Press Center

Halogen Guides is an online resource for affluent consumers, providing in-depth analysis of luxury services such as destination clubs, fractional residences, and private jet travel. Halogen Guides has provided quotes and background research to major media publications including Forbes, Bloomberg, The Wall Street Journal, Newsweek, and The New York Times.

Press contact:
Brianne Murphy-Miller
650.575.7727
brianne@halogenguides.com

Alternatively, you may contact us at:
415.655.2700
press@halogenguides.com

Six Thousand Gallons of Regular, Please

April 28, 2008 – Slate Magazine

The Senate was set to vote Monday afternoon on a bill that would raise taxes on fuel for private jets from 21.8 to 36 cents per gallon. The higher tax would require corporate jet passengers to pay a larger share of the cost for upgrades to the U.S. air traffic control system. How much will that set you back when you pull your jet up to the pump?

As much as a few hundred extra dollars on top of the thousands you’re already paying. Small corporate jets, like their jumbo-jet brethren, run almost exclusively on a kerosene-based fuel known as Jet-A. (Piston-engine airplanes, the vast majority of small “general aviation” planes, run on avgas, a leaded gasoline closely related to what you would put in your car.) As of Monday afternoon, Jet-A is selling to corporate jets for an average of $5.21 per gallon. (Fuel is usually more expensive on the coasts and cheaper in the Midwest.) Because the cost of Jet-A closely tracks the price of a barrel of oil, fuel costs for private jets have quadrupled since 2000.

As with cars, the amount of fuel required for a corporate jet varies depending on the model of the aircraft, and newer jets tend to be more energy-efficient. But the most important variable…

Building a Fortress in Destination Clubs

April 18, 2008 – The Motley Fool

There’s finally a publicly traded player in the nascent destination-club industry. Fortress Investment Group’s (NYSE: FIG) Abercrombie & Kent, a subsidiary of timeshare specialist Intrawest, is tossing its hat into the ring, acquiring a pair of smaller clubs to create a larger equity-based one…

There’s certainly plenty of growth potential here. The industry’s largest club, Exclusive Resorts, actually has a waiting list of 181 prospective new members, according to industry watcher Halogen Guides. When you can’t acquire properties quickly enough to accept new members, it’s easy to feel upbeat about the future.

The second- and third-largest clubs announced their merger several months ago, with further industry consolidation likely as smaller clubs unite to take advantage of the economies of scale that Exclusive Resorts is now enjoying…

Test-Driving a Fractional

April 18, 2008 – The New York Times

PALMER MURRAY and his wife, Stephanie, could buy a fractional residence in Aspen. He makes enough money as an investment manager to afford a three-bedroom unit at the St. Regis Residence Club. For around half a million dollars, they could have their own place in Aspen for about a month each year, a town where homes routinely sell for millions…

“Consumers are sitting on the sidelines because they’re waiting to see what happens,” said Jamie Cheng, chief analyst at Halogen Guides, an online guide to luxury real estate, jets and travel, based in San Francisco.

Developers are seeing mixed signals for alternative second-home sales, including fractionals, time shares and condo-hotels. Some have postponed projects, while others, like Starwood Hotels & Resorts Worldwide and Marriott International, have warned that results from their vacation ownership properties, including fractionals and time shares, will be down this year…

Club for ultra-rich at center of divorce battle

April 13, 2008 – Associated Press

For the ultra-rich, the Yellowstone Club is a private retreat like no other. It boasts its own ski resort, security provided by ex-Secret Service agents and a deep-pocketed membership that includes Bill Gates and former Vice President Dan Quayle.

However, a bitter divorce fight between the club’s billionaire founders as well as a lawsuit by a group of investors led by cycling legend Greg LeMond have revealed all is not well behind the tony club’s gated entrance in southwestern Montana’s Gallatin Mountains, according to recent court testimony and documents reviewed by The Associated Press…

Jamie Cheng, chief analyst with Halogen Guides, which tracks the movements of America’s extremely wealthy, characterized Yellowstone Club World as “a vanity play” unlikely to pan out. Billionaires don’t need to join a club to live in a castle when they can simply buy their own, he explained…

If You Can’t Buy It, Rent It

March 24, 2008 – Portfolio.com

Luxury retailers may be on the ropes, their once-avid shoppers heading for the exits. But the economic malaise gripping the country could have a silver lining for a small but growing section of the luxury market, one that rents to women what they can’t afford to buy—or, possibly, keep… These kinds of businesses cater to two basic types of consumers, says Greg Shove, C.E.O. of Halogen Guides, a luxury-trend tracker: aspirational buyers trading up to a product or lifestyle they cannot afford or consumers who can afford to buy but want more choices. Even in a protracted recession, Shove says, rental companies benefit because they “make luxury more affordable.”

