Ultra-luxury destination club Everlands considers land and wildlife conservation one of their primary pillars. In addition to their work to maintain the environment, the club is also helping to fight the war against cancer.
On November 8th, The University of Chicago Cancer Research Foundation Women's Board conducted its "Black and White Ball," raising over $800,000 to help discover new cancer treatments. The ball was part of the Women's Board's 42nd Annual Grand Auction Gala. Held at the Four Seasons Hotel, over 500 masked supporters attended the event, fashioned after a Truman Capote's Black and White Ball held in 1966 where 500 masked guests celebrated in New York.
As part of the auction, Everlands donated a week long stay at the Lone Mountain Ranch in Big Sky. Located just eighteen miles from Yellowstone National Park, the lodge is located on 160 acres of nearly untouched Montana land. Members enjoy pristine fishing, hiking, and skiing in the forests and mountains that envelope the ranch. Other auctioned items included jewelry from Tiffany & Co., trips to Moscow and Tokyo from American Airlines, and dinners from award winning chef Art Smith.
"It was an extraordinary evening that was made even more meaningful by the fact that these funds will go to research that will make tomorrow's important discoveries possible in the war against cancer," said event co-chair Nalisa War.
Everlands is also the proud sponsor of the annual Everlands Conservation Prize, a $1 million award given to one or more individuals who make extraordinary efforts to conserve wild life and land. Members help assist the club by nominating candidates and reviewing nominees.
Everlands isn't alone as other destination clubs continue to focus more and more on conservation friendly initiatives. Quintess absorbs the costs of energy consumption for each of their homes through their carbon offset program. Abercrombie & Kent planted a tree for every traveler in 2007, totaling over 30,000 trees.
Congratulations to Everlands for their continued work towards the conservation of land and wildlife and branching out to support other worthwhile initiatives.
Everlands Contributes To Cancer Research
Thursday, November 20, 2008
Wednesday, November 19, 2008
The Veras Group Speaks With Distinctive Holiday Homes' CEO Nick Wood About The Destination Club Industry
This past weekend, The Veras Group spoke with Nick Wood, CEO of Distinctive Holiday Homes, a destination club with arguably the broadest international reach of any club. Hours before boarding a plane to the United States from New Zealand, Nick shared with us his vision for the industry, his firm, the current economic crisis, an upcoming offer to High Country Club members, and other thoughts of interest.
The Veras Group: What is the future of the destination club industry in your mind, over the next few years? What changes and consistencies will there be?
Nick Wood: There is going to be a general consolidation, I would think. In this particular economic climate there will be a few people caught with the tide out and no swimming trunks on.
Everyone expected there to be a downturn, and when we built up Distinctive Holiday Homes, we steered away from purchasing properties in America because we didn't think it would be a wise investment to purchase stuff that would be worth quite a bit less only months later.
And that is going to be a big problem for the industry to swallow. Much of the equity in properties has been eroded and most of the clubs have less than $1 in equity per $1 in member deposit.
All in all, there is also a positive side. There will be people who normally invest in property who will now think of new options, like holiday clubs. There will also be people who downsize and take a destination club or a timeshare over what they may have done before. Those things will drive customers to the product.
Right now, we seem to be getting a significant amount of traction, people making inquiries again. I think the wheels will start turning again toward the end of the year, and into the first quarter of next year. I don't think you will see the same volume of growth as in late 2007 early 2008, but I do think there will be a constant flow of new business. I also think there will be consolidation, which will make those companies stronger.
Many other countries are affected, but they don't have the property glut that the US does. And reality is what is going to be the key thing. People are going to be paying the real cost of what it costs to offer the service. It has to be financially viable.
People should be cautious. People should be looking at the structure. If things look too good to be true, they probably are.
The Veras Group: Does Distinctive Holiday Homes have an operating structure that insures members will join a stable club? What structures insure this?
Nick Wood: One of our strategies is to buy revenue generating businesses for the business. We own the resort in Fiji, which generates millions in revenue and profit each year. I've just been negotiating on another resort property at the moment. We have club member facilities at these properties. It also gives us free land, because it gives us space on these properties to build club homes. That also averages down our cost for building houses. We don't want to have a huge development. We are running a destination club, but we are also running a tourism business. This tourism business is not a property development business. We reverse the traditional club goal (of being a property development business) and put this all together with a complete service and tourism focus with a development component as part of that.
So, we are most focused on making sure that people have a holiday of a lifetime, and if we make some money on the property after a while, that’s great too. But, we want to have a property that blows your mind when you get there. We have a one staff to one house ratio (not one staff member looking after 2 or more homes), so in that sense they are more of a butler. They are making your breakfast and preparing your cocktails and can be on site as much as you need them, or not if you don't want them around. They are also real people, connected to the community, and a great asset.
Fundamentally, I took a pragmatic approach to the business. As soon as Tanner & Haley went splat, we changed our business model the day after. Previously, we had approached it similarly as everyone else. But after that changed, I decided the most important thing to have in the company to give people peace of mind, is a substantial capital base. We have made sure that we had extensive assets in the business, so everyone knows we had them cover. We would only have to sell one property to cover all of our obligations to members.
If we devaluate everything worldwide, we still have 8-9 times coverage on member deposits, plus the cash flow from our other businesses. We're not immune to the global economy, but we're not spending money like it goes out of style. We are relatively lightweight and mobile, so we can turn things on as fast as we can turn them off and we just wait for the right time to do that.
We are very cautious about things. We have to protect our members' deposits.
The Veras Group: How can Distinctive Holiday Homes support this structure?
Nick Wood: We don't have reservation services in an office to make their holiday vacations. Our members book on line, and once they book they are connected directly to the person in the destination, to start planning their destination. And for every "x" number of those people, we have a manager who keeps them doing their job. This keeps us lean and mean so we don't have to duplicate lots of staff.
Our resort in Fiji turns over $6 million per year. Several million dollars profit. This goes toward the operating costs of all of our other homes. This also gives us a slight advantage over other clubs which rely on members and their dues and deposits only.
The Veras Group: How much are your members traveling right now?
Nick Wood: I think we did 150-200 extra days in our first year of operation, on top of the allocated days. Many of our customers are European and from the Pacific, and so they don't plan as far in advance because they have lots more vacation time than our US-based members. So they don't plan super far in advance. We are usually chasing them down the week before they arrive to get their flight details because they are very relaxed! Plus holiday times are at different times. We also don’t have people fighting for homes at the same time, because everyone has different holidays, our properties are very well spread, and you're not all trying to fight for the school vacations. That is why our availability is so good.
The Veras Group: What advantage is there for a member to join Distinctive Holiday Homes today, versus waiting 6-12 months?
Nick Wood: I don’t honestly think there is one. The price increases will not be possible, because that’s what most of the clubs were doing, to raise prices to get people to jump in and make a decision. I think the momentum these days is really when people want to take a vacation. We see most of the time when people join it’s because they have to take a vacation.
We’ve lowered our prices recently, because we reevaluated our needs and we simply didn’t need as much as we were charging. I don’t think we will be lowering our prices any more, but we don’t need to be greedy.
The Veras Group: You’ve mentioned making a special offer to former High Country Club members who may like to join Distinctive Holiday Homes. What is the specific offer to HCC members?
Nick Wood: We'll make some offers in the not to distant future. I think in the next 30-45 days we'll have something put together. It may be possible to put 10-12 destinations together immediately for a group to use, and that's what I’m going to spend the next 2 weeks working on in the US, to put it together quickly and efficiently and have something by the end of the year or sooner.
Unfortunately, High Country Club has way too much debt to equity, and what you're doing is picking up a whole lot of credit. You'll have to leverage it out in court for cents on the dollar, and that would be quite a long headache. It's much easier for us to pick up 12 new places that we've already done due diligence on, which are in very similar locations as High Country Club’s properties.
The beauty of our plan is that the membership deposits we will start collecting from former High Country Club members will allow for another 10-20 homes over time, which gives the correct number of properties, and everyone should be a happy little camper. And unfortunately they will just have to face the fact that they lost money somewhere else. I think it’s a fair offer, a reasonable one, and we won't put their money at risk for a second time. And if they don't like it at the end of the year, they would have only paid $600 per night of travel, or if it all went to hell in a hand basket at the end of the year, which it won’t.
Will the members join us is another question. We just have to make the offer and see.
The Veras Group: Any final thoughts?
Nick Wood: I'm still pretty positive about the industry. It has a long term future because it makes sense. The reality of what it is, is combining people's money to buy a property without debt--or that’s what it is supposed to be. So you can get the best economies of scale for the user. We do it for a lot less cost than what it would cost members by themselves.
We have also had massive positive feedback about the product, many, many emails almost every time someone stays, that it is the best investment they have made for their family, time and time again.
The Veras Group Speaks With Distinctive Holiday Homes' CEO Nick Wood
About The Veras Group
The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your 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 970-449-4680 to learn more about the industry, specific clubs, and our service, or visit our website www.TheVerasGroup.com.
Join us: we know the way.
The Veras Group: What is the future of the destination club industry in your mind, over the next few years? What changes and consistencies will there be?
Nick Wood: There is going to be a general consolidation, I would think. In this particular economic climate there will be a few people caught with the tide out and no swimming trunks on.
Everyone expected there to be a downturn, and when we built up Distinctive Holiday Homes, we steered away from purchasing properties in America because we didn't think it would be a wise investment to purchase stuff that would be worth quite a bit less only months later.
And that is going to be a big problem for the industry to swallow. Much of the equity in properties has been eroded and most of the clubs have less than $1 in equity per $1 in member deposit.
All in all, there is also a positive side. There will be people who normally invest in property who will now think of new options, like holiday clubs. There will also be people who downsize and take a destination club or a timeshare over what they may have done before. Those things will drive customers to the product.
Right now, we seem to be getting a significant amount of traction, people making inquiries again. I think the wheels will start turning again toward the end of the year, and into the first quarter of next year. I don't think you will see the same volume of growth as in late 2007 early 2008, but I do think there will be a constant flow of new business. I also think there will be consolidation, which will make those companies stronger.
Many other countries are affected, but they don't have the property glut that the US does. And reality is what is going to be the key thing. People are going to be paying the real cost of what it costs to offer the service. It has to be financially viable.
People should be cautious. People should be looking at the structure. If things look too good to be true, they probably are.
The Veras Group: Does Distinctive Holiday Homes have an operating structure that insures members will join a stable club? What structures insure this?
Nick Wood: One of our strategies is to buy revenue generating businesses for the business. We own the resort in Fiji, which generates millions in revenue and profit each year. I've just been negotiating on another resort property at the moment. We have club member facilities at these properties. It also gives us free land, because it gives us space on these properties to build club homes. That also averages down our cost for building houses. We don't want to have a huge development. We are running a destination club, but we are also running a tourism business. This tourism business is not a property development business. We reverse the traditional club goal (of being a property development business) and put this all together with a complete service and tourism focus with a development component as part of that.
So, we are most focused on making sure that people have a holiday of a lifetime, and if we make some money on the property after a while, that’s great too. But, we want to have a property that blows your mind when you get there. We have a one staff to one house ratio (not one staff member looking after 2 or more homes), so in that sense they are more of a butler. They are making your breakfast and preparing your cocktails and can be on site as much as you need them, or not if you don't want them around. They are also real people, connected to the community, and a great asset.
Fundamentally, I took a pragmatic approach to the business. As soon as Tanner & Haley went splat, we changed our business model the day after. Previously, we had approached it similarly as everyone else. But after that changed, I decided the most important thing to have in the company to give people peace of mind, is a substantial capital base. We have made sure that we had extensive assets in the business, so everyone knows we had them cover. We would only have to sell one property to cover all of our obligations to members.
If we devaluate everything worldwide, we still have 8-9 times coverage on member deposits, plus the cash flow from our other businesses. We're not immune to the global economy, but we're not spending money like it goes out of style. We are relatively lightweight and mobile, so we can turn things on as fast as we can turn them off and we just wait for the right time to do that.
We are very cautious about things. We have to protect our members' deposits.
The Veras Group: How can Distinctive Holiday Homes support this structure?
Nick Wood: We don't have reservation services in an office to make their holiday vacations. Our members book on line, and once they book they are connected directly to the person in the destination, to start planning their destination. And for every "x" number of those people, we have a manager who keeps them doing their job. This keeps us lean and mean so we don't have to duplicate lots of staff.
Our resort in Fiji turns over $6 million per year. Several million dollars profit. This goes toward the operating costs of all of our other homes. This also gives us a slight advantage over other clubs which rely on members and their dues and deposits only.
The Veras Group: How much are your members traveling right now?
Nick Wood: I think we did 150-200 extra days in our first year of operation, on top of the allocated days. Many of our customers are European and from the Pacific, and so they don't plan as far in advance because they have lots more vacation time than our US-based members. So they don't plan super far in advance. We are usually chasing them down the week before they arrive to get their flight details because they are very relaxed! Plus holiday times are at different times. We also don’t have people fighting for homes at the same time, because everyone has different holidays, our properties are very well spread, and you're not all trying to fight for the school vacations. That is why our availability is so good.
The Veras Group: What advantage is there for a member to join Distinctive Holiday Homes today, versus waiting 6-12 months?
Nick Wood: I don’t honestly think there is one. The price increases will not be possible, because that’s what most of the clubs were doing, to raise prices to get people to jump in and make a decision. I think the momentum these days is really when people want to take a vacation. We see most of the time when people join it’s because they have to take a vacation.
