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