Shared Ownership Trend Watch 2011: Elan Style

What exactly are "twinsumers" and "social-ites"? Ever heard of "urbanomics"? And what about the oxymoron, "planned spontaneity"?

These are some of the trends to watch in 2011, according to the forward-looking folks at www.trendingwatch.com. You can find the complete list of trends here, but The Élan Report is covering 5 trends as they relate to the shared ownership resort real estate industry: Urbanomics, Pricing Pandemonium, Social-ites and Twinsumers, Planned Spontaneity and Owner-less.

1. URBANOMICS:

Not a surprise to us, but urbanization will be a top trend--not only for 2011, but possibly for the next decade--as people move out of the suburbs and back into the cities, where they're seeking a lifestyle with easier access to employment, arts and culture, transportation, etc. "Urban consumers tend to be more daring, more liberal, more tolerant, more experienced, more prone to trying new products, and services," wrote Don Long of PMA Newsline. What does that mean for The Élan Collection, and for those of us in the shared ownership resort industry? It could mean offering more properties in desirable urban centers, such as Manhattan, San Francisco or San Diego. Or it could mean that future marketing must appeal to the refined and sophisticated tastes of urbanites.

2. PRICING PANDEMONIUM:

Although consumers have always kept an eye out for special offers and discounts, 2011 will usher in a new era of what Trending Watch calls, "Pricing Pandemonium." Since more consumers are constantly connected to their social media networks, they can quickly and easily spread the word about new deals and promotions online. Also, consumers will increasingly become part of exclusive networks or groups to receive those special deals. With the advent of Groupon and other like groups for the retail sector, The Élan Collection started offering Ultimate Escapes members a special 15% discount for shared interest ownership in Élan residences through November 30, 2010. We also offered a special summer discount promotion.

3. SOCIAL-ITES AND TWINSUMERS:

We already know that word of mouth and recommendations are part-and-parcel to any modern marketing strategy--regardless of the industry. "Twinsumers" are "consumers with similar consumer patterns, likes and dislikes and who are hence valuable sources for recommendations on what to buy and experience," according to Long. Meanwhile, "social-ites" are about discovery, i.e. they are online curators, "actively broadcasting, remixing, compiling, commenting, sharing and recommending content, products, purchases, experiences to both their friends and wider audiences," added Long. The Élan Collection recognizes the importance of word of mouth (as exemplified by our presence on Twitter and Facebook) to capture affluent audiences who are increasingly using social media. However, we also place a high value on recommendations and referrals. A survey by The Luxury Institute found that an overwhelming majority of wealthy consumers rely on ratings, reviews sites, trusted experts, as well as their own friends and family to facilitate purchasing decisions.

4. PLANNED SPONTANEITY:

Because lifestyles have become more fragmented in recent years due to urbanization (leading to more diverse activity choices) and smartphones (which make it easy to plan on a whim), 2011 will be the year of "planned spontaneity," says Trending Watch. "Consumers today want services that allow for "endless and almost effortless mass mingling with friends, family, colleagues or strangers-who-may-become-friends-or-dates," wrote Long. It isn't that much different for affluent travelers: ease of use remains at the top of their wish list. Planning luxury vacations has never been easier with The Élan Collection. Élan Owners can conveniently book their vacation through an online Reservation System. And since the properties are already built and lavishly furnished, owner-members can vacation at their Élan property as soon as the property closes escrow. But here is the best part: owners will have the option to exchange property use rights for equal time at any Èlan property of their choice...ensuring owners will never grow bored of vacationing in one locale.

5. OWNER-LESS:

2011 will be the year of "access," as opposed to full ownership, concludes Trending Watch. Why? "Traditional ownership implies a certain level of responsibility, cost and commitment," notes Long. Fractional ownership opportunities, such as those found at The Élan Collection, "offer the possibility of perpetual upgrades to the latest and greatest, the ability to maximize the number and variety of experiences, and allow consumers access to otherwise out-of-reach luxuries"--such as a beachfront palace in the Turks and Caicos. Now that is a trend we can (and will) get behind!

Do you agree with these trends? What other trends are you seeing for 2011? Please share them with us!

Sneak Preview: Elan's New Lake Tahoe Waterfront Estate

In anticipation of a full announcement of The Élan Collection's newest addition in Lake Tahoe, we thought we'd offer up a sneak preview of the waterfront estate in Zephyr Cove, Nevada.

