Todd Miller, the Vice President of Marketing at Quintess, spent a portion of his Telluride spring break vacation to discuss the club's new trial membership offering.
"Quintess is about a membership in a club, so we wanted to create something that was truly a trial membership as opposed to just stays in the home," began Miller. "With our program, you join the club and you get full membership privileges as opposed to just staying in one location. Other clubs offer stays, but they limit it to certain locations and it isn't really a full membership. We want to have someone join fully and enjoy our club and all the homes and services we offer for a year. The key, like a number of other clubs, is to get people to experience the club. In our case, we want you to feel that you are a regular member and not just experience one location."
As mentioned by Miller, many other destination clubs have launched similar offerings in the past year, but all are more similar to a vacation rental where travelers pay a fee to access the properties than a true destination club membership. Abercrombie & Kent Residence Club launched their trial membership offering by making 17 of the club's underutilized properties available to prospects for $7,000 up to $11,000 depending on the property and season for a seven night stay. As properties were reserved, the club would remove them from the available list. Since then, A&K reduced their rates by 50 percent until April 15. Exclusive Resorts introduced their Sponsored Guest Program in November of 2008, allowing prospective members the chance to reserve four or seven nights stays in select Exclusive Resorts' properties for $5,900 or $8,900 respectively. Ultimate Escapes introduced their "Ultimate Discovery Membership" last month, allowing qualified prospective members the opportunity to reserve properties from any of Ultimate Escapes' three club levels. Premiere properties could be reserved for $3,500 per week, Signature properties for $5,250, and Elite properties for $7,000.
The Quintess trial membership requires a non-refundable $15,000 fee and the standard annual dues and nightly fees for the plan that a member wishes to join. Following the year, members can elect to join the club as a full member and can amortize their membership deposit across several years, the larger the membership deposit, the longer the time period.
"In doing that, you get full access to all the properties by paying annual dues and a small up front fee of $15,000. After one year, they have the opportunity to begin paying their deposit on an installment basis. Starting at the one year anniversary, you can pay your deposit over a period of time depending on the size of plan you pick. If someone is willing to start to pay the deposit initially, they can forgo paying the $15,000 initially," Miller added.
Throughout the history of the destination club industry, many clubs have offered many other trial and preview memberships and have seen high retention rates. Clubs largely believe that they can effectively up sell these introductory members to full membership status after they have enjoyed the full destination club experience.
"We really feel that they are very likely to stay because the way we have grown historically is through member referrals and that is all about member satisfaction. Our members continue to be very, very satisfied with our delivery of service, quality of homes, and what we offer them as members."
When asked to discuss the genesis of the new trail membership offer, Miller stated that it was largely created out of the superior real estate opportunities available to the club.
"We are being offered a number of great homes in great places, on terms that require little if any money down upfront, where the seller is willing to even finance it over a period of years. A year or two ago, you had to put significant money down up front. We can then in turn pass that on in the form of installment pricing."
Clubs are largely looking to ease the process of joining as the economy struggles. Coupling a trial membership with a deferred payment option creates an opportunity for prospective members to first test the destination club waters and then join if they enjoy the experience without a large, up front monetary outpour. According to Miller, Quintess has already seen a great deal of success on this program.
"We are excited about all of our opportunities. We are excited about the future," concluded Miller. "It's obviously a difficult time right now, but we really continue to believe in what we offer and how much it helps our members and their families stay connected. I think one of the things in a tough time like this is you realize what's important in life and one of those things is stay connected with your family and friends and we help create lasting memories."
For more information about Quintess, Leading Residences of the World, please contact The Veras Group, your complimentary destination club advisor, dedicated to helping you finding the destination club that is right for you.
Quintess Offers Deferred Payments and Trial Membership
Thursday, May 28, 2009
Wednesday, May 6, 2009
Ultimate Escapes Coaces Advance
Two of the NBA's most elite coaches will have to delay their summer vacation plans as both of their teams have advanced deeper into the playoffs. The Eastern Conference's number two seed Boston Celtics, led by Doc Rivers, defeated the Chicago Bulls in an epic first round series while the Western Conference's Denver Nuggets, headed by George Karl and also the number two seed, bested the New Orleans Hornets. While both continue to work towards a championship, both also will have their destination club memberships to help them relax during the off-season.
Doc Rivers joined Ultimate Resort in March of 2006 and George Karl joined Private Escapes in November of 2007, both now a part of the Ultimate Escapes family after the Ultimate Resort and Private Escapes merger. Rivers and Karl are but just a few of the many destination club sports members that pepper the industry. Ultimate Escapes alone counts Hall of Fame Quarterback Steve Young, Team USA Manager Davey Johnson, University of Illinois head basketball coach Bruce Weber, golf broadcaster David Feherty, and Chicago Bears Offensive Coordinator Ron Turner.
"(Ultimate Resort) is a perfect choice for me," said Rivers when asked about his destination club membership. "Private Escapes is the perfect travel option for my lifestyle," Karl said similarly about his Private Escapes membership.