We’ve lowered our prices recently, because we reevaluated our needs and we simply didn’t need as much as we were charging. I don’t think we will be lowering our prices any more, but we don’t need to be greedy.
The Veras Group: You’ve mentioned making a special offer to former High Country Club members who may like to join Distinctive Holiday Homes. What is the specific offer to HCC members?
Nick Wood: We'll make some offers in the not to distant future. I think in the next 30-45 days we'll have something put together. It may be possible to put 10-12 destinations together immediately for a group to use, and that's what I’m going to spend the next 2 weeks working on in the US, to put it together quickly and efficiently and have something by the end of the year or sooner.
Unfortunately, High Country Club has way too much debt to equity, and what you're doing is picking up a whole lot of credit. You'll have to leverage it out in court for cents on the dollar, and that would be quite a long headache. It's much easier for us to pick up 12 new places that we've already done due diligence on, which are in very similar locations as High Country Club’s properties.
The beauty of our plan is that the membership deposits we will start collecting from former High Country Club members will allow for another 10-20 homes over time, which gives the correct number of properties, and everyone should be a happy little camper. And unfortunately they will just have to face the fact that they lost money somewhere else. I think it’s a fair offer, a reasonable one, and we won't put their money at risk for a second time. And if they don't like it at the end of the year, they would have only paid $600 per night of travel, or if it all went to hell in a hand basket at the end of the year, which it won’t.
Will the members join us is another question. We just have to make the offer and see.
The Veras Group: Any final thoughts?
Nick Wood: I'm still pretty positive about the industry. It has a long term future because it makes sense. The reality of what it is, is combining people's money to buy a property without debt--or that’s what it is supposed to be. So you can get the best economies of scale for the user. We do it for a lot less cost than what it would cost members by themselves.
We have also had massive positive feedback about the product, many, many emails almost every time someone stays, that it is the best investment they have made for their family, time and time again.
The Veras Group Speaks With Distinctive Holiday Homes' CEO Nick Wood
About The Veras Group
The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your 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 970-449-4680 to learn more about the industry, specific clubs, and our service, or visit our website www.TheVerasGroup.com.
Join us: we know the way.
Tuesday, November 18, 2008
Ultimate Escapes Discounts Membership To High Country Club Members
As High Country Club evaluates their options, destination club Ultimate Escapes attempts to court High Country Club members who look to continue enjoying destination club travel.
In an offer made only to High Country Club members, Ultimate Escapes will give current High Country Club members "a substantial credit toward membership in any club and at any plan level." Based on the plan, High Country Club members could save up to $40,000 on their membership with Ultimate Escapes.
According to High Country Club's CEO, Christian Kirschner, the club began to fall on hard times earlier this year in tandem with the real estate and stock markets downward trends. According to Kirschner, property values of the club's portfolio of luxury real estate dropped as much as 50 percent and obtaining financing grew more and more difficult throughout the year. Kirschner began destination club merger discussions with multiple clubs in the industry and elected to move forward with one, going as far as signing documents to begin the acquisition. The crash of the financial markets forced the acquiring club to back out almost a month ago.
In an attempt to keep their club alive, High Country Club restructured their business model and created the High Country Club Success Plan. The Success Plan was built upon decreasing the number of homes available to members and increasing annual dues, allowing the club to become self sufficient and able to survive exclusively on annual dues from members. Roughly 75 percent of members would need to approve the plan for it to be implemented. A preliminary vote conducted earlier this week forced High Country Club to delay their Success Plan due to insufficient support from members.
Ultimate Escapes, High Country Club's closest price competitor, saw an opportunity to market their destination club to a group of individuals already sold on the destination club concept. Available exclusively to High Country Club members, Ultimate Escapes will discount all three of their three clubs: Premiere, Signature, and Elite. High Country Club members will receive a $20,000 credit towards Premiere, $30,000 towards Signature, and $40,000 towards Elite.
Ultimate Escapes Premiere
The closest membership to High Country Club, Ultimate Escapes Premiere residences average approximately $1 million each and 2,000 square feet. Plans range from $70,000 for 14 nights of annual usage up to $150,000 for the highest and newest plan, Ultimate Escapes Platinum Plus, allowing members 60 nights of usage.
Ultimate Escapes Signature
The next highest membership level, Ultimate Escapes Signature has over 70 properties, averaging $2 million each and 3,000 square feet. Plans range from $145,000 to $300,000.
Ultimate Escapes Elite
Averaging $3 million per property, Elite is the highest membership offering at Ultimate Escapes. Typically offering four to six bedrooms and over 4,000 square feet, Elite Members have access to over 50 luxury vacation homes worldwide.
Ultimate Escapes will also offer High Country Club members a "Premiere Club Affiliate Membership" with a $35,000 membership deposit and $4,000 per year in annual dues. As an Affiliate Member, the club provides seven nights of usage, including one advanced reservation and a 60-day space available window to Premiere homes.
Ultimate Escapes, the marriage of Private Escapes and Ultimate Resort, has extensive experience with destination club mergers and acquiring struggling clubs. Prior to the Ultimate Escapes merger, Ultimate Resort acquired the assets of Tanner & Haley following their bankruptcy. Much like Ultimate Escapes, Tanner & Haley Destination Club had multiple clubs: Private Retreats, Distinctive Retreats, and Legendary Retreats. Ultimate Escapes acquired the club's assets in a bidding war that included both Private Escapes and Ciel.
Earlier this year, Ultimate Resort acquired Ventures Equity, a small equity destination club that struggled to get off the ground. Like many other equity destination clubs, Ventures Equity faced strict marketing regulations and could only discuss their club with "accredited investors."
Most recently, Ultimate Resort and Private Escapes merged to form the industry's second largest destination club, trailing only Exclusive Resorts in members and properties.
After learning the results of the preliminary vote earlier this week, Christian Kirschner stated, "I have decided to give ourselves two more weeks to evaluate our options and opportunities."
With Ultimate Escapes vying for the members of High Country Club and Nick Wood from Distinctive Holiday Homes and Jarvis Slade, Jr. from Abercrombie & Kent Residence Club creating another option for High Country Club members, the opportunities available to Christian may very well be getting slimmer and slimmer.
The Ultimate Escapes offer is limited to 200 High Country Club members and ends December 12.
To learn more about the Ultimate Escapes plan for High Country Club members and how it compares to the Distinctive Holiday Homes and Abercrombie & Kent Residence Club offers, please contact The Veras Group, your complimentary resource to destination club advice.
Original Article
Ultimate Escapes Discounts Destination Club Memberships To High Country Club Members
About The Veras Group
The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your 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 970-449-4680 to learn more about the industry, specific clubs, and our service, or visit our website www.TheVerasGroup.com.
Join us: we know the way.
In an offer made only to High Country Club members, Ultimate Escapes will give current High Country Club members "a substantial credit toward membership in any club and at any plan level." Based on the plan, High Country Club members could save up to $40,000 on their membership with Ultimate Escapes.
According to High Country Club's CEO, Christian Kirschner, the club began to fall on hard times earlier this year in tandem with the real estate and stock markets downward trends. According to Kirschner, property values of the club's portfolio of luxury real estate dropped as much as 50 percent and obtaining financing grew more and more difficult throughout the year. Kirschner began destination club merger discussions with multiple clubs in the industry and elected to move forward with one, going as far as signing documents to begin the acquisition. The crash of the financial markets forced the acquiring club to back out almost a month ago.
In an attempt to keep their club alive, High Country Club restructured their business model and created the High Country Club Success Plan. The Success Plan was built upon decreasing the number of homes available to members and increasing annual dues, allowing the club to become self sufficient and able to survive exclusively on annual dues from members. Roughly 75 percent of members would need to approve the plan for it to be implemented. A preliminary vote conducted earlier this week forced High Country Club to delay their Success Plan due to insufficient support from members.
Ultimate Escapes, High Country Club's closest price competitor, saw an opportunity to market their destination club to a group of individuals already sold on the destination club concept. Available exclusively to High Country Club members, Ultimate Escapes will discount all three of their three clubs: Premiere, Signature, and Elite. High Country Club members will receive a $20,000 credit towards Premiere, $30,000 towards Signature, and $40,000 towards Elite.
Ultimate Escapes Premiere
The closest membership to High Country Club, Ultimate Escapes Premiere residences average approximately $1 million each and 2,000 square feet. Plans range from $70,000 for 14 nights of annual usage up to $150,000 for the highest and newest plan, Ultimate Escapes Platinum Plus, allowing members 60 nights of usage.
Ultimate Escapes Signature
The next highest membership level, Ultimate Escapes Signature has over 70 properties, averaging $2 million each and 3,000 square feet. Plans range from $145,000 to $300,000.
Ultimate Escapes Elite
Averaging $3 million per property, Elite is the highest membership offering at Ultimate Escapes. Typically offering four to six bedrooms and over 4,000 square feet, Elite Members have access to over 50 luxury vacation homes worldwide.
Ultimate Escapes will also offer High Country Club members a "Premiere Club Affiliate Membership" with a $35,000 membership deposit and $4,000 per year in annual dues. As an Affiliate Member, the club provides seven nights of usage, including one advanced reservation and a 60-day space available window to Premiere homes.
Ultimate Escapes, the marriage of Private Escapes and Ultimate Resort, has extensive experience with destination club mergers and acquiring struggling clubs. Prior to the Ultimate Escapes merger, Ultimate Resort acquired the assets of Tanner & Haley following their bankruptcy. Much like Ultimate Escapes, Tanner & Haley Destination Club had multiple clubs: Private Retreats, Distinctive Retreats, and Legendary Retreats. Ultimate Escapes acquired the club's assets in a bidding war that included both Private Escapes and Ciel.
Earlier this year, Ultimate Resort acquired Ventures Equity, a small equity destination club that struggled to get off the ground. Like many other equity destination clubs, Ventures Equity faced strict marketing regulations and could only discuss their club with "accredited investors."
Most recently, Ultimate Resort and Private Escapes merged to form the industry's second largest destination club, trailing only Exclusive Resorts in members and properties.
After learning the results of the preliminary vote earlier this week, Christian Kirschner stated, "I have decided to give ourselves two more weeks to evaluate our options and opportunities."
With Ultimate Escapes vying for the members of High Country Club and Nick Wood from Distinctive Holiday Homes and Jarvis Slade, Jr. from Abercrombie & Kent Residence Club creating another option for High Country Club members, the opportunities available to Christian may very well be getting slimmer and slimmer.
The Ultimate Escapes offer is limited to 200 High Country Club members and ends December 12.
To learn more about the Ultimate Escapes plan for High Country Club members and how it compares to the Distinctive Holiday Homes and Abercrombie & Kent Residence Club offers, please contact The Veras Group, your complimentary resource to destination club advice.
Original Article
Ultimate Escapes Discounts Destination Club Memberships To High Country Club Members
About The Veras Group
The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your 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 970-449-4680 to learn more about the industry, specific clubs, and our service, or visit our website www.TheVerasGroup.com.
Join us: we know the way.
High Country Club Delays Success Plan
Citing the high number of members who downgraded their membership, High Country Club has elected to "give ourselves two more weeks to evaluate our options and opportunities."
The destination club began to fall on hard times earlier this year when the stock market began its downturn. Christian Kirschner, High Country Club's CEO, also stated that homes in the club's portfolio had seen decreases of up to 50 percent in value. The stock market and real estate crashes required the restructuring of High Country Club and their business model.
Christian Kirschner and High Country Club released their "Success Plan" for how the destination club would make changes to their operating model so the club could survive solely on the annual dues members paid into the club and not reliant on the club's ability to sell new destination club memberships.
To make the plan work, High Country Club was forced to greatly reduce both the homes available to members and the club's staff in tandem with increasing annual dues and requiring members to prepay for one year of usage. Roughly 75 percent of the club's members were required to approve the plan and sign new addendums agreeing to the new terms and pricing.
In a preliminary vote on Friday, 264 members voted for the Success Plan, percentage points shy of the 75 percent threshold High Country Club sought. Many of the 264 yes votes came from members who elected to downgrade their membership to limit the increase in annual dues the club was asking for. The downgraded members forced the club to modify their Success Plan and further decrease available homes and increase annual dues.
In another vote that took place yesterday with an updated Success Plan proposed, High Country Club did not get the required support needed and wrote the following to its members:
Dear High Country Club Member,
Thank you for all of the time and effort each one of you has made to evaluate the Success Plan. Over the past 3 weeks, we have worked night and day to develop a plan that could help HCC get through the paralyzing circumstances the economy brought to our company on September 14th.
On Monday, we announced a revised Success Plan that took into account the 264 yes votes and the high number of downgraded memberships included in the 264 yes votes. Based on the feedback we have received since Monday's announcement and the results of yesterday's vote, we will not be able to move forward with the Success Plan in its current form. As we have noted, the more no votes and downgraded memberships we receive causes us to liquidate additional homes and raise annual dues. The Success Plan has become cost prohibitive for the vast majority of our members as the portfolio and availability continues to be reduced.
I have decided to give ourselves 2 more weeks to evaluate our options and opportunities.
We will honor reservations through November 29th at a minimum.
I understand and acknowledge this is difficult for everyone. I will be in touch towards the end of next week with an update on our progress.
Thank you for your patience.
Many destination club industry professionals are closely monitoring the High Country Club situation and are already making plans for how their destination club will respond. The fate of 375 High Country Club members rests in the balance.
Original Article
High Country Club Delays Success Plan
The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your 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 970-449-4680 to learn more about the industry, specific clubs, and our service, or visit our website www.TheVerasGroup.com.
