destination club

Good News For The Vacation Homeless: Luxury Membership Options Emerge Following The Ultimate Escapes Bankruptcy

Demeure's Borgo De Vagli residence, Tuscany

For those of us who have followed the fallout from the Ultimate Escapes bankruptcy, it has been a bumpy ride. I have written about this bankruptcy before on Luxist, but here is a small refresher précis.

Ultimate Escapes was a high end, luxury, non-equity based destination club, and the second largest in the industry. Members paid between $150,000 and $800,000 membership deposit, and many thousands more in annual dues. For those fees, they took vacations to exotic places and stay in exceptional residences, villas and condos. There were over 1400 members when the club bankrupted in mid-September, 2010. It was then the fifth major bankruptcy in five years for the non-equity destination club space. Prior to Ultimate escapes was Tanner & Haley, Lusso, High Country Club, Solstice, and now this. For members, industry watchers and many others, this bankruptcy began a serious re-thinking process. What is the matter?

As with many complex problems, this one appeared easy to solve. Many believed it was the non-equity model on which literally all of the bankrupted clubs were based, and in part, but only in part, it was. The first generation non-equity model was broadly based on a kind of Wild West 2004-2008 YAHOO-type optimism: clubs will certainly grow if -- real estate values would appreciate, and if members continued to join. If this growth hormone were in place, and why shouldn't it be?.. then the members will receive what was promised to them: 80% of their deposits back upon resignation from the club, and the 3 in 1 out option borrowed from the timeshare industry: If three new members joined, you could resign. Simple. Seemed so reasonable in those pre-Madoff times.

And because it seemed so reasonable, and times were so optimistic, many clubs bought properties and others were leased when prices were at an all-time high. Then, suddenly, in October of 2008, the perfect storm appeared: real estate values declined, Bear Stearns and Lehman Bros. deflated. But no matter what, lenders wanted mortgage payments and lessors wanted their rent. With these occurrences, the first generation club model looked like a house of cards, easily toppled by the dark winds of a collapsing economy and potential members' deciding against joining any club, even, as one member said to me, "a church group." Thus, with this last bankruptcy, following much the same process as the others, many felt this was the last gasp for the non-equity based club.

BUT! The model is not dead: it is evolving....

Tags: Abercrombie Kent Residence Club, Boundless Journeys, Demeure Club, Destination Club, DUO by Quintess, Exclusive Resorts, Post Ultimate escapes Bankruptcy, Quintess, Second Home Destinations, Ultimate escapes bankruptcy

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The Ultimate Escapes Escape: The Anatomy Of The Destination Club Vacation

by Susan Kime (RSS feed) —

Filed under: Luxury Travel & Hotels, By Design

The story below deals with my Ultimate Escapes escape: an experiential vacation trip I took last month. Those who know me know that I have experienced many destination club residences and villas, and I am usually asked questions about them, as many people have heard mixed reviews, due to the well-publicized bankruptcies of Lusso, High Country, Tanner & Haley and Solstice, all within the past few years. But, the vision and the reality of the destination club remains. At present, there are probably between 7,000 to 8,000 members for DCs, and those members are fiercely loyal, due to the treatment they receive on their vacations. It became obvious, early in 2004 when the industry was in its infancy, that it encountered an unexpected consumer need (not fault) line -- the need for sanctuary and for legacy from their vacation time.

Tags: acqualina, destination club, destination clubs, mia, resort clubs, ultimate escapes, vacation club

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Viva Vdara!: Exclusive Resorts Adds Ten New Residences in Las Vegas

by Susan Kime (RSS feed) —

Filed under: By Design

Recently, I wrote a Luxist article about the relevance of Exclusive Resorts and their permanent mark on the destination club industry. Exclusive Resorts has announced the opening of 10 new residences for members at Vdara Hotel & Spa at CityCenter on the Las Vegas Strip.

All are corner units, located high in the building, custom-designed and furnished to suit club member tastes. Each two-bedroom, two-and-a-half bath residence features an open floor plan, fully equipped kitchen, and spa-style bathrooms, wrapped by windows showcasing city and mountain views. Amenities include round-the-clock concierge service, gourmet in-room dining, and preferred reservations at MGM MIRAGE restaurants and shows.