Providing full lakefront access, this "unique treasure" of an estate features more than 5,000 square feet of sumptuous living space, four bedrooms, six baths, two lakeside decks, a private sandy beach, an office/study and a family game room with home theater. Stunning architectural design and details permeate the residence and are highlighted by a dramatic staircase and unique wall finishes. The functional floor plan is suitably designed to accommodate groups of all sizes. Élan owners and guests of this Lake Tahoe fractional residence will enjoy lakefront access as well as an outdoor living area graced by a bubbling hot tub, plus all of the amenities and services that come with The Élan Collection.

A total of 12 fractional shares will be offered within the residence, with fractional shares beginning at $650,000--the most affordable yet in The Élan Collection. More details will be available soon (keep checking www.elanprc.com for updates). To be among the first to take advantage of this exclusive offering, please contact Stan Tonkin, vice president of international marketing and sales for The Élan Collection: stonkin@elanprc.com.

The Elan Collection Extends Special Offer to Ultimate Escapes Members

The Élan Collection recently made headlines in Fractional Life and Destination Club News. An ultra luxury private residence club, The Élan Collection is currently offering Ultimate Escapes members a special 15% discount for shared interest ownership in all Élan residences until November 30, 2010. Ultimate Escapes members who want to find out more about this opportunity are encouraged to contact Stan Tonkin, vice president of international marketing and sales for The Élan Collection. He can be reached at stonkin@elanprc.com.

Fractional Life: Ragatz Half-Year Report Shows Positive Signs for Ultra Luxury Fractional Market

Fractional Life recently reported that fractional consultant Richard Ragatz has released a half-year report for the fractional and PRC market in the U.S., Canada, Mexico and Caribbean. According to the article, the "total sales volume in the shared ownership resort real estate industry (excluding destination clubs) during the first six months of 2010 was about $175.1 million," down from the same period a year ago. However, Ragatz also hinted that the market is showing small signs of recovery at the upper end.

"It appears that the bottom may have been reached and demand is beginning to pick up--at least at the high-end PRC level," noted Ragatz.

Fractional Life also reported that the "projects which achieved the most encouraging performance included those at the higher-price PRC level; those in Colorado and the Caribbean... and those in prime destination resort communities such as Aspen, Vail, New York City, Maui and Los Cabos."

What does this news mean for The Élan Collection? The company's Stan Tonkin, Vice President of International Marketing and Sales, had this to say about the report: "While we continue to watch the overall shared ownership market's activity closely, we are buoyed by the Ragatz Report's findings for a number of reasons. First, we operate at the upper echelons of the luxury market--which have not been as impacted by the recession. And secondly, we are adding properties in many of the prime destination resort communities mentioned by Ragatz. So we feel particularly optimistic about the opportunities for The Élan Collection moving forward."

The Élan Collection recently added a modern, 14-acre riverfront property in Aspen to its portfolio, which already includes a stunning private estate on an acre of prime beachfront in the Turks and Caicos Islands. The Élan Collection is also currently searching for the most desirable properties in New York City, Hawaii, Cabo and Montecito, Calif.

Best Places for Holiday Travel

In the November 2010 issue of Travel + Leisure, the editors highlighted the "Best Places for Holiday Travel." Cities that made the list include Cabo San Lucas, New York City, Provence and Santa Barbara, which just so happen to be future Élan destinations. Here's a quick run-down of why these tope 4 cities are THE places to be for Christmas, New Year's and every winter holiday from here on out:

1. Cabo San Lucas, Mexico

Pleasant 75-degree weather, secluded beaches, palm trees swaying in the wind, the faint sound of live guitar music in the distance and sipping cocktails overlooking the Sea of Cortés--that's just a little taste of a Cabo vacation in December. "During the day, there’s horseback riding, mountain hikes to the area’s hidden waterfalls, and even deep-sea fishing," according to Travel + Leisure. And The Élan Collection makes the trip even more memorable with A-list amenities: a dedicated 24-hour concierge staff, travel accommodations, daily housekeeping, onsite on-call private limousine service, luxury vehicle to use when in residence and personal item placement inside the home.

2. New York City

Everyone knows that Christmas in Manhattan is magical. Even the most serious visitors can't help but feel a sense of nostalgia upon seeing the city aglow with snow-capped trees and fences, twinkling lights and the massive tree in Rockefeller Center. Holiday shopping takes on a whole new meaning at Macy's, Saks Fifth Avenue and Bloomingdale's after you catch "a whiff of candied nuts" or "make eye contact with a Santa." The Élan Collection will have a pied-a-terre in New York City soon enough...making year after year seem just a little sweeter than the last.