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The destination club began to fall on hard times earlier this year when the stock market began its downturn. Christian Kirschner, High Country Club's CEO, also stated that homes in the club's portfolio had seen decreases of up to 50 percent in value. The stock market and real estate crashes required the restructuring of High Country Club and their business model.
Christian Kirschner and High Country Club released their "Success Plan" for how the destination club would make changes to their operating model so the club could survive solely on the annual dues members paid into the club and not reliant on the club's ability to sell new destination club memberships.
To make the plan work, High Country Club was forced to greatly reduce both the homes available to members and the club's staff in tandem with increasing annual dues and requiring members to prepay for one year of usage. Roughly 75 percent of the club's members were required to approve the plan and sign new addendums agreeing to the new terms and pricing.
In a preliminary vote on Friday, 264 members voted for the Success Plan, percentage points shy of the 75 percent threshold High Country Club sought. Many of the 264 yes votes came from members who elected to downgrade their membership to limit the increase in annual dues the club was asking for. The downgraded members forced the club to modify their Success Plan and further decrease available homes and increase annual dues.
In another vote that took place yesterday with an updated Success Plan proposed, High Country Club did not get the required support needed and wrote the following to its members:
Dear High Country Club Member,
Thank you for all of the time and effort each one of you has made to evaluate the Success Plan. Over the past 3 weeks, we have worked night and day to develop a plan that could help HCC get through the paralyzing circumstances the economy brought to our company on September 14th.
On Monday, we announced a revised Success Plan that took into account the 264 yes votes and the high number of downgraded memberships included in the 264 yes votes. Based on the feedback we have received since Monday's announcement and the results of yesterday's vote, we will not be able to move forward with the Success Plan in its current form. As we have noted, the more no votes and downgraded memberships we receive causes us to liquidate additional homes and raise annual dues. The Success Plan has become cost prohibitive for the vast majority of our members as the portfolio and availability continues to be reduced.
I have decided to give ourselves 2 more weeks to evaluate our options and opportunities.
We will honor reservations through November 29th at a minimum.
I understand and acknowledge this is difficult for everyone. I will be in touch towards the end of next week with an update on our progress.
Thank you for your patience.
Many destination club industry professionals are closely monitoring the High Country Club situation and are already making plans for how their destination club will respond. The fate of 375 High Country Club members rests in the balance.
Original Article
High Country Club Delays Success Plan
The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your 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 970-449-4680 to learn more about the industry, specific clubs, and our service, or visit our website www.TheVerasGroup.com.
Join us: we know the way.
Secondary Sales of High Country Club Memberships Dependent On Success Plan
High Country Club, once a leading destination club and a member of the Destination Club Association, was forced to restructure their business model to adapt to the current financial and real estate climate. During the course of the past several weeks, High Country Club's CEO Christian Kirschner with help from legal council and members helped craft a Success Plan to make the destination club self sufficient, allowing the club to exist solely on membership annual dues to cover operating expenses.
To accomplish this, High Country Club was forced to decrease the number of luxury vacation homes available to members and increase annual dues of current members. To minimize their operating expenses, High Country Club restructuring also forced the club to lay off well over 75 percent of their employees, including two of Kirschner's brothers.
Due to the economy, High Country Club has elected to suspend new membership sales and allow current High Country Club members to sell their existing memberships to prospective members if the Success Plan is approved November 17, 2008. For the Success Plan to be approved, roughly 75 percent of the current members would need to sign new addendums agreeing to the increased annual dues. In a preliminary Success Plan vote, nearly 75 percent of members voted yes.
As opposed to the standard destination club model where a predetermined number of new members must be added to the club before one is redeemed, allowing members to determine the price that they are willing to sell their membership effectively makes the membership and membership deposit much more liquid.
Based on the club's resignation list and resignation policies, High Country Club will post the first member chronologically in each membership type from the resignation list on the High Country Club website. Resigning members will be able to set their own pricing on the membership deposit, but cannot exceed the most recent pricing structure used by High Country Club. Membership annual dues and terms can not be changed.
Despite the fact that members who aren't at the top of the resignation list can still sell their membership on the open market, members who are at the top of the list hold complete control of the resignation process.
If a Private Member wants to sell their membership for $79,000 (the last publicly sold pricing for Private Memberships was $80,000), and they are at the top of the resignation list and do not sell their membership, they are effectively holding all other Private Members hostage. As mentioned before, all other Private Members in this example could continue trying to sell their membership, but it is very unlikely that they will receive the exposure the highest person on the resignation list will see.
As you can see above based on the first people on the resignation list, there are widespread differences between what resigning members are seeking when they sell their membership. The highest Private Member with 35 nights of access on the resignation list is seeking to sell their membership for $65,000. Another Private Member but with 45 nights of access is also attempting to resign their membership but only wants $27,935. Although many Private Members with 35 nights of access may be behind this member, it is unlikely that anyone will purchase this membership when another member is selling their membership for $37,065 less and ten additional nights of annual travel.
Leading Canadian equity destination club M Private Residences has also made substantial changes to their business model and also allows members to sell their membership on the open market. Following the changes at M Private Residences, the new redemption policy works far differently from the proposed plan at High Country Club. Prospective members interested in M Private Residences place a bid on what they would like to pay for their membership. Each member of that membership type on the redemption list can potentially sell to this interested party. The person highest on the resignation list is offered what the interested buyer bid. That member can elect to accept the bid or deny it. Accepting it means that the membership is sold to the new party and the new member can begin traveling like any other member. If the member rejects the offer, the next highest person on the resignation list is offered the same bid the prospective member made. If members continue denying the bid placed by the prospective member, the process continues until the last member on the resignation list has the opportunity to accept or deny. If they also deny, the bidder may increase their bid and the process begins anew.
The results of High Country Club's Success Plan should be available Friday. If successful, members may have the opportunity to recoup some of their membership deposits by selling to other interested parties. If not, the destination club will be forced to liquidate their assets and members may not see anything.
Either way, the upcoming 48 hours will be watched closely by Christian Kirschner, 375 members, and the rest of the destination club industry.
Original Article
Sales of High Country Club Memberships Dependent on Success Plan
The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your 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 970-449-4680 to learn more about the industry, specific clubs, and our service, or visit our website www.TheVerasGroup.com.
Join us: we know the way.
To accomplish this, High Country Club was forced to decrease the number of luxury vacation homes available to members and increase annual dues of current members. To minimize their operating expenses, High Country Club restructuring also forced the club to lay off well over 75 percent of their employees, including two of Kirschner's brothers.
Due to the economy, High Country Club has elected to suspend new membership sales and allow current High Country Club members to sell their existing memberships to prospective members if the Success Plan is approved November 17, 2008. For the Success Plan to be approved, roughly 75 percent of the current members would need to sign new addendums agreeing to the increased annual dues. In a preliminary Success Plan vote, nearly 75 percent of members voted yes.
As opposed to the standard destination club model where a predetermined number of new members must be added to the club before one is redeemed, allowing members to determine the price that they are willing to sell their membership effectively makes the membership and membership deposit much more liquid.
Based on the club's resignation list and resignation policies, High Country Club will post the first member chronologically in each membership type from the resignation list on the High Country Club website. Resigning members will be able to set their own pricing on the membership deposit, but cannot exceed the most recent pricing structure used by High Country Club. Membership annual dues and terms can not be changed.
Despite the fact that members who aren't at the top of the resignation list can still sell their membership on the open market, members who are at the top of the list hold complete control of the resignation process.
If a Private Member wants to sell their membership for $79,000 (the last publicly sold pricing for Private Memberships was $80,000), and they are at the top of the resignation list and do not sell their membership, they are effectively holding all other Private Members hostage. As mentioned before, all other Private Members in this example could continue trying to sell their membership, but it is very unlikely that they will receive the exposure the highest person on the resignation list will see.
As you can see above based on the first people on the resignation list, there are widespread differences between what resigning members are seeking when they sell their membership. The highest Private Member with 35 nights of access on the resignation list is seeking to sell their membership for $65,000. Another Private Member but with 45 nights of access is also attempting to resign their membership but only wants $27,935. Although many Private Members with 35 nights of access may be behind this member, it is unlikely that anyone will purchase this membership when another member is selling their membership for $37,065 less and ten additional nights of annual travel.
Leading Canadian equity destination club M Private Residences has also made substantial changes to their business model and also allows members to sell their membership on the open market. Following the changes at M Private Residences, the new redemption policy works far differently from the proposed plan at High Country Club. Prospective members interested in M Private Residences place a bid on what they would like to pay for their membership. Each member of that membership type on the redemption list can potentially sell to this interested party. The person highest on the resignation list is offered what the interested buyer bid. That member can elect to accept the bid or deny it. Accepting it means that the membership is sold to the new party and the new member can begin traveling like any other member. If the member rejects the offer, the next highest person on the resignation list is offered the same bid the prospective member made. If members continue denying the bid placed by the prospective member, the process continues until the last member on the resignation list has the opportunity to accept or deny. If they also deny, the bidder may increase their bid and the process begins anew.
The results of High Country Club's Success Plan should be available Friday. If successful, members may have the opportunity to recoup some of their membership deposits by selling to other interested parties. If not, the destination club will be forced to liquidate their assets and members may not see anything.
Either way, the upcoming 48 hours will be watched closely by Christian Kirschner, 375 members, and the rest of the destination club industry.
Original Article
Sales of High Country Club Memberships Dependent on Success Plan
The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your 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 970-449-4680 to learn more about the industry, specific clubs, and our service, or visit our website www.TheVerasGroup.com.
Join us: we know the way.
Vita Luxury's Thanos Papalexis Arrested For Murder
According to British authorities, Thanos Papalexis, a representative for the recently closed destination club Vita Luxury, has been linked to a vicious murder in 2000.
According to documents unsealed in Federal Court in West Palm Beach late Monday, Papalexis and two accomplices murdered a small-time gambler named Charalambos Christodoulides in 2000.
U.S. law enforcement authorities were notified in April and arrested Papalexis outside a local restaurant in downtown West Palm Beach on Friday. Wayne Pickering, the supervisory Deputy at the West Palm Beach Marshall's Office, confirmed that his men had been discreetly tailing Papalexis. "The warrant was issued Friday, and we picked him up right away," said Pickering. "The request came from the United Kingdom, and he is a suspect in a homicide. He is at the county jail until a decision is made about his extradition."
A British citizen, Papalexis is being held without bail at the Palm Beach County Jail. Monday, Papalexis had an initial court appearance in front of U.S. Magistrate Judge James Hopkins. In a hearing next week, Papalexis will indicate if he will fight the extradition. In 2000, Papalexis allegedly was working in real estate development centered on a run-down warehouse district in a rough London neighborhood of Kilburn. According to the unsealed documents, 55-year-old Charalambos Christodoulides was living in a small flat above a shuttered wine warehouse for years prior and refused to leave, costing Papalexis $120,000 per week in interest to a loan shark who loaned him money to buy the property. According to U.S. Federal Court records, Papalexis and two accomplices "took care" of the problem. "Papalexis' connection to the murder is documented with phone records, legal documents and forensic evidence. Some forensic evidence removed from the crime scene includes materials containing both Papalexis' fingerprings and the victim's blood," according to court documents.
According to an article in London's Evening Standard, police found blood in the warehouse courtyard, suggesting that Christodoulides was first attacked there. It appears next he was tied to a chair in his second floor flat and beaten "as if his killers were trying to get information out of him."
Eventually, Christodoulides was straggled. His body was then dragged down the stairs and drenched in paint-thinner to throw off police dogs and subsequently dumped into a mechanic's pit. Police later found Christodoulides wrapped in a blanket, two wool hats pulled over his head. According to police, there had been so much blood that the murderers spent a long time cleaning the walls and floors.
Back in 2000, Detective Inspector Adrian Blackledge told the paper, "A great deal of effort was taken to cover up this crime so whoever did it knew exactly what they were doing."
Vita Luxury, a destination club that offered luxury watercraft, vehicles, and jet services in addition to luxury real estate failed to launch earlier this year. Papalexis started several other similar firms prior to Vita Luxury promising much of the same. All failed to gain any momentum in the destination club industry. Brian Eisenberg served as Marketing Director of Vita Luxury and stated that he grew suspicious of Papalexis when he informed him that he couldn't return back to Europe.
"There was a rumor someone turned up dead on the construction site of one of his developments in London," said Eisenberg. "Everybody thought it was just a rumor."
Vita Luxury's Thanos Papalexis Arrested For Murder
The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your 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 970-449-4680 to learn more about the industry, specific clubs, and our service, or visit our website www.TheVerasGroup.com.
Join us: we know the way.
According to documents unsealed in Federal Court in West Palm Beach late Monday, Papalexis and two accomplices murdered a small-time gambler named Charalambos Christodoulides in 2000.
U.S. law enforcement authorities were notified in April and arrested Papalexis outside a local restaurant in downtown West Palm Beach on Friday. Wayne Pickering, the supervisory Deputy at the West Palm Beach Marshall's Office, confirmed that his men had been discreetly tailing Papalexis. "The warrant was issued Friday, and we picked him up right away," said Pickering. "The request came from the United Kingdom, and he is a suspect in a homicide. He is at the county jail until a decision is made about his extradition."
