As promised here are the 10 criteria I use to evaluate the viability of a proposed fractional project. A project should meet 8 of the 10 criteria in order to get a “green light”. I am grateful to Ed Mcmullen Jr. for his insight and experience in regard to these criteria.

1) A+ destination and location! Is the demand greater than supply? Vibrant second home market.

2) Is there a high barrier to entry in the marketplace? With $600 per sq. ft. whole second home ownership

3) Does property contain space onsite for core amenities, activities and services?

4) 30+ weeks of seasonality and if less then clearly defined seasons for fraction size

5) 70+% of the defined market is a return guest/property owner 3 or more times each year.

6) 70+% of the target customers (2 million annual visitors) must be within a 3 hour travel (Car or Plane)

7) Rental of comparable product must exceed $300 per night.

8) Exclusivity can be validated beyond the sales message.

9)  Intercept Marketing venues must predominantly touch target customer  (Incomes of $150,000+ with an affinity for the destination) (Prefer customers who have owned a second home before)

10) Developers have strong financials, partners and committed teams ….and…patience.

Welcome to the premier posting on my blog site. It is my hope that this can be a forum where there will be a beneficial exchange of information about Fractional Ownership and Private Residence Clubs. It is truly an idea whose time has come. I am getting more calls than ever before about the opportunities and benefits that Fractional Ownership offers both developers and consumers. Admitedly the current market conditions have a lot to do with the increase in interest. Whatever the reason, it is great time to be in this arena. In the very near future, as soon as I get some time, I will be posting or archiving articles that I have written. The first thing I am going to post are the 10 criteria that I apply to a proposed Fractional project. Please look for it in the next few days.

I will also be highlighting fractional/PRC projects that I am currently involved with on a consulting or marketing and sales basis. As a matter of fact included here is a photo of a 10,000 square foot Estate Home oceanfront in Costa Rica that I am heading up. Playa Langosta Private Residence Club is going to be offered in a 1/8th fraction with usage one week every other month. The web site will be ready in a week or two and then we’ll take reservations….So, stand by for more.

Until next time,

Promoting the best in the resort development industry

Tom