People have asked us about the industry, and where it came from..so here is an abbreviated timeline, identifying some of the players:

• Started in 1998, with the launch of Private Retreats by Rob McGrath, an experienced fractional real estate developer. Originally called Abercrombie & Kent Destinations and since renamed to Tanner and Haley, the company now has about 700 members and is number 2 in the industry by size.
• Exclusive Resorts enters the business in 2002, and with the backing of Steve Case, grows quickly to become the industry leader in terms of size, with 1800 members and 300 homes in about 30 locations.
• Following the success of Exclusive Resorts, in 2004 new groups of entrepreneurs launch competitive clubs such as Quintess, Dream Catcher, Private Escapes, and Ultimate Resort, all of whom are adding new members and homes. More clubs are expected to be launched in 2006.
• A Fortune 200 company, Cendant Corp. enters the market in 2005, in partnership with Leading Hotels of the World and Destination Club Partners, a pioneer in fractional resort development, to launch Leading Residences of the World.
• By 2005, new clubs are launched that offer consumers different value propositions: the chance to invest in a real estate partnership for example, such as Crescendo, or clubs that offer different member deposit assurances, such as BelleHavens. Niche clubs, such as The Marker’s (for golf) also launch.

The future? At the very least, it will be eventful, as the industry is so new and is growing quickly. In our opinion clubs will need to continue to work very hard in 2006 to get prospective members comfortable with 2 key aspects of membership – the availability of homes and the ability to return the membership desposit (the non-refundable portion of it).

We expect that not all clubs will succeed on their own – some may merge or be acquired by larger competitors or new entrants. But we also expect that several clubs will be able to build signifigant memberships and create a viable alternative to beachfront rental houses (the ones that come with no kitchen utensils) and 5-star resorts (the ones that raise their rates and lower their service during ski week).