Quintess Offers Deferred Payments and Trial Membership

Todd Miller, the Vice President of Marketing at Quintess, spent a portion of his Telluride spring break vacation to discuss the club's new trial membership offering.

"Quintess is about a membership in a club, so we wanted to create something that was truly a trial membership as opposed to just stays in the home," began Miller. "With our program, you join the club and you get full membership privileges as opposed to just staying in one location. Other clubs offer stays, but they limit it to certain locations and it isn't really a full membership. We want to have someone join fully and enjoy our club and all the homes and services we offer for a year. The key, like a number of other clubs, is to get people to experience the club. In our case, we want you to feel that you are a regular member and not just experience one location."

As mentioned by Miller, many other destination clubs have launched similar offerings in the past year, but all are more similar to a vacation rental where travelers pay a fee to access the properties than a true destination club membership. Abercrombie & Kent Residence Club launched their trial membership offering by making 17 of the club's underutilized properties available to prospects for $7,000 up to $11,000 depending on the property and season for a seven night stay. As properties were reserved, the club would remove them from the available list. Since then, A&K reduced their rates by 50 percent until April 15. Exclusive Resorts introduced their Sponsored Guest Program in November of 2008, allowing prospective members the chance to reserve four or seven nights stays in select Exclusive Resorts' properties for $5,900 or $8,900 respectively. Ultimate Escapes introduced their "Ultimate Discovery Membership" last month, allowing qualified prospective members the opportunity to reserve properties from any of Ultimate Escapes' three club levels. Premiere properties could be reserved for $3,500 per week, Signature properties for $5,250, and Elite properties for $7,000.

The Quintess trial membership requires a non-refundable $15,000 fee and the standard annual dues and nightly fees for the plan that a member wishes to join. Following the year, members can elect to join the club as a full member and can amortize their membership deposit across several years, the larger the membership deposit, the longer the time period.

"In doing that, you get full access to all the properties by paying annual dues and a small up front fee of $15,000. After one year, they have the opportunity to begin paying their deposit on an installment basis. Starting at the one year anniversary, you can pay your deposit over a period of time depending on the size of plan you pick. If someone is willing to start to pay the deposit initially, they can forgo paying the $15,000 initially," Miller added.

Throughout the history of the destination club industry, many clubs have offered many other trial and preview memberships and have seen high retention rates. Clubs largely believe that they can effectively up sell these introductory members to full membership status after they have enjoyed the full destination club experience.

"We really feel that they are very likely to stay because the way we have grown historically is through member referrals and that is all about member satisfaction. Our members continue to be very, very satisfied with our delivery of service, quality of homes, and what we offer them as members."

When asked to discuss the genesis of the new trail membership offer, Miller stated that it was largely created out of the superior real estate opportunities available to the club.

"We are being offered a number of great homes in great places, on terms that require little if any money down upfront, where the seller is willing to even finance it over a period of years. A year or two ago, you had to put significant money down up front. We can then in turn pass that on in the form of installment pricing."

Clubs are largely looking to ease the process of joining as the economy struggles. Coupling a trial membership with a deferred payment option creates an opportunity for prospective members to first test the destination club waters and then join if they enjoy the experience without a large, up front monetary outpour. According to Miller, Quintess has already seen a great deal of success on this program.

"We are excited about all of our opportunities. We are excited about the future," concluded Miller. "It's obviously a difficult time right now, but we really continue to believe in what we offer and how much it helps our members and their families stay connected. I think one of the things in a tough time like this is you realize what's important in life and one of those things is stay connected with your family and friends and we help create lasting memories."

For more information about Quintess, Leading Residences of the World, please contact The Veras Group, your complimentary destination club advisor, dedicated to helping you finding the destination club that is right for you.

Quintess Offers Deferred Payments and Trial Membership

Ultimate Escapes Coaces Advance

Two of the NBA's most elite coaches will have to delay their summer vacation plans as both of their teams have advanced deeper into the playoffs. The Eastern Conference's number two seed Boston Celtics, led by Doc Rivers, defeated the Chicago Bulls in an epic first round series while the Western Conference's Denver Nuggets, headed by George Karl and also the number two seed, bested the New Orleans Hornets. While both continue to work towards a championship, both also will have their destination club memberships to help them relax during the off-season.

