Luxury mixed-use hotels and resorts
Over the last decade a growing number of hotel developments have successfully launched various residential 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, The 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 developers experience from developing mixed-use hotels and resorts rather than hotel–only projects include :
Resort residential product types
Higher profitability of the overall development project and operation
Diversification of revenue streams
Generation of early project cash flows
Stability of operational income streams and more efficient cost management
More compelling investment scenario for capital providers
Residential products within mixed-use hotels and resorts can be structured in four main product categories :
The traditional residential real estate product where the residence is used solely by the owner or his/her immediate family. The owner benefits from hospitality services provided by the hotel operator, who is also maintaining the common areas of the residential real estate.
Like in Private Ownership, the residence is purchased by the buyer in its entirety but is furnished and managed by the hotel operator as a part of the hotel inventory. The owner can have access to personal use of his/her residence 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 and Private Residence Clubs
Fractional Ownership and Private Residence Clubs are resort real estate products where each residence is acquired by 4 to 12 different owners. Each owner can access their property through a specialized reservations system which shares fairly the use of the residence between the owners. An optional rental programme is often available through the hotel operator who manages the residence as a hotel apartment or villa under their hospitality brand. Well-know Fractional Ownership and Private Residence Club brands include The Ritz-Carlton Destination Club, Grand Residences by Marriott, Fairmont Heritage Place and Four Seasons Residence Club.
Vacation Ownership and Timeshare
In Vacation Ownership each residential 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 residence type or in 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 vacation clubs such as Marriott Vacation Club, Hilton Grand Vacation Club or Club Wyndham.