Own a slice of society

NEWPORT , R.I. -- Of the two stories behind Vanderbilt Hall, the one involving sex and society is not only the more obviously colorful, but the one accepted by locals as more truthful.

Built almost a century ago, and named the Newport Men's Social Club, the story goes that the Georgian revival mansion was built to house the mistress of Alfred Gwynne Vanderbilt, son of railroad and shipping magnate Cornelius Vanderbilt, whose family occupied perhaps the most gilded and lavish of this summer colony's mansions, The Breakers, 5 or so miles away, just off Bellevue Avenue.

According to local legend, Alfred's Aunt Alva found out about his affair and ordered him to stop his shenanigans. He did and she thanked him with a ticket on the Titanic. At the last moment, he had to cancel.

Alfred did sail, however, on the RMS Lusitania's tragic voyage in 1914, when German torpedoes sank it. He died a hero, helping women and children into lifeboats.

The other story is the mansion was simply built as a guest house for the Vanderbilts. Either way, for decades Newport visitors had the opportunity to be guests in a building where a Vanderbilt supposedly slept. Now, some will have a chance to own a piece of it, too.

After being revived as a boutique hotel in 1997, it is now being converted into Vanderbilt Hotel and Private Residence Club, where units are being sold under the little-known concept of fractional ownership, which is something like a time - share, but also not.

The Vanderbilt Club's owner, Boutique Club International, operates luxury resorts and boutique hotels around the world. From its perspective, fractional ownership properties are of a higher class than time-shares, have more of an aura of exclusivity , and attract a well-heeled clientele willing to pay more for luxury accommodations and detail not generally found in time - shares.

"We chose a very customized and flexible private membership club structure to combine the benefits of second - home ownership with a full-service staff," said Boutique Club chief executive Jay Digiulio. "With time - shares, you're looking at a very high turnover, little to no personal service, and no equity in the property itself. Vanderbilt members are owners, and we strive to create a 'modern mansion' experience for them."

Largely confined to ski and beach resorts (and private jets), fractional ownership is emerging as an alternative to time-shares as well as to full ownership of a vacation property. The Vanderbilt is marketing three ownership levels. For $75,000, buyers get 21 days; $150,000 for 42 days; and 63 days for $225,000. Year-round ownership begins at $1 million.

The club will use a point system to make sure all owners get fair dibs: bigger suites cost more points, as do stays in the summer rather than in February. The higher the investment, the more points are included. In practice, that means a $75,000 member gets 21 points, but a week in a large suite in summer would use all those points. A smaller suite would get a longer stay. For example, the $75,000 member can stay in a smaller suite for 21 straight days in non peak times. Members can purchase additional points .

The 33 suites range from 400-square-foot studios, to spacious one-bedroom junior suites, to a 3,000-square-foot three-bedroom unit with space for an au pair.

Members also pay a $3,500 annual maintenance fee, which includes privileges at the nearby International Tennis Hall of Fame, the private Newport National Golf Club, a yachting facility for those with their boats in tow, and access to private Gooseberry Beach.

Like time-shares, owners can swap their interests in the Vanderbilt for reservations at a network of other private clubs operated by Boutique Club International, in Lake Tahoe , Calif. , Aspen , Colo. , and Las Vegas, as well as Mexico, the Caribbean, and other destinations.

Debbie Leavitt and her husband, who live in Winchester, were sold on buying into the Vanderbilt after staying there this past summer.

"It felt like home, it was so relaxing. It's easy living, there's no other word for it," she said. "We have friends with lovely beach houses and I just see the amount of work they do from May to September. Sometimes they don't even get to the beach. We had a ski house and it was fun, but now we are going to have fun without all the work."

Unlike a vacation home, owners at the Vanderbilt Club do not have to shoulder the responsibility and stress of security and property maintenance, nor do they have to concern themselves with furnishings. The Vanderbilt's suites have all the modern de luxe touches: LCD flat-screen televisions in the lounge and sleeping areas; wireless Internet; and iPod docking stations . Bathrooms are fitted with elegant tile and large, spacious showers . L'Occitane bath products, thick pillowy robes, and Egyptian linens add hotel comfort.

Unlike time-shares, fractional owners are not restricted to using the suites at a specific time, or even to using a particular unit. Also, as with any piece of property, owners can sell their deeds to the Vanderbilt, or will them, as they choose.

On the downside, owners don't entirely own the property, so they don't have the usual input or control. On a day-to-day level, ownership translates into hotel-style living, with public areas a free-for-all.

Boutique Club International and partner Cornish Associates have been steadily refurbishing the Vanderbilt, exchanging its once dark, formal atmosphere for an airy, sleek boutique style. While all the suites have been redone, work continues on the dining room and an adjacent new bar.

Boutique plans to outfit the basement early next year with a fitness center, pool, spa rooms, and a robe lounge (which means that, just like at home, you don't need to get all-the-way dressed) with plasma TV. The multi media room will have Xboxes and WiFi, and a screening room will allow theat er-style movie viewing . The open-air rooftop lounge is already decked out with comfortable chairs and has views of the city and port.

Before being remade into a hotel, the building spent decades as a humble YMCA; the Vanderbilts had donated it to the City of Newport.

Now, though, it has reclaimed some of its high-society glory. Movie stars such as Vanessa Redgrave, Glenn Close, Meryl Streep, Juliette Binoche, Concord-born "The Office" star Steve Carell, and Claire Danes stayed there this fall while working on two separate feature films, "Evening" and "Dan in Real Life," both due for release in 2007. A small portion of the property will still be available as a traditional hotel.

Not much is known about the fractional-ownership market as an investment. Among the few firms that follow the industry is Ragatz Associates, a resort consultancy based in Eugene, Ore . Richard Ragatz , the company's president, said it appears investment in fractional ownership is more comparable to a second home than a time-share , where buyers often only recoup 60 percent of their initial investment.

"Though we haven't surveyed re sale figures, anecdotal evidence shows us that resale prices keep pace with the general real estate market," said Ragatz. "The real value is that you get a vacation property that you can use and enjoy . If it's a sensible purchase, it is as likely to appreciate as any real estate deal."

A survey by his firm showed fractional-ownerships sales were up 28 percent last year from 2004, with 188 fractional interest properties in North America in 2005. He said dozens more properties are expected to debut soon, including several in New England: Edgartown Residence Club on Martha's Vineyard, for example. City properties are more rare, but there are fractional ownership opportunities in high real estate value areas like Manhattan.