Doc Rivers joined Ultimate Resort in March of 2006 and George Karl joined Private Escapes in November of 2007, both now a part of the Ultimate Escapes family after the Ultimate Resort and Private Escapes merger. Rivers and Karl are but just a few of the many destination club sports members that pepper the industry. Ultimate Escapes alone counts Hall of Fame Quarterback Steve Young, Team USA Manager Davey Johnson, University of Illinois head basketball coach Bruce Weber, golf broadcaster David Feherty, and Chicago Bears Offensive Coordinator Ron Turner.

"(Ultimate Resort) is a perfect choice for me," said Rivers when asked about his destination club membership. "Private Escapes is the perfect travel option for my lifestyle," Karl said similarly about his Private Escapes membership.

With both members extending their season, off-season travel plans will have to wait. While the club is tight lipped about where any of their members are traveling, famous or not, Coach Karl did visit Telluride prior to joining, stating that he was "amazed with the homes' prime location, superior concierge and excellent level of service," according to Ultimate Escapes Chairman Richard Keith.

Although both teams have a tough road in front of them, a Celtics versus Nuggets NBA Finals is not entirely out of the question. If so, will Ultimate Resort's former Coach of the Year and NBA Champion Doc Rivers or Private Escapes' George Karl, the twelfth winningest coach of all time, take the championship? Either way, Ultimate Escapes will be happy to help both enjoy the off-season.

Original Article
Ultimate Escapes Coaches Advance

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The Hideaways Club Sells 20% of Ownership

The Hideaways Club, one of the UK's largest destination clubs, has brought in two new investors, Jonathan Feuer and Nick Bettany. Each has purchased a ten percent stake in the organization, bringing both capital and experience to the club.

The Veras Group met with Chris Moody, Director of Sales, to learn more about the investors and what it means to members and The Hideaways Club itself.

"Obviously it provides us more capital, but it also brings in some very experienced investors putting money into the real estate investment," Moody began. "They are two very experienced guys and our founders are very pleased to be able to raise capital in the current environment. I think that more than anything illustrates the business model is a good one."

Jonathan Feuer is a Managing Partner at CVC Capital Partners, a leading private equity and investment advisory firm based in Luxembourg. Feuer joined CVC in 1988, working previously for Baring Brothers in the Corporate Finance department and Ernst & Whinney in London where he qualified as a Chartered Accountant. Studying at the University of Warwick, Feuer has a degree in applied mathematics and has led several buyouts and acquisitions during his time at CVC Capital.

While new to The Hideaways Club, Feuer does have experience with the club's founders. In 2004, Feuer led the £1.7 billion leveraged buyout of Debenhams, a major British retailer. John Lovering, a Founder and investor at The Hideaways Club, is Chairman of Debenhams.

After studying Economics at the University in Bristol, Nick Bettany began his career as a Chartered Accountant at Pricewaterhouse Coopers, specializing in audits of financial institutions. He later went on to work for the Royal Bank of Canada and the Jersey Financial Services Commission before establishing Clink Renaissance Property Limitada, a real estate developer in Lisbon focused on renovating historical city apartment blocks into luxury living spaces. Bettany continues to serve as the company's Financial Director.

In 2006, Nick completed his MBA at INSEAD in Singapore and Paris before working at Avington Financial, an investment bank specializing in providing financial advice on mergers and acquisitions within the hospitality and leisure industries.

Bettany has served as a Director of the Banyan Tree Seychelles hotel, an organization that has their own destination club under the corporate group, Banyan Tree Private Collection. In his very little free time, Nick also serves on the Boards both at RatedOffshore Limited and Rentim Investments, is an active member of the London chapter of the Keiretsu Forum, and oversees the running of gold medal winning Cremant and Cabernet Franc red wine vineyard in the Loire Valley.

