Privates Escapes recently announced that they issued the first annual club credit to their Platinum members. One of two destination clubs with a member rewards program, Private Escapes allows its Platinum level members to reap the benefits of real estate appreciation.

Private Escapes estimated the 2005 appreciation of their club’s real estate holdings at 19.85%. For that gain members who joined prior to November 1st last year will receive a credit of $3,421, pro-rated to their tenure of membership.

The credit may be applied toward expenses incurred during a stay at any of the club’s homes: from golf fees to ski passes to private jet travel booked by the club. Lastly, the credit may also be applied toward three months’ worth of annual dues.

Note that Private Escapes offers two distinct membership programs – Escapes and Platinum – and that the rewards credit is only extended to Platinum members. For our spreadsheet-loving readers, consider incorporating the reward credit into your own model. For example, while the credit is by no means guaranteed, if Private Escapes’ homes continue to enjoy the same rate of appreciation, you can knock about $100 off of their cost-per-night.

Helium’s take:

As we noted in an earlier post on Private Escapes’ reward program, we believe that this reward program should be considered alongside the clubs’ other attributes and not as the primary reason to join Private Escapes. With Private Escapes enjoying almost 20% appreciation on their homes, we see why equity clubs are piquing readers’ interest. However, the challenge for equity clubs is not only in maintaining that rate of growth but in attracting new members’ capital to expand their investment.