With both members extending their season, off-season travel plans will have to wait. While the club is tight lipped about where any of their members are traveling, famous or not, Coach Karl did visit Telluride prior to joining, stating that he was "amazed with the homes' prime location, superior concierge and excellent level of service," according to Ultimate Escapes Chairman Richard Keith.
Although both teams have a tough road in front of them, a Celtics versus Nuggets NBA Finals is not entirely out of the question. If so, will Ultimate Resort's former Coach of the Year and NBA Champion Doc Rivers or Private Escapes' George Karl, the twelfth winningest coach of all time, take the championship? Either way, Ultimate Escapes will be happy to help both enjoy the off-season.
Original Article
Ultimate Escapes Coaches Advance
About The Veras Group
The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your destination club purchase from start to finish: customized reviews of your travel needs, unrestricted access to our expert advisors, insiders' advice from industry veterans, insightful due diligence support, thorough club comparisons and points of difference, and the best available terms & pricing on your membership, all at no cost to you.
Please reach one of our destination club advisors at 877-VERAS-07 or 720-222-0440 to learn more about the industry, specific clubs, and our service, or visit our website http://www.TheVerasGroup.com.
Join us: we know the way.
Doc Rivers joined Ultimate Resort in March of 2006 and George Karl joined Private Escapes in November of 2007, both now a part of the Ultimate Escapes family after the Ultimate Resort and Private Escapes merger. Rivers and Karl are but just a few of the many destination club sports members that pepper the industry. Ultimate Escapes alone counts Hall of Fame Quarterback Steve Young, Team USA Manager Davey Johnson, University of Illinois head basketball coach Bruce Weber, golf broadcaster David Feherty, and Chicago Bears Offensive Coordinator Ron Turner.
"(Ultimate Resort) is a perfect choice for me," said Rivers when asked about his destination club membership. "Private Escapes is the perfect travel option for my lifestyle," Karl said similarly about his Private Escapes membership.
With both members extending their season, off-season travel plans will have to wait. While the club is tight lipped about where any of their members are traveling, famous or not, Coach Karl did visit Telluride prior to joining, stating that he was "amazed with the homes' prime location, superior concierge and excellent level of service," according to Ultimate Escapes Chairman Richard Keith.
Although both teams have a tough road in front of them, a Celtics versus Nuggets NBA Finals is not entirely out of the question. If so, will Ultimate Resort's former Coach of the Year and NBA Champion Doc Rivers or Private Escapes' George Karl, the twelfth winningest coach of all time, take the championship? Either way, Ultimate Escapes will be happy to help both enjoy the off-season.
Original Article
Ultimate Escapes Coaches Advance
About The Veras Group
The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your destination club purchase from start to finish: customized reviews of your travel needs, unrestricted access to our expert advisors, insiders' advice from industry veterans, insightful due diligence support, thorough club comparisons and points of difference, and the best available terms & pricing on your membership, all at no cost to you.
Please reach one of our destination club advisors at 877-VERAS-07 or 720-222-0440 to learn more about the industry, specific clubs, and our service, or visit our website http://www.TheVerasGroup.com.
Join us: we know the way.
Friday, May 1, 2009
The Hideaways Club Sells 20% of Ownership
The Hideaways Club, one of the UK's largest destination clubs, has brought in two new investors, Jonathan Feuer and Nick Bettany. Each has purchased a ten percent stake in the organization, bringing both capital and experience to the club.
The Veras Group met with Chris Moody, Director of Sales, to learn more about the investors and what it means to members and The Hideaways Club itself.
"Obviously it provides us more capital, but it also brings in some very experienced investors putting money into the real estate investment," Moody began. "They are two very experienced guys and our founders are very pleased to be able to raise capital in the current environment. I think that more than anything illustrates the business model is a good one."
Jonathan Feuer is a Managing Partner at CVC Capital Partners, a leading private equity and investment advisory firm based in Luxembourg. Feuer joined CVC in 1988, working previously for Baring Brothers in the Corporate Finance department and Ernst & Whinney in London where he qualified as a Chartered Accountant. Studying at the University of Warwick, Feuer has a degree in applied mathematics and has led several buyouts and acquisitions during his time at CVC Capital.
While new to The Hideaways Club, Feuer does have experience with the club's founders. In 2004, Feuer led the £1.7 billion leveraged buyout of Debenhams, a major British retailer. John Lovering, a Founder and investor at The Hideaways Club, is Chairman of Debenhams.
After studying Economics at the University in Bristol, Nick Bettany began his career as a Chartered Accountant at Pricewaterhouse Coopers, specializing in audits of financial institutions. He later went on to work for the Royal Bank of Canada and the Jersey Financial Services Commission before establishing Clink Renaissance Property Limitada, a real estate developer in Lisbon focused on renovating historical city apartment blocks into luxury living spaces. Bettany continues to serve as the company's Financial Director.