Luxury resort plans unclear

January 7, 2008 – Billings Gazette

A recently announced plan by billionaire developer Tim Blixseth to sell the Yellowstone Club, located south of Big Sky, calls into question the future of Yellowstone Club World and its Cody property…

...According to Helium Report, an independent Web site that tracks luxury real estate and residence clubs, YCW is no longer signing up new members.

It is unclear how many people have joined YCW, and the company has typically not released membership numbers. A message left Sunday at the company’s Los Angeles office was not immediately returned…

‘Private hotel’ concept introduced in Aspen

November 25, 2007 – Aspen Daily News

...Greg Shove, CEO of The Helium Report, which tracks luxury travel trends such as destination clubs and private hotels, says the market for luxury ski home rentals and private hotels with very high levels of service is strong and growing.

“More and more, affluent travelers are less satisfied with one-off vacation rentals,” said Shove. “There is a desire to know that a property is as advertised and that there is some consistency of service.”

Shove also said that a five- or six-bedroom home or private hotel can be competitive with a five-star hotel, from a price standpoint, especially if a family needs to rent three or four hotel rooms to accommodate the whole family plus friends and a nanny. In addition, many heads of wealthy households need, and want, to do some office work while they’re on an extended ski trip.

“People are working more while traveling and they want a place where they can work from,” he said. “A house can do that and a hotel room doesn’t do that very well.”

Travel club grows despite industry woes

October 15, 2007 – Telegram (AP Newswire)

Why are thousands of millionaires queueing up for the right to plunk down as much as $459,000, plus annual dues of up to $35,000, just for a few weeks of access to vacation homes?

The answers might be found in the 6,000-square-foot villas in Tuscany with infinity pools overlooking the countryside, the Miami Beach oceanfront condos with balconies overlooking the Atlantic and Intracoastal Waterway, and the private chefs whipping up gourmet dinners…

...Jamie Cheng, editor of the Helium Report, which provides research and analysis on destination clubs and other luxury products, said the bankruptcy of industry player Tanner and Haley does not appear to have slowed the luxury travel club business. But he said consumers are asking thorough questions and doing research before choosing a club. “People are looking for the clubs that are fiscally responsible,” he said…

Disney’s Next Stop

October 4, 2007 – The Motley Fool

...What’s a destination club? Glad you asked. Unlike time-share operators that build out resorts with hundreds of units, destination clubs purchase homes and condominiums – often in the multimillion-dollar range – and then offer them up for member vacations…

Luckily for Disney, the market is still in its infancy. There are only about 5,000 destination-club members, according to industry watcher Helium Report, in a fragmented industry with roughly two dozen clubs. Consolidation is a given, and Disney can probably snap up a market leader and brush up on the market as it upsells its destination-club offerings to higher-end Disney Vacation Club members.

It’s inevitable, really. Now it’s just a question of whether Disney is bold enough to make the first step, or simply lets its hotel mogul rivals beat it to the rum punch.

Hassle-free vacation homes

September 28, 2007 – Pioneer Press

...Destination clubs such as Lusso have become the answer for very affluent people who want access to fabulous houses in top locations without the hassle of ownership. To join, members typically make a hefty down payment that’s typically 80 to 100 percent refundable should they leave the club, and pay annual dues…

...Jamie Cheng, co-founder of the Helium Report, a kind of online luxury Consumer Reports, praised Lusso for publicizing its services only after it already had raised capital and purchased some homes. Lusso also had the online reservations system in place and had signed on 30 members. “I think that was a unique strategy they had.”

Most destination clubs are growing because of acquisitions and mergers, but not Lusso. “They’re one of the fastest growing companies from organic growth,” Cheng said…

My Jet Is Bigger Than Yours

September/October, 2007 – The American

In May, with the Alps as a backdrop, some of the best salespeople in the world joined some of richest customers on the tarmac at the Geneva International Airport to demonstrate the advantages of the private jets that were on display…

...While private jets have access to more than 4,000 airports nationwide, commercial flights operate at fewer than 500, with service concentrated in about 40 “fortress hubs” where airlines have consolidated operations. An outdated air-traffic control system adds to the snarls for commercial planes, but high-end private aircraft, flying at 50,000 feet, can get above both the congestion and the weather.

