The Private Residence Club concept, while conceived about 15 years ago, has recently become the fastest growing segment of the luxury second home market and vacation ownership experience. Most domestic five-star hotel groups through their various operating entities such as Ritz-Carlton, Four Seasons, St. Regis, Rosewood and Auberge as well as a number of smaller real estate groups are active in the development of Residence Clubs. A Residence Club offers its members the ability to pay for and own or use 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 a combination of superior services and amenities that are not available with hotels, second homes and other vacation offerings.

A: The first fractional model private residence club (Deer Valley Club) was introduced in 1992. Since then, approximately 300 Luxury Residence Clubs have been constructed, are under construction or in the active planning stages. In the past two years, the number of sales for these types of properties has accelerated with growth between 30 – 40% annually, to over $2 billion. The majority of existing residence clubs are located in the United States but international expansion is occurring most rapidly.

A: Resort or urban settings where there is a strong demand for luxury vacation homes and/or strong demand for luxury hotel offerings. A site with a desirable nearby 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.

A: Residence Club developments offer a host of benefits that condominium complexes or buying a vacation home don’t offer. It is in part the design of the club facilities, the membership structure, the membership usage program in addition to the how certain fees are allocated. There is no “cookie cutter” plan from which all Residence Clubs have been designed. Beláire Golf Resort and Spa under the The Luxury Experience – Private Resort Collection brand believes it has the newest concept in a Private Residence Club offering given the richness of benefits, the most spacious and luxurious suites all at the right price.

A: The average age of a Residence Club member is 40 to 60. They typically already own a vacation home or aspire to own a vacation home. They take at least two weeks of vacation a year and want more out of their vacation then just a place to stay. For the properties we are developing in Mexico the largest percentage of our buyers are from the U.S. and Canada.

A: No. While there are some similarities, there are far more differences as it relates to the clients, services offered and membership benefits included in a Private Residence Club. Beyond that, a substantial difference also exists in the size and quality of properties in such clubs. Private Residence Clubs rival 5-star hotels in terms of quality and services but offer living quarters larger than most single family homes.