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
Friday, May 1, 2009
Abercrombie and Kent Residence Club Hosts First Annual Members Meeting
"We are trying to raise the bar for how clubs should operate and demonstrate some new best practices. From an industry standpoint, this upcoming event is very significant."
Less than a week shy of Abercrombie & Kent Residence Club's first annual member meeting, Darin Gilson, the club's Senior Vice President of Sales and Business Development, met with The Veras Group to discuss the meeting and what the club plans to accomplish during their first annual event starting tomorrow in Chicago. The club plans to have a diverse list of representatives in attendance and presenting from the Abercrombie & Kent family including:
• Geoffrey Kent: Abercrombie & Kent Founder, Chairman and CEO
• Jorie Butler Kent: Vice Chair, Abercrombie & Kent
• Scott Wiseman: President of A&K, Inc. and A&K Residence Club
• Brett Fichte: Chief Financial Officer
• Stephanie Papaioannou: Senior Vice President of Hospitality and Member Services
• Darin Gilson: Senior Vice President of Sales and Business Development
• Joe Mitchell: Senior Vice President of Real Estate
• Robin Warne: Vice President of Finance
• Chicago Based Hospitality Team
"We had some debate on the best way to conduct the annual meeting. We toyed with the idea of hosting the event at our two homes in Turks & Caicos, but we wanted to make it as easy as possible for our members to gather," began Gilson. "We decided on Chicago since it is the middle of the country and also where we are headquartered. In the spirit of being prudent and fiscally responsible, I believe it was a good choice. For those members who can't attend in person, they can join via conference call and webcast. We hope that our members will enjoy the opportunity to meet one another, and most importantly, that they will appreciate the transparency and full disclosure that we will offer."
In recent months, the destination club landscape has been forever altered as business models have come into question and financial stability has moved to the forefront as members and prospects analyze each club in the industry. Leading clubs such as the Lusso Collection and High Country Club have been forced into bankruptcy while others have made sweeping changes to their structure to survive. Abercrombie & Kent plans to assure their members that their club will not face a similar fate.
"We just completed our annual audit," continued Gilson. "KPMG is our auditing firm and our Chief Financial Officer, Brett Fichte, will review the results of the audited financials. The financial material we will disclose at the meeting is somewhat groundbreaking. We believe this is not only a best practice, but a first in our industry."
Since the club's inception last year, Abercrombie & Kent has demonstrated financial transparency and open communication as key components of the club. "From the beginning, we promised to be forthright about how the club is operating, and we have invited the members to play an active role in shaping the club's future," said A&K's Founder, Chairman, and CEO Geoffrey Kent.
To more firmly establish the active role that members play in the club's governance, two Abercrombie & Kent members will be elected to the club's five person board. "We have gone through a process over the past month where five members were nominated, and then all the members had the opportunity to vote for two members to represent them on the board," Gilson said. "Having members sit on the governing board, who are elected by their fellow members, and who have no profit motivation or ownership stake in the management company, is absolutely groundbreaking."
According to Gilson, the club's board has the powers that most boards have, including ratifying budgets, reviewing proposed changes to the club's by laws, and addressing strategy items. While the club's financial stature and Board electees will be prominent agenda items, the annual meeting will also address several other components of the club, including member services, hospitality and the club's philanthropic efforts.
"We don't expect the financial discussion to dominate the meeting. We have had discussions with our members throughout the year through periodic conference calls and assured our members that we are being prudent with member's funds," said Gilson. "Geoffrey Kent will discuss the status of the company and our heritage. We will also be pleased to hear from Jorie Butler Kent, who will discuss A&K philanthropy. This is an important part of the A&K DNA, and we want our members to appreciate how the company helps in many causes around the world. Scott Wiseman will give a President's perspective on the club and where we will go in the future. I will give a presentation about our growth objectives and current industry dynamics. Stephanie will be giving a presentation on hospitality and member services and of course we will review the financials. We are trying to hit on all the key aspects of the club, including where we are now, where we expect to be in the future, and how we will get there."
Following the official meeting, the newly elected board members will participate in their first board meeting before attendees and A&K representatives will head off for a night on the town.
"It's not all going to be business. There will be the member's meeting and then the first Board meeting with the new member elected Board Members participating. That evening, we will gather for a club social function at Second City, a famous club in Chicago, where we have rented out the place for a private performance just for Abercrombie & Kent Residence Club members. We are mixing in a little fun in one of Chicago's hot spots."
Abercrombie & Kent plans to have approximately 50 members in attendance with many more joining in via phone or webcast. While prospects cannot attend, Gilson did say that portions of the webcast or the presentation materials may become available to prospects in the future.
Next week, we will continue with our second installment of our four part series with Darin Gilson. To request an advanced copy of our upcoming articles about Abercrombie & Kent Residence Club or to request more information about A&K or any other destination club, please contact The Veras Group, your complimentary destination club advisory firm.