Tags: citycenter, destination club, destination clubs, exclusive resorts, las vegas, vdara

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Annika Sorenstam Takes Her Brand To The Ritz

by Deidre Woollard (RSS feed) —

Filed under: Luxury Travel & Hotels, Sports

Golfer Annika Sorenstam already has her own wine and her own fragrance. Now she has a new deal with the Ritz-Carlton Destination Club serving as an ambassador for the brand. The equity-based, luxury destination club will create a total Annika experience with signature clothing, fragrances, wines and autographed photography. Culinary events, wine tastings and golf outings with Annika will provide memorable experiences for members. For golfers looking to improve their game the Annika Academy will help members to take their performance to the next level. The Ritz-Carlton Destination Club has also created the "Lion & Crown Golf Series," a sequence of Member/Guest tournaments at key Club destinations, which Annika will serve as host for in 2010.

Ritz-Carlton Destination Club members can choose either a Home Club Membership which provides a one- to four-bedroom, titled residence and guaranteed usage at their favorite resort every year, or a deeded Portfolio Membership which lets the member discover a wide variety of locations, accommodations and experiences around the globe through the use of Club points. Portfolio members can also use some of their points at Ritz-Carlton hotels and resorts. Membership pricing ranges from the low $100,000s - low $800,000s per membership. A typical membership is approximately $250,000.

Tags: annika sorenstam, destination club, destination clubs, ritz-carlton destination club

Ultimate Escapes Destination Club

by Deidre Woollard (RSS feed) —

Filed under: Luxury Travel & Hotels

Whether you are into spending your winter vacation on a beach or on the slopes, Ultimate Escapes has it covered. The destination club's membership includes the chance to experience more than 140 properties in over 50 locations around the world. The properties include beach cottages, larger homes, apartments and yachts.

There are three tiers of membership: Premiere entitles you to homes with an average value of $1 million, Signature membership offers homes valued at around $2 million and Elite membership includes stays in home with an average value of $3 million. Within each tier there are bronze, silver, gold, platinum and platinum plus levels of membership with escalate in price based on the amount of days. A Premier Silver membership costs $95,000 plus one year membership dues of $9,500.

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Tags: destination club, DestinationClub, luxury, ultimate escapes, UltimateEscapes

The Hideaways Club

by Deidre Woollard (RSS feed) —

Filed under: Luxury Travel & Hotels

If you are interested in a ski house in Aspen or a condo in New York, this isn't your destination club, but if you want a club with a more Continental feel, The Hideaways Club may be your club. Helium Report tells us that the club has luxury properties in both Europe and the Mediterranean which are in the $1.5 to $2 million range. Initial membership fees run approximately $390,000 with annual dues of about $19,000. It is an investment style club with members getting a percentage of the appreciation and only six shareholders per property. They hope to eventually have 100 properties but so far their website reveals a restored farmhouse in Tuscany, a stone villa in France, a Moorish villa in Marrakech and a couple of properties on Majorca. The first properties are expected to be open for business in May 2007.

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Tags: destination club, hideways club, HidewaysClub, investment club, second home, travel, vacation

Destination Clubs and the NFL

by Deidre Woollard (RSS feed) —

Filed under: Luxury Travel & Hotels

We've mentioned Exclusive Resorts, a luxury residence club, before. It's just one of the destination clubs that has popped up in the last few years. Exclusive Resorts has now partnered up with The National Football League Players Association (NFLPA). Exclusive Resorts will make a $25,000 charitable donation on behalf of NFLPA and for each NFLPA member who joins Exclusive Resorts, the club will make an additional contribution to a charitable organization designated by the NFLPA. The Helium Report questions whether former NFL players are the right association for a luxury brand but as they point out, former quarterback Steve Young already appears in ads for Private Escapes and the New England Patriots have a deal with Dream Catchers. It seems to me that for the most part, an association with the NFL doesn't detract from the exclusivity factor but only increases it.

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Tags: destination club, exclusive resorts, football, luxury, nfl, vacation