RECENT REAL ESTATE

headlines have been gloomy, but one category is surprisingly hot: the upscale timeshare. Developers and resort owners from Donald Trump to Internet billionaire Steve Case have persuaded high-end buyers to invest in shared getaways with luxury amenities ranging from fully staffed gyms to private ski slopes. This year 16,295 condo-hotel units are expected to open, five times as many as in 2006. Meanwhile, sales for destination clubs (which give members access to homes around the globe) and fractional-ownership properties (the upscale-hotel spin on a time-share) surged to $2.1 billion in 2006, up 300% since 2002.

Demographic changes are fueling the growth of high-end variations on the time-share theme. Many Baby Boomers have the money and leisure time to travel well, but don't want to be tied down, financially or logistically, to a full-time vacation home. And with second-home sales slumping they fell by 19% in 2006, according to the National Association of Realtors developers are marketing partial ownership as a less risky way to invest in vacation property. Here's an overview of the most popular options:

Fractional Ownership

The term "fractional ownership" has caught on with marketers for its upscale connotations, but the time-share business model remains the same, and it isn't always pretty. In a typical purchase, a substantial chunk of your payment goes to the developer to cover marketing costs rather than into equity. The result is an instant haircut of as much as 40% on the value of your purchase. After that, price appreciation isn't very likely; with a constant stream of new projects entering the market, used time-shares have limited appeal.

The good news: There's evidence that at the higher end, the investment outlook is better. These days, 10 big hotel-industry brands control about 80% of the timeshare market, and several have launched swankier "private residence clubs," which come with larger blocks of time and often adjoin four- or five-star resorts. The number of private residence clubs rose from four in 1995 to 46 in 2006, according to industry analyst Richard Ragatz. Lower marketing costs and access to luxury amenities like excursions and spas have boosted the resale value of some of these properties. And for people looking for variety, luxury fractionals are increasingly easy to exchange.

Condo-Hotels

Why buy a condo-hotel when you could just buy a condo? The pitch involves a best-of-both-worlds mind-set: Live like a luxury-hotel guest, enjoying 600-thread-count sheets with a spa just an elevator's ride away, while building equity and collecting rent. High-profile condo-hotel projects have sprouted rapidly in leisure capitals like Miami and Las Vegas, and the hotel-style perks explain why these units can sell for as much as twice the price of comparable condos in the same city.

As the broader condo market has sagged, however, the drawbacks have become more apparent. It's surprisingly difficult for owners to calculate how much they can make in rent, because securities regulations discourage developers from discussing room rates or occupancy levels. Because they don't want to lose revenue, most hotels won't let owners use their condos for more than 30 nights a year. Monthly maintenance fees, meanwhile, can run as high as $1,000. To make a condo-hotel pay off, it's best to bargain-hunt and to buy a property you know you'll use often.

Destination Clubs

One of High Country Club's luxury residences in Cabo San Lucas.

A destination club is for travelers who don't want to have to choose between a ski chalet in Tahoe and a beach villa in Cabo San Lucas. The clubs buy luxury properties around the world; after paying a one-time membership fee and annual dues, members can book time in any of the homes. The average fee is $405,000, but it buys you access to something posh: The average residence is valued at $2.7 million and measures a whopping 3,700 square feet. This fancy turf is getting more accessible to those with less cash to spare: In late 2005, High Country Club launched with membership fees as low as $15,000.

Destination club members usually do not own equity and quitting can be thorny. Most clubs will refund only 80% of your initial membership fee. Many also require three new members to join before one can leave, and you can't sell your stake. Given the commitment involved, it's worth crunching the numbers. An "elite" membership at Steve Case's Exclusive Resorts, for example, costs $425,000 for 45 days per year, plus an annual fee of about $30,000. Assuming that you remain a member for 10 years, and factoring in an opportunity cost, that pencils out to a little more than $2,000 per night. That's hardly cheap, but comparable residences rent for $2,000 to $4,000 per night. By comparison, High Country comes to about $300 per night at the $50,000 buy-in level. You can certainly find a hotel room at that price but it's unlikely to sleep six comfortably or have fireplaces and balcony views.