Since the launch of the first private residence club (PRC) in 1993, the high-end fractional real estate concept has gained considerable growth and consumer acceptance. The industry has accelerated from only six projects in 1996 to more than 75 PRCs today, representing an annual growth rate of more than 50 percent. With another 31 PRCs in various stages of planning and a reported $357 million in sales during 2002, the industry will likely claim a growing share of the resort real estate market.
The companies below are major industry players that in one way or another have contributed to the evolution, awareness and popularity of the world's most successful PRCs.
Dering, Elliott & Associates
DCP InternationalSM
Four Seasons Residence Clubs
Hobson Ferrarini Associates
Marriott Grand Residence Clubs
Ragatz Associates
Ritz-Carlton Clubs
DERING, ELLIOTT & ASSOCIATES
Dering, Elliott & Associates (DEA) is an award winning, full-service marketing and advertising agency based in Park City, Utah. DEA specializes in crafting advertising and marketing campaigns for a wide array of clients from high-end residential developments to world-class resorts and private residence clubs.
In the late 1980's, DEA served as the exclusive advertising agency for the Deer Valley Club, and has since launched some of the country's most prestigious residence clubs. Past and current DEA clients include Christie Club, Steamboat Springs, CO; Club Quinta Real, Huatulco, Mexico; The Mountain Club at Cashiers, Cashiers, NC; Northstar Club, Lake Tahoe, CA; Phillips Club, Manhattan; and The Residence Club at Teton Pines, Jackson Hole, WY. The agency also launched PRC exchange companies The Global Registry and Destination Exchange International.
DEA's provides strategic planning, corporate identity development, print advertising, brochure and collateral-material design and production, direct-mail campaigns, website construction, email marketing, and online advertising to established and start-up PRCs.
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DCP INTERNATIONALSM(DCP)
DCP InternationalSM(DCP) is a business-to-business consulting firm that specializes in advising developers and landowners on the design, marketing and selling of PRCs. DCP is considered one of the industry's pioneers - it conceived and introduced the world's first PRC, the Deer Valley Club at Deer Valley Resort in Park City, Utah.
DCP also consults on PRC operations, including management, maintenance, staffing, operating budgets, reservations and member services. DCP can assist in obtaining development financing, and the firm has an in-house advertising agency that produces collateral materials, websites and direct mail campaigns tailored specifically for PRC developments.
DCP helped launch PRCs in the following locations: Tucker's Town, Bermuda; Montego Bay, Jamaica; New York City, New York; Cashiers, North Carolina; Telluride, Colorado; Jackson Hole, Wyoming; Park City, Utah; Huatulco, Mexico; Napa Valley, California; Lake Tahoe, California; and Viti Levu, Fiji.
DCP is also the developer of the final phase of Christie Club in Steamboat Springs, Colorado.
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FOUR SEASONS RESIDENCE CLUBS
Four Seasons Hotels & Resorts sells deeded fractional interests in residence club villas. Residence Clubs in San Diego, California and Scottsdale, Arizona are in the second phase of sales. Another PRC in Jackson Hole, Wyoming is accepting purchase deposits, while presales for Punta Mita, Mexico will begin in summer 2004. Future destinations are in planning.
Four Seasons sells four-week interests, with multiple, half or quarter interests also available. Owners buy into specific seasons, dictating their annual access and the purchase price. Both seasons can be included in an ownership, depending on availability.
Owners have multiple use options including, exchanges to other Four Seasons Residence Clubs, reservations at resorts in the Interval International exchange network, or redemption for Four Seasons "currency," to be spent at select Four Seasons hotels or resorts. Reservations may also be split into one four-night weekday visit and one three-night weekend visit.
Four Seasons Residence Club accommodations are built with lock-off functionality, allowing owners to divide their villa into two separate units. Owners may dedicate the extra space for exchange or use it at a later date, thereby acquiring two weeks of use for one week purchased.
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HOBSON FERRARINI ASSOCIATES
Hobson Ferrarini is a market research and consulting firm that provides analysis and expertise in all facets of the real estate market: residential, multi-unit, office; retail, industrial, recreational, and resort.
Specializing in feasibility studies and strategic planning, Hobson Ferrarini's list of resort experience includes branded developments like Four Seasons, Club Regent, St. Regis, Rosewood and Auberge Resorts. Their clients include PRCs in destinations from the South Pacific to Europe, including Fiji, United States, Mexico, Costa Rica, the Bahamas, the Caribbean and France.
Hobson's resort experience includes extensive research on fractional products, both advising resort developers and publishing industry reports. Recently, the company formed the Hobson Ferrarini Advisory Group, which consults PRC developers on economic feasibility, business planning, development and project management, sales support and marketing strategies.
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MARRIOTT GRAND RESIDENCE CLUBS
Marriott International Inc.'s 18 different brands of travel and leisure properties cater to niche markets ranging from vacation resorts to business travelers and senior living communities. Recently, the hospitality giant launched the Grand Residence Club brand to serve the vacation home market.
Marriott Grand Residence Clubs are available in two locations: Lake Tahoe, California and London, England. Lake Tahoe ownership is evidence by a real estate deed, while ownership in the London development is "right to use," similar to timeshare.
Usage varies by location. Lake Tahoe offers 13-week interests with seasonal options that provide a predetermined amount of weeks in the summer, winter, spring and fall. London sells 1/12 fractional interests, which provide 21-28 days of annual use.
Marriott offers a Rental Management and Marriott Rewards® program that allows owners to collect rental revenues or visit over 2,100 Marriott hotels and resorts. Grand Residence Club owners also have access to the exchange privileges offered by Interval International.
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RAGATZ ASSOCIATES
Ragatz Associates offers market research, analysis, and consulting expertise in the resort real estate industry. Since 1974, the company has conducted almost 2,000 case studies for resort developments in 46 states and 56 countries.
Ragatz provides pre and post-development services including: Feasibility Analysis, Consumer Surveys, Focus Groups, Appraisals, Quality Assurance, Mystery Shopping, Resort Inspections, and Comment Cards. The company also publishes and sells market reports on the timeshare and fractional industries.
Since 2001, Ragatz has coordinated and hosted an annual industry symposium for PRC professionals. The seminar reports the latest industry statistics and trends, provides programming for speakers and discussion groups, and cultivates networking opportunities.
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RITZ-CARLTON CLUBS
The world-famous Ritz-Carlton brand is now displayed by PRCs in Aspen, Colorado; Beaver Creek, Colorado; Jupiter, Florida; and St. Thomas in the U.S. Virgin Islands. Ritz-Carlton has several more clubs on the drawing board.
Ritz-Carlton Clubs reflect the hospitality experience and management operations that began with Ritz-Carlton Hotels & Resorts. Club amenities and service levels also uphold the Ritz-Carlton reputation.
Typical Ritz-Carlton Club ownership ratios are ten-to-one or twelve-to-one, giving owners a minimum of five or four weeks annual use, respectively. Each club has its own reservation system based on seasonality.
In addition to lodging at their home PRC, Ritz-Carlton Club owners have reciprocal access to all current and future PRC locations - Ritz's substitute for affiliation with private exchange companies. Owners can also submit reservations to management for rental income or take advantage of special rates at other Ritz-Carlton properties.
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