“Basically, it’s the difference between a bus and a limousine,” said Jamie Cheng, cofounder of the Helium Report, a series of buying guides for high-end luxury goods such as yachts and private jets….

Destination Clubs Agree to Merge

September 13, 2007 – The Denver Business Journal

A Colorado company that’s a leader in the destination club industry has signed an agreement to merge with a rival.

Private Escapes of Fort Collins, which now ranks as the third-largest player in the destination club business, said Thursday it has agreed to merge with No. 2 Ultimate Resort of Orlando….

...The Web site Helium Report, which tracks the industry, said the deal is the largest merger between destination clubs so far….

Destination Clubs Try To Shore Up Their Image

September 13, 2007 – The Wall Street Journal

...Today’s clubs are eager to demonstrate that they follow a more sound business model – owning enough real estate to meet demand and possessing enough capital to return deposits if a member decides to leave. “It’s still an emerging business,” says Richard Keith, president and chief executive of Private Escapes. “There’s obviously a need for the consumer to feel good about the club they’re joining.”...

...Indeed, industry experts say destination clubs still have a way to go to ensure consumer confidence. “The No. 1 thing people worry about is the deposit,” says Jamie Cheng, co-founder and lead analyst of the Helium Report, an independent online guide to luxury fractional ownership. “What they need to continue to do is assure the consumer that there’s cash available to exit.”...

Room to Share

August, 2007 – W Magazine

...For a considerable initiation fee (anywhere from $35,000 to $1.6 million) and annual dues ($20,000 to $60,000), such clubs allow members access to a range of homes around the world without the hassle of ownership…

...”These clubs have sprung up over the past three years,” says Greg Shove of the luxury market analysis company Helium Report, noting that “inconsistent rentals, home maintenance costs and unconnected hotel rooms” are just a few of the factors driving the trend…

Living Large

August, 2007 – Pittsburgh Professional Magazine

...Many members choose destination clubs as a cost-efficient and hassle-free alternative to owning their own vacation home. One-time membership fees range from $50,000 (High Country Club) to $3 million (the invitation-only Yellowstone Club World)...

...According to the Helium Report, an independent online industry analyst, an estimated 4,000 members belong to one of the 22 existing destination clubs, with those numbers expected to swell to at least 50,000 overt the next 10 years…

...”Some of our readers tell us about buying vacation homes and how, when they get there, they spend all their time grocery shopping and taking care of the house…” Cheng says. “With a destination club, they get off a plane and it’s like a hotel. Everything is ready, it’s all prepared, and the kitchen is stocked…”

Real Estate Revealed: Destination Clubs

August, 2007 – Worth

When the summer vacation season winds down, many families seriously consider destination clubs as an alternative to owning a second or third home. Rather than struggle with the challenges of acquiring, furnishing and maintaining a vacation residence, families look at these memberships as a lifestyle investment to simplify leisure travel…

...Helium Report compared the full-loaded cost of second-home ownership to destination club membership over a 10-year span. Our analysts determined that the expenses are surprisingly similar, assuming 30 days of travel each year. On a cost-per-night basis, destination club membership is comparable to a high-end resort suite costing an average of $1,600 per night. There are approximately 5,000 households that belong to the 20 leading destination clubs…

A Slice of the Good Life

July 22, 2007 – The San Francisco Chronicle

...Fractional ownership is the latest twist in luxury vacation homes. Some 250 high-end properties in the United States, Canada and the Caribbean, in desirable destinations such as Aspen and Vail, Colo.; Maui; and New York, offer fractional ownership. Marriott, Disney, Hyatt, Ritz-Carlton, Four Seasons and Starwood are among the big companies that have embraced the concept…

...”All-cash purchases are common for the types of folks who can afford fractional ownership—and that’s just as well, because few banks offer financing options for them, according to Jamie Cheng, co-founder of San Francisco’s Helium Report (www.heliumreport.com), an online resource for people interested in fractional ownership…”

...”Fractional ownership ‘is often an alternative to a second home, but it also can be an addition to a second home,’ Cheng said. ‘You see people who have a pied-a-terre in San Francisco, a cabin in Tahoe; they’re looking for ways to supplement their vacation travel. Fractional presents an alternative. Rather than own a whole unit, make smarter use of your money: Buy a fraction and get five-star service.’”

If One Vacation Home Won’t Do, How About a Bunch?

