A new destination club, CarefreeElite, was brought to Helium Report’s attention shortly after another entrant called Abundant Life stepped on the field.

CarefreeElite has been in business since 2000, although they seem to have been operating as a leasing broker up to this point. We’ve taken the time to browse through their website and try to understand their model, with a particular focus on the important items: pricing, home portfolio and management team.

According to their website, CarefreeElite is “the undisputed leader in the destination club marketplace that meticulously caters to an elite clientèle, and consistently delivers an unsurpassed experience of luxury in accommodation, entertainment, and concierge services creating the ultimate experience.” Quite the self-endorsement there. Here are our findings:

Home Portfolio

CarefreeElite offers seven residences in different locations: Miami, Los Angeles, New York City, Las Vegas, St Maarten, Barbados and Bermuda. We were not, however, able to see pictures of any of these properties, as their website only portrays stock photos of the locations. CarefreeElite claims to be developing fifteen more homes, and promises to add twelve more to their portfolio in the near future.

Their roll-out plan is quite aggressive – almost unheard of. We would understand such a fast addition if CarefreeElite were to lease its home rather than buying them. Other clubs, like One Key, have taken this approach. However, One Key does not require a membership deposit, while CarefreeElite does. Property value should be in excess of $2.5 million, but the lack of clarity on the terms on which the homes are added to their portfolio raises some eyebrows here at Helium Report. There is currently no estimated average asset value from CarefreeElite available online.

Pricing

CarefreeElite offers a three-tiered membership in a similar format to other destination clubs:

• Affiliate Membership
  Membership Deposit: $100,000
  Annual Fees: $15,000
  Nights Included: 15
  The Affiliate membership competes directly with premium clubs like Private Escapes Premiere, which offers unlimited nights at $82/night, included for a membership deposit of $105,000 and annual fees of $7,700.
  

• Platinum Membership
  Membership Deposit: $125,000
  Annual Fees: $20,000
  Nights Included: 30
  In this membership tier, operating clubs include Portofino Club, whose Signature plan includes 42 nights for a $150,000 membership deposit and $11,500 in annual dues.
  

• Group Membership
  Membership Deposit: $175,000
  Annual Fees: $25,000
  Nights Included: 45
  A close competitor in this space is BelleHavens, which offers 30 nights for a membership deposit of $225,000 and annual fees of $18,500.
  

Management Team

CarefreeElite’s Membership Director, Ferdinand Montes, has extensive timeshare experience, while Anthony Marotta, Chief Executive Officer, comes from a background in luxury vehicle rentals. Destination clubs are real estate holdings operating as hospitality businesses, and we like to see the senior management have relevant experience.

Alternatively, a proven track record in international business and corporate holdings is acceptable. We appreciate CFO profile disclosure online, as the high risk associated with the membership deposit is a concern for people who want to join a destination club.

Helium Report Perspective

We are particularly concerned about the business model of CarefreeElite. Are their homes leased or owned? How are they raising capital? How many members do they have? We would also like to see at least a few pictures of their residences. We will reach out to the management to understand their business model, and what makes up the “CarefreeElite difference.”

Know What to Ask

Due diligence is an essential part of choosing a destination club. Download Helium Report’s Guide and know what to ask.