Here is a list of terms, phrases and titles commonly used in the industry:
Condo Hotels – The Condo Hotel model can be applied to several types of property including accommodation types from hotel rooms and suites to apartments, townhouses and villas. The basic model involves the sale of property which is actively managed by a separate company that contracts the services of a hotel company to market the accommodation and provide services to guests. In all cases, there will be some split of rental revenues between the hotel operator and the individual property owner, either on a pooled or separate asset basis.
Destinations Clubs – Most Destination Clubs are non‐equity based. They are generally positioned very high up the quality scale and the properties tend to be fully serviced individual homes rather than properties that form part of a larger resort environment. There is a high degree of lifestyle benefits and services incorporated into Destination Club membership and they generally offer the return of a percentage (typically 80%) of the initial membership fee should the member decide to leave the club.
Exchange Company – The system that allows timeshare owners to trade the accommodations they own for comparable accommodations or travel-related services. Most resort companies are affiliated with an exchange company. Many resort companies offer an internal exchange mechanism that allows owners to exchange to resorts within their company’s portfolio of resorts.
Fixed Week – A type of timeshare ownership in which usage rights attach to a specific week of the year each year in perpetuity.
Floating Week – A type of timeshare ownership where the use rights are subject to the owner reserving his or her week within a season purchased (winter, summer, etc.) or sometimes throughout the year. A year-round “float” is most often found in resorts with similar seasons, like Hawaii or the Caribbean.
Fractional Ownership – Fractional Ownership allows multiple buyers to acquire an interest, whether equity or otherwise, normally in a luxury property and to collectively enjoy the benefits thereof, whilst sharing the annual management costs. A Fraction can vary from two weeks, to a quarter, eighth or to a twelfth and gives the owner the right to stay in the property [which may or may not be part of a larger resort environment] for the corresponding segment of the year, generally on a rotational basis. Fractional Owners usually have a direct interest in the value of the asset and are likely to benefit from any appreciation in the property value.
Points – A “currency” that represents timeshare ownership and is used to establish value for seasons, unit sizes and resort locations. Points are used by some developers for both internal and external exchange.
Private Residence Clubs (PRC) – Although similar in concept to the traditional fractional ownership, PRCs are often associated with a five star or hotel luxury brand. A PRC is usually either a “stand alone” development or can be part of a mixed use resort development. The interest sold in the properties generally represent an interval of time of more than two and less than 12 weeks and the nature of the assets and the members is consistently at the upper end of the price/ quality scale. Located in all the prime vacation settings (beachfront, mountain, leisure resort, vibrant metropolis), PRCs offer luxury apartments and freestanding houses, combined with a lifestyle element including services such as pre‐arrival and on‐site concierge, private lounge, daily maid service, in home catering, etc.
Traditional Timeshare/Vacation Ownership – Traditional timeshare allows individuals to acquire a long-term interest in a specific property or range of properties. This interest is normally an interval of time that covers seven nights’ accommodation [or multiple of] in a particular accommodation type and will either be a right to use the accommodation or a right in Real Estate Management that can be registered publicly. Because of the long term nature of this model, the assets are normally subject to some form of protected legal ownership (e.g. a trust) so that the interests of the individual club members are protected for the life of their ownership.
Source: Resort Development Organization and ARDA 2009