Yesterday’s fictional tourney bracket didn’t include all 23 destination clubs that we track (click here for the complete list), but we do have one for the NIT…or “Not in Tournament.”

We’ve reached out to Bob Stephens of Choice Escapes to learn the story behind the recent announcment on their website. We found a link to the former home page, which we’ve included as an image, below.

The closure of Choice Escapes demonstrates how important it is to conduct thorough due diligence. The industry is still in its early stages. As with any emerging market, there are bound to be failures, consolidation, and late entrants. The basic math tempted entrepreneurs to jump into the game, but the bar for entry has been raised as clubs refine their business models. In the past, you could sign up a base of charter members and then start acquiring homes. Now, well-funded firms such as Leading Residences of the World start with a portfolio of destinations before even signing up their first players.

We’re making the final edits to our 50+ page Decision Guide for Destination Clubs. We’ll cover key terminology like “Wind-down scenario” to help you make sure your ‘final four’ clubs have both strong offense and defense.

UPDATE (3/17/06):
Bob Stephens returned our call this afternoon. He explained the closure is “temporary” and said the firm is “in the process of being sold.” Choice Escapes is merging with a new club and expects to announce a restructured ownership plan in a couple of months. We’ll keep in touch with them and post more news when it’s available.