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.