Luxury mixed-use hotels and resorts
Over the last decade a large number of luxury hotel developments have successfully launched different Leisure Real Estate products integrated with the traditional hotel business. Many of these hospitality developments are managed by professional hotel operators such as Four Seasons, Mandarin Oriental, Fairmont, Ritz-Carlton etc. Larger mixed-use developments also include additional business generators such as golf courses, spas, convention centers, retail outlets etc. obtaining significant economic benefits and synergies.
The benefits that the hospitality developer/investor often experience from developing mixed-use hotels and resorts rather than hotel–only developments include :
Leisure Real Estate product types
The following leisure real estate products can successfully be added to hotel development projects :
The traditional real estate ownership product where the owner benefits from hospitality services provided by the hotel operator. The real estate unit is used solely by the owner or his/her immediate family and friends.
An ownership form where the residence, like in Private Ownership, is purchased in its entirety but is furnished and managed as a hotel room by the hotel operator. The owner can have access to personal use of his/her unit through a reservation system and the remaining time is rented out by the hotel operator, who shares a part of the rental income with the owner.
Fractional Ownership / Private Residence Club
Fractional Ownership is a fast growing real estate product concept where each residence is acquired by 4 to 12 different owners. Each owner can access their property through a specialized reservations system sharing fairly the usage between the owners. An optional rental programme is often available through the hotel operator who manages the residence as a hotel room under their hospitality brand. Fractional Ownership is sometimes referred to as Private Residence Club such as the Ritz-Carlton Club, Fairmont Heritage Place or Four Seasons Residence Club.
Vacation Club Ownership
In Vacation Ownership each real estate unit is sold in weekly intervals i.e. 50 owners per unit (keeping 2 weeks available for maintenance purposes). The intervals can be sold with different types of reservation systems such as fixed or floating weeks, fixed or floating unit or a points based reservation scheme. Almost all Vacation Ownership products are affiliated to an exchange programme or form a part of a branded hospitality group's club structures such as Marriott Vacation Club, Hilton Grand Vacation Club or Wyndham Vacation Club. Vacation Ownership is sometimes referred to as timeshare.
Club Programmes and Lifestyle Benefits Owners of Leisure Real Estate products are often offered a membership of a Club which provides high end services relevant to the ownership such as exchange services, concierge services and other club benefits. This Club will often be responsible for the overall management of the residence allowing the owner a hassle free operation of his/her ownership.