In 2006, Nick completed his MBA at INSEAD in Singapore and Paris before working at Avington Financial, an investment bank specializing in providing financial advice on mergers and acquisitions within the hospitality and leisure industries.
Bettany has served as a Director of the Banyan Tree Seychelles hotel, an organization that has their own destination club under the corporate group, Banyan Tree Private Collection. In his very little free time, Nick also serves on the Boards both at RatedOffshore Limited and Rentim Investments, is an active member of the London chapter of the Keiretsu Forum, and oversees the running of gold medal winning Cremant and Cabernet Franc red wine vineyard in the Loire Valley.
Members of the club will not be affected by the deal. "The property company itself is held by the shareholders," said Moody. "Member's shareholdings aren't affected at all. Their shareholdings are in a seperate company. The property company owns the properties and the management company manages the properties on behalf of the shareholders."
With the new capital injected into the firm, Moody let us know that Hideaways plans to acquire many new stellar properties to the club's portfolio before the end of the year. Check back soon to hear the rest of Chris Moody's comments about where The Hideaways Club will be going in 2009 and their plans for the future.
To learn more about The Hideaways Club, please contact The Veras Group, your complimentary destination club advisor, dedicated to assisting you through every stage of your destination club purchase.
The Hideaways Club Sells 20% of Ownership Destination Club News The Veras Group
The Veras Group met with Chris Moody, Director of Sales, to learn more about the investors and what it means to members and The Hideaways Club itself.
"Obviously it provides us more capital, but it also brings in some very experienced investors putting money into the real estate investment," Moody began. "They are two very experienced guys and our founders are very pleased to be able to raise capital in the current environment. I think that more than anything illustrates the business model is a good one."
Jonathan Feuer is a Managing Partner at CVC Capital Partners, a leading private equity and investment advisory firm based in Luxembourg. Feuer joined CVC in 1988, working previously for Baring Brothers in the Corporate Finance department and Ernst & Whinney in London where he qualified as a Chartered Accountant. Studying at the University of Warwick, Feuer has a degree in applied mathematics and has led several buyouts and acquisitions during his time at CVC Capital.
While new to The Hideaways Club, Feuer does have experience with the club's founders. In 2004, Feuer led the £1.7 billion leveraged buyout of Debenhams, a major British retailer. John Lovering, a Founder and investor at The Hideaways Club, is Chairman of Debenhams.
After studying Economics at the University in Bristol, Nick Bettany began his career as a Chartered Accountant at Pricewaterhouse Coopers, specializing in audits of financial institutions. He later went on to work for the Royal Bank of Canada and the Jersey Financial Services Commission before establishing Clink Renaissance Property Limitada, a real estate developer in Lisbon focused on renovating historical city apartment blocks into luxury living spaces. Bettany continues to serve as the company's Financial Director.
In 2006, Nick completed his MBA at INSEAD in Singapore and Paris before working at Avington Financial, an investment bank specializing in providing financial advice on mergers and acquisitions within the hospitality and leisure industries.
Bettany has served as a Director of the Banyan Tree Seychelles hotel, an organization that has their own destination club under the corporate group, Banyan Tree Private Collection. In his very little free time, Nick also serves on the Boards both at RatedOffshore Limited and Rentim Investments, is an active member of the London chapter of the Keiretsu Forum, and oversees the running of gold medal winning Cremant and Cabernet Franc red wine vineyard in the Loire Valley.
Members of the club will not be affected by the deal. "The property company itself is held by the shareholders," said Moody. "Member's shareholdings aren't affected at all. Their shareholdings are in a seperate company. The property company owns the properties and the management company manages the properties on behalf of the shareholders."
With the new capital injected into the firm, Moody let us know that Hideaways plans to acquire many new stellar properties to the club's portfolio before the end of the year. Check back soon to hear the rest of Chris Moody's comments about where The Hideaways Club will be going in 2009 and their plans for the future.
To learn more about The Hideaways Club, please contact The Veras Group, your complimentary destination club advisor, dedicated to assisting you through every stage of your destination club purchase.
The Hideaways Club Sells 20% of Ownership Destination Club News The Veras Group
Abercrombie and Kent Residence Club Hosts First Annual Members Meeting
"We are trying to raise the bar for how clubs should operate and demonstrate some new best practices. From an industry standpoint, this upcoming event is very significant."
