BelleHavens will be announcing next week eleven new homes along with a new membership plan. Helium Report today got a chance to talk to Darin Gilson, BelleHaven’s founder and CEO.

“We have just announced to our existing members the addition of eleven new destinations,” said Gilson. “The addition of these residences will double the size of our current portfolio, and further propel BelleHavens’ growth strategy.” The company collected current members’ feedback to identify new homes in specific locations. Members expressed a need to expand BelleHavens’ European offerings, so Gilson is focusing on acquisitions in London, Paris and Italy. Other destinations to be added to the portfolio are Lake Tahoe, Puerto Vallarta and Kauai.

In addition to announcing their portfolio expansion plans, BelleHavens will introduce several changes to the membership offering for new members. Beginning May 15, new members will have the option to choose from one of four Equity Membership plans, built to accommodate different travel profiles. BelleHavens has also announced its intention to increase their prices three times during 2007. Members who join before June 15th will enjoy the current pricing scheme, after which there will be a first price increase. After three new destinations are made available to members, the prices will increase again. And after five more destinations are available or under development, prices will increase for a third time. “We really strive to be transparent with our members and perspective members,” said Gilson. “We want everyone to understand our next steps and when we are planning to take them.” At the bottom of the page you will find a snapshot of their new membership plan and pricing structure.

Helium Report Perspective
BelleHavens (and its owner-members) hold title to a portfolio of two million-dollar properties owned completely debt-free; there are no mortgaged homes or leases. BelleHavens adheres to a 10:1 member to wholly-owned-property ratio. So, why the sudden expansion of the home portfolio?

Gilson has realized that in order for BelleHavens to grow, they needed to figure out a way to grow their home portfolio in advance of demand. But without additional members, they could not buy debt-free homes, and in order to attract new members they needed more homes. The classic chicken-and-egg issue that many of the smaller clubs have faced. So Gilson persuaded the development company behind BelleHavens, Banyan Properties, to buy the homes ahead of membership and let BelleHavens Inc. use the residences. “We are committed to grow BelleHavens to 1000 members,” Gilson admitted. Destination clubs at this stage of business model evolution seem to be “Grow or Die” ventures. Gilson effectively broke the chicken-and-egg by finding a way to grow the club’s homes before having the money these new members would bring in. We think other clubs that face this issue will need to find a way to break out. More on this “Grow or Die” challenge later this month.

If you are in the market for a Destination Club membership, download our guide before making a decision.

New Membership Plan and Pricing Structure at BelleHavens