Is The Fractional Sale Model An Option For Your Resort or Multi-Unit Development?
Throughout the world, many hotels, resorts, and multi-unit developments have the potential to incorporate a fractional ownership component and more and more developers are considering offering some or all of their units on a fractional ownership basis. Lifestyle Fractions Pty Ltd and its associates are able to assist you in determining whether offering some form of fractional ownership product is a viable option for you and your project.
Our consultancy services can assist you in determining:
- When to consider the possible inclusion of a fractional offering?
- Fractional ownership feasibility
- The optimum usage plan for the fractional project
- The legal framework for selling fractional ownership interests
- The price points & likely sales pace for fractional interests
- The fractional project development costs
- Any additional resources needed for a fractional offering
- The ancillary benefits for inclusion within a fractional ownership component
- The sales & marketing budgets
- How best to provide trained sales staff for the fractional project
Selling fractional ownership can be a beneficial marketing approach, even for properties that are not selling well as whole ownership. As the sense of panic created by recent global economic calamities subsides and recovery gains momentum, more and more people are likely to view fractional ownership purchase as a less expensive and lower risk alternative to whole ownership, and a superior alternative to vacation rentals and hotels.
Nevertheless, fractional ownership developments can be challenging to create and will require unique sales & marketing skills and are not appropriate for all properties. It is essential to carefully assess the viability of any potential fractional interest project before investing significant time & resources.
Global Industry Comments
“More consumers, developers, and governments today understand the fundamental concept of fractional ownership. Today, additional developers are embracing the concept due to the current economic slow down hindering their ability to sell whole units.”
David Clifton, Managing Director, EMEA, Interval International (www.intervalworld.com)
"Anyone who is seriously involved in leisure, hospitality and mixed use property development, should be considering fractional as part of the offering.”
Eric Gummers, Partner, Howard Kennedy (www.howardkennedy.com)
“Despite the economic downturn, we have heard many success stories in 2009 and I believe that we will experience a steady and positive growth in 2010. Our developer clients are expanding their activities into new and more innovative products, with a fast-growing interest in fractionals”
Veranne Wilkinson, Managing Director, Citadel Trustees (www.citadeltrustees.com)
"Within 10 years the fractional market will be bigger in Europe than the United States"
Peter Kempf, President and CEO, Kempf International (www.kempfintl.com)