Fractional Ownership 

Fractional Ownership divides a property into more affordable segments for the owners. A fractional share gives the owners certain privileges, such as a number of weeks when they can use the property. Often, the property is sold after a pre-determined time, distributing the relative proceeds back to the owners. 

Private residence clubs sometimes function on a fractional ownership model. However, in many cases, membership in a private residence club grants to its member only the right to usage of the club properties and services, without ownership rights in the properties themselves. 

Another variation in the business model is what is called “destination resorts”. These are typically properties, whether hotel rooms, suites or freestanding villas located on property owned and managed by a hotel developer and which provide amenities typically expected of a higher class hotel or resort.