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.
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