I have never owned one.  I find the discussion interesting.  I talked with a well off gentleman once who owned some time shares.  What he told me is it was not a good financial investment, but it was a good investment in his life.  It kind of forced him to take vacations.

Fractional ownership works if the location and property is going to be your primary vacation destination, for example, Hawaii. But it depends on what time of year you're scheduled to share the property, doesn't it, so many factors must be addressed to accommodate your schedule?

Most people who own a fractional have flexibility with their time and can travel almost at will. However, with advanced planning, anything can be accomplished. IMHO, timeshares work for most consumers but not a fractional.

I think one question to ask yourself is what does today's consumer want? Everyone is talking about "Millennials" and what they are looking for and what concerns they have. The housing market is still a tough market to get into when you are currently renting and a lot of today's buyers saw what happened to their parents nest egg when the market collapsed. Some believe that owning a home is their highest priority wow others believe that renting is the way to go because they want to be more mobile and not tied down. That being said The young buyer might see fractional ownership as more attractive because it allows them to be more mobile. As far as timeshares go, I think they kind of had their day. I think the biggest problem is the consumer and what their expectation is with regard to a timeshare. Sure, the sales people give the pitch and suck people in, the consumer ends up buying it and then their complaint is never about the property it's always about the fact that they feel that they don't get the value because I don't use it or they can't take time off from work, etc. however, there seems to be a strong market for resales of timeshares at discount prices.

If I understand the concept correctly, with a timeshare you own a block of time but the building is owned by one entity.  With fractional ownership you own a piece of a a building and a block of time.  I have an issue with the whole concept of fractional interest.  How do you own a piece of a building and what happens when someone wants out?  The others have to buy them out.  Banks won't lend on a piece of something because the whole property must be encumbered.  Personally the concept does not appeal. 

Cash laden Marriott should be a good resource for you if you can open the door enough. Their efforts seem to be focused on the long haul as the market climbs. Is there a need for timeshares and fractionals? Not right now but eventually there will be once again.

John,

Funny you brought up Fractionals.  We were working with a company that was launching fractionals in luxury.  We started out with a Chateau type home in Vail, and had plans for several luxury homes throughout the US.  We had planned for real concierge service, cars in the garage, chefs, etc.  We developed a site, brochures, etc...

With the market being what it became, partners arguments, and the main guy left holding the bag, we dropped it.    You bought your partnerships at a good time, and you would need to do some research on this.   I am not sure if this would work today, as there is a whole lot of places to stay, and Air B &B has taken a big foothold in the market place.

When we went to Paris for a luxury conference with all the major brands, we stayed at an aparment that was magnificent in the 8th, a block from the President's home.  It was over 1200 square feet, beautifully furnished with free Wi-Fi, phone usage within France.  Our cost for 7 nights was $1500.  It was better than a suite at any of the best hotels in Paris. 

Our friend in Napa has a timeshare there, and as a result has had nice trips with those who reciprocate.  So I am positive based on his experiences, and at the same time, I would really have to see some data,  A

I only can tell you what I read about them in Florida and it's mainly pretty negative press.  Though, your ownership results may be better.

It takes a great sales person to sell these things.  Many who own them are glad they bought them, as long as they do not try to resell them.

I don't know much about timeshares, other than they can be bought cheaply on the secondary market, but I learned more reading these comments.

I haven't heard much about timeshares in recent years, compared to the 1970's.

John Arendsen - thank you for clarifying for me.  It is a concept I am not really all that familiar with since there are few such entities in my area.  I do know someone who is looking at doing something with fractional interest and I just can't fathom how it works.  I do know that from converstaions I have had with our local lenders, they won't lend on part of something.  I wish you luck with your project.