Less than a week shy of Abercrombie & Kent Residence Club's first annual member meeting, Darin Gilson, the club's Senior Vice President of Sales and Business Development, met with The Veras Group to discuss the meeting and what the club plans to accomplish during their first annual event starting tomorrow in Chicago. The club plans to have a diverse list of representatives in attendance and presenting from the Abercrombie & Kent family including:
• Geoffrey Kent: Abercrombie & Kent Founder, Chairman and CEO
• Jorie Butler Kent: Vice Chair, Abercrombie & Kent
• Scott Wiseman: President of A&K, Inc. and A&K Residence Club
• Brett Fichte: Chief Financial Officer
• Stephanie Papaioannou: Senior Vice President of Hospitality and Member Services
• Darin Gilson: Senior Vice President of Sales and Business Development
• Joe Mitchell: Senior Vice President of Real Estate
• Robin Warne: Vice President of Finance
• Chicago Based Hospitality Team
"We had some debate on the best way to conduct the annual meeting. We toyed with the idea of hosting the event at our two homes in Turks & Caicos, but we wanted to make it as easy as possible for our members to gather," began Gilson. "We decided on Chicago since it is the middle of the country and also where we are headquartered. In the spirit of being prudent and fiscally responsible, I believe it was a good choice. For those members who can't attend in person, they can join via conference call and webcast. We hope that our members will enjoy the opportunity to meet one another, and most importantly, that they will appreciate the transparency and full disclosure that we will offer."
In recent months, the destination club landscape has been forever altered as business models have come into question and financial stability has moved to the forefront as members and prospects analyze each club in the industry. Leading clubs such as the Lusso Collection and High Country Club have been forced into bankruptcy while others have made sweeping changes to their structure to survive. Abercrombie & Kent plans to assure their members that their club will not face a similar fate.
"We just completed our annual audit," continued Gilson. "KPMG is our auditing firm and our Chief Financial Officer, Brett Fichte, will review the results of the audited financials. The financial material we will disclose at the meeting is somewhat groundbreaking. We believe this is not only a best practice, but a first in our industry."
Since the club's inception last year, Abercrombie & Kent has demonstrated financial transparency and open communication as key components of the club. "From the beginning, we promised to be forthright about how the club is operating, and we have invited the members to play an active role in shaping the club's future," said A&K's Founder, Chairman, and CEO Geoffrey Kent.
To more firmly establish the active role that members play in the club's governance, two Abercrombie & Kent members will be elected to the club's five person board. "We have gone through a process over the past month where five members were nominated, and then all the members had the opportunity to vote for two members to represent them on the board," Gilson said. "Having members sit on the governing board, who are elected by their fellow members, and who have no profit motivation or ownership stake in the management company, is absolutely groundbreaking."
According to Gilson, the club's board has the powers that most boards have, including ratifying budgets, reviewing proposed changes to the club's by laws, and addressing strategy items. While the club's financial stature and Board electees will be prominent agenda items, the annual meeting will also address several other components of the club, including member services, hospitality and the club's philanthropic efforts.
"We don't expect the financial discussion to dominate the meeting. We have had discussions with our members throughout the year through periodic conference calls and assured our members that we are being prudent with member's funds," said Gilson. "Geoffrey Kent will discuss the status of the company and our heritage. We will also be pleased to hear from Jorie Butler Kent, who will discuss A&K philanthropy. This is an important part of the A&K DNA, and we want our members to appreciate how the company helps in many causes around the world. Scott Wiseman will give a President's perspective on the club and where we will go in the future. I will give a presentation about our growth objectives and current industry dynamics. Stephanie will be giving a presentation on hospitality and member services and of course we will review the financials. We are trying to hit on all the key aspects of the club, including where we are now, where we expect to be in the future, and how we will get there."
Following the official meeting, the newly elected board members will participate in their first board meeting before attendees and A&K representatives will head off for a night on the town.
"It's not all going to be business. There will be the member's meeting and then the first Board meeting with the new member elected Board Members participating. That evening, we will gather for a club social function at Second City, a famous club in Chicago, where we have rented out the place for a private performance just for Abercrombie & Kent Residence Club members. We are mixing in a little fun in one of Chicago's hot spots."
Abercrombie & Kent plans to have approximately 50 members in attendance with many more joining in via phone or webcast. While prospects cannot attend, Gilson did say that portions of the webcast or the presentation materials may become available to prospects in the future.
Next week, we will continue with our second installment of our four part series with Darin Gilson. To request an advanced copy of our upcoming articles about Abercrombie & Kent Residence Club or to request more information about A&K or any other destination club, please contact The Veras Group, your complimentary destination club advisory firm.
Abercrombie & Kent Residence Club First Annual Meeting
Less than a week shy of Abercrombie & Kent Residence Club's first annual member meeting, Darin Gilson, the club's Senior Vice President of Sales and Business Development, met with The Veras Group to discuss the meeting and what the club plans to accomplish during their first annual event starting tomorrow in Chicago. The club plans to have a diverse list of representatives in attendance and presenting from the Abercrombie & Kent family including:
• Geoffrey Kent: Abercrombie & Kent Founder, Chairman and CEO
• Jorie Butler Kent: Vice Chair, Abercrombie & Kent
• Scott Wiseman: President of A&K, Inc. and A&K Residence Club
• Brett Fichte: Chief Financial Officer
• Stephanie Papaioannou: Senior Vice President of Hospitality and Member Services
• Darin Gilson: Senior Vice President of Sales and Business Development
• Joe Mitchell: Senior Vice President of Real Estate
• Robin Warne: Vice President of Finance
• Chicago Based Hospitality Team
"We had some debate on the best way to conduct the annual meeting. We toyed with the idea of hosting the event at our two homes in Turks & Caicos, but we wanted to make it as easy as possible for our members to gather," began Gilson. "We decided on Chicago since it is the middle of the country and also where we are headquartered. In the spirit of being prudent and fiscally responsible, I believe it was a good choice. For those members who can't attend in person, they can join via conference call and webcast. We hope that our members will enjoy the opportunity to meet one another, and most importantly, that they will appreciate the transparency and full disclosure that we will offer."
