Ultimate Resort and Private Escapes today announced a $200 million destination club merger to be completed in November. Susan Kime spoke with the two clubs’ respective CEOs Jim Tousignant and Richard Keith about this big news for the luxury vacation home industry.

When did you both start thinking that a merger would be a good idea?

Jim: We started thinking about this nearly eighteen months ago. We got to know each other through the efforts of the DCA, and before the Tanner & Haley bankruptcy.

Rich: We began to see some of the same synergies, passions and benefits that would accrue if a merger took place. The compelling strategy we both saw is a greater scalability for our new company. We will have over 1,200 members, 50 destinations and over 140 residences. All of this will allow a greater variety with new life experiences for our members.

Your combined company will be second only to Exclusive Resorts. What do you think about being in a secondary position in the destination club industry?

Rich: It is the old Hertz/Avis issue!

Jim: We think that being a secondary position, at least for now, gives us a great deal of strength. We have nowhere to go but up.

How similar or different are your respective destination club cultures and management? Do you see any potential problems among them with a merger?

Jim: In this regard, we both believe that our combined company will be the “best of breed!” I say that because our culture is a shared one, and our management teams are the best in the business. Our members are bullish as well. From the phone calls we have received, they understand the scalability and ambitious potential of this merger.

Rich: Our club cultures were very similar in that they were very client-centric. We were and remain very committed to our members and the best possible vacations they can have. I see no potential problems with combining our business cultures at all.

How do you see this merger in terms of destination club industry growth?

Rich: With our merger, we have developed a positive counterpoint to last year’s Tanner & Haley bankruptcy.

Jim: Yes, our merger symbolizes a positive step, as it shows us gaining momentum and moving forward for the betterment of our members and our industry.

Download the Independent Guide

Helium Report’s free Decision Guide to Destination Clubs has additional industry information and due diligence questions for consumers.