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Finding the destination club that's right for you
| Written by Jamie Cheng 06/06/2006 |
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Every industry has its dominant players. Does that mean the leader is the best choice for everyone? Although Exclusive Resorts’ recent announcements solidify their position as the alpha club, many of the other 20+ destination clubs offer compelling alternatives to sheer scale.
Even iPods only have 90% market share. Helium Report readers who are researching destination clubs typically narrow their choices down to 2-3 clubs that fit their families. Exclusive Resorts often makes the short list, but we’ve heard from people who’ve eliminated the leader or are strongly considering other options for a variety of reasons.
Here are five as examples. If you’re evaluating destination clubs, send us an email at tips@heliumreport.com to let us know who’s on your short list and why.
1. Different price points
Private Escapes and Parallel offer programs on opposite ends of the price spectrum from Exclusive Resorts. Over 150 members have joined Private Escapes at a relatively more affordable $105,000 membership deposit. Exclusive Resorts’ pricing ranges from $195,000 to $395,000. On the high end, Parallel is a new club recently featured by Andrew Harper Travel. The $625,000 membership deposit buys access to homes nearly double the value of Exclusive Resorts’ homes.
2. Strong hospitality experience
Many new clubs were formed by a group of real estate investors or entrepreneurs who thought real estate investing would be a fun way to build a business. As clubs grow, they realize that the hospitality component may be more important than buying and developing properties. Clubs such as Leading Residences of the World and Dream Catcher Retreats have management teams with deep hospitality experience, a critical factor for ensuring you and your family enjoy a great vacation.
3. Member deposit appreciation
Quintess and High Country Club are two of several clubs that offer some form of deposit appreciation. Although the wording varies from club to club, many are promising you can receive 80-90% of the future value of the membership deposit if you resign. Theoretically, the programs allow you to benefit from any upside in the club’s growth, although the programs are a bit new to be proven out entirely.
4. Equity participation
Only one club operates like a REIT, positioning itself as a real estate investment partnership that provides access to homes. Crescendo’s unique model limits its marketing efforts since they comply with SEC “Reg D” restrictions and only speak with accredited investors. BelleHavens has developed an innovative hybrid model that blends ownership with membership.
5. Specialty interests
If you love to flyfish or want to extend your country club’s courses, then niche clubs such as Flyfishing Destinations and The Marker’s may suit your needs best. We expect to see more clubs formed around experiential interests. There’s even one for wine aficionados.
For the most comprehensive information about destination clubs and the various options, review our free Decision Guide to Destination Clubs. The 50-page PDF may seem like a daunting read, but it provides everything you need to understand the industry, including cost-per-night analysis, club comparisons, and important questions to ask clubs. Click here to request a copy.