In recent months, the destination club landscape has been forever altered as business models have come into question and financial stability has moved to the forefront as members and prospects analyze each club in the industry. Leading clubs such as the Lusso Collection and High Country Club have been forced into bankruptcy while others have made sweeping changes to their structure to survive. Abercrombie & Kent plans to assure their members that their club will not face a similar fate.
"We just completed our annual audit," continued Gilson. "KPMG is our auditing firm and our Chief Financial Officer, Brett Fichte, will review the results of the audited financials. The financial material we will disclose at the meeting is somewhat groundbreaking. We believe this is not only a best practice, but a first in our industry."
Since the club's inception last year, Abercrombie & Kent has demonstrated financial transparency and open communication as key components of the club. "From the beginning, we promised to be forthright about how the club is operating, and we have invited the members to play an active role in shaping the club's future," said A&K's Founder, Chairman, and CEO Geoffrey Kent.
To more firmly establish the active role that members play in the club's governance, two Abercrombie & Kent members will be elected to the club's five person board. "We have gone through a process over the past month where five members were nominated, and then all the members had the opportunity to vote for two members to represent them on the board," Gilson said. "Having members sit on the governing board, who are elected by their fellow members, and who have no profit motivation or ownership stake in the management company, is absolutely groundbreaking."
According to Gilson, the club's board has the powers that most boards have, including ratifying budgets, reviewing proposed changes to the club's by laws, and addressing strategy items. While the club's financial stature and Board electees will be prominent agenda items, the annual meeting will also address several other components of the club, including member services, hospitality and the club's philanthropic efforts.
"We don't expect the financial discussion to dominate the meeting. We have had discussions with our members throughout the year through periodic conference calls and assured our members that we are being prudent with member's funds," said Gilson. "Geoffrey Kent will discuss the status of the company and our heritage. We will also be pleased to hear from Jorie Butler Kent, who will discuss A&K philanthropy. This is an important part of the A&K DNA, and we want our members to appreciate how the company helps in many causes around the world. Scott Wiseman will give a President's perspective on the club and where we will go in the future. I will give a presentation about our growth objectives and current industry dynamics. Stephanie will be giving a presentation on hospitality and member services and of course we will review the financials. We are trying to hit on all the key aspects of the club, including where we are now, where we expect to be in the future, and how we will get there."
Following the official meeting, the newly elected board members will participate in their first board meeting before attendees and A&K representatives will head off for a night on the town.
"It's not all going to be business. There will be the member's meeting and then the first Board meeting with the new member elected Board Members participating. That evening, we will gather for a club social function at Second City, a famous club in Chicago, where we have rented out the place for a private performance just for Abercrombie & Kent Residence Club members. We are mixing in a little fun in one of Chicago's hot spots."
Abercrombie & Kent plans to have approximately 50 members in attendance with many more joining in via phone or webcast. While prospects cannot attend, Gilson did say that portions of the webcast or the presentation materials may become available to prospects in the future.
Next week, we will continue with our second installment of our four part series with Darin Gilson. To request an advanced copy of our upcoming articles about Abercrombie & Kent Residence Club or to request more information about A&K or any other destination club, please contact The Veras Group, your complimentary destination club advisory firm.
Abercrombie & Kent Residence Club First Annual Meeting
The Hideaways Club Plans For The Future
Fresh off selling 20% of their ownership to investors Jonathan Feuer and Nick Bettany, The Hideaways Club has large plans for the rest of 2009.
"I think a lot of people were considering buying their own home are now considering fractional. We seem to not be experiencing a drop off, but in fact doing better than what we were," began Chris Moody, the Director of Sales at The Hideaways Club in an exclusive interview with The Veras Group.
The Hideaways Club launched early in 2007, marketing themselves as "Europe's first private residence owners club." Unlike the more traditional United States destination club model where members join with a "right to use" membership stake where they can access the club's properties but with no ownership in the properties, The Hideaways Club members do own the properties in the club's portfolio. Founders Mike Balfour, John Lovering, Stephen Wise, Patrick Henchoz, and Helmut Schön launched the club with European members in mind, planning their property acquisitions to all be within a four hour flight from the United Kingdom.
Despite the club's initial plans to acquire properties all within a short area of the UK, The Hideaways Club is looking to expand further to other select areas outside their original target.
