Fractional ownership in simple terms is getting a slice of a vacation home. Fractional ownership is typically used to describe shared ownership of a vacation or resort property by people in an arrangement which allocates usage rights based on time. Fractional ownership of property is whereby a group of like-minded investors pool resources to own real estate together and agree on how to share the real estate. Sharing can be in terms of share of rental income or share of time period spent on the property. For instance, assuming a hotel with several rooms, each room is owned by 12 people, with each person having rights to use the room for 1 month per year. The 1 month per year right to use the room will be the fractional ownership. The owner can either choose to spend the 1 month in the room or collect the monthly revenue for the particular week when the room is rented out as a hotel suite.