3. Provence, France

If you enjoy a good fairy tale, than look no further than a Provençal winter wonderland. You might find delicate glass ornaments, tableware and rich bûche de Noël at the market at Fontvieille's 16th-century Château d’Estoublon... and don't miss Christmas Eve dinner at the château’s Bistrot Mogador. For the true local experience, you might also venture into St.-Rémy for Fête des Lumières (Dec. 11), when galleries stay open late and the centre ville becomes a block party; or capture a Provençal tree lighting ceremony in Eygalières (Dec 17). Magnifique!

4. Santa Barbara, Calif.

According to Travel + Leisure, "the coastal towns in Santa Barbara County combine New England–style comfort and old California elegance with outrageous holiday kitsch." You've got Summerland’s main shopping street, Stacky's Seaside, and Summerland Winery's tasting room for off-the-beaten-path holiday delights. But also the charming boutique shopping of Montecito and luxury shopping at the tried-and-true Saks Fifth Avenue and Nordstrom on Santa Barbara's State Street. And even if you do decide to visit Santa Claus Lane in Carpenteria, you'll still have the privacy and elegance of your Élan residence to come home to.

How will you spend Christmas, New Year's or other December holidays this year? Are you looking for beach, mountain, country or city?

San Diego Among Best Conservative Residential Real Estate Markets in U.S.

When it comes to fractional real estate and private residence clubs, lifestyle is usually emphasized over investment potential. But that isn't always a universal truth--especially if you happen to be looking for a vacation home in the San Diego-Carlsbad-San Marcos, Calif. area. According to the Real Estate Channel, the consulting firm Local Market Monitor Inc. recently ranked the Southern California area No. 2 on its top 10 list of best markets for conservative investors because it's showing signs of price stabilization.

Could this be good news for potential vacation buyers who are waiting for the right time to purchase a share in The Élan Collection's fractional oceanfront property in beautiful La Jolla, Calif.? Located about 13 miles from downtown San Diego, Casa del Mar just might offer the best of both worlds: the luxurious and convenient Élan vacation lifestyle (which includes the convenience of exchanging guaranteed use rights for flex time at other Élan properties), and a relatively low probability that home prices will fall much further.

Fractional Ownership News Round-Up

Every so often, The Élan Report compiles a round-up of the latest fractional and real estate news around the globe. What's happening in the shared vacation ownership world? What's selling and where? Who's buying? And what do current luxury vacation home owners think about their decision to buy? For answers, look no further than... the bullet points below:

• Fractional Life reported earlier this week that Paris Home Shares, a U.S. developer of fractional ownership apartments in Paris, France, has announced the sellout of its most recent project, Le Petit Trésor. This news seems to support a July report that overseas investors are expressing increased interest in fractional ownership opportunities.

• Earlier this week, Interval International released "Shared Ownership 2010: A Market Perspective Survey," during the 12th Annual Vacation Ownership Investment Conference in Orlando, Florida. The findings? Nearly seven in ten leisure travelers who are familiar with the concept of shared ownership seek vacation experiences that offer alternative accommodations; and "interestingly, four in ten (38%) have stayed in these alternative forms of vacation lodging during the past two years, thereby suggesting a significant level of pent-up demand for these types of resort offerings."

• At last month's FractionalSummit in Miami, several luxury shared owners discussed their decision to buy into alternative vacation concepts with Elaine Joli, author of the book Vacation Nation, during a Q&A panel. Most said they learned about the shared ownership concept through a friend or associate who was a current owner/member; most agreed that their membership experience was very satisfactory; and the services and amenities they liked best were 24/7 concierge service, fitness facilities and daily housekeeping. Good to know.

• In a Real Estate Channel Q&A on Wednesday, Piers Brown, the founder of Fractional Life, had this to say about the U.S. fractional market: "The U.S. market has been good for a long time, especially in the fractional space. In 2007, the market was worth $2.1 billion dollars. That dropped in 2008 to about $1.6 billion. Now I'm pleased that it is holding up at $1 billion and it looks like 2010 will be a better year." He also believes the high-end fractional offerings, such as those within The Élan Collection, are in better position to weather the ups and downs of the economy.