A British citizen, Papalexis is being held without bail at the Palm Beach County Jail. Monday, Papalexis had an initial court appearance in front of U.S. Magistrate Judge James Hopkins. In a hearing next week, Papalexis will indicate if he will fight the extradition. In 2000, Papalexis allegedly was working in real estate development centered on a run-down warehouse district in a rough London neighborhood of Kilburn. According to the unsealed documents, 55-year-old Charalambos Christodoulides was living in a small flat above a shuttered wine warehouse for years prior and refused to leave, costing Papalexis $120,000 per week in interest to a loan shark who loaned him money to buy the property. According to U.S. Federal Court records, Papalexis and two accomplices "took care" of the problem. "Papalexis' connection to the murder is documented with phone records, legal documents and forensic evidence. Some forensic evidence removed from the crime scene includes materials containing both Papalexis' fingerprings and the victim's blood," according to court documents.
According to an article in London's Evening Standard, police found blood in the warehouse courtyard, suggesting that Christodoulides was first attacked there. It appears next he was tied to a chair in his second floor flat and beaten "as if his killers were trying to get information out of him."
Eventually, Christodoulides was straggled. His body was then dragged down the stairs and drenched in paint-thinner to throw off police dogs and subsequently dumped into a mechanic's pit. Police later found Christodoulides wrapped in a blanket, two wool hats pulled over his head. According to police, there had been so much blood that the murderers spent a long time cleaning the walls and floors.
Back in 2000, Detective Inspector Adrian Blackledge told the paper, "A great deal of effort was taken to cover up this crime so whoever did it knew exactly what they were doing."
Vita Luxury, a destination club that offered luxury watercraft, vehicles, and jet services in addition to luxury real estate failed to launch earlier this year. Papalexis started several other similar firms prior to Vita Luxury promising much of the same. All failed to gain any momentum in the destination club industry. Brian Eisenberg served as Marketing Director of Vita Luxury and stated that he grew suspicious of Papalexis when he informed him that he couldn't return back to Europe.
"There was a rumor someone turned up dead on the construction site of one of his developments in London," said Eisenberg. "Everybody thought it was just a rumor."
Vita Luxury's Thanos Papalexis Arrested For Murder
The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your 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 970-449-4680 to learn more about the industry, specific clubs, and our service, or visit our website www.TheVerasGroup.com.
Join us: we know the way.
Monday, November 10, 2008
M Private Residences Introduces New Pricing, Structure, and Membership Plans
Canada's largest destination club, M Private Residences, is making substantial changes to their membership pricing, plans, and business model.
While Solstice Collection has announced an upcoming price increase in their membership deposit and Lusso Collection has extended their current pricing, M Private Residences will lower their membership deposit to more closely align with current real estate values.
The new membership deposits will range from $210,000 for 21 nights of usage to $420,000 for 60 nights. The American Dollar currently holds a strong position relative to the Canadian Dollar, allowing the club to take advantage of falling real estate prices and American and European prospects to enjoy destination club discounts. 93 percent of capital raised by the club will go towards new property acquisitions. One of the industry's leading equity clubs, M Private Residences offers audited financial insight into both their property values and operating costs, measures that far exceed the requirements of the Destination Club Association. Annual dues paid by shareholders cover all of the club's operating costs, allowing M Private Residences to be completely self-sustaining and not reliant on new destination clubs sales to survive, a business model that High Country Club is attempting to implement with their new Success Plan.
M Private Residences will also now become wholly-owned and operated by its shareholders. Paul Poscente and Ken MacLean, Founders of M Private Residences, will step down from their management roles. Both will remain with the club as members and the club's Board will be composed entirely of shareholders.
In addition, M Private Residences has greatly altered their membership redemption policy, now allowing shareholders to sell their membership on the open market. Like many other destination clubs, prior to the change, M Private Residences redeemed members on a "two in, one out" basis where two new members were required to let one existing member out.
Members looking to redeem their membership are placed on the club's resignation list. Prospective M Private Residence members put in an offer for the class they would like to join at. The first person on the resignation list with the share class that the prospective member is seeking can accept or deny the offer placed for their membership. If the shareholder denies, the second person on the resignation list is offered to sell their membership at that price. The process continues on through the resignation list until the offer is accepted. If no one accepts the offer, the prospective member can increase their offer and the process begins anew. M Private Residences takes an 8 percent transfer fee on sold memberships.
Prior to implementing this new redemption procedure, M Private Residences sought approval from their shareholders, a testament to the club's wholly owned and operated by shareholders mentality.
Totaling 17 homes in their portfolio, M Private Residences average over $2 million each. With four homes in British Columbia and multiple homes in Hawaii, Arizona, and Cabo San Lucas, M Private Residences' portfolio is quickly becoming one of the strongest equity options in the destination club industry.
Original Article
http://www.theverasgroup.com/index.php?pr=Destination_Club_News-M_Private_Residences_Introduces_New_Reduced_Pricing_Structure_and_Membership_Plans
About The Veras Group
The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your 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 970-449-4680 to learn more about the industry, specific clubs, and our service, or visit our website www.TheVerasGroup.com.
Join us: we know the way.
While Solstice Collection has announced an upcoming price increase in their membership deposit and Lusso Collection has extended their current pricing, M Private Residences will lower their membership deposit to more closely align with current real estate values.
The new membership deposits will range from $210,000 for 21 nights of usage to $420,000 for 60 nights. The American Dollar currently holds a strong position relative to the Canadian Dollar, allowing the club to take advantage of falling real estate prices and American and European prospects to enjoy destination club discounts. 93 percent of capital raised by the club will go towards new property acquisitions. One of the industry's leading equity clubs, M Private Residences offers audited financial insight into both their property values and operating costs, measures that far exceed the requirements of the Destination Club Association. Annual dues paid by shareholders cover all of the club's operating costs, allowing M Private Residences to be completely self-sustaining and not reliant on new destination clubs sales to survive, a business model that High Country Club is attempting to implement with their new Success Plan.
M Private Residences will also now become wholly-owned and operated by its shareholders. Paul Poscente and Ken MacLean, Founders of M Private Residences, will step down from their management roles. Both will remain with the club as members and the club's Board will be composed entirely of shareholders.
In addition, M Private Residences has greatly altered their membership redemption policy, now allowing shareholders to sell their membership on the open market. Like many other destination clubs, prior to the change, M Private Residences redeemed members on a "two in, one out" basis where two new members were required to let one existing member out.
Members looking to redeem their membership are placed on the club's resignation list. Prospective M Private Residence members put in an offer for the class they would like to join at. The first person on the resignation list with the share class that the prospective member is seeking can accept or deny the offer placed for their membership. If the shareholder denies, the second person on the resignation list is offered to sell their membership at that price. The process continues on through the resignation list until the offer is accepted. If no one accepts the offer, the prospective member can increase their offer and the process begins anew. M Private Residences takes an 8 percent transfer fee on sold memberships.
Prior to implementing this new redemption procedure, M Private Residences sought approval from their shareholders, a testament to the club's wholly owned and operated by shareholders mentality.
Totaling 17 homes in their portfolio, M Private Residences average over $2 million each. With four homes in British Columbia and multiple homes in Hawaii, Arizona, and Cabo San Lucas, M Private Residences' portfolio is quickly becoming one of the strongest equity options in the destination club industry.
Original Article
http://www.theverasgroup.com/index.php?pr=Destination_Club_News-M_Private_Residences_Introduces_New_Reduced_Pricing_Structure_and_Membership_Plans
About The Veras Group
The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your 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 970-449-4680 to learn more about the industry, specific clubs, and our service, or visit our website www.TheVerasGroup.com.
Join us: we know the way.
High Country Club Raises Dues and Cuts More Homes Following The Results Of
High Country Club members were asked to provide a preliminary answer to a very difficult question that will affect their checkbooks, their travel plans moving forward, and the future of a leading destination club: Do you want to stay with High Country Club?
Due to a stumbling economy, plummeting real estate prices, and a failed destination club merger, High Country Club was forced to restructure their business model. The High Country Club team in tandem with support from their legal council and investors introduced their "High Country Club Success Plan." This plan would make the club self sufficient, reliant only on membership dues, not new membership sales or affected by swings in financial or real estate markets.
Read Christian Kirschner's High Country Club Success Plan Letter
Read High Country Club's Success Plan Questions and Answers
The plan to save their destination club required many concessions from members. As a start up club, High Country Club focused on being the price leader in the destination club industry. By doing so, High Country Club's membership dues were set well below their competitors, an attractive marketing campaign but not a sustainable business model. For the Success Plan to be implemented, members would have to pay more in annual dues to come more in line with the club's annual payments. To infuse the club with much needed capital, members would also need to pay their annual dues in advance. In addition, to lower much of their costs, nearly half of the club's inventory of luxury vacation homes would need to be cut from their portfolio. For the plan to be implemented, 75 percent of the club's members would need to sign new addendums agreeing to the new terms for the destination club to survive.
High Country Club asked that members answer with a tentative yes or no if they would be moving forward with the club and their new direction by Friday of last week. By voting yes, you believed that there was a 90 percent chance of moving forward with the plan. Of the 354 votes, 264 of them said that they would be moving forward with High Country Club and their Success Plan. 90 voted no. In the slimmest of margins, High Country Club just fell short of their 75 percent goal with 74.576 percent of the club's members voting yes. Unfortunately, many of the 264 yes votes came from members who wanted to stay with the club but elected to downgrade their membership to a lower annual dues structure. Based on the results, Christian Kirschner, High Country Club's CEO wrote a letter to his members outlining what the results meant to members and how the Success Plan will be changed.
Over the past 2 weeks we worked together to truly challenge the Success Plan and expose its weaknesses. We have responded to several thousand emails and hundreds of calls. Our team has worked day and night to take all of the suggestions, challenges and comments and include those is the final Success Plan that we are proposing. I am thankful for all of the time and effort many of you made to analyze the plan to help find ways it can be approve.
Based on Friday’s vote, which included 264 yes votes and 90 no votes, we have adjusted the model to reflect the results. Many of the yes votes also downgraded their membership, which has in turn, decreased the annual dues revenues.
The following are the key points of the Success Plan moving forward.
1) Based on last week’s vote of 264 yes votes and 90 no votes, including numerous downgraded memberships, the annual dues were required to be modified according to the following schedule based on a 10.5 member to 1 home member to property ratio:
Companion – $475/night or $3,325 annually
Associate – $450/night or $6,750 annually
Affiliate (21 night) – $435/night or $9,135 annually
Affiliate (25 night) – $425/night or $10,625 annually
Private (35 night) – $360/night or $12,600 annually
Private (45 night) – $325/night or $14,625 annually
Corporate/Group – $370/night or $15,540 annually
*Annual dues will be adjusted by actual Addendums signed and downgraded or upgraded memberships.
2) Annual dues will be required 1 year in advance. All member's annual dues will be due on December 1st of each year. We have contemplated many different scenarios regarding the payment of dues. The conclusion is that it is vital for the success of our plan that we have the revenue to support a year’s worth of service and accommodations each year. All members paying their annual dues at the same time each year will ensure members that they will get the service they paid for during the coming year. If we were to allow members to pay quarterly or semi-annually, we could very quickly move into a downward spiral situation where members, not renewing their dues throughout the year, would force us to liquidate homes and cancel reservations, which simply will not work.
Dues will be required to be paid by December 1st of each year by check. We will allow members to charge dues to their credit card for a 3% convenience fee. Annual dues for December 1st, 2008 through November 31st, 2009 will be due on November 21st, 2008.
3) Based on votes by members last week, feedback from members, demographics of our members and limitations we have with some of the properties, the following is the priority list of homes. Please keep in mind this is not the final list and it is subject to how many Addendums are signed and how many additional members downgrade their membership. In addition, if we have some of the undecided votes agree to the Plan and we have over 264 members sign the Addendum, additional homes may be included. The following scenario assumes a 10.5:1 member to property ratio.
1) Cabo San Lucas/Villa La Estancia
2) Playa del Carmen/Luna Encantada – Beachfront
3) Mammoth/Grand Sierra Lodge
4) Nuevo Vallarta/Villa La Estancia
5) Punta Mita/La Playa Estates
6) Outer Banks/The Currituck Club
7) Keystone/Settlers Creek
8) Turks & Caicos/Villa Renaissance
9) Big Island-Waikoloa/Colony Villas
10) La Quinta/PGA West
11) Beaver Creek-Arrowhead/Aspenwood Lodge
12) New York/1600 Broadway
13) Orlando/Champion’s Gate
14) Stowe Vermont/Stoweflake
4) Many of our members expressed that they were willing to pay more in annual dues for more options and better availability. We spent days running different models and determined that if we were to have a member to property ratio less than 10.5:1, the majority of our members would potentially not be able to agree to the Success Plan because the dues would be far too high. Therefore, we have developed a plan for members who would like to pay more in annual dues for additional destinations and better availability. The following is the offer and would require 90 members to agree to the increase in annual dues:
* 4 additional properties would be added to the portfolio for exclusive use of the 90 members.
* The dues increase would be approximately $300/night or $4,200 annually.
* Members would be allowed 2 weeks of usage in the 4 homes.
* The 4 homes would offer 208 weeks, but dues are based on selling 180 weeks for better availability.
* Members for this plan would only be eligible if they do not downgrade their membership and only if it is an addition to their current membership.
* The 90 members would vote on which of the properties would be included from the following list:
1) Costa Rica/Reserva Conchal
2) Tuscany/Villa Petrischio-Artu 2BR
3) Cancun/Portofino
4) Beaver Creek/Village Hall
5) Maui – Wailea/The Palms
6) Breckenridge/Stonehaven
7) Copper Mountain/The Mill Club
8) Playa del Carmn/Luna Encantada – Penthouse
9) Winter Park/Antler’s at Lakota
10) Telluride/Owl Meadows
11) Other
5) We have formed the HCC Member Board. The board consists of members who have specialties that will be critical to the success of the business. They also have extensive destination club industry experience. Most of all, they want High Country Club to succeed for many years into the future. The board will be made up of the following members:
Deleted names to preserve privacy
Details of the roles and responsibilities of the Member Board will be available toward the end of November.
