Recently we brought our readers’ attention to a new entry in the destination club category, Premier Destinations by Anne Sebastian. Since then we have had the opportunity to speak to club founder and CEO, Vicky Vorhees. Premier Destinations offers a unique approach to the destination club concept and Helium Report is proud to offer our readers exclusive coverage of this new entrant.

Overview

Premier Destination’s profile is similar to that of other clubs in the “luxury” tier. The membership deposit is $490,000 and the annual dues $19,600. They offer a refund of 85% of the future value of the membership deposit upon retiring from the club.

Their initial plans call for opening 10 homes in the western United States this summer, followed by an additional 10 homes in the east later this year. They promise $3 million homes averaging a generous 4,000 square feet in size, a car with every home, and first-class service while in residence. Members will enjoy limo service from the airport to the residence, an in-home meal prepared by a private chef upon arrival, and the doting assistance of local concierge. And because Premier Destinations knows that a la carte pricing for these services is a hassle, all are included at no additional cost.

Premier Destinations is still in the “charter” phase. When we spoke with Vorhees the club had five founding members and four charter members, with plans to cap membership at 420. And that member cap is tied to the overall experience that Premier Destinations aims to deliver.

Differentiators

Premier Destinations’ executive team has more industry experience than any other new club. Five of the six executives worked for another destination club prior to launching this one and it’s clear how their experience played a role in drawing the blueprints for Premier Destinations.

Vorhees played a key role in the acquisition and decoration of properties for an early leader in the destination club industry. She is now bringing that experience to bear on the residences of Premier Destinations. The décor of the homes is being carefully orchestrated by Vorhees and will feature antiques and art that emphasize the architectural details and location of each residence.

Premier Destinations recognizes that the worst part of a vacation is going home again. With that in mind the club will allow members to purchase select furnishings and features, giving them the ability to bring a part of their vacation home.

This “shop the home” initiative fits into a larger strategy, one that appears to be geared toward cultivating a club environment that extends beyond use of the residences. “Anne Sebastian” is a brand name representing the composite of a club member. The brand will extend beyond Premier Destinations into home furnishings and other products that should appeal to club members. While members will have preferred access to Anne Sebastian offerings, the management and finances of these other initiatives will be separate from that of the club.

Summary

Premier Destinations presents a compelling case for why it should be a contender for your destination club dollars. In addition to bringing a wealth of industry experience to the table, they believe that their financial model addresses the shortcomings found in the structure of other clubs and positions them for long term success and stability.

In all of our conversations with Vorhees she has emphasized the club’s commitment to “transparency.” As an industry veteran she appreciates the importance of full disclosure to members and prospective members. New clubs will frequently boast of grand plans to lure in charter members, but it appears that Premier Destinations has actually created a sound financial model upon which to build their club.

One aspect of their model is ensuring that the club has the liquidity to retire members without having to sell off real estate at fire sale prices. By depositing a percentage of each membership deposit in a reserve account, Premier Destinations promises no more than a three-business-day waiting period for members who wish to retire from the club. This is quite different from most clubs’ requirement that three or more new members must join before an existing member can retire. The club also offers a 100% refund should a member elect to leave after less than a year.

We’ll explore additional aspects of Premier Destinations’ financial model next week in an interview with Vorhees, and learn of the progress the club has made thus far. As we noted yesterday, now is challenging time to launch a new destination club. However, we at Helium Report believe that the market for this product will continue to grow and with the industry experience of Premier Destinations’ team, they could become a serious contender.

Images courtesy of http://premierdest.com/