Members of the club will not be affected by the deal. "The property company itself is held by the shareholders," said Moody. "Member's shareholdings aren't affected at all. Their shareholdings are in a seperate company. The property company owns the properties and the management company manages the properties on behalf of the shareholders."

With the new capital injected into the firm, Moody let us know that Hideaways plans to acquire many new stellar properties to the club's portfolio before the end of the year. Check back soon to hear the rest of Chris Moody's comments about where The Hideaways Club will be going in 2009 and their plans for the future.

To learn more about The Hideaways Club, please contact The Veras Group, your complimentary destination club advisor, dedicated to assisting you through every stage of your destination club purchase.

The Hideaways Club Sells 20% of Ownership Destination Club News The Veras Group

Abercrombie and Kent Residence Club Hosts First Annual Members Meeting

"We are trying to raise the bar for how clubs should operate and demonstrate some new best practices. From an industry standpoint, this upcoming event is very significant."

Less than a week shy of Abercrombie & Kent Residence Club's first annual member meeting, Darin Gilson, the club's Senior Vice President of Sales and Business Development, met with The Veras Group to discuss the meeting and what the club plans to accomplish during their first annual event starting tomorrow in Chicago. The club plans to have a diverse list of representatives in attendance and presenting from the Abercrombie & Kent family including:

• Geoffrey Kent: Abercrombie & Kent Founder, Chairman and CEO
• Jorie Butler Kent: Vice Chair, Abercrombie & Kent
• Scott Wiseman: President of A&K, Inc. and A&K Residence Club
• Brett Fichte: Chief Financial Officer
• Stephanie Papaioannou: Senior Vice President of Hospitality and Member Services
• Darin Gilson: Senior Vice President of Sales and Business Development
• Joe Mitchell: Senior Vice President of Real Estate
• Robin Warne: Vice President of Finance
• Chicago Based Hospitality Team

"We had some debate on the best way to conduct the annual meeting. We toyed with the idea of hosting the event at our two homes in Turks & Caicos, but we wanted to make it as easy as possible for our members to gather," began Gilson. "We decided on Chicago since it is the middle of the country and also where we are headquartered. In the spirit of being prudent and fiscally responsible, I believe it was a good choice. For those members who can't attend in person, they can join via conference call and webcast. We hope that our members will enjoy the opportunity to meet one another, and most importantly, that they will appreciate the transparency and full disclosure that we will offer."

In recent months, the destination club landscape has been forever altered as business models have come into question and financial stability has moved to the forefront as members and prospects analyze each club in the industry. Leading clubs such as the Lusso Collection and High Country Club have been forced into bankruptcy while others have made sweeping changes to their structure to survive. Abercrombie & Kent plans to assure their members that their club will not face a similar fate.

"We just completed our annual audit," continued Gilson. "KPMG is our auditing firm and our Chief Financial Officer, Brett Fichte, will review the results of the audited financials. The financial material we will disclose at the meeting is somewhat groundbreaking. We believe this is not only a best practice, but a first in our industry."

Since the club's inception last year, Abercrombie & Kent has demonstrated financial transparency and open communication as key components of the club. "From the beginning, we promised to be forthright about how the club is operating, and we have invited the members to play an active role in shaping the club's future," said A&K's Founder, Chairman, and CEO Geoffrey Kent.

To more firmly establish the active role that members play in the club's governance, two Abercrombie & Kent members will be elected to the club's five person board. "We have gone through a process over the past month where five members were nominated, and then all the members had the opportunity to vote for two members to represent them on the board," Gilson said. "Having members sit on the governing board, who are elected by their fellow members, and who have no profit motivation or ownership stake in the management company, is absolutely groundbreaking."

According to Gilson, the club's board has the powers that most boards have, including ratifying budgets, reviewing proposed changes to the club's by laws, and addressing strategy items. While the club's financial stature and Board electees will be prominent agenda items, the annual meeting will also address several other components of the club, including member services, hospitality and the club's philanthropic efforts.