6) HCC will place member’s annual dues in a separate account. We are developing the draw schedule that is required during the Success Plan phase. The independent account will be managed by (member name deleted) of our Member Board.
7) In the event we are forced to file for Chapter 11 bankruptcy protection, we will need to have member's contribute to the cost of Chapter 11 protection. There will be a 1 time charge of up to $600 per member.
8) All members of HCC existing membership base will be classified as “Charter Members”. This does include members who do not sign the Addendum. All this means is that members will be able to sell their membership at the then current membership pricing once new membership sales resume over and above our 375 member membership base.
9) Members will be responsible for the cleaning fees for each stay varying between approximately $125 per stay to $350 per stay, depending on the size of the unit. A cleaning schedule per property will be provided.
10) The resignation policy will be as follows:
HCC will offer for sale on the website the first member (not the top 5 members) on the resignation list in each membership type the ability to sell their membership for a price determined by the member based on the following: If your membership agreement entitles you up to 80% of what you paid, you may price your membership at up 100% of what you paid and the club will not take it’s 20%. The dues for the new member must be based on our current dues structure. We believe that this will offer members a much greater opportunity to sell their membership than our old 2 in, 1 out policy.
11) In a continued effort to keep our expenses as low as possible, we have vacated our office space and will be working from home. This will not affect our ability to run the club and service our members. In addition, we have very sadly had to let Nancy go in order to keep dues down. Chris and Kristy will be taking care of Nancy’s members.
12) Reservations in the following homes will be cancelled effective January 3, 2009. The cost to the company to pay rent through March in the following homes was over $130k. If we honored those reservations, dues would have had to be increased significantly, which the majority of members would not agree to. We will do our best to re-book members with cancelled reservations in other homes in the portfolio.
The following homes will no longer have reservations honored:
1) Rosemary Beach/Barrett Square Lofts
2) Tuscany/Villa Petrischio-Merlino 1BR
The following homes will have reservations honored through December 15, 2009:
1) Tuscany/Villa Petrischio-Artu 2BR
The following homes will have reservations honored through January 3, 2009:
1) Costa Rica/Reserva Conchal
2) Cancun/Portofino
3) Lake Tahoe/Iron Horse Lodge
4) Maui-Mauka/Nani Lau
5) Breckenridge Mountain Lodge
6) Beaver Creek/Village Hall
7) Playa del Carmen/Luna Encantada – Penthouse
The following homes will have their reservations honored through March of 2009:
1) Hilton Head/Sea Pines Plantation
2) Keystone/Red Hawk
3) Steamboat Springs/Eagle Ridge Lodge
4) Snowmass/Terrace House
5) La Costa Resort and Spa
6) Copper Mountain/The Mill Club
7) Winter Park/Antler’s at Lakota
8) Breckenridge/Stonehaven
9) Maui – Wailea/The Palms
10) Telluride/Owl Meadows
11) Deer Valley/Black Bear Lodge
The Success Plan that we have presented will enable HCC to stabilize itself during the difficult economic times ahead. The plan requires sacrifice from everyone. However, the Success Plan gives all us the opportunity to continue enjoying the High Country Club lifestyle until we move into better economic times. HCC will re-emerge as a stronger, more stable business that all of us can enjoy for many years into the future.
The Addendum will be sent to members by the end of the day on Monday. On Wednesday, we will ask for members to send a final email letting us know if they are signing the Addendum. In the event fewer people intend to sign the Addendum than during last week’s vote, we will again have to adjust the dues and portfolio appropriately and will propose any changes Thursday. Friday will be the final decision day.
Thank you again for the time and consideration it has taken to get through this process. I am prayerful that we will get the support we need to keep the company going through the rough economic times ahead. If we are able, HCC will flourish into the future.
Respectfully,
Christian V. Kirschner
President & CEO
As mentioned by Kirschner, new addendums outlining these terms will be sent to members today. With High Country Club falling just short of their 75 percent goal, it will be interesting to see how the news of increased annual dues and decreased properties will alter the upcoming decision members have. The club has been receptive to many suggestions offered by members and the creation of a High Country Club Member Board is a positive step, but for High Country Club members, are these changes coming too late?
Original Article
http://www.theverasgroup.com/index.php?pr=Destination_Club_News-High_Country_Club_Releases_Success_Plan_Results_and_Decreases_Destination_Club_Homes
About The Veras Group
The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your 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 970-449-4680 to learn more about the industry, specific clubs, and our service, or visit our website www.TheVerasGroup.com.
Join us: we know the way.
Due to a stumbling economy, plummeting real estate prices, and a failed destination club merger, High Country Club was forced to restructure their business model. The High Country Club team in tandem with support from their legal council and investors introduced their "High Country Club Success Plan." This plan would make the club self sufficient, reliant only on membership dues, not new membership sales or affected by swings in financial or real estate markets.
Read Christian Kirschner's High Country Club Success Plan Letter
Read High Country Club's Success Plan Questions and Answers
The plan to save their destination club required many concessions from members. As a start up club, High Country Club focused on being the price leader in the destination club industry. By doing so, High Country Club's membership dues were set well below their competitors, an attractive marketing campaign but not a sustainable business model. For the Success Plan to be implemented, members would have to pay more in annual dues to come more in line with the club's annual payments. To infuse the club with much needed capital, members would also need to pay their annual dues in advance. In addition, to lower much of their costs, nearly half of the club's inventory of luxury vacation homes would need to be cut from their portfolio. For the plan to be implemented, 75 percent of the club's members would need to sign new addendums agreeing to the new terms for the destination club to survive.
High Country Club asked that members answer with a tentative yes or no if they would be moving forward with the club and their new direction by Friday of last week. By voting yes, you believed that there was a 90 percent chance of moving forward with the plan. Of the 354 votes, 264 of them said that they would be moving forward with High Country Club and their Success Plan. 90 voted no. In the slimmest of margins, High Country Club just fell short of their 75 percent goal with 74.576 percent of the club's members voting yes. Unfortunately, many of the 264 yes votes came from members who wanted to stay with the club but elected to downgrade their membership to a lower annual dues structure. Based on the results, Christian Kirschner, High Country Club's CEO wrote a letter to his members outlining what the results meant to members and how the Success Plan will be changed.
Over the past 2 weeks we worked together to truly challenge the Success Plan and expose its weaknesses. We have responded to several thousand emails and hundreds of calls. Our team has worked day and night to take all of the suggestions, challenges and comments and include those is the final Success Plan that we are proposing. I am thankful for all of the time and effort many of you made to analyze the plan to help find ways it can be approve.
Based on Friday’s vote, which included 264 yes votes and 90 no votes, we have adjusted the model to reflect the results. Many of the yes votes also downgraded their membership, which has in turn, decreased the annual dues revenues.
The following are the key points of the Success Plan moving forward.
1) Based on last week’s vote of 264 yes votes and 90 no votes, including numerous downgraded memberships, the annual dues were required to be modified according to the following schedule based on a 10.5 member to 1 home member to property ratio:
Companion – $475/night or $3,325 annually
Associate – $450/night or $6,750 annually
Affiliate (21 night) – $435/night or $9,135 annually
Affiliate (25 night) – $425/night or $10,625 annually
Private (35 night) – $360/night or $12,600 annually
Private (45 night) – $325/night or $14,625 annually
Corporate/Group – $370/night or $15,540 annually
*Annual dues will be adjusted by actual Addendums signed and downgraded or upgraded memberships.
2) Annual dues will be required 1 year in advance. All member's annual dues will be due on December 1st of each year. We have contemplated many different scenarios regarding the payment of dues. The conclusion is that it is vital for the success of our plan that we have the revenue to support a year’s worth of service and accommodations each year. All members paying their annual dues at the same time each year will ensure members that they will get the service they paid for during the coming year. If we were to allow members to pay quarterly or semi-annually, we could very quickly move into a downward spiral situation where members, not renewing their dues throughout the year, would force us to liquidate homes and cancel reservations, which simply will not work.
Dues will be required to be paid by December 1st of each year by check. We will allow members to charge dues to their credit card for a 3% convenience fee. Annual dues for December 1st, 2008 through November 31st, 2009 will be due on November 21st, 2008.
3) Based on votes by members last week, feedback from members, demographics of our members and limitations we have with some of the properties, the following is the priority list of homes. Please keep in mind this is not the final list and it is subject to how many Addendums are signed and how many additional members downgrade their membership. In addition, if we have some of the undecided votes agree to the Plan and we have over 264 members sign the Addendum, additional homes may be included. The following scenario assumes a 10.5:1 member to property ratio.
1) Cabo San Lucas/Villa La Estancia
2) Playa del Carmen/Luna Encantada – Beachfront
3) Mammoth/Grand Sierra Lodge
4) Nuevo Vallarta/Villa La Estancia
5) Punta Mita/La Playa Estates
6) Outer Banks/The Currituck Club
7) Keystone/Settlers Creek
8) Turks & Caicos/Villa Renaissance
9) Big Island-Waikoloa/Colony Villas
10) La Quinta/PGA West
11) Beaver Creek-Arrowhead/Aspenwood Lodge
12) New York/1600 Broadway
13) Orlando/Champion’s Gate
14) Stowe Vermont/Stoweflake
4) Many of our members expressed that they were willing to pay more in annual dues for more options and better availability. We spent days running different models and determined that if we were to have a member to property ratio less than 10.5:1, the majority of our members would potentially not be able to agree to the Success Plan because the dues would be far too high. Therefore, we have developed a plan for members who would like to pay more in annual dues for additional destinations and better availability. The following is the offer and would require 90 members to agree to the increase in annual dues:
* 4 additional properties would be added to the portfolio for exclusive use of the 90 members.
* The dues increase would be approximately $300/night or $4,200 annually.
* Members would be allowed 2 weeks of usage in the 4 homes.
* The 4 homes would offer 208 weeks, but dues are based on selling 180 weeks for better availability.
* Members for this plan would only be eligible if they do not downgrade their membership and only if it is an addition to their current membership.
* The 90 members would vote on which of the properties would be included from the following list:
1) Costa Rica/Reserva Conchal
2) Tuscany/Villa Petrischio-Artu 2BR
3) Cancun/Portofino
4) Beaver Creek/Village Hall
5) Maui – Wailea/The Palms
6) Breckenridge/Stonehaven
7) Copper Mountain/The Mill Club
8) Playa del Carmn/Luna Encantada – Penthouse
9) Winter Park/Antler’s at Lakota
10) Telluride/Owl Meadows
11) Other
5) We have formed the HCC Member Board. The board consists of members who have specialties that will be critical to the success of the business. They also have extensive destination club industry experience. Most of all, they want High Country Club to succeed for many years into the future. The board will be made up of the following members:
Deleted names to preserve privacy
Details of the roles and responsibilities of the Member Board will be available toward the end of November.
6) HCC will place member’s annual dues in a separate account. We are developing the draw schedule that is required during the Success Plan phase. The independent account will be managed by (member name deleted) of our Member Board.
7) In the event we are forced to file for Chapter 11 bankruptcy protection, we will need to have member's contribute to the cost of Chapter 11 protection. There will be a 1 time charge of up to $600 per member.
8) All members of HCC existing membership base will be classified as “Charter Members”. This does include members who do not sign the Addendum. All this means is that members will be able to sell their membership at the then current membership pricing once new membership sales resume over and above our 375 member membership base.
9) Members will be responsible for the cleaning fees for each stay varying between approximately $125 per stay to $350 per stay, depending on the size of the unit. A cleaning schedule per property will be provided.
10) The resignation policy will be as follows:
HCC will offer for sale on the website the first member (not the top 5 members) on the resignation list in each membership type the ability to sell their membership for a price determined by the member based on the following: If your membership agreement entitles you up to 80% of what you paid, you may price your membership at up 100% of what you paid and the club will not take it’s 20%. The dues for the new member must be based on our current dues structure. We believe that this will offer members a much greater opportunity to sell their membership than our old 2 in, 1 out policy.
11) In a continued effort to keep our expenses as low as possible, we have vacated our office space and will be working from home. This will not affect our ability to run the club and service our members. In addition, we have very sadly had to let Nancy go in order to keep dues down. Chris and Kristy will be taking care of Nancy’s members.
12) Reservations in the following homes will be cancelled effective January 3, 2009. The cost to the company to pay rent through March in the following homes was over $130k. If we honored those reservations, dues would have had to be increased significantly, which the majority of members would not agree to. We will do our best to re-book members with cancelled reservations in other homes in the portfolio.
The following homes will no longer have reservations honored:
1) Rosemary Beach/Barrett Square Lofts
2) Tuscany/Villa Petrischio-Merlino 1BR
The following homes will have reservations honored through December 15, 2009:
1) Tuscany/Villa Petrischio-Artu 2BR
The following homes will have reservations honored through January 3, 2009:
1) Costa Rica/Reserva Conchal
2) Cancun/Portofino
3) Lake Tahoe/Iron Horse Lodge
4) Maui-Mauka/Nani Lau
5) Breckenridge Mountain Lodge
6) Beaver Creek/Village Hall
7) Playa del Carmen/Luna Encantada – Penthouse
The following homes will have their reservations honored through March of 2009:
1) Hilton Head/Sea Pines Plantation
2) Keystone/Red Hawk
3) Steamboat Springs/Eagle Ridge Lodge
4) Snowmass/Terrace House
5) La Costa Resort and Spa
6) Copper Mountain/The Mill Club
7) Winter Park/Antler’s at Lakota
8) Breckenridge/Stonehaven
9) Maui – Wailea/The Palms
10) Telluride/Owl Meadows
11) Deer Valley/Black Bear Lodge
The Success Plan that we have presented will enable HCC to stabilize itself during the difficult economic times ahead. The plan requires sacrifice from everyone. However, the Success Plan gives all us the opportunity to continue enjoying the High Country Club lifestyle until we move into better economic times. HCC will re-emerge as a stronger, more stable business that all of us can enjoy for many years into the future.