Abercrombie & Kent Residence Club First Annual Meeting
Less than a week shy of Abercrombie & Kent Residence Club's first annual member meeting, Darin Gilson, the club's Senior Vice President of Sales and Business Development, met with The Veras Group to discuss the meeting and what the club plans to accomplish during their first annual event starting tomorrow in Chicago. The club plans to have a diverse list of representatives in attendance and presenting from the Abercrombie & Kent family including:
• Geoffrey Kent: Abercrombie & Kent Founder, Chairman and CEO
• Jorie Butler Kent: Vice Chair, Abercrombie & Kent
• Scott Wiseman: President of A&K, Inc. and A&K Residence Club
• Brett Fichte: Chief Financial Officer
• Stephanie Papaioannou: Senior Vice President of Hospitality and Member Services
• Darin Gilson: Senior Vice President of Sales and Business Development
• Joe Mitchell: Senior Vice President of Real Estate
• Robin Warne: Vice President of Finance
• Chicago Based Hospitality Team
"We had some debate on the best way to conduct the annual meeting. We toyed with the idea of hosting the event at our two homes in Turks & Caicos, but we wanted to make it as easy as possible for our members to gather," began Gilson. "We decided on Chicago since it is the middle of the country and also where we are headquartered. In the spirit of being prudent and fiscally responsible, I believe it was a good choice. For those members who can't attend in person, they can join via conference call and webcast. We hope that our members will enjoy the opportunity to meet one another, and most importantly, that they will appreciate the transparency and full disclosure that we will offer."
In recent months, the destination club landscape has been forever altered as business models have come into question and financial stability has moved to the forefront as members and prospects analyze each club in the industry. Leading clubs such as the Lusso Collection and High Country Club have been forced into bankruptcy while others have made sweeping changes to their structure to survive. Abercrombie & Kent plans to assure their members that their club will not face a similar fate.
"We just completed our annual audit," continued Gilson. "KPMG is our auditing firm and our Chief Financial Officer, Brett Fichte, will review the results of the audited financials. The financial material we will disclose at the meeting is somewhat groundbreaking. We believe this is not only a best practice, but a first in our industry."
Since the club's inception last year, Abercrombie & Kent has demonstrated financial transparency and open communication as key components of the club. "From the beginning, we promised to be forthright about how the club is operating, and we have invited the members to play an active role in shaping the club's future," said A&K's Founder, Chairman, and CEO Geoffrey Kent.
To more firmly establish the active role that members play in the club's governance, two Abercrombie & Kent members will be elected to the club's five person board. "We have gone through a process over the past month where five members were nominated, and then all the members had the opportunity to vote for two members to represent them on the board," Gilson said. "Having members sit on the governing board, who are elected by their fellow members, and who have no profit motivation or ownership stake in the management company, is absolutely groundbreaking."
According to Gilson, the club's board has the powers that most boards have, including ratifying budgets, reviewing proposed changes to the club's by laws, and addressing strategy items. While the club's financial stature and Board electees will be prominent agenda items, the annual meeting will also address several other components of the club, including member services, hospitality and the club's philanthropic efforts.
"We don't expect the financial discussion to dominate the meeting. We have had discussions with our members throughout the year through periodic conference calls and assured our members that we are being prudent with member's funds," said Gilson. "Geoffrey Kent will discuss the status of the company and our heritage. We will also be pleased to hear from Jorie Butler Kent, who will discuss A&K philanthropy. This is an important part of the A&K DNA, and we want our members to appreciate how the company helps in many causes around the world. Scott Wiseman will give a President's perspective on the club and where we will go in the future. I will give a presentation about our growth objectives and current industry dynamics. Stephanie will be giving a presentation on hospitality and member services and of course we will review the financials. We are trying to hit on all the key aspects of the club, including where we are now, where we expect to be in the future, and how we will get there."
Following the official meeting, the newly elected board members will participate in their first board meeting before attendees and A&K representatives will head off for a night on the town.
"It's not all going to be business. There will be the member's meeting and then the first Board meeting with the new member elected Board Members participating. That evening, we will gather for a club social function at Second City, a famous club in Chicago, where we have rented out the place for a private performance just for Abercrombie & Kent Residence Club members. We are mixing in a little fun in one of Chicago's hot spots."
Abercrombie & Kent plans to have approximately 50 members in attendance with many more joining in via phone or webcast. While prospects cannot attend, Gilson did say that portions of the webcast or the presentation materials may become available to prospects in the future.
Next week, we will continue with our second installment of our four part series with Darin Gilson. To request an advanced copy of our upcoming articles about Abercrombie & Kent Residence Club or to request more information about A&K or any other destination club, please contact The Veras Group, your complimentary destination club advisory firm.
Abercrombie & Kent Residence Club First Annual Meeting
The Hideaways Club Plans For The Future
Fresh off selling 20% of their ownership to investors Jonathan Feuer and Nick Bettany, The Hideaways Club has large plans for the rest of 2009.
"I think a lot of people were considering buying their own home are now considering fractional. We seem to not be experiencing a drop off, but in fact doing better than what we were," began Chris Moody, the Director of Sales at The Hideaways Club in an exclusive interview with The Veras Group.
The Hideaways Club launched early in 2007, marketing themselves as "Europe's first private residence owners club." Unlike the more traditional United States destination club model where members join with a "right to use" membership stake where they can access the club's properties but with no ownership in the properties, The Hideaways Club members do own the properties in the club's portfolio. Founders Mike Balfour, John Lovering, Stephen Wise, Patrick Henchoz, and Helmut Schön launched the club with European members in mind, planning their property acquisitions to all be within a four hour flight from the United Kingdom.
Despite the club's initial plans to acquire properties all within a short area of the UK, The Hideaways Club is looking to expand further to other select areas outside their original target.
"We are expanding into Asia and Africa," said Moody. "At the moment we have bought some of the properties but have yet to announce them to our members. We are looking to expand further across other Asian destinations. By the end of the year we should be close to 30 properties. We currently are at 16 properties that we have announced and have some others that will be announced shortly. Every six members we buy a new house, and looking at the rate we are taking on new members, we should be pushing 30 properties by the end of 2009."
