Los Cabos is getting its fair share of attention from destination clubs lately, which is no surprise given its popularity among luxury travelers. And the numbers reflect demand – nearly 50 luxury vacation homes are offered by nine destination clubs in Los Cabos.

Quintess, LRW responds to members

A Quintess, LRW member survey in June showed that more than half of all members ranked Los Cabos as the most important destination to them. Today Quintess announced at least twelve more homes to be privately developed in their own gated Cielos Palmillas enclave, located within the Palmilla Resort.

According to Quintess, LRW President, Karen Short, $50 million of the $125 million “Future Fund” announced in May will be used for the new Los Cabos development. While the club is expanding, Short said it is also “very aggressive about managing the budget. We have strong leadership from [Quintess CEO] Pete Estler and our operating board members.”

Quintess, LRW has developed its own homes in the past, but Cielos is the first multi-property resort real estate they’re developing themselves. When a club develops a resort, it doesn’t have the burden of lease obligations and the up-front costs are lower. Properties can appreciate and, depending on management, eventually become an asset for the club. Among destination clubs, only Exclusive Resorts (and now Quintess, LRW) actually operate as resort real estate developers.

A “Resort Within a Resort”

Described as a “Resort Within a Resort” community, Cielos will give members continued access to Club Ninety Six and five-star One&Only Palmilla hotel amenities. New amenities will include an Espiritu wellness center and Quintess Enclave Services suite. The resort’s four-bedroom homes will each come with heated pools and built-in spas. At an average home value of $4 million across all properties – above the industry average of $2.7 million – Helium Report doesn’t see Quintess, LRW skimping their members.

Future Quintess, LRW developments of enclaves at other resorts are being planned. Although details were not available, Short confirmed that development plans are directed at member-preferred cities like Aspen and Vail.

The club is letting go of its less popular homes in Pinehurst, NC, and Costa Rica. “Members weren’t crazy about them,” said Short. Conversely, developer and former AOL exec Steve Case is planning an $800 million eco-friendly resort in Costa Rica, separate from his Exclusive Resorts venture. Exclusive Resorts currently offers 21 residences there.

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