Pros, cons of vacation-home alternatives

There are advantages and disadvantages to the various shared vacation-home alternatives:

Private residence clubs

Members buy a deeded share in a high-end vacation residence that usually includes upscale services and amenities, and they can stay between four and 13 weeks a year on a reserved basis and unlimited time on a space-available basis for no extra charge. The clubs are usually based on one location and offer a depth of amenities tied to that location -- for example, private mountain tours for mountainside clubs or exclusive winery tours for clubs in Tuscany.

Price: Memberships range roughly between $300,000 to $1.2 million or between $1,000 to $3,000 per square foot of the residence. Annual dues range from $7,000 to $25,000. As a deeded share, the memberships represent real estate ownership and can be resold. Mortgages on memberships are tax-deductible.

Locations: Resort areas in the U.S., Mexico, Canada, the Caribbean and Europe, including Telluride, Aspen, Vail, Hawaii, Cabo San Lucas and Tuscany.

Geared toward: Those who want a fancy address with luxury-hotel amenities but can’t afford a multimillion-dollar home or the maintenance that goes with it.

May not suit: Families tied to a school vacation schedule.

Destination clubs

With destination or vacation clubs, members typically put down a deposit on a 30-year-membership in a diverse portfolio of vacation and resort properties. Most memberships are nonequity, some are equity-based. Members can opt for one to 13 weeks a year. The selection of vacation properties varies widely: large homes in Napa Valley, apartments in Rome and private yachts. Members can try to resell their memberships through the management company. If they sell the membership, management companies typically refund 80% of the initial deposit, but policies vary.

Price: Members pay a deposit of $150,000 to $250,000 for moderately priced clubs to $400,000 to $3 million for the most exclusive. Annual dues range from $1,500 to $25,000.

Geared toward: Those who want to spend several weeks a year in a variety of locations and residences.

May not suit: Those who want to reliably return to the same spot every year or want to have some property equity.

Condo hotels

Those who want part-time equity ownership and use of resort amenities without homeowner hassles can buy into a condo hotel unit. To raise capital for building new resorts, well-recognized hotel brands including Ritz-Carlton, Four Seasons, Starwood and Hilton sell units to individual investors. Most condo-hotel companies allow the owner up to 30 days in their unit per year, then charge management fees for renting out the units when they’re not in use.

Price: From $500,000 to $5 million. Monthly maintenance fees range from $1 to $1.50 per square foot.

Geared toward: Those who want a piece of an upscale name-brand resort and all of its amenities without the hassles of homeownership. Also suited to those who are willing to have the hotel rent out their unit to the general public.

May not suit: Those who want a homier vacation residence and don’t want their residence rented out to the general public.

-- Jennifer Lisle real.estate@latimes.com

Lisle is a free-lance writer.

Sources: Richard Ragatz, Ragatz Associates; James Chung, Reach Advisors; Wallace Hobson, NorthCourse.