With real estate prices falling on a global scale, The Hideaways Club is anxious to add select properties at strong values to their portfolio.
"I don't think it is drastic as in the states, but prices have come down in some areas," Moody said. "Certainly we are able to get some very nice properties for some very good rates. We are not looking to buy cheaper properties since we want to maintain our standards, so we are essentially able to buy better properties now than we could have last year. Our properties are all decided upon by our founders. They have very specific ideas about what they want, so while all the properties are very different, they share the same characteristics. Certain number of bedrooms, accommodations, location, quality of finish. Generally we just try to be consistent."
With less than 20 properties including those not yet available to members, The Hideaways Club would need to add approximately 60 new members over the next seven months to approach their 30 property goal. This ambitious mark may begin with the addition of a notable British tennis star the club plans to announce soon, adding yet another member to the many notable destination club sports members throughout the industry. The Veras Group will follow up with the report as it is announced.
To learn more about The Hideaways Club, please request more information from The Veras Group, your complimentary resource for unbiased news and information about every destination club.
The Hideaways Club Plans For The Future Destination Club News The Veras Group
"I think a lot of people were considering buying their own home are now considering fractional. We seem to not be experiencing a drop off, but in fact doing better than what we were," began Chris Moody, the Director of Sales at The Hideaways Club in an exclusive interview with The Veras Group.
The Hideaways Club launched early in 2007, marketing themselves as "Europe's first private residence owners club." Unlike the more traditional United States destination club model where members join with a "right to use" membership stake where they can access the club's properties but with no ownership in the properties, The Hideaways Club members do own the properties in the club's portfolio. Founders Mike Balfour, John Lovering, Stephen Wise, Patrick Henchoz, and Helmut Schön launched the club with European members in mind, planning their property acquisitions to all be within a four hour flight from the United Kingdom.
Despite the club's initial plans to acquire properties all within a short area of the UK, The Hideaways Club is looking to expand further to other select areas outside their original target.
"We are expanding into Asia and Africa," said Moody. "At the moment we have bought some of the properties but have yet to announce them to our members. We are looking to expand further across other Asian destinations. By the end of the year we should be close to 30 properties. We currently are at 16 properties that we have announced and have some others that will be announced shortly. Every six members we buy a new house, and looking at the rate we are taking on new members, we should be pushing 30 properties by the end of 2009."
With real estate prices falling on a global scale, The Hideaways Club is anxious to add select properties at strong values to their portfolio.
"I don't think it is drastic as in the states, but prices have come down in some areas," Moody said. "Certainly we are able to get some very nice properties for some very good rates. We are not looking to buy cheaper properties since we want to maintain our standards, so we are essentially able to buy better properties now than we could have last year. Our properties are all decided upon by our founders. They have very specific ideas about what they want, so while all the properties are very different, they share the same characteristics. Certain number of bedrooms, accommodations, location, quality of finish. Generally we just try to be consistent."
With less than 20 properties including those not yet available to members, The Hideaways Club would need to add approximately 60 new members over the next seven months to approach their 30 property goal. This ambitious mark may begin with the addition of a notable British tennis star the club plans to announce soon, adding yet another member to the many notable destination club sports members throughout the industry. The Veras Group will follow up with the report as it is announced.
To learn more about The Hideaways Club, please request more information from The Veras Group, your complimentary resource for unbiased news and information about every destination club.
The Hideaways Club Plans For The Future Destination Club News The Veras Group
Thursday, January 29, 2009
High Country Club Files For Chapter 7 Bankruptcy
Bookended by a precipitous rise to the top of the destination club industry and by a meteoric collapse, High Country Club has announced it will file for Chapter 7 bankruptcy next week.
In a candid letter to the club's members sent last week, Christian Kirschner, High Country Club's CEO wrote:
Effective immediately, High Country Club will no longer be in business. Along with our bankruptcy attorneys, we are in the process of filing Chapter 7 bankruptcy next week.
The severe decline in the economy has made it impossible to operate our business. Our team has worked tirelessly over the past 120 days to restructure and save the business. However, multiplying outside factors and a declining membership has made operations impossible.
Effective immediately all reservations are canceled.
We expect that the bankruptcy court will be in contact with members after our filing next week.
I offer my sincerest apologies and regrets as the current business and economic environment has made it impossible for HCC to operate.
Christian V. Kirschner
President & CEO
High Country Club
Founded as a specialty destination club focused on the affluent ski audience, High Country Club entered the industry as a low cost alternative to the myriad of other more costly destination clubs that dominated the industry. As the sole club in the sub-$50,000 price point, High Country Club soon emerged as a destination club power, consistently meeting sales and revenue goals and serving as a founding member of the Destination Club Association.
The club's ability to generate a continual stream of new sales led to over reaching on real estate, purchasing luxury vacation homes outside of their business model's price range. In their attempt to remain the most cost effective destination club, annual dues, the club's yearly payments made by club members used to pay for the club's ongoing operations, were set below the club's operational burn rate.
As the real estate and financial markets began to decline, so did sales for High Country Club. Often selling upwards of 30 memberships per month, the club's sales initiatives began to yield single digits in the months prior to their bankruptcy.