The Addendum will be sent to members by the end of the day on Monday. On Wednesday, we will ask for members to send a final email letting us know if they are signing the Addendum. In the event fewer people intend to sign the Addendum than during last week’s vote, we will again have to adjust the dues and portfolio appropriately and will propose any changes Thursday. Friday will be the final decision day.
Thank you again for the time and consideration it has taken to get through this process. I am prayerful that we will get the support we need to keep the company going through the rough economic times ahead. If we are able, HCC will flourish into the future.
Respectfully,
Christian V. Kirschner
President & CEO
As mentioned by Kirschner, new addendums outlining these terms will be sent to members today. With High Country Club falling just short of their 75 percent goal, it will be interesting to see how the news of increased annual dues and decreased properties will alter the upcoming decision members have. The club has been receptive to many suggestions offered by members and the creation of a High Country Club Member Board is a positive step, but for High Country Club members, are these changes coming too late?
Original Article
http://www.theverasgroup.com/index.php?pr=Destination_Club_News-High_Country_Club_Releases_Success_Plan_Results_and_Decreases_Destination_Club_Homes
About The Veras Group
The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your 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 970-449-4680 to learn more about the industry, specific clubs, and our service, or visit our website www.TheVerasGroup.com.
Join us: we know the way.
Famous Destination Club Sports Members and Partnerships
The Rays and Phillies have just concluded the World Series. Football powerhouses are already jockeying for playoff position in the NFL. Hopes are high for everyone as basketball and hockey are getting underway. Now is a great time for sports.
Destination clubs have long catered to luxury travelers across the globe and count respected doctors and lawyers, company executives, and numerous other professionals in their ranks. While many of these individuals could walk the streets of any city without getting noticed, destination clubs have grown to include sports stars who get noticed on a daily basis. Destination clubs have not only embraced these members, but have included them in marketing efforts, created memberships specifically for them, and even brought them on staff.
Football
Football dominates the Sunday television market and several retired stars now serve as destination club spokespersons. Hall of Fame Quarterback Steve Young served as the Private Escapes spokesperson prior to the Ultimate Escapes merger. Young won three Super Bowl titles, led the league in passing six times, and posted the highest career passer rating during his time with the 49ers. Exclusive Resorts signed another three time Super Bowl winner, Ed McCaffrey, to serve as the Vice President of Sports and Entertainment just months after his retirement. McCaffrey would focus on increasing the brand awareness to athletes and entertainers. "Exclusive Resorts is the ultimate way to vacation and spend time with family and friends," McCaffrey said. "I'm looking forward to educating other athletes and entertainers about how to make the world their second home."
Warren Sapp, the recently retired Tampa Bay Buccaneers and Oakland Raiders star and Super Bowl champion travels with CareFree Elite, a destination club that offers a membership specifically to off-season athletes. Following his retirement earlier this year, Sapp's retirement party was hosted at a South Beach mansion by CareFree Elite. Jamie Foxx, another CareFree Elite member and members of the Miami Heat were some of the 200 people in attendance.
Former teammates in San Diego, Donnie Edwards and Drew Brees both joined Exclusive Resorts following a partnership between the NFL Players Association and the luxury vacation club. Exclusive Resorts made a charitable donation of $25,000 on behalf of the NFLPA and make an additional contribution to a charitable organization designated by the NFLPA for every NFLPA member who joined Exclusive Resorts.
Exclusive Resorts partnership wasn't the first NFL Partnership. Prior to their merger with Quintess, Dream Catcher Retreats partnered with the New England Patriots and offered premium season ticket holders special pricing.
Baseball
First ballot Hall of Famer and the man with the second highest single season batting average since 1941, George Brett, is a member of Exclusive Resorts. Despite his many accolades, Brett may be most well known for his involvement in one of baseball's most memorable events. With his Royals trailing the Yankees 4-3 with two outs and a runner on first in the top of the ninth inning, Brett came up to the plate. Another future Hall of Famer Rich "Goose" Gossage pitched for the Yankees. Brett connected off Gossage for a home run, giving the Royals a 5-4 lead. As Brett circled the bases, Yankee manager Billy Martin approached the home plate umpire, Tim McClelland. Martin cited Rule 1.10(b) of the Major League Baseball rule book, stating that "a bat may not be covered by such a substance more than 18 inches from the tip of the handle." Brett's bat was coated in pine tar up the handle and into the barrel. McClelland measured the handle of the bat across the front of home plate, measuring 17 inches, and called Brett out. Brett jumped from the dugout and stormed out to confront McClelland. Brett's out ended the game leading commentators to say "Brett has become the first player in history to hit a game-losing home run."
American League President and former Yankees Chief Executive, Lee MacPhail, upheld a protest filed by the Royal and ordered the game to be resumed after Brett's homerun with the Royals leading 5-4 with Brett ejected for his outburst. Nearly a month later, the game resumed with the Royals Hal McRae striking out to end the top half of the ninth and Dan Quisenberry of the Royals preserving the victory in the bottom half of the inning.
Coincidently, McClelland was also umpiring the game when Brett picked up his 3,000th hit and was one of the first to congratulate him.
Prior to the Portofino bankruptcy filing, Steve Trachsel, a pitcher for various teams in both the American and National leagues was a satisfied Portofino Club member.
A former second baseman and designated hitter, Davey Johnson is a member of Ultimate Escapes and an Olympic medal winner. Johnson played 13 seasons in the Big Leagues for the Orioles, Braves, Phillies and Cubs. A four-time All-Star and three-time Gold Glove winner, Johnson became manager of the New York Mets in 1984 and brought the team a World Series Championship in 1986.
As a second baseman for the Baltimore Orioles in 1969, Johnson helped lead the team to the American League Pennant and into the World Series. Beside Johnson in the Orioles roster included some of baseball's all-time greats. Hard hitting Frank Robinson crushed 586 home runs over the course of his career. Third baseman Brooks Robinson won an astonishing 16 consecutive gold gloves. Right hander Jim Palmer won three Cy Young Awards and won 20 games in eight different seasons. All were ranked in the top 100 Greatest Baseball Players according to The Sporting News. Winning 109 games in 1969, the Orioles were heavy favorites over "The Miracle Mets."
The Mets were a lowly expansion team in 1962, composed of castoffs from other squads and raw newcomers without much upside. Casey Stengel, the Mets' first manager, said in his first press conference "It's a great honor for me to be joining the Knickerbockers." In a desperate attempt to gain more talent, the Mets traded a player to be named later to the Cleveland Indians for catcher Harry Chiti. Chiti proved so ineffective that the Mets traded him back, making him the first player in baseball history to be traded for himself. In 1969, the Mets pre-season odds of winning the pennant were 100-1.
Many baseball analysts predicted the Mets might take Game 1 of the series behind the strength of Tom Seaver's arm, but gave them little shot past that. Just the opposite occured. Seaver was defeated in game one, but the Mets went on to win the next three. In game five, leading going into the top of the ninth, the Mets' left fielder, Cleon Jones, caught a lazy fly ball off the bat of none other than Davey Johnson, the man who would go on to manage them 15 years later.
Johnson recently led the 2008 Men's Baseball team to an Olympic Bronze Medal. "The highest honor of my career is being manager of the U.S. baseball team in the 2008 Summer Olympic Games in Beijing, China," Johnson said. "And, just like the great times I've had as a member of Ultimate Escapes, I'm enjoying once-in-a-lifetime experiences and building rich memories with friends and family that I'll always cherish."
Jeff Conine, a two-time World Series champion and the 1995 MLB All-Star Game MVP, serves on the management team of Abundant Life Destination Club. Also on the Abundant Life Club team is Norman Amster who founded a company called Dream Week, Inc. prior to working with Abundant Life. Dream Week provided fantasy vacations to sports fans of baseball, hockey, and basketball.
Basketball
Ultimate Escapes has two elite NBA coaches in their ranks, NBA Championship coach Doc Rivers and George Karl of the Denver Nuggets. Doc Rivers was an Ultimate Resort member and George Karl was a Private Escapes member prior to the Ultimate Escapes merger.
Following the Boston Celtics' victory over the Los Angeles Lakers to win the NBA Championship, Ultimate Escapes CEO Jim Tousignant congratulated Coach Rivers. "As a member of Ultimate Escapes since 2006, we're excited to recognize him for this outstanding achievement. Now that Doc has vanquished the Lakers, his toughest challenge will be deciding which of the 150 Ultimate Escapes destinations to take his family on vacation to relax and rejuvenate after his historic season!"
Hockey
It is only fair that the leading Canadian destination club, M Private Residences, has members from the country's favorite sport, hockey. Like many destination clubs, M Private Residences does not disclose members' names but does state that they do count both NHL and NFL players as members.
Golf
As destination clubs are most widely compared to country clubs, it isn't surprising that destination clubs and golf have a strong synergy. The Markers Club marries the idea of destination club travel with luxury golf. As a member of The Markers, each home is located near local, world class prized golf courses, often with preferred rates at the club, with your tee time reserved for you before you even leave for vacation.
As the destination club for golfers, not surprisingly The Markers Club maintains an extensive list of professional golf members and partnerships. Bruce Summerhays serves as Co-Chairman of The Markers' Club Player's Council. The Player's Council also counts Hall of Famers Billy Casper and Donna Caponi and golf professionals Joe Inman, John Harris, and Matt Weibring. Markers members also can enjoy a custom fitting at Ping's headquarters in Scottsdale and enjoy a customized instructional program created by The Markers Club and Golf Digest Schools. As a member of The Markers Club, 200 private clubs are also available to you.
One Key World, a destination club that leases the residences available to members rather than owning like most destination clubs, includes golfers Jim Furyk and Woody Austin amongst their members. Earlier this year, One Key World offered a round with Jim Furyk as a promotion to prospects who completed a form on the One Key World website. One Key World members purchase a pre-paid travel card and can travel to over 400 vetted homes around the world.
Former world number one Tom Lehman is a member of the boutique destination club Lusso Collection and broadcaster David Feherty is a member of Ultimate Escapes.
Widely believed to be the greatest golfer of all time, Jack Nicklaus won 113 tournaments during his professional career. In his 163 majors, "The Golden Bear" won 18 events and finished in the top ten 73 times. His family owned firm, Nicklaus Design, has assisted in the creation of 300 spectacular courses in over 28 countries. Nearly 50 of these courses have been ranked in Top 100 lists in various golfing publications. As a partner with leading destination club Exclusive Resorts, Nicklaus and Nicklaus Design help the club explore real estate development opportunities and provide guidance on the club's golf program. In addition, Nicklaus attends member events and provides Exclusive Resorts' members golf tips and insights to Nicklaus designed courses available to members. Tennis Less than one month into retirement, Andre Agassi brought his eight major victories to Exclusive Resorts to help assist the club in developing tennis and fitness experiences in the club. Following his French Open win in 1999, Agassi danced the traditional champion's dance with the female French Open winner, Steffi Graf. They began dating after that dance. Since then they have gotten married and have two children. "I was looking for a way to create memories for me and my family and found Exclusive Resorts."
Boxing
Even the "sweet science" has a destination club affiliation. CareFree Elite sponsored Bernard "The Executioner" Hopkins in his victories over both Winky Wright and Kelly Pavlik. Hopkins defeated Wright via decision in a fight last year, defending his light heavyweight title against the former undisputed junior middleweight champion. Just last month, the 43 year old Hopkins defeated the undefeated, 26 year old Kelly Pavlik in what many called a land slide. Nearly stopping Pavlik in the 12th, the fight went to the cards where Hopkins was up 119-106, 118-108, 117-109. Many boxing analysts gave every round to Hopkins. CareFree Elite was in attendance for the fight.
Cycling
Three time Tour de France winner Greg LaMond owns a home at the exclusive Yellowstone Club in Montana. The Yellowstone Club soon spiraled from an exclusive gated community to the creation of Yellowstone Club World, an ultra-luxury destination club composed of Yellowstone Club owners. Tim and Edra Blixseth allegedly attempted to buy LaMond's shares of the Yellowstone Club for a fraction of their true value according to LaMond. Following a lengthy court battle, LaMond and Yellowstone Club reached a settlement earlier this year. The legal battles with LaMond coupled with Tim and Edra's divorce ultimately led to Yellowstone Club World's closure.
Elite travelers run the gamut from doctors to lawyers, retirees to young executives. The destination club world has a growing number of recognizable sports stars amongst their ranks, and why not? Much like professionals across other industries, sports stars work day in and day out and want to enjoy their vacation as much as anyone. As professional athletes, they are used to traveling to their next game or event non-stop throughout their season. As destination club members, they are also getting used to enjoying luxury vacation homes around the world for less than the cost of the down payment they put on their own home.