"We don't expect the financial discussion to dominate the meeting. We have had discussions with our members throughout the year through periodic conference calls and assured our members that we are being prudent with member's funds," said Gilson. "Geoffrey Kent will discuss the status of the company and our heritage. We will also be pleased to hear from Jorie Butler Kent, who will discuss A&K philanthropy. This is an important part of the A&K DNA, and we want our members to appreciate how the company helps in many causes around the world. Scott Wiseman will give a President's perspective on the club and where we will go in the future. I will give a presentation about our growth objectives and current industry dynamics. Stephanie will be giving a presentation on hospitality and member services and of course we will review the financials. We are trying to hit on all the key aspects of the club, including where we are now, where we expect to be in the future, and how we will get there."

Following the official meeting, the newly elected board members will participate in their first board meeting before attendees and A&K representatives will head off for a night on the town.
"It's not all going to be business. There will be the member's meeting and then the first Board meeting with the new member elected Board Members participating. That evening, we will gather for a club social function at Second City, a famous club in Chicago, where we have rented out the place for a private performance just for Abercrombie & Kent Residence Club members. We are mixing in a little fun in one of Chicago's hot spots."

Abercrombie & Kent plans to have approximately 50 members in attendance with many more joining in via phone or webcast. While prospects cannot attend, Gilson did say that portions of the webcast or the presentation materials may become available to prospects in the future.
Next week, we will continue with our second installment of our four part series with Darin Gilson. To request an advanced copy of our upcoming articles about Abercrombie & Kent Residence Club or to request more information about A&K or any other destination club, please contact The Veras Group, your complimentary destination club advisory firm.

Abercrombie & Kent Residence Club First Annual Meeting

The Hideaways Club Plans For The Future

Fresh off selling 20% of their ownership to investors Jonathan Feuer and Nick Bettany, The Hideaways Club has large plans for the rest of 2009.

"I think a lot of people were considering buying their own home are now considering fractional. We seem to not be experiencing a drop off, but in fact doing better than what we were," began Chris Moody, the Director of Sales at The Hideaways Club in an exclusive interview with The Veras Group.

The Hideaways Club launched early in 2007, marketing themselves as "Europe's first private residence owners club." Unlike the more traditional United States destination club model where members join with a "right to use" membership stake where they can access the club's properties but with no ownership in the properties, The Hideaways Club members do own the properties in the club's portfolio. Founders Mike Balfour, John Lovering, Stephen Wise, Patrick Henchoz, and Helmut Schön launched the club with European members in mind, planning their property acquisitions to all be within a four hour flight from the United Kingdom.
Despite the club's initial plans to acquire properties all within a short area of the UK, The Hideaways Club is looking to expand further to other select areas outside their original target.

"We are expanding into Asia and Africa," said Moody. "At the moment we have bought some of the properties but have yet to announce them to our members. We are looking to expand further across other Asian destinations. By the end of the year we should be close to 30 properties. We currently are at 16 properties that we have announced and have some others that will be announced shortly. Every six members we buy a new house, and looking at the rate we are taking on new members, we should be pushing 30 properties by the end of 2009."
With real estate prices falling on a global scale, The Hideaways Club is anxious to add select properties at strong values to their portfolio.

"I don't think it is drastic as in the states, but prices have come down in some areas," Moody said. "Certainly we are able to get some very nice properties for some very good rates. We are not looking to buy cheaper properties since we want to maintain our standards, so we are essentially able to buy better properties now than we could have last year. Our properties are all decided upon by our founders. They have very specific ideas about what they want, so while all the properties are very different, they share the same characteristics. Certain number of bedrooms, accommodations, location, quality of finish. Generally we just try to be consistent."

With less than 20 properties including those not yet available to members, The Hideaways Club would need to add approximately 60 new members over the next seven months to approach their 30 property goal. This ambitious mark may begin with the addition of a notable British tennis star the club plans to announce soon, adding yet another member to the many notable destination club sports members throughout the industry. The Veras Group will follow up with the report as it is announced.

To learn more about The Hideaways Club, please request more information from The Veras Group, your complimentary resource for unbiased news and information about every destination club.

The Hideaways Club Plans For The Future Destination Club News The Veras Group