With club sales eroding and facing financing issues from lenders, High Country Club executives attempted to merge with another destination club, only to have the buyer back out in early October of 2008. In a letter to High Country Club members regarding the destination club merger sent on October 28, Kirschner wrote "I approached several destination clubs and we made a decision to move forward with one. Documents were signed and the integration process had begun. Two and a half weeks ago the deal was terminated due to the difficulties created by the extraordinary economic events of the past 45 days...There was never any doubt in my mind we would not close on this transaction for several reasons...The economic events of the past 45 days changed everything."
With anemic sales and growing debt obligations, High Country Club created a Success Plan that theoretically would allow the club to become self sufficient and operational solely on membership dues. The plan consisted primarily of increased annual dues for members, decreases in properties available to members, and drastic layoffs to High Country Club staff to reduce overhead.
For the plan to succeed, approximately 75 percent of the membership base needed to agree to sign off on new addendums outlining these terms. While the club approached the 75 percent barrier, ultimately it fell just short, leading management to create a new alternative to members, the High Country Club Sustainability Plan.
The Sustainability Plan also failed to create the self sufficient model club executives and members sought.
With High Country Club's upcoming Chapter 7 filing, they join One Key World and Lusso Collection as firms starting 2009 poorly. One Key World and their rental brokerage model was forced to cease operations earlier this month while the Lusso Collection is currently going through Chapter 11 bankruptcy.
Despite Kirschner's immediate closure notice, expect more news about High Country Club to follow as creditors, real estate owners, and members alike continue asking questions about how High Country Club reached this point.
Original Article
High Country Club Files For Chapter 7 Bankruptcy
In a candid letter to the club's members sent last week, Christian Kirschner, High Country Club's CEO wrote:
Effective immediately, High Country Club will no longer be in business. Along with our bankruptcy attorneys, we are in the process of filing Chapter 7 bankruptcy next week.
The severe decline in the economy has made it impossible to operate our business. Our team has worked tirelessly over the past 120 days to restructure and save the business. However, multiplying outside factors and a declining membership has made operations impossible.
Effective immediately all reservations are canceled.
We expect that the bankruptcy court will be in contact with members after our filing next week.
I offer my sincerest apologies and regrets as the current business and economic environment has made it impossible for HCC to operate.
Christian V. Kirschner
President & CEO
High Country Club
Founded as a specialty destination club focused on the affluent ski audience, High Country Club entered the industry as a low cost alternative to the myriad of other more costly destination clubs that dominated the industry. As the sole club in the sub-$50,000 price point, High Country Club soon emerged as a destination club power, consistently meeting sales and revenue goals and serving as a founding member of the Destination Club Association.
The club's ability to generate a continual stream of new sales led to over reaching on real estate, purchasing luxury vacation homes outside of their business model's price range. In their attempt to remain the most cost effective destination club, annual dues, the club's yearly payments made by club members used to pay for the club's ongoing operations, were set below the club's operational burn rate.
As the real estate and financial markets began to decline, so did sales for High Country Club. Often selling upwards of 30 memberships per month, the club's sales initiatives began to yield single digits in the months prior to their bankruptcy.
With club sales eroding and facing financing issues from lenders, High Country Club executives attempted to merge with another destination club, only to have the buyer back out in early October of 2008. In a letter to High Country Club members regarding the destination club merger sent on October 28, Kirschner wrote "I approached several destination clubs and we made a decision to move forward with one. Documents were signed and the integration process had begun. Two and a half weeks ago the deal was terminated due to the difficulties created by the extraordinary economic events of the past 45 days...There was never any doubt in my mind we would not close on this transaction for several reasons...The economic events of the past 45 days changed everything."
With anemic sales and growing debt obligations, High Country Club created a Success Plan that theoretically would allow the club to become self sufficient and operational solely on membership dues. The plan consisted primarily of increased annual dues for members, decreases in properties available to members, and drastic layoffs to High Country Club staff to reduce overhead.
For the plan to succeed, approximately 75 percent of the membership base needed to agree to sign off on new addendums outlining these terms. While the club approached the 75 percent barrier, ultimately it fell just short, leading management to create a new alternative to members, the High Country Club Sustainability Plan.
The Sustainability Plan also failed to create the self sufficient model club executives and members sought.
With High Country Club's upcoming Chapter 7 filing, they join One Key World and Lusso Collection as firms starting 2009 poorly. One Key World and their rental brokerage model was forced to cease operations earlier this month while the Lusso Collection is currently going through Chapter 11 bankruptcy.
Despite Kirschner's immediate closure notice, expect more news about High Country Club to follow as creditors, real estate owners, and members alike continue asking questions about how High Country Club reached this point.
Original Article
High Country Club Files For Chapter 7 Bankruptcy
Yellowstone Club World Files For Chapter 7 Bankruptcy
Creditors of Yellowstone Club World, a spinoff destination club of the Yellowstone Club, have filed for Chapter 7 bankruptcy liquidation. Filed on behalf of four creditors claiming $4.65 million in refunds for membership deposits to Yellowstone Club World, Angus MacNaughton, Edgar Rainin, and Yoav Rubinstein are each requesting $1.5 million and Thomas Hook is requesting $150,000.
Yellowstone Club World ceased operations last year amid a public ownership battle and divorce of Tim and Edra Blixseth. Edra eventually won ownership of the club and promised to monetize several of the clubs properties.