Famous Destination Club Sports Membes and Partnerships
Destination clubs have long catered to luxury travelers across the globe and count respected doctors and lawyers, company executives, and numerous other professionals in their ranks. While many of these individuals could walk the streets of any city without getting noticed, destination clubs have grown to include sports stars who get noticed on a daily basis. Destination clubs have not only embraced these members, but have included them in marketing efforts, created memberships specifically for them, and even brought them on staff.
Football
Football dominates the Sunday television market and several retired stars now serve as destination club spokespersons. Hall of Fame Quarterback Steve Young served as the Private Escapes spokesperson prior to the Ultimate Escapes merger. Young won three Super Bowl titles, led the league in passing six times, and posted the highest career passer rating during his time with the 49ers. Exclusive Resorts signed another three time Super Bowl winner, Ed McCaffrey, to serve as the Vice President of Sports and Entertainment just months after his retirement. McCaffrey would focus on increasing the brand awareness to athletes and entertainers. "Exclusive Resorts is the ultimate way to vacation and spend time with family and friends," McCaffrey said. "I'm looking forward to educating other athletes and entertainers about how to make the world their second home."
Warren Sapp, the recently retired Tampa Bay Buccaneers and Oakland Raiders star and Super Bowl champion travels with CareFree Elite, a destination club that offers a membership specifically to off-season athletes. Following his retirement earlier this year, Sapp's retirement party was hosted at a South Beach mansion by CareFree Elite. Jamie Foxx, another CareFree Elite member and members of the Miami Heat were some of the 200 people in attendance.
Former teammates in San Diego, Donnie Edwards and Drew Brees both joined Exclusive Resorts following a partnership between the NFL Players Association and the luxury vacation club. Exclusive Resorts made a charitable donation of $25,000 on behalf of the NFLPA and make an additional contribution to a charitable organization designated by the NFLPA for every NFLPA member who joined Exclusive Resorts.
Exclusive Resorts partnership wasn't the first NFL Partnership. Prior to their merger with Quintess, Dream Catcher Retreats partnered with the New England Patriots and offered premium season ticket holders special pricing.
Baseball
First ballot Hall of Famer and the man with the second highest single season batting average since 1941, George Brett, is a member of Exclusive Resorts. Despite his many accolades, Brett may be most well known for his involvement in one of baseball's most memorable events. With his Royals trailing the Yankees 4-3 with two outs and a runner on first in the top of the ninth inning, Brett came up to the plate. Another future Hall of Famer Rich "Goose" Gossage pitched for the Yankees. Brett connected off Gossage for a home run, giving the Royals a 5-4 lead. As Brett circled the bases, Yankee manager Billy Martin approached the home plate umpire, Tim McClelland. Martin cited Rule 1.10(b) of the Major League Baseball rule book, stating that "a bat may not be covered by such a substance more than 18 inches from the tip of the handle." Brett's bat was coated in pine tar up the handle and into the barrel. McClelland measured the handle of the bat across the front of home plate, measuring 17 inches, and called Brett out. Brett jumped from the dugout and stormed out to confront McClelland. Brett's out ended the game leading commentators to say "Brett has become the first player in history to hit a game-losing home run."
American League President and former Yankees Chief Executive, Lee MacPhail, upheld a protest filed by the Royal and ordered the game to be resumed after Brett's homerun with the Royals leading 5-4 with Brett ejected for his outburst. Nearly a month later, the game resumed with the Royals Hal McRae striking out to end the top half of the ninth and Dan Quisenberry of the Royals preserving the victory in the bottom half of the inning.
Coincidently, McClelland was also umpiring the game when Brett picked up his 3,000th hit and was one of the first to congratulate him.
Prior to the Portofino bankruptcy filing, Steve Trachsel, a pitcher for various teams in both the American and National leagues was a satisfied Portofino Club member.
A former second baseman and designated hitter, Davey Johnson is a member of Ultimate Escapes and an Olympic medal winner. Johnson played 13 seasons in the Big Leagues for the Orioles, Braves, Phillies and Cubs. A four-time All-Star and three-time Gold Glove winner, Johnson became manager of the New York Mets in 1984 and brought the team a World Series Championship in 1986.
As a second baseman for the Baltimore Orioles in 1969, Johnson helped lead the team to the American League Pennant and into the World Series. Beside Johnson in the Orioles roster included some of baseball's all-time greats. Hard hitting Frank Robinson crushed 586 home runs over the course of his career. Third baseman Brooks Robinson won an astonishing 16 consecutive gold gloves. Right hander Jim Palmer won three Cy Young Awards and won 20 games in eight different seasons. All were ranked in the top 100 Greatest Baseball Players according to The Sporting News. Winning 109 games in 1969, the Orioles were heavy favorites over "The Miracle Mets."
The Mets were a lowly expansion team in 1962, composed of castoffs from other squads and raw newcomers without much upside. Casey Stengel, the Mets' first manager, said in his first press conference "It's a great honor for me to be joining the Knickerbockers." In a desperate attempt to gain more talent, the Mets traded a player to be named later to the Cleveland Indians for catcher Harry Chiti. Chiti proved so ineffective that the Mets traded him back, making him the first player in baseball history to be traded for himself. In 1969, the Mets pre-season odds of winning the pennant were 100-1.
Many baseball analysts predicted the Mets might take Game 1 of the series behind the strength of Tom Seaver's arm, but gave them little shot past that. Just the opposite occured. Seaver was defeated in game one, but the Mets went on to win the next three. In game five, leading going into the top of the ninth, the Mets' left fielder, Cleon Jones, caught a lazy fly ball off the bat of none other than Davey Johnson, the man who would go on to manage them 15 years later.
Johnson recently led the 2008 Men's Baseball team to an Olympic Bronze Medal. "The highest honor of my career is being manager of the U.S. baseball team in the 2008 Summer Olympic Games in Beijing, China," Johnson said. "And, just like the great times I've had as a member of Ultimate Escapes, I'm enjoying once-in-a-lifetime experiences and building rich memories with friends and family that I'll always cherish."
Jeff Conine, a two-time World Series champion and the 1995 MLB All-Star Game MVP, serves on the management team of Abundant Life Destination Club. Also on the Abundant Life Club team is Norman Amster who founded a company called Dream Week, Inc. prior to working with Abundant Life. Dream Week provided fantasy vacations to sports fans of baseball, hockey, and basketball.
Basketball
Ultimate Escapes has two elite NBA coaches in their ranks, NBA Championship coach Doc Rivers and George Karl of the Denver Nuggets. Doc Rivers was an Ultimate Resort member and George Karl was a Private Escapes member prior to the Ultimate Escapes merger.
Following the Boston Celtics' victory over the Los Angeles Lakers to win the NBA Championship, Ultimate Escapes CEO Jim Tousignant congratulated Coach Rivers. "As a member of Ultimate Escapes since 2006, we're excited to recognize him for this outstanding achievement. Now that Doc has vanquished the Lakers, his toughest challenge will be deciding which of the 150 Ultimate Escapes destinations to take his family on vacation to relax and rejuvenate after his historic season!"
Hockey
It is only fair that the leading Canadian destination club, M Private Residences, has members from the country's favorite sport, hockey. Like many destination clubs, M Private Residences does not disclose members' names but does state that they do count both NHL and NFL players as members.
Golf
As destination clubs are most widely compared to country clubs, it isn't surprising that destination clubs and golf have a strong synergy. The Markers Club marries the idea of destination club travel with luxury golf. As a member of The Markers, each home is located near local, world class prized golf courses, often with preferred rates at the club, with your tee time reserved for you before you even leave for vacation.
As the destination club for golfers, not surprisingly The Markers Club maintains an extensive list of professional golf members and partnerships. Bruce Summerhays serves as Co-Chairman of The Markers' Club Player's Council. The Player's Council also counts Hall of Famers Billy Casper and Donna Caponi and golf professionals Joe Inman, John Harris, and Matt Weibring. Markers members also can enjoy a custom fitting at Ping's headquarters in Scottsdale and enjoy a customized instructional program created by The Markers Club and Golf Digest Schools. As a member of The Markers Club, 200 private clubs are also available to you.
One Key World, a destination club that leases the residences available to members rather than owning like most destination clubs, includes golfers Jim Furyk and Woody Austin amongst their members. Earlier this year, One Key World offered a round with Jim Furyk as a promotion to prospects who completed a form on the One Key World website. One Key World members purchase a pre-paid travel card and can travel to over 400 vetted homes around the world.
Former world number one Tom Lehman is a member of the boutique destination club Lusso Collection and broadcaster David Feherty is a member of Ultimate Escapes.
Widely believed to be the greatest golfer of all time, Jack Nicklaus won 113 tournaments during his professional career. In his 163 majors, "The Golden Bear" won 18 events and finished in the top ten 73 times. His family owned firm, Nicklaus Design, has assisted in the creation of 300 spectacular courses in over 28 countries. Nearly 50 of these courses have been ranked in Top 100 lists in various golfing publications. As a partner with leading destination club Exclusive Resorts, Nicklaus and Nicklaus Design help the club explore real estate development opportunities and provide guidance on the club's golf program. In addition, Nicklaus attends member events and provides Exclusive Resorts' members golf tips and insights to Nicklaus designed courses available to members. Tennis Less than one month into retirement, Andre Agassi brought his eight major victories to Exclusive Resorts to help assist the club in developing tennis and fitness experiences in the club. Following his French Open win in 1999, Agassi danced the traditional champion's dance with the female French Open winner, Steffi Graf. They began dating after that dance. Since then they have gotten married and have two children. "I was looking for a way to create memories for me and my family and found Exclusive Resorts."
Boxing
Even the "sweet science" has a destination club affiliation. CareFree Elite sponsored Bernard "The Executioner" Hopkins in his victories over both Winky Wright and Kelly Pavlik. Hopkins defeated Wright via decision in a fight last year, defending his light heavyweight title against the former undisputed junior middleweight champion. Just last month, the 43 year old Hopkins defeated the undefeated, 26 year old Kelly Pavlik in what many called a land slide. Nearly stopping Pavlik in the 12th, the fight went to the cards where Hopkins was up 119-106, 118-108, 117-109. Many boxing analysts gave every round to Hopkins. CareFree Elite was in attendance for the fight.
Cycling
Three time Tour de France winner Greg LaMond owns a home at the exclusive Yellowstone Club in Montana. The Yellowstone Club soon spiraled from an exclusive gated community to the creation of Yellowstone Club World, an ultra-luxury destination club composed of Yellowstone Club owners. Tim and Edra Blixseth allegedly attempted to buy LaMond's shares of the Yellowstone Club for a fraction of their true value according to LaMond. Following a lengthy court battle, LaMond and Yellowstone Club reached a settlement earlier this year. The legal battles with LaMond coupled with Tim and Edra's divorce ultimately led to Yellowstone Club World's closure.
Elite travelers run the gamut from doctors to lawyers, retirees to young executives. The destination club world has a growing number of recognizable sports stars amongst their ranks, and why not? Much like professionals across other industries, sports stars work day in and day out and want to enjoy their vacation as much as anyone. As professional athletes, they are used to traveling to their next game or event non-stop throughout their season. As destination club members, they are also getting used to enjoying luxury vacation homes around the world for less than the cost of the down payment they put on their own home.
Famous Destination Club Sports Membes and Partnerships
Thursday, November 6, 2008
High Country Club CFO Steps Down And Club Changes Annual Dues Payment
High Country Club and President and CEO Christian Kirschner have had to make many difficult decisions recently. The High Country Club Success Plan letter outlined many substantial changes to the destination club's business model, including laying off over half of the club's employees, including two of his brothers. In more cost cutting moves, High Country Club's Chief Financial Officer, Dan Moorhead will be stepping down and the club will no longer be accepting annual dues payments via credit card.
In a letter written today to High Country Club members, Kirschner wrote:
I am very happy to announce that we are making progress on many fronts regarding the Success Plan. I sincerely appreciate your comments and suggestions as they continue to be helpful in putting together the best Plan possible until we start selling new memberships again. Along with the phone calls with members and the many emails, we continue to work on ways we can make the business model work the most efficiently. In order for us to be able to keep our dues as low as possible we have made the following decisions:
1) Annual dues will no longer be processed by credit card. Members will be required to pay by check. This alone will save us $8k per month.
2) Our CFO, Dan Moorhead, will be replaced by our Controller Sam Bailey. This is an extremely difficult decision, but it will also help us keep our costs down.
We are also working diligently on a plan to hold dues in an escrow account. Hopefully we will have resolution on an escrow account today.
I will announce the Member Board Members by the end of the week. They all have various backgrounds that will be beneficial to the members in the future.
We look forward to the results of Fridays vote so we can finalize the portfolio of homes that will be included in HCC moving forward. We have listened to all of our members suggestions regarding which homes to include and will do our best to put together the right mix of properties.
Thank for your support. We have been overwhelmed by many of your kind words of encouragement and hope for the future.
Christian V. Kirschner
President & CEO
As High Country Club's CFO, Moorhead was responsible for the club's finances and supported Kirschner in the day-to-day operations of running the club.
Prior to joining the High Country Club team in 2005, Moorhead served as Controller at Evolving Systems, Inc., a publicly-traded telecommunications software provider, where he was in charge of all accounting functions including international consolidations, all SEC filings, and Sarbanes-Oxley compliance. Moorhead is a CPA and holds a B.B.A. in Accounting from the University of Northern Colorado.
By making annual dues payments via check, High Country Club will no longer have to pay high merchant fees for credit card processing, allowing the club to allocate more funds towards mission critical elements to their success plan.
