• As Investments
• Condotels Rental Policy
• Condotel Fractionals
• Condo Hotels vs. Traditional Condominiums
• Converting Existing
• Living Restrictions at Condo Hotels
• Personalizing Your Unit
• Renting Out Your Unit
• Management Company
• The Appeal of Connecting Condo Units
• Condo Hotels- Who’s Buying and Why?
• How Condo Hotels Rental Programs Work
• Florida Condos
• Press Release

Condo Hotels and Fractionals - What’s the Difference?

Fractionals or fractional shares are often confused with vacation properties such as condo hotels and time-shares. There are some comparisons, but fractionals are unique in many ways.

Fractionals, aka private residence clubs, are like condotels in that they can be rented for use when not in use by owners. Like condo hotels, fractionals are viewed as a vacation place purchase. But one difference is the exclusivity and expense is greater for fractionals. They are normally private homes located in extremely exclusive areas.

Fractionals are sometimes offered as studio and one-bedroom units, but the majority are larger with multiple bedrooms, family meeting areas, swimming pools, and outdoor recreation areas. The expense for these properties is often so great, it must be shared by a small group of individuals to be affordable.

Fractionals are typically divided into shares like a timeshare, but for a smaller group of four to eight, which makes time arrangement less competitive. Contracting with other owners is not a requirement, but makes fractionals more affordable.

Like condo hotels, fractionals have become one of the fastest growing sectors in the industry of timeshares. They were first popular in ski resorts like Colorado, but quickly spread to beach communities and other parts of the country.

Fractionals include many of the same benefits as condo hotels such as favorable bank financing due to their being viewed as vacation place purchases, and the option to upgrade to larger residences for buyers who may later choose to do so. For some units, buyers can transfer timeshare to other properties. Also, buyers do not have to worry about maintenance, repairs, and other responsibilities that come with home ownership.

Fractional properties are some of the most well maintained properties around. Although prices are expensive, some find fractionals to be too appealing to resist pouring their hard earned dollars into.