Envisioned as the most elite destination club in the industry, Tim Blixseth scoured the globe looking for luxury vacation properties for the club's exclusive 150 members. Once comparing the search to "Easter egg hunting," the club included the Chateau de Farcheville in France, the El Tamarindo resort in Mexico, and a private golf club near St. Andrews in Scotland. Designed to charge as much as $10 million to join, the club failed to get off the ground, counting only a select few Yellowstone Club members who upgraded to join. In September of 2008, Yellowstone Club World ceased operations.
In November of 2008, Yellowstone Club, the Montana based resort that preceded Yellowstone Club World, filed for Chapter 11 bankruptcy protection. According to the first court filings, Yellowstone Club cited a combined debt of $344 million and assets of roughly $1.1 billion.
According to John Amsden, a lawyer representing Yellowstone Club World members, at least one of the properties available to Yellowstone Club World members is being used as leverage in the Yellowstone Club Chapter 11 proceedings.
"We're concerned the assets they do have are no longer in control of the Yellowstone Club World," said Amsden. "The involuntary bankruptcy was necessary because it appears that there is no one minding the club's business. We hope that the matter can be resolved with a minimum of expense."
Through the Chapter 7 filing, the creditors seek to find who and what entity controls the properties of Yellowstone Club World.
"The members of the Yellowstone Club World were promised access to very specific and significant properties in return for their significant membership dues. They anticipate that their interests to those properties will be respected," Amsden continued.
Within 20 days, the court will appoint a trustee who will begin to sort through the club's assets.
The Chapter 7 filing puts two destination clubs on the polar opposite of the spectrum in the same boat this week. High Country Club, the most inexpensive destination club in the industry, also filed for Chapter 7 bankruptcy.
Original Article
Yellowstone Club World Files For Chapter 7 Bankruptcy
Yellowstone Club World ceased operations last year amid a public ownership battle and divorce of Tim and Edra Blixseth. Edra eventually won ownership of the club and promised to monetize several of the clubs properties.
Envisioned as the most elite destination club in the industry, Tim Blixseth scoured the globe looking for luxury vacation properties for the club's exclusive 150 members. Once comparing the search to "Easter egg hunting," the club included the Chateau de Farcheville in France, the El Tamarindo resort in Mexico, and a private golf club near St. Andrews in Scotland. Designed to charge as much as $10 million to join, the club failed to get off the ground, counting only a select few Yellowstone Club members who upgraded to join. In September of 2008, Yellowstone Club World ceased operations.
In November of 2008, Yellowstone Club, the Montana based resort that preceded Yellowstone Club World, filed for Chapter 11 bankruptcy protection. According to the first court filings, Yellowstone Club cited a combined debt of $344 million and assets of roughly $1.1 billion.
According to John Amsden, a lawyer representing Yellowstone Club World members, at least one of the properties available to Yellowstone Club World members is being used as leverage in the Yellowstone Club Chapter 11 proceedings.
"We're concerned the assets they do have are no longer in control of the Yellowstone Club World," said Amsden. "The involuntary bankruptcy was necessary because it appears that there is no one minding the club's business. We hope that the matter can be resolved with a minimum of expense."
Through the Chapter 7 filing, the creditors seek to find who and what entity controls the properties of Yellowstone Club World.
"The members of the Yellowstone Club World were promised access to very specific and significant properties in return for their significant membership dues. They anticipate that their interests to those properties will be respected," Amsden continued.
Within 20 days, the court will appoint a trustee who will begin to sort through the club's assets.
The Chapter 7 filing puts two destination clubs on the polar opposite of the spectrum in the same boat this week. High Country Club, the most inexpensive destination club in the industry, also filed for Chapter 7 bankruptcy.
Original Article
Yellowstone Club World Files For Chapter 7 Bankruptcy
Quintess's Ben Addoms Discusses Destination Club Partnership With The Oyster Circle
Last week, two leading destination clubs, Quintess and The Oyster Circle, announced a partnership that would allow members of both clubs access to the other's portfolio of luxury real estate. The Veras Group met with Ben Addoms to discuss the partnership and how it will benefit members of both clubs.
The Veras Group: Last week, Quintess started a lottery for initial bookings to The Oyster Circle portfolio. What are the member's reaction and participation in the lottery so far?
Ben Addoms: We've had great feedback on the experience. We've had about 80 people or so line up to get in on the lottery. We usually have a lottery for every new property, so this is like having nine lotteries at once.
Members are excited, and even if they don't win the lottery, there will still be a number of nights available for them to select.
We have already seen interest from several Oyster Circle members looking to visit our Tuscany homes and even Jackson Hole later this year.
The Veras Group: Do Oyster Circle homes need to be retrofitted to provide the same Quintess experience that your members have come to expect?
Addoms: We had the opportunity to have our European representatives visit each of The Oyster Circle properties, and all are very comparable, and sometimes even superior, to our Quintess homes. The great thing is that we are both very similar and our club members will enjoy a seamless experience with both club's properties.
The Veras Group: Have you personally been to any Oyster Circle properties?
Addoms: I have not been to an Oyster Circle home but am planning on visiting Cannes and St. Tropez in September. It is my favorite time to go and I only have so many Quintess nights to use each year.
With The Oyster Circle partnership, do you plan on adding any European properties into your portfolio any time in the future or do you envision The Oyster Circle portfolio of properties existing as the European component of a Quintess membership?
Addoms: Members generally tell us what they want and our surveys drive the process. If members feel strongly about the homes and destinations in The Oyster Circle collection, we might add Quintess homes in similar areas. At some point we may add another strategic partnership and make our partnership with The Oyster Circle permanent.