July 1, 2007 – The New York Times

In destination clubs, members don’t buy property but instead buy access to it, through a network of vacation homes in a variety of prime locations. There is a contract instead of a deed. Clubs agree to return most of the deposit — generally 80 percent, but in some cases 100 percent — if a member decides to leave, but that promise “is a concern,” said Jamie Cheng, co-founder and lead analyst at the Helium Report, an independent guide for wealthy consumers that covers the industry.

...”For most clubs, two or three new members have to join before you can return one deposit,” said Mr. Cheng. The largest clubs have raised capital in the last year to fund growth; that capital also provides cash to cover member resignations, said Mr. Cheng. He added, however, that none of the leading clubs were experiencing unusually high numbers of resignations or having any problem returning deposits.

The No-Brainer Vacation

June, 2007 – Travel + Leisure

They have the your-wishes-are-our-commands services of the poshest hotels, the sprawling great rooms of a McMansion, and more locales than you can possibly visit in a year. And they’re out to nab families: more than 15 destination clubs have formed of late, attracting some 4,000 members with promises of pads tricked out with prestocked refrigerators, Wi-Fi, and ample supplies of toys and games. “Parents are joining because you get a hotel experience in a house where the kids can run around,” says Gregory Shove, a former AOL executive who founded an independent Web site, Helium Report (heliumreport.com), that covers the destination-club phenomenon.

To help consumers size up the industry, Helium Report offers a 50-page Decision Guide that suggests questions to ask before you sign, ranging from heavy-duty (“What percentage of your members resigned last year?”) to softball (“Are sailboats available?”). Larry Mason, an Ohio father of six who is a member of Quintess, consulted the guide to pinpoint clubs to research further and find out how transparent the financials are.”

Drive Like a Million Bucks

April 16, 2007 – Condé Nast Portfolio

A number of factors were diminishing Gianluca Baldo’s desire to drive the latest luxury car.

As the owner of two vintage Alfa Romeo Spiders, Baldo knew he wouldn’t have to shoulder just the cost of the new ride, but also endless repair bills, time spent ferrying the car to the dealership for tune-ups and oil changes, and concerns about where to keep it. In no time, the model would be out of style and he’d be back at the starting line….

...Fractional car clubs began to appear in the U.S. around 2000 (the first, Classic Car Club, started in London in 1995), and since then have been thriving on Americans’ growing desire for affordable luxury. At last count, there were 17 such clubs, with more cropping up every month, says Jamie Cheng, cofounder of Helium Report, a San Francisco-based online consumer guide for the wealthy…

Is There a Destination Club in Your Future?

April 2007 – Kochis Fitz Personal Wealth Strategies & Management

...Aside from affordability issues, it seems to us that the destination clubs are most likely to appeal to families that like to vacation with others and either can access the properties that interest them at the times they want to visit them, or are willing to travel to properties that are not their first choice but that have availability…

...If you’d like to know more about the players and the economics of the industry, a good next step is to read The Independent Guide to Destination Clubs, from Helium Report. (In addition to providing the evaluation guide to destination clubs, Helium Report provides similar guides to the world of private jets, yachts, and fractional real estate, and serves as an information distribution resource for these businesses…

...The Guide is a well written and even-handed resource describing the factors which should be considered (including a thorough list of due diligence questions), providing tools for analyzing the economics of destinations clubs versus buying a vacation home and other alternatives, profiling the clubs, and more…

Homes Away From Home

February 2007 – Cigar Aficionado

...You and your family can go on that annual ski, beach or golf vacation and be able to choose from several great locations for each trip. Imagine having all these homes at your fingertips but never having to deal with lawn care or leaky pipes or finding firewood. That is the promise of the destination club, a popular new alternative to vacation real estate investment, which is attracting buyers at a breakneck pace…

...”It is great for groups traveling together whose only choice at a luxury resort has been multiple rooms, often unconnected. Call any top hotel…they won’t guarantee you connecting rooms before you arrive. With a destination club you get a whole house…. That’s the value proposition,” says Greg Shove, who is both a destination club member and an expert on the industry. Shove joined Exclusive Resorts in 2003, in part because he used to be an executive at America Online, and AOL founder Steve Case is the majority owner of Exclusive Resorts. After he joined, Shove’s friends asked him so many questions about the industry that he launched Helium Report, a Web-based research site that he calls “a guide that merges a Consumer Reports approach with luxury lifestyle coverage,” and now also covers private jet fractional ownership plans.

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