Fractional is the new high-end product
Published May 15, 2006 - (Updated Sep 8, 2015)
Featured in Vallarta Lifestyles Magazine, Spring/Summer 2006 issue.
Of a recent real estate conference in Mexico City, local developer Miguel Angel Lemus says, “I discovered the new evolution of the real estate market, how it’s moving toward a new phenomenon that combines lodging elements.” The Luxury Market Symposium, sponsored by corporations such as The Registry Collection, Cendant, Bancomer, RCI and The Four Seasons Hotels and Resorts, was the first of its kind in Mexico. Through seminars, round tables and panel discussions, investors, designers, sales and marketing directors and service providers were able to sink their teeth into the emerging concept of fractional ownership. “It’s still quite new in North America,” says Lemus, one of the panel speakers. “In fact, even here in Puerto Vallarta there are only a handful of projects geared toward the high-end concept.”
Combining elements allows the consumer access to travel by jets and yachts, as well as to properties in deluxe locations such as Aspen, Vail, Cabo San Lucas and, now, Puerto Vallarta, among others. “What these clients desire is the full-service hotel experience they have come to appreciate. Based on availability, this ownership program allows residents to spend time, typically about a month per year, in a destination of their choice. They can trade on a point-system for jet travel or time on a luxury yacht, as well as stays at other locations involved in the exchange.” The only fees involved in handling exchanges are maintenance costs and other products consumed by the resident.
But Lemus explains what really makes it work, “This is a deeded product. It stays in the family and becomes part of the family legacy. It can be sold, traded, rented and exchanged.” While normally any new property must be furnished, managed, rented and maintained, these costs are built into a fee paid as maintenance. A reservation system allows world-wide access to any property within the collection. The leisure market is moving toward the high-end product, where buyers can access something that is not quite yet within their price range, giving them immediate cachet.
Additional speakers included John McCarthy, general director of FONATUR (National Trust for the Development of Tourism in Mexico), Enrique Rodríguez Rocha, international banking consultant, Vincent Hoogewijs, general director of Four Seasons Hotels and Resorts in Mexico and numerous CEOs, financial directors and marketing professionals. See www.luxurymarketsymposium.com for further details.
Who to contact for fractional ownership in Vallarta:
A quién contactar para adquirir propiedad fraccional en Vallarta:
La Estancia, Villa Group (322) 297-5560 www.villagroup.com
Four Seasons Beach Club (329) 291-5159 www.puntademitabeachclub.com
Paradise Village (322) 226-6770 Ext. 6164 www.playaroyaleresidenceclub.com
Punta de Mita Beach Club & Spa (329) 291-5159 www.puntademitabeachclub.com
Vista Vallarta (322) 221-3727 / -28 www.vistavallartaresidences.com