The Veras Group: Are there any limits to the reciprocal access between the clubs?
Addoms: We generally limit our plans to 10 nights per year, much like our Q Leading Experiences. We planned for about 250 nights to exchange per year.
The Veras Group: Could you speak about what it is like working with The Oyster Circle and the benefits it brings to members?
Addoms: I think it is fantastic to work with people who have similar qualities and our members are going to be excited to have doubled their number of European destinations. The Oyster Circle predominately bought non-city homes in Europe. The Oyster Circle's 50 to 60 members will now have access to more European city destinations, the Caribbean, and other US properties.
Nearly every major destination club in the industry now has multiple ancillary travel partnerships for their destination club members. By partnering two like minded clubs together, members not only have more destinations and homes available to them, but also a consistent travel experience no matter what club property they are visiting. Quintess and The Oyster Circle have already begun intermingling reservation and operational systems to help members of both clubs take full advantage of the partnership.
Check back tomorrow for part two of our interview with Quintess Founder and Executive Vice President, Ben Addoms, where he discusses the recent changes made at Quintess and his projection for the future of the destination club industry.
Original Article
Quintess's Ben Addoms Discusses Destination Club Partnership With The Oyster Circle
The Veras Group: Last week, Quintess started a lottery for initial bookings to The Oyster Circle portfolio. What are the member's reaction and participation in the lottery so far?
Ben Addoms: We've had great feedback on the experience. We've had about 80 people or so line up to get in on the lottery. We usually have a lottery for every new property, so this is like having nine lotteries at once.
Members are excited, and even if they don't win the lottery, there will still be a number of nights available for them to select.
We have already seen interest from several Oyster Circle members looking to visit our Tuscany homes and even Jackson Hole later this year.
The Veras Group: Do Oyster Circle homes need to be retrofitted to provide the same Quintess experience that your members have come to expect?
Addoms: We had the opportunity to have our European representatives visit each of The Oyster Circle properties, and all are very comparable, and sometimes even superior, to our Quintess homes. The great thing is that we are both very similar and our club members will enjoy a seamless experience with both club's properties.
The Veras Group: Have you personally been to any Oyster Circle properties?
Addoms: I have not been to an Oyster Circle home but am planning on visiting Cannes and St. Tropez in September. It is my favorite time to go and I only have so many Quintess nights to use each year.
With The Oyster Circle partnership, do you plan on adding any European properties into your portfolio any time in the future or do you envision The Oyster Circle portfolio of properties existing as the European component of a Quintess membership?
Addoms: Members generally tell us what they want and our surveys drive the process. If members feel strongly about the homes and destinations in The Oyster Circle collection, we might add Quintess homes in similar areas. At some point we may add another strategic partnership and make our partnership with The Oyster Circle permanent.
The Veras Group: Are there any limits to the reciprocal access between the clubs?
Addoms: We generally limit our plans to 10 nights per year, much like our Q Leading Experiences. We planned for about 250 nights to exchange per year.
The Veras Group: Could you speak about what it is like working with The Oyster Circle and the benefits it brings to members?
Addoms: I think it is fantastic to work with people who have similar qualities and our members are going to be excited to have doubled their number of European destinations. The Oyster Circle predominately bought non-city homes in Europe. The Oyster Circle's 50 to 60 members will now have access to more European city destinations, the Caribbean, and other US properties.
Nearly every major destination club in the industry now has multiple ancillary travel partnerships for their destination club members. By partnering two like minded clubs together, members not only have more destinations and homes available to them, but also a consistent travel experience no matter what club property they are visiting. Quintess and The Oyster Circle have already begun intermingling reservation and operational systems to help members of both clubs take full advantage of the partnership.
Check back tomorrow for part two of our interview with Quintess Founder and Executive Vice President, Ben Addoms, where he discusses the recent changes made at Quintess and his projection for the future of the destination club industry.
Original Article
Quintess's Ben Addoms Discusses Destination Club Partnership With The Oyster Circle
Wednesday, December 10, 2008
M Private Residences' Paul Poscente and Ken MacLean Destination Club Interview
The Veras Group recently sat down with Ken MacLean and Paul Poscente of M Private Residences to discuss the latest changes at the club and their take on the destination club industry, as part of our ongoing series speaking with many of the destination club CEOs.
The Veras Group: Ken, Paul. We’ll start with our hardest hitting question of the day. What does the M stand for?
Paul Poscente: (laughs) It’s whatever you want it to be!
The Veras Group: Ken and Paul, why are you stepping aside from M Private Residences and could you tell us more about your roles with the club moving forward?
Paul: The shareholders in M are fortunate to move forward with basically the same crew, except for Ken and I, that has been operating the company since its inception. It really isn’t a loss for shareholders in terms of management. There were obviously things I was working on as CEO, and Ken in sales and marketing, that we will continue to work on, of course. We are a quasi-public club and we believed this was a necessary change to the club, and also an evolution of the industry.
The Veras Group: How did Shareholders react to the changes being made at M Private Residences and your departure? Did you advise them beforehand?
Paul: Because we are a de facto public company, there were securities regulations to go through and circulars to be drafted, so yes. This was a long time coming. Although we obviously built the club for profit, it’s now a not-for-profit model. It’s a perfect place for M to be.
Ken MacLean: Really, shareholders were happy to get rid of us and lower their cost structure! Obviously, though, the board saw value in keeping us around.