• And lastly, we would be remiss if we did not mention the recent announcement of destination club Ultimate Escapes' bankruptcy, which so many in the shared ownership vacation industry are buzzing about. It is certainly not good news--but it does provide us with an important and timely opportunity to educate consumers, the media and the general public about the vast differences between destination clubs (specifically, non-equity models), private residence clubs and fractionals (both equity models). (It should be noted that The Élan Collection is an equity-based private residence club, where members own the actual homes. We covered this topic in our last blog post here.). It is also a milestone for the shared ownership vacation industry, as we are beginning to see a shift away from non-equity vacation models towards equity-based models. In addition, we must remind people that many shared owners still very much value their vacation homes and experiences, and continue to seek out alternatives to whole ownership. As Luxist blogger Susan Kime put it, "Many members, it must be said, DO love their clubs, can travel wherever/whenever they want to go, and feel they have made the best vacation decision ever." It's something to remember as we watch the final quarter of 2010 play out.

Destinations Clubs vs. Private Residence Clubs

Recent developments in the vacation industry have made us pause to examine the ways in which the lines between destination clubs and private residence clubs have blurred. It is crucial that today's consumers understand the similarities and differences between the two so they can make an educated decision about their vacation home purchase. Below, we've outlined some of the basics of destination clubs and private residence clubs.

Similarities:

According to the Sherpa Report, "both offer alternatives to fully owning a luxury second home and both offer impeccably furnished, luxurious accommodations." Both also provide five-star hotel levels of service to their members and owners. (Think along the lines of concierge, travel planning, your own personal chef, ski valets, access to the world's best golf courses, luxurious spas, etc.) Both models also "require an initial upfront payment to purchase a membership or share and then both have annual dues or maintenance payments," adds The Sherpa Report. (Though we want to make it clear that "the initial upfront payment" for a private residence club is the actual purchase of a fractional share of real estate--not the cost of joining a club.)

Differences:

1. Location vs. Locations. You might consider destination clubs akin to country club membership. Destination clubs own a portfolio of luxury homes and provide access to all the properties within the club. Members in destination clubs have a variety of locations to choose from each time they go on vacation. When you become a member in a private residence club, on the other hand, you are typically buying a fractional share in one property in one location. However, some private residence clubs, like The Élan Collection, offer the opportunity to exchange your time and location with other locations within their group.

2. Equity. We covered this topic last week--and it's a big one. Typically, destination clubs are considered "non-equity" based, i.e. members are purchasing access to, or use of, a vacation home or resort property. That’s a completely different proposition from directly owning real estate. Some destination clubs have shifted to an equity model. But even with an equity-based club, a member buys into a company and the company’s management, effectively taking on the financial risk of that company. With The Élan Collection, the owners carry an individual deed in their name. It also means they can gain or lose as the real estate values move with the market.

The Élan Difference:

While we named only two main differences between destination clubs and private residence clubs, what makes The Élan Collection unique is that it is a hybrid of both vacation concepts. It combines the flexibility, exclusivity and multiple locations of a destination club with the equity potential of a private residence club. It is an alternative to destination clubs, fractional private residence clubs and full ownership vacation homes. The beauty of going Élan is that they are single private residences owned solely by the owners. Each Élan property is hand-picked for its luxurious location, spectacular amenities and excellent security, while the company takes care of all aspects of property management.

Since research has consistently shown that vacation home owners typically only use their home four to six weeks per year, they can enjoy the same realistic they would with a comparable whole-ownership residence--but at a fraction of the price. And not to mention, they can retain appreciation potential and enjoy all of the club-level services and amenities that come with a five-star resort. That's the Élan distinction.

Can you think of other differences between destination clubs and private residence clubs? Do you have questions you'd like to ask us about The Élan Collection, specifically? Please don't hesitate to leave us a comment below, ask us via @reply on Twitter (@elancollection) or email Stan Tonkin privately at stonkin@elanprc.com.

Fractional Ownership and True Equity

When considering the purchase of a vacation home in a residence club, equity (and the question of whether or not you’ll have it) may take a backseat to visions of sharing vacation memories with your family or having the flexibility to stay in exclusive vacation homes at various desirable locales throughout the year. "Equity" might sound considerably less sexy than "experience" or "exclusivity." However, it is actually one of the most significant advantages to owning a fractional home within a private residence club like The Élan Collection.

“The ‘equity' or deeded interest in an Élan property carries many of the same attributes as whole ownership—but for a fraction of the price,” said Stan Tonkin, vice president of international marketing and sales for The Élan Collection. “When you engage in a deeded real estate transaction with Élan, you will have use in perpetuity.”