Members will receive their new addendums less than one week from today. Signed addendums are due by that Friday. Over 75 percent of the High Country Club member base are required for the Success Plan to be implemented. Although they face an uphill road, High Country Club is making some difficult decisions that may allow their members to continue traveling and enjoy the club's portfolio of luxury vacation homes. By minimizing their overhead in both salary and ongoing costs, High Country Club has the highest opportunity to institute their success plan moving forward.
Original Article
High Country Club CFO Steps Down And Club Changes Annual Dues Payment
In a letter written today to High Country Club members, Kirschner wrote:
I am very happy to announce that we are making progress on many fronts regarding the Success Plan. I sincerely appreciate your comments and suggestions as they continue to be helpful in putting together the best Plan possible until we start selling new memberships again. Along with the phone calls with members and the many emails, we continue to work on ways we can make the business model work the most efficiently. In order for us to be able to keep our dues as low as possible we have made the following decisions:
1) Annual dues will no longer be processed by credit card. Members will be required to pay by check. This alone will save us $8k per month.
2) Our CFO, Dan Moorhead, will be replaced by our Controller Sam Bailey. This is an extremely difficult decision, but it will also help us keep our costs down.
We are also working diligently on a plan to hold dues in an escrow account. Hopefully we will have resolution on an escrow account today.
I will announce the Member Board Members by the end of the week. They all have various backgrounds that will be beneficial to the members in the future.
We look forward to the results of Fridays vote so we can finalize the portfolio of homes that will be included in HCC moving forward. We have listened to all of our members suggestions regarding which homes to include and will do our best to put together the right mix of properties.
Thank for your support. We have been overwhelmed by many of your kind words of encouragement and hope for the future.
Christian V. Kirschner
President & CEO
As High Country Club's CFO, Moorhead was responsible for the club's finances and supported Kirschner in the day-to-day operations of running the club.
Prior to joining the High Country Club team in 2005, Moorhead served as Controller at Evolving Systems, Inc., a publicly-traded telecommunications software provider, where he was in charge of all accounting functions including international consolidations, all SEC filings, and Sarbanes-Oxley compliance. Moorhead is a CPA and holds a B.B.A. in Accounting from the University of Northern Colorado.
By making annual dues payments via check, High Country Club will no longer have to pay high merchant fees for credit card processing, allowing the club to allocate more funds towards mission critical elements to their success plan.
Members will receive their new addendums less than one week from today. Signed addendums are due by that Friday. Over 75 percent of the High Country Club member base are required for the Success Plan to be implemented. Although they face an uphill road, High Country Club is making some difficult decisions that may allow their members to continue traveling and enjoy the club's portfolio of luxury vacation homes. By minimizing their overhead in both salary and ongoing costs, High Country Club has the highest opportunity to institute their success plan moving forward.
Original Article
High Country Club CFO Steps Down And Club Changes Annual Dues Payment
High Country Club CEO Discusses Destination Club Merger
Following the announcement of High Country Club's restructuring, many concerned members sought out High Country Club CEO Christian Kirschner to learn more about why the club did not more actively seek a merger with another destination club prior to the club's financial trouble. Kirschner responded to these questions with a letter to High Country Club members.
As a result of yesterday's questions and comments, I want to offer further disclosure regarding our company during 2008.
For the past 6 months, HCC has been in merger/acquisition negotiations with a destination club. I am under a strict confidentiality agreement so I will not be able to disclose any specifics on the transaction. At the beginning of 2008, I realized the ability to raise capital was going to be increasingly difficult with the downward trend in the economy. HCC had become a market leader and was positioned for tremendous growth in the future, but I felt like I could not grow the business to its full potential without a capital partner. Therefore, 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.
The 6 month period while we focused our efforts on the merger caused our investor sources to halt any type of investment due to the fact we were merging. Because we essentially had been cut off from investors, we had to dramatically reduce our expenses which included our marketing costs, which caused our sales to decline although we were still able to sell a fair amount of memberships. In addition, one of our lenders terminated a $500k line of credit because of their concerns regarding the economy. However, I was certain that once the merger was announced, we would have tremendous growth from new sales and the company would be on very solid ground.
There was never any doubt in my mind we would not close on this transaction for several reasons. Most importantly, in the back of my mind I was prepared to completely give HCC away and take nothing in return personally as long as my members were protected. Secondly, a club absorbing HCC and combining operational costs would see almost no additional cost to their operations. HCC would essentially pay for itself. Given this situation, I believed beyond a shadow of a doubt I was positioning new members and old members in a very positive and stable situation for the future.
The economic events of the past 45 days changed everything. Every single prospect we had been speaking with declined further discussions of membership, all of our capital sources completely shut down, and two and a half weeks ago merger progress was terminated.
In 2 and a half weeks, along with our legal counsel, bankruptcy attorney and business advisors, we have developed the Success Plan which will enable HCC to operate, preserve member's deposits and position ourselves for growth in the future. The model will work because all of the costs are fixed and there is no dependence on new sales or investor capital.
I sincerely ask that members do not speculate on any aspect our merger discussions as it is irrelevant at this point and can only create more confusion.
Thank you again for your consideration.
Christian V. Kirschner
President & CEO
Destination club mergers typically fall into two rather broad categories: mutually beneficial and club acquisitions. Mutually beneficial exist when two similarly valued clubs join together to form a club stronger and more sustainable than they would be if they existed independently. Ultimate Resort and Private Escapes merger to form Ultimate Escapes and Quintess merging with Dream Catcher Retreats and Leading Residences of the World are examples of this. Club acquisitions typically involve a struggling or already unsuccessful club's assets, including real estate and members, being purchased by a more established destination club. Ultimate Resort acquired the assets of Tanner & Haley Destination Club following its public bankruptcy. Havens, a small destination club that struggled to get off the ground was acquired by equity destination club BelleHavens prior to any substantial problems. Ironically, BelleHavens and Crescendo Residences were acquired in a mutually beneficial merger to create the new Abercrombie & Kent Residence Club.
Both can be advantageous to both clubs and members if there is a synergy between the merging clubs. As dozens of real estate mortgages in different countries and unique membership plans are blended to create a new offering of the combined clubs, mergers and acquisitions often take many months of due diligence and negotiating prior to any formal announcements.
As addressed by Kirschner, due to the time component attached to High Country Club's current financial situation, pursuing a new merger once theirs had been terminated would not work.
If High Country Club's Success Plan can be implemented and produces a successful outcome, the management team at High Country Club and their member base should be congratulated for working together to create a sustainable destination club business model.
The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your 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 970-449-4680 to learn more about the industry, specific clubs, and our service, or visit our website www.TheVerasGroup.com.
Join us: we know the way.
Original Article
High Country Club CEO Discusses Destination Club Merger
As a result of yesterday's questions and comments, I want to offer further disclosure regarding our company during 2008.
For the past 6 months, HCC has been in merger/acquisition negotiations with a destination club. I am under a strict confidentiality agreement so I will not be able to disclose any specifics on the transaction. At the beginning of 2008, I realized the ability to raise capital was going to be increasingly difficult with the downward trend in the economy. HCC had become a market leader and was positioned for tremendous growth in the future, but I felt like I could not grow the business to its full potential without a capital partner. Therefore, 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.
The 6 month period while we focused our efforts on the merger caused our investor sources to halt any type of investment due to the fact we were merging. Because we essentially had been cut off from investors, we had to dramatically reduce our expenses which included our marketing costs, which caused our sales to decline although we were still able to sell a fair amount of memberships. In addition, one of our lenders terminated a $500k line of credit because of their concerns regarding the economy. However, I was certain that once the merger was announced, we would have tremendous growth from new sales and the company would be on very solid ground.
There was never any doubt in my mind we would not close on this transaction for several reasons. Most importantly, in the back of my mind I was prepared to completely give HCC away and take nothing in return personally as long as my members were protected. Secondly, a club absorbing HCC and combining operational costs would see almost no additional cost to their operations. HCC would essentially pay for itself. Given this situation, I believed beyond a shadow of a doubt I was positioning new members and old members in a very positive and stable situation for the future.
The economic events of the past 45 days changed everything. Every single prospect we had been speaking with declined further discussions of membership, all of our capital sources completely shut down, and two and a half weeks ago merger progress was terminated.
In 2 and a half weeks, along with our legal counsel, bankruptcy attorney and business advisors, we have developed the Success Plan which will enable HCC to operate, preserve member's deposits and position ourselves for growth in the future. The model will work because all of the costs are fixed and there is no dependence on new sales or investor capital.
I sincerely ask that members do not speculate on any aspect our merger discussions as it is irrelevant at this point and can only create more confusion.
Thank you again for your consideration.
Christian V. Kirschner
President & CEO
Destination club mergers typically fall into two rather broad categories: mutually beneficial and club acquisitions. Mutually beneficial exist when two similarly valued clubs join together to form a club stronger and more sustainable than they would be if they existed independently. Ultimate Resort and Private Escapes merger to form Ultimate Escapes and Quintess merging with Dream Catcher Retreats and Leading Residences of the World are examples of this. Club acquisitions typically involve a struggling or already unsuccessful club's assets, including real estate and members, being purchased by a more established destination club. Ultimate Resort acquired the assets of Tanner & Haley Destination Club following its public bankruptcy. Havens, a small destination club that struggled to get off the ground was acquired by equity destination club BelleHavens prior to any substantial problems. Ironically, BelleHavens and Crescendo Residences were acquired in a mutually beneficial merger to create the new Abercrombie & Kent Residence Club.
Both can be advantageous to both clubs and members if there is a synergy between the merging clubs. As dozens of real estate mortgages in different countries and unique membership plans are blended to create a new offering of the combined clubs, mergers and acquisitions often take many months of due diligence and negotiating prior to any formal announcements.
As addressed by Kirschner, due to the time component attached to High Country Club's current financial situation, pursuing a new merger once theirs had been terminated would not work.
If High Country Club's Success Plan can be implemented and produces a successful outcome, the management team at High Country Club and their member base should be congratulated for working together to create a sustainable destination club business model.
The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your 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 970-449-4680 to learn more about the industry, specific clubs, and our service, or visit our website www.TheVerasGroup.com.
Join us: we know the way.
Original Article
High Country Club CEO Discusses Destination Club Merger
Monday, November 3, 2008
Strength of US Dollar Versus Canadian Dollar Allows For Destination Club Discounts
Yesterday, the Canadian Dollar posted its first weekly gain against the US Dollar for the first time in five weeks. Despite gaining 5.7 percent for the week, the Canadian Dollar ended 11.6 percent down compared to the greenback. Typically very similar in value, the strength that the US Dollar currently holds over the Canadian Dollar allows both destination club prospects and destination clubs themselves an opportunity to enjoy savings in the Canadian marketplace.
The Discovery Club, a destination club based in British Columbia, procures partnerships with world class resorts all over the world. Members have access to over 100 five star resorts in locations like New York City, Scottsdale, and Maui and international destinations including Hong Kong, Cancun, and Rome and boasts "every Marriot hotel on the planet."
The Discovery Club offers three different membership levels: Silver, Gold, and Platinum costing C$98,000, C$175,000, and C$270,000 respectively. Due to the strength the US Dollar currently holds over the Canadian Dollar, US consumers can enjoy membership in The Discovery Club at a reduced cost, saving over $50,000.
Much like a traditional destination club, members pay a one time deposit and annual dues. After five years, members can sell their membership back to the club for 70% of market value.
The comparative value of the Canadian dollar to the US Dollar also allows US based destination clubs to save significantly on luxury real estate in Canada. In the past week, Ultimate Escapes CEO Jim Tousignant and Abercrombie & Kent Residence Club President Jarvis Slade, Jr., have both stated that current real estate prices are most favorable to destination clubs.
As evidenced by a recent Harris/Decima travel survey, Canada holds a significant potential market for destination clubs members. By acquiring real estate in the Canadian market while the US Dollar remains strong, destination clubs can begin to court a large audience of Canadian buyers with an extensive portfolio of Canadian properties.
To learn more about The Discovery Club and its unique destination club offering, please feel free to contact The Veras Group, your complimentary destination club analyst.
Strength of US Dollar For Canadian Dollar Allows For Destination Club Discounts
The Discovery Club, a destination club based in British Columbia, procures partnerships with world class resorts all over the world. Members have access to over 100 five star resorts in locations like New York City, Scottsdale, and Maui and international destinations including Hong Kong, Cancun, and Rome and boasts "every Marriot hotel on the planet."
The Discovery Club offers three different membership levels: Silver, Gold, and Platinum costing C$98,000, C$175,000, and C$270,000 respectively. Due to the strength the US Dollar currently holds over the Canadian Dollar, US consumers can enjoy membership in The Discovery Club at a reduced cost, saving over $50,000.
Much like a traditional destination club, members pay a one time deposit and annual dues. After five years, members can sell their membership back to the club for 70% of market value.
The comparative value of the Canadian dollar to the US Dollar also allows US based destination clubs to save significantly on luxury real estate in Canada. In the past week, Ultimate Escapes CEO Jim Tousignant and Abercrombie & Kent Residence Club President Jarvis Slade, Jr., have both stated that current real estate prices are most favorable to destination clubs.
As evidenced by a recent Harris/Decima travel survey, Canada holds a significant potential market for destination clubs members. By acquiring real estate in the Canadian market while the US Dollar remains strong, destination clubs can begin to court a large audience of Canadian buyers with an extensive portfolio of Canadian properties.
To learn more about The Discovery Club and its unique destination club offering, please feel free to contact The Veras Group, your complimentary destination club analyst.
Strength of US Dollar For Canadian Dollar Allows For Destination Club Discounts
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