The Veras Group: Gentlemen, can you discuss the new redemption policy that M Private Residences has put into place?
Ken: It is a true open market environment. What better way to set the value than someone who wants to buy it?
Paul: We are selling equity. You need a bid and you need an offer. Arbitrarily setting a price not connected to the market doesn’t make sense. Also, in an environment where all you are doing is selling shares, in a low growth environment like we face globally, you want the highest level of liquidity offered to shareholders.
Also, we wanted to make sure we structured a situation where members who were exiting the club, didn’t run the club. We wanted the people who want to stay in the club, to run the club. So I think we have struck a chord of equity between both groups. And, we could always revert back to the traditional 2 in 1 out sale process.
The Veras Group: Is there any advantage for a US-based member to join M Private Residences?
Ken: We have a few US members, and I guess, one example might be, to take advantage of different travel patterns. The classic example of Thanksgiving, that’s not a holiday here. You could have your pick of places to travel to.
Second, would be the US dollar in this particular economy. These points are obviously outside of whether a US member sees the model itself as a differentiating pattern.
Paul: The other item, because we have to act as a public company, is the level of transparency. Particularly now, given what’s gone on with the economy, with asset backed securities and toxic assets, the fact that the shareholders bout the management company, has provided a circumstance where there is no profit motive. It’s a sheer not-for-profit. We are the only club in which 90% of the capital coming in from share sales goes directly to assets. I don’t have to clip a 25% piece of that capital for commissions.
The Veras Group: With High Country Club forced to restructure their business model and Lusso Collection filing for Chapter 11, club's operating models have come into question. Do dues from M Private Residence shareholders cover your operating expenses?
Paul: My favorite subject! Before we decided it was in M shareholders’ interest to buy the management company, we courted and dated most of the major clubs outside of Exclusive Resorts, and talked about merging, acquiring, and selling. Through that process and without getting into any specifics, we got to see under the sheets of all these companies, and were aghast at the extent that operating costs failed to cover the cost of expenses, generally speaking. There were only a couple ways out, and that was for the management companies to continue to raise equity and cash or refinance the real estate in order to fund that delta. Let’s be very clear, at M, every dollar is covered by the operating costs. Every light switch, every cup of coffee, all the debt, all the salaries, all the sales, sales incentives, referral programs, every freaking dollar is in the annual dues.
Ken: Just by general nature Canadians are conservative, everyone knows that.
We could subsidize annual dues, but this is a not for profit club. It’s like a golf course. They have expenses, they divide that amount by their members, and that’s each member’s costs. What allows us to do this is to be a very lean business. We only have $5.9 million of debt on our entire portfolio.
We do monthly, hourly, P&Ls. We dedicated one guy to focus solely on the best practices and operations of our homes. We’re looking at everything from telemetry and remote operating of our facilities, to the proper temperature to heat the pools.
We have four years operating history, so we’ve got all of this worked out.
The Veras Group: Why join M Private Residences now rather than 6 to 12 months?
Paul: The obvious thing is if you believe this is the bottom or near the bottom of the real estate market, given our secondary market opportunities, this is probably the best time.
Ken: There is infinite supply in the industry, and so what’s the urgency to buy? This is the reverse, price is going down. We’ve been able to cut our cost, our capital cost, and there are some decent deals to be had on the secondary market.
Paul: We used to take a 28% commission, and there is no longer a need to increase our prices by 28% above the net asset value. So if you believe the membership is a good value, it would make sense to buy now.
The Veras Group: As shareholders, are there any properties you have been to that you think prospects and shareholders should know about or any properties coming online in the near future?
Ken: I’m a mountain guy. I love the Whistler property. Whistler is great because it’s a 12 season property. I’ve skied, I’ve mountain biked. You look right into the mountains, but are 2 minutes away from whatever you do. It’s good for family and it’s good for a guy’s weekend, a place you can go to again and again and again.
Paul: Our home in the big island in Hawaii. It represents the reason anyone would buy a destination club membership. Access to the Fairmont hotel. A walk to Starbucks. Bicycle ride to club house. Two world class golf courses. It is the best in our portfolio.
Ken: Outside of Whistler.
The Veras Group Opinion
We believe the changes undertaken by M Private Residences are intelligent ways to deal with the current market slowdown, and also represent an excellent opportunity for Canadian or US-based members. As each club seeks ways to make their model scalable for the new growth patterns emerging, we believe more options may turn to secondary markets for memberships, and applaud M’s change. By allowing exiting members to sell their memberships, the club provides a win-win for members that stay and for those that exit.
Clearly, with any major staffing change, there are potential hiccups, and we will continue to check with M Private Residences to follow-up on this transition period. So far, though, the changes appear to be widely appreciated by members and based on sound financial planning—just what the destination club industry will need for the years to come.
***
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
M Private Residences' Paul Poscente and Ken MacLean Discuss Destination Clubs With The Veras Group
The Veras Group: Ken, Paul. We’ll start with our hardest hitting question of the day. What does the M stand for?
Paul Poscente: (laughs) It’s whatever you want it to be!
The Veras Group: Ken and Paul, why are you stepping aside from M Private Residences and could you tell us more about your roles with the club moving forward?
Paul: The shareholders in M are fortunate to move forward with basically the same crew, except for Ken and I, that has been operating the company since its inception. It really isn’t a loss for shareholders in terms of management. There were obviously things I was working on as CEO, and Ken in sales and marketing, that we will continue to work on, of course. We are a quasi-public club and we believed this was a necessary change to the club, and also an evolution of the industry.