"We are expanding into Asia and Africa," said Moody. "At the moment we have bought some of the properties but have yet to announce them to our members. We are looking to expand further across other Asian destinations. By the end of the year we should be close to 30 properties. We currently are at 16 properties that we have announced and have some others that will be announced shortly. Every six members we buy a new house, and looking at the rate we are taking on new members, we should be pushing 30 properties by the end of 2009."
With real estate prices falling on a global scale, The Hideaways Club is anxious to add select properties at strong values to their portfolio.
"I don't think it is drastic as in the states, but prices have come down in some areas," Moody said. "Certainly we are able to get some very nice properties for some very good rates. We are not looking to buy cheaper properties since we want to maintain our standards, so we are essentially able to buy better properties now than we could have last year. Our properties are all decided upon by our founders. They have very specific ideas about what they want, so while all the properties are very different, they share the same characteristics. Certain number of bedrooms, accommodations, location, quality of finish. Generally we just try to be consistent."
With less than 20 properties including those not yet available to members, The Hideaways Club would need to add approximately 60 new members over the next seven months to approach their 30 property goal. This ambitious mark may begin with the addition of a notable British tennis star the club plans to announce soon, adding yet another member to the many notable destination club sports members throughout the industry. The Veras Group will follow up with the report as it is announced.
To learn more about The Hideaways Club, please request more information from The Veras Group, your complimentary resource for unbiased news and information about every destination club.
The Hideaways Club Plans For The Future Destination Club News The Veras Group
"I think a lot of people were considering buying their own home are now considering fractional. We seem to not be experiencing a drop off, but in fact doing better than what we were," began Chris Moody, the Director of Sales at The Hideaways Club in an exclusive interview with The Veras Group.
The Hideaways Club launched early in 2007, marketing themselves as "Europe's first private residence owners club." Unlike the more traditional United States destination club model where members join with a "right to use" membership stake where they can access the club's properties but with no ownership in the properties, The Hideaways Club members do own the properties in the club's portfolio. Founders Mike Balfour, John Lovering, Stephen Wise, Patrick Henchoz, and Helmut Schön launched the club with European members in mind, planning their property acquisitions to all be within a four hour flight from the United Kingdom.
Despite the club's initial plans to acquire properties all within a short area of the UK, The Hideaways Club is looking to expand further to other select areas outside their original target.
"We are expanding into Asia and Africa," said Moody. "At the moment we have bought some of the properties but have yet to announce them to our members. We are looking to expand further across other Asian destinations. By the end of the year we should be close to 30 properties. We currently are at 16 properties that we have announced and have some others that will be announced shortly. Every six members we buy a new house, and looking at the rate we are taking on new members, we should be pushing 30 properties by the end of 2009."
With real estate prices falling on a global scale, The Hideaways Club is anxious to add select properties at strong values to their portfolio.
"I don't think it is drastic as in the states, but prices have come down in some areas," Moody said. "Certainly we are able to get some very nice properties for some very good rates. We are not looking to buy cheaper properties since we want to maintain our standards, so we are essentially able to buy better properties now than we could have last year. Our properties are all decided upon by our founders. They have very specific ideas about what they want, so while all the properties are very different, they share the same characteristics. Certain number of bedrooms, accommodations, location, quality of finish. Generally we just try to be consistent."
With less than 20 properties including those not yet available to members, The Hideaways Club would need to add approximately 60 new members over the next seven months to approach their 30 property goal. This ambitious mark may begin with the addition of a notable British tennis star the club plans to announce soon, adding yet another member to the many notable destination club sports members throughout the industry. The Veras Group will follow up with the report as it is announced.
To learn more about The Hideaways Club, please request more information from The Veras Group, your complimentary resource for unbiased news and information about every destination club.
The Hideaways Club Plans For The Future Destination Club News The Veras Group
Thursday, January 29, 2009
High Country Club Files For Chapter 7 Bankruptcy
Bookended by a precipitous rise to the top of the destination club industry and by a meteoric collapse, High Country Club has announced it will file for Chapter 7 bankruptcy next week.
In a candid letter to the club's members sent last week, Christian Kirschner, High Country Club's CEO wrote:
Effective immediately, High Country Club will no longer be in business. Along with our bankruptcy attorneys, we are in the process of filing Chapter 7 bankruptcy next week.
The severe decline in the economy has made it impossible to operate our business. Our team has worked tirelessly over the past 120 days to restructure and save the business. However, multiplying outside factors and a declining membership has made operations impossible.
Effective immediately all reservations are canceled.
We expect that the bankruptcy court will be in contact with members after our filing next week.
I offer my sincerest apologies and regrets as the current business and economic environment has made it impossible for HCC to operate.
