We spoke to three C-level executives of destination clubs on their reaction to the announcement of the Tanner & Haley reorganization. As you would expect, all remain confident in the industry and their own clubs. The three are also aware of the potential that some observers and analysts may paint the industry with a “broad brush,” based on the failue of the industry pioneer.

Michael Beindorff, COO of Exclusive Resorts, believes that his company has never been healthier, based on the strength of his balance sheet, recent capital raised, 100 new properties scheduled to open over the next 12-18 months, and a price increase that will take effect next month. In his opinion, the destination club concept is sound, so “sound business practices should prevail.”

Richard Keith, founder and CEO of Private Escapes, continues to see strong consumer appetite for the concept, but also some confusion caused by many new clubs, each with slightly different models. With 300 members, only two leased homes in a portfolio of 50, and only 5 members leaving the club over a three-year period, Richard is very confident that his conservative management and steady growth has put him in a postion to handle any potential slow-down caused by the Tanner & Haley fallout. His philosophy in running the club has been to manage members’ capital first, then deliver a great hospitality experience. It seems to be paying off – we intend to report more on Private Escapes over the coming weeks.

Finally, we chatted with Darin Gilson, founder and CEO of BelleHavens, the smallest of the three clubs, but the one with an ownership structure that provides a very high level of real estate asset protection for membership deposits. Darin, like the others, believes the concept is what consumers are looking for, so the challenge for clubs is to get the business and operating model to work in the long term. In his opinion, four key drivers have to work in balance: appropriate membership deposit and dues, home values in line with those dues, home availability, and finally, a level of home equity or ownership within the club that really backs up the member deposit refund obligations.

In the case of these three clubs, their confidence in their own model and progress so far appears justified. Exclusive Resorts can point to over 2000 members, Private Escapes to a very satisfied membership of over 300 families, and BelleHavens to a club structure that offers debt-free assets to back up their refund obligations. It’s still a long road ahead of them, although probably shorter than some of the other clubs.