The Veras Group: How did Shareholders react to the changes being made at M Private Residences and your departure? Did you advise them beforehand?
Paul: Because we are a de facto public company, there were securities regulations to go through and circulars to be drafted, so yes. This was a long time coming. Although we obviously built the club for profit, it’s now a not-for-profit model. It’s a perfect place for M to be.
Ken MacLean: Really, shareholders were happy to get rid of us and lower their cost structure! Obviously, though, the board saw value in keeping us around.
The Veras Group: Gentlemen, can you discuss the new redemption policy that M Private Residences has put into place?
Ken: It is a true open market environment. What better way to set the value than someone who wants to buy it?
Paul: We are selling equity. You need a bid and you need an offer. Arbitrarily setting a price not connected to the market doesn’t make sense. Also, in an environment where all you are doing is selling shares, in a low growth environment like we face globally, you want the highest level of liquidity offered to shareholders.
Also, we wanted to make sure we structured a situation where members who were exiting the club, didn’t run the club. We wanted the people who want to stay in the club, to run the club. So I think we have struck a chord of equity between both groups. And, we could always revert back to the traditional 2 in 1 out sale process.
The Veras Group: Is there any advantage for a US-based member to join M Private Residences?
Ken: We have a few US members, and I guess, one example might be, to take advantage of different travel patterns. The classic example of Thanksgiving, that’s not a holiday here. You could have your pick of places to travel to.
Second, would be the US dollar in this particular economy. These points are obviously outside of whether a US member sees the model itself as a differentiating pattern.
Paul: The other item, because we have to act as a public company, is the level of transparency. Particularly now, given what’s gone on with the economy, with asset backed securities and toxic assets, the fact that the shareholders bout the management company, has provided a circumstance where there is no profit motive. It’s a sheer not-for-profit. We are the only club in which 90% of the capital coming in from share sales goes directly to assets. I don’t have to clip a 25% piece of that capital for commissions.
The Veras Group: With High Country Club forced to restructure their business model and Lusso Collection filing for Chapter 11, club's operating models have come into question. Do dues from M Private Residence shareholders cover your operating expenses?
Paul: My favorite subject! Before we decided it was in M shareholders’ interest to buy the management company, we courted and dated most of the major clubs outside of Exclusive Resorts, and talked about merging, acquiring, and selling. Through that process and without getting into any specifics, we got to see under the sheets of all these companies, and were aghast at the extent that operating costs failed to cover the cost of expenses, generally speaking. There were only a couple ways out, and that was for the management companies to continue to raise equity and cash or refinance the real estate in order to fund that delta. Let’s be very clear, at M, every dollar is covered by the operating costs. Every light switch, every cup of coffee, all the debt, all the salaries, all the sales, sales incentives, referral programs, every freaking dollar is in the annual dues.
Ken: Just by general nature Canadians are conservative, everyone knows that.
We could subsidize annual dues, but this is a not for profit club. It’s like a golf course. They have expenses, they divide that amount by their members, and that’s each member’s costs. What allows us to do this is to be a very lean business. We only have $5.9 million of debt on our entire portfolio.
We do monthly, hourly, P&Ls. We dedicated one guy to focus solely on the best practices and operations of our homes. We’re looking at everything from telemetry and remote operating of our facilities, to the proper temperature to heat the pools.
We have four years operating history, so we’ve got all of this worked out.
The Veras Group: Why join M Private Residences now rather than 6 to 12 months?
Paul: The obvious thing is if you believe this is the bottom or near the bottom of the real estate market, given our secondary market opportunities, this is probably the best time.
Ken: There is infinite supply in the industry, and so what’s the urgency to buy? This is the reverse, price is going down. We’ve been able to cut our cost, our capital cost, and there are some decent deals to be had on the secondary market.
Paul: We used to take a 28% commission, and there is no longer a need to increase our prices by 28% above the net asset value. So if you believe the membership is a good value, it would make sense to buy now.
The Veras Group: As shareholders, are there any properties you have been to that you think prospects and shareholders should know about or any properties coming online in the near future?
Ken: I’m a mountain guy. I love the Whistler property. Whistler is great because it’s a 12 season property. I’ve skied, I’ve mountain biked. You look right into the mountains, but are 2 minutes away from whatever you do. It’s good for family and it’s good for a guy’s weekend, a place you can go to again and again and again.
Paul: Our home in the big island in Hawaii. It represents the reason anyone would buy a destination club membership. Access to the Fairmont hotel. A walk to Starbucks. Bicycle ride to club house. Two world class golf courses. It is the best in our portfolio.
Ken: Outside of Whistler.
The Veras Group Opinion
We believe the changes undertaken by M Private Residences are intelligent ways to deal with the current market slowdown, and also represent an excellent opportunity for Canadian or US-based members. As each club seeks ways to make their model scalable for the new growth patterns emerging, we believe more options may turn to secondary markets for memberships, and applaud M’s change. By allowing exiting members to sell their memberships, the club provides a win-win for members that stay and for those that exit.
Clearly, with any major staffing change, there are potential hiccups, and we will continue to check with M Private Residences to follow-up on this transition period. So far, though, the changes appear to be widely appreciated by members and based on sound financial planning—just what the destination club industry will need for the years to come.
***
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
M Private Residences' Paul Poscente and Ken MacLean Discuss Destination Clubs With The Veras Group
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