Christian V. Kirschner
President & CEO
High Country Club
Founded as a specialty destination club focused on the affluent ski audience, High Country Club entered the industry as a low cost alternative to the myriad of other more costly destination clubs that dominated the industry. As the sole club in the sub-$50,000 price point, High Country Club soon emerged as a destination club power, consistently meeting sales and revenue goals and serving as a founding member of the Destination Club Association.
The club's ability to generate a continual stream of new sales led to over reaching on real estate, purchasing luxury vacation homes outside of their business model's price range. In their attempt to remain the most cost effective destination club, annual dues, the club's yearly payments made by club members used to pay for the club's ongoing operations, were set below the club's operational burn rate.
As the real estate and financial markets began to decline, so did sales for High Country Club. Often selling upwards of 30 memberships per month, the club's sales initiatives began to yield single digits in the months prior to their bankruptcy.
With club sales eroding and facing financing issues from lenders, High Country Club executives attempted to merge with another destination club, only to have the buyer back out in early October of 2008. In a letter to High Country Club members regarding the destination club merger sent on October 28, Kirschner wrote "I approached several destination clubs and we made a decision to move forward with one. Documents were signed and the integration process had begun. Two and a half weeks ago the deal was terminated due to the difficulties created by the extraordinary economic events of the past 45 days...There was never any doubt in my mind we would not close on this transaction for several reasons...The economic events of the past 45 days changed everything."
With anemic sales and growing debt obligations, High Country Club created a Success Plan that theoretically would allow the club to become self sufficient and operational solely on membership dues. The plan consisted primarily of increased annual dues for members, decreases in properties available to members, and drastic layoffs to High Country Club staff to reduce overhead.
For the plan to succeed, approximately 75 percent of the membership base needed to agree to sign off on new addendums outlining these terms. While the club approached the 75 percent barrier, ultimately it fell just short, leading management to create a new alternative to members, the High Country Club Sustainability Plan.
The Sustainability Plan also failed to create the self sufficient model club executives and members sought.
With High Country Club's upcoming Chapter 7 filing, they join One Key World and Lusso Collection as firms starting 2009 poorly. One Key World and their rental brokerage model was forced to cease operations earlier this month while the Lusso Collection is currently going through Chapter 11 bankruptcy.
Despite Kirschner's immediate closure notice, expect more news about High Country Club to follow as creditors, real estate owners, and members alike continue asking questions about how High Country Club reached this point.
Original Article
High Country Club Files For Chapter 7 Bankruptcy
In a candid letter to the club's members sent last week, Christian Kirschner, High Country Club's CEO wrote:
Effective immediately, High Country Club will no longer be in business. Along with our bankruptcy attorneys, we are in the process of filing Chapter 7 bankruptcy next week.
The severe decline in the economy has made it impossible to operate our business. Our team has worked tirelessly over the past 120 days to restructure and save the business. However, multiplying outside factors and a declining membership has made operations impossible.
Effective immediately all reservations are canceled.
We expect that the bankruptcy court will be in contact with members after our filing next week.
I offer my sincerest apologies and regrets as the current business and economic environment has made it impossible for HCC to operate.
Christian V. Kirschner
President & CEO
High Country Club
Founded as a specialty destination club focused on the affluent ski audience, High Country Club entered the industry as a low cost alternative to the myriad of other more costly destination clubs that dominated the industry. As the sole club in the sub-$50,000 price point, High Country Club soon emerged as a destination club power, consistently meeting sales and revenue goals and serving as a founding member of the Destination Club Association.
The club's ability to generate a continual stream of new sales led to over reaching on real estate, purchasing luxury vacation homes outside of their business model's price range. In their attempt to remain the most cost effective destination club, annual dues, the club's yearly payments made by club members used to pay for the club's ongoing operations, were set below the club's operational burn rate.
As the real estate and financial markets began to decline, so did sales for High Country Club. Often selling upwards of 30 memberships per month, the club's sales initiatives began to yield single digits in the months prior to their bankruptcy.
With club sales eroding and facing financing issues from lenders, High Country Club executives attempted to merge with another destination club, only to have the buyer back out in early October of 2008. In a letter to High Country Club members regarding the destination club merger sent on October 28, Kirschner wrote "I approached several destination clubs and we made a decision to move forward with one. Documents were signed and the integration process had begun. Two and a half weeks ago the deal was terminated due to the difficulties created by the extraordinary economic events of the past 45 days...There was never any doubt in my mind we would not close on this transaction for several reasons...The economic events of the past 45 days changed everything."
With anemic sales and growing debt obligations, High Country Club created a Success Plan that theoretically would allow the club to become self sufficient and operational solely on membership dues. The plan consisted primarily of increased annual dues for members, decreases in properties available to members, and drastic layoffs to High Country Club staff to reduce overhead.
For the plan to succeed, approximately 75 percent of the membership base needed to agree to sign off on new addendums outlining these terms. While the club approached the 75 percent barrier, ultimately it fell just short, leading management to create a new alternative to members, the High Country Club Sustainability Plan.
The Sustainability Plan also failed to create the self sufficient model club executives and members sought.