Owners also have control of their deeded interest. It is sellable, and not to mention, willable. And, it is a way to enjoy a luxury vacation experience without the expense, responsibility and (sometimes) hassle of owning a property solely. Here is how Tonkin tells it:

“The Élan Collection is a true equity program,” he said. “We try to minimize risk as much as possible. Once the shares in a specific Élan residence are sold, that property is free and clear of encumbrances.”

The amount of time you can use your Élan property is proportionate to the amount of money you invest. For example, if you purchase a share in The Coral House in Turks and Caicos you will have four weeks of guaranteed use, and you have the option of exchanging guaranteed use time with other property owners in different locations through Élan’s voluntary reciprocal use trade program. And of course, you’ll enjoy all of the resort-style amenities you’ve always dreamt of-- 24/7 concierge services, travel accommodations, onsite luxury SUV, private chef and placement of personal items upon each visit.

Just how important is equity to a vacation homebuyer today? Is equity worth more or less? Feel free to share your thoughts with us!

5 Reasons to Buy a Fractional Vacation Home This Year

The month of September typically marks the end of summer and the beginning of fall. As the weather cools and the leaves change, you might be tempted to make your summer last forever by purchasing a vacation home. However, you might feel some trepidation since the economic outlook hasn't been especially bright lately. Is it the right time to take the plunge? Will a vacation home cramp your lifestyle? And what about purchasing a fractional vacation home...is that a smart alternative?

If you find yourself on the fractional fence this fall, here are five reasons why vacation opportunities like The Élan Collection make more financial sense than you might think:

1. YOU WON'T BE LOCKED INTO ONE PLACE YEAR AFTER YEAR.

As much as you love skiing in Aspen every winter, sometimes you want to vacation in warmer locales like the Carribean or Sourthern California. Since The Élan Collection combines the benefits of fractional ownership with the advantages of a network of destination properties, Élan home owners won't be limited to vacationing in only one city. It's all about having "the option of exchanging guaranteed use rights," said Stan Tonkin, vice president of international marketing and sales of The Élan Collection. "It’s an attractive opportunity because Élan is not just another single residence fractional opportunity. For people looking to buy a vacation home in the current real estate market, it makes a lot of sense."

2. YOU WON'T HAVE TO WORRY ABOUT MAINTAINING A SEASONAL PROPERTY.

Vacation properties frequently sit empty for weeks and months at a time--but the beauty of going Élan is that the company manages all of the typical responsibilities associated with home ownership. You won't have to worry about regular maintenance issues like landscaping or cleaning the property, or more urgent issues such as a broken water main. "When you are away from your Élan home, you will have total peace of mind that the property is well taken care of," added Tonkin. "When you arrive, it will feel like you never left."

3. YOU ARE NOT TYING UP ALL OF YOUR FINANCIAL ASSETS IN A PROPERTY YOU WILL ONLY REALISTICALLY USE 4-6 WEEKS A YEAR.

If you've done your research, then you already know this is the No. 1 mantra for The Élan Collection and the fractional industry, in general. Since typical owners of vacation residences use their properties only four to six weeks per year on average, The Élan Collection is "a significant 'smarter buy,'" said Tonkin. "Our mantra has always been, 'You can enjoy the same realistic use you would enjoy with a comparable whole-ownership residence...but at a fraction of the price.' Plus, you can retain appreciation potential and enjoy club-level services and amenities."

4. YOU'LL HAVE THE BEST OF BOTH WORLDS.

You might be secretly pining away for that gated private villa by the sea, but there is also a part of you that still wants the ease of concierge services and amenities at five-star resorts. With Élan, you can vacation with absolute privacy in your 12,000 square-foot beachfront villa and still enjoy the five-star perks: 24/7 concierge services, travel accommodations, onsite luxury SUV, private chef and placement of personal items upon each visit.

5. YOU CAN FIND TOO-GOOD-TO-PASS UP DEALS.

Several market conditions make buying a fractional vacation home a smart move right now. For starters, the cost of fractional ownership is typically less than comparable resort or local daily rental prices. Vacation home affordability, in general, is also at an all-time high. While home prices have come down overall, Dick Ragatz, founder of the Ragatz Associates, observed earlier this year that the average price per fraction dropped around eight percent in 2009, compared with an estimated drop in the price of whole ownership vacation home prices of 20 to 25 per cent for the same period. And deals abound: for example, The Élan Collection is currently offering a special end-of-summer 15 percent off discount through October. (Email stonkin@elanprc.com for more information).

Can you think of any other reasons why it's a smart choice to purchase a fractional vacation home this year?