With High Country Club's upcoming Chapter 7 filing, they join One Key World and Lusso Collection as firms starting 2009 poorly. One Key World and their rental brokerage model was forced to cease operations earlier this month while the Lusso Collection is currently going through Chapter 11 bankruptcy.
Despite Kirschner's immediate closure notice, expect more news about High Country Club to follow as creditors, real estate owners, and members alike continue asking questions about how High Country Club reached this point.
Original Article
High Country Club Files For Chapter 7 Bankruptcy
Yellowstone Club World Files For Chapter 7 Bankruptcy
Creditors of Yellowstone Club World, a spinoff destination club of the Yellowstone Club, have filed for Chapter 7 bankruptcy liquidation. Filed on behalf of four creditors claiming $4.65 million in refunds for membership deposits to Yellowstone Club World, Angus MacNaughton, Edgar Rainin, and Yoav Rubinstein are each requesting $1.5 million and Thomas Hook is requesting $150,000.
Yellowstone Club World ceased operations last year amid a public ownership battle and divorce of Tim and Edra Blixseth. Edra eventually won ownership of the club and promised to monetize several of the clubs properties.
Envisioned as the most elite destination club in the industry, Tim Blixseth scoured the globe looking for luxury vacation properties for the club's exclusive 150 members. Once comparing the search to "Easter egg hunting," the club included the Chateau de Farcheville in France, the El Tamarindo resort in Mexico, and a private golf club near St. Andrews in Scotland. Designed to charge as much as $10 million to join, the club failed to get off the ground, counting only a select few Yellowstone Club members who upgraded to join. In September of 2008, Yellowstone Club World ceased operations.
In November of 2008, Yellowstone Club, the Montana based resort that preceded Yellowstone Club World, filed for Chapter 11 bankruptcy protection. According to the first court filings, Yellowstone Club cited a combined debt of $344 million and assets of roughly $1.1 billion.
According to John Amsden, a lawyer representing Yellowstone Club World members, at least one of the properties available to Yellowstone Club World members is being used as leverage in the Yellowstone Club Chapter 11 proceedings.
"We're concerned the assets they do have are no longer in control of the Yellowstone Club World," said Amsden. "The involuntary bankruptcy was necessary because it appears that there is no one minding the club's business. We hope that the matter can be resolved with a minimum of expense."
Through the Chapter 7 filing, the creditors seek to find who and what entity controls the properties of Yellowstone Club World.
"The members of the Yellowstone Club World were promised access to very specific and significant properties in return for their significant membership dues. They anticipate that their interests to those properties will be respected," Amsden continued.
Within 20 days, the court will appoint a trustee who will begin to sort through the club's assets.
The Chapter 7 filing puts two destination clubs on the polar opposite of the spectrum in the same boat this week. High Country Club, the most inexpensive destination club in the industry, also filed for Chapter 7 bankruptcy.
Original Article
Yellowstone Club World Files For Chapter 7 Bankruptcy
Yellowstone Club World ceased operations last year amid a public ownership battle and divorce of Tim and Edra Blixseth. Edra eventually won ownership of the club and promised to monetize several of the clubs properties.
Envisioned as the most elite destination club in the industry, Tim Blixseth scoured the globe looking for luxury vacation properties for the club's exclusive 150 members. Once comparing the search to "Easter egg hunting," the club included the Chateau de Farcheville in France, the El Tamarindo resort in Mexico, and a private golf club near St. Andrews in Scotland. Designed to charge as much as $10 million to join, the club failed to get off the ground, counting only a select few Yellowstone Club members who upgraded to join. In September of 2008, Yellowstone Club World ceased operations.
In November of 2008, Yellowstone Club, the Montana based resort that preceded Yellowstone Club World, filed for Chapter 11 bankruptcy protection. According to the first court filings, Yellowstone Club cited a combined debt of $344 million and assets of roughly $1.1 billion.
According to John Amsden, a lawyer representing Yellowstone Club World members, at least one of the properties available to Yellowstone Club World members is being used as leverage in the Yellowstone Club Chapter 11 proceedings.
"We're concerned the assets they do have are no longer in control of the Yellowstone Club World," said Amsden. "The involuntary bankruptcy was necessary because it appears that there is no one minding the club's business. We hope that the matter can be resolved with a minimum of expense."
Through the Chapter 7 filing, the creditors seek to find who and what entity controls the properties of Yellowstone Club World.
"The members of the Yellowstone Club World were promised access to very specific and significant properties in return for their significant membership dues. They anticipate that their interests to those properties will be respected," Amsden continued.
Within 20 days, the court will appoint a trustee who will begin to sort through the club's assets.
The Chapter 7 filing puts two destination clubs on the polar opposite of the spectrum in the same boat this week. High Country Club, the most inexpensive destination club in the industry, also filed for Chapter 7 bankruptcy.
Original Article
Yellowstone Club World Files For Chapter 7 Bankruptcy
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