destination clubs- a guide for prospective members

Transcription

SHERPAREPORT 2015
A GUIDE TO CHOOSING THE RIGHT DESTINATION CLUB
DESTINATION CLUBSA GUIDE FOR
PROSPECTIVE MEMBERS
2015
© 2015 SHERPAREPORT | www.sherpareport.com
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SHERPAREPORT 2015
Table of Contents
1. What Are Destination Clubs?......................................................................................... 4
4.2 Luxury Hotel................................................................................................... 19
2. Features & Benefits......................................................................................................... 5
4.3 Private Residence Clubs/Fractional Ownership................................................ 19
4.4 Villa Rentals.................................................................................................... 19
2.1 Services........ ..................................................................................................... 5
2.1.1 Vacation Planning & Pre-trip Services........................................................ 5
5. Are they Right for You.................................................................................................. 21
2.1.2 During-trip Services.................................................................................... 5
6. Due Diligence Questions.............................................................................................. 21
2.1.3 Partnership Services..................................................................................... 6
7. Summary ....................................................................................................................23
8. Appendix .....................................................................................................................24
2.2 The Homes & Residences................................................................................. 6
2.2.1 Locations..................................................................................................... 7
8.1 Glossary........................................................................................................... 24
2.2.2 Furnishings and Amenities.......................................................................... 8
8.2 Snapshots of Leading Clubs............................................................................. 26
8.3 Assessment Notes............................................................................................. 32
2.3 Other Travel Experiences................................................................................... 9
3. How They Work.......................................................................................................... 10
3.1 Membership Structure..................................................................................... 10
3.1.1 Rental Clubs............................................................................................. 10
3.1.2 Equity Clubs............................................................................................. 11
3.2 Membership Plans........................................................................................... 11
3.2.1 Prepaid Plans............................................................................................ 12
3.2.2 Points Based Plans.................................................................................... 12
3.2.3 Pay as You Stay Plans................................................................................ 12
3.2.4 Corporate Plans......................................................................................... 13
3.3 Reservation Types............................................................................................ 14
3.3.1 Days Usage............................................................................................... 14
3.4 Occupancy & Reservations.............................................................................. 14
3.4.1 Occupancy Rate........................................................................................ 15
3.4.2 Making Reservations................................................................................. 15
3.5 Trial Memberships........................................................................................... 15
3.6 Costs................................................................................................................ 15
3.6.1 Cost-per-night Analysis............................................................................. 16
3.6.2 Initial Membership Fee & Ave Home Value............................................. 17
4. Comparing the Alternatives.......................................................................................... 17
4.1 Second Home Ownership................................................................................ 17
Above: Equity Estates, Costa Rica
Cover: Inspirato, Tuscany, Italy
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SHERPAREPORT 2015
Dear Reader,
I am pleased to present SherpaReport’s comprehensive “Guide for Prospective Members” of
luxury destination clubs. This user-friendly report features information and analysis compiled
from numerous sources, including club executives and members, club literature, third-party
narratives, and our own examination of how the clubs have evolved over the last few years. This
is now the 9th annual edition of the Guide.
For discriminating families and corporations, destination clubs are an increasingly popular
alternative to second homes, luxury hotels and villa rentals. The clubs report high member
satisfaction rates and receive a large number of new members through referrals from other
members -- all indicating that members are happy with their joining decision.
However they are not right for everyone; for instance, to enjoy the full value of a destination
club, you need to travel for at least a couple of weeks a year.
Our aim in producing this Guide is to give you the information that will help you make sound
decisions about joining a destination club. By reading the report you’ll know more about the
clubs, how they work, how much they cost, and the key questions to ask prior to joining.
The properties offered and prices charged by destination clubs can change over time. Please
check www. sherpareport.com for the latest information. SherpaReport is widely recognized
as a source for information on luxury decision making. We have been reported and quoted in
the Wall Street Journal, New York Times and the Financial Times as well as many other leading
publications.
If you have any questions or comments concerning SherpaReport or any of the material in this
report please e-mail me at [email protected].
Nick Copley
President, SherpaReport
[email protected]
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1. What Are
Destination Clubs?
Destination club members have access to a
portfolio of multi-bedroom, private, luxury
homes around the world, and receive fivestar services for all their vacation travel needs.
Membership operates in a similar way to an
exclusive country club membership. The clubs
provide a comprehensive vacation solution by
combining some of the best aspects of five-star
hotels, villa rentals, private residence clubs, and
second home ownership.
Shared Access
Members can use a portfolio of upscale vacation
homes and residences in prime city, beach-front,
slopeside and other leisure locations. These homes,
which are often only available to members, can be
reserved through flexible booking systems.
Multiple Bedroom Residences
The fully furnished homes have chef ’s kitchens,
sumptuous bathrooms and the latest in
entertainment and communication technology.
The sizes of the homes vary between 2,000 and
6,000 square feet – although they may be smaller
apartments in major cities – and have 3, 4, 5
or more bedrooms, providing enough room for
vacations with families, relatives, and friends.
Members of destination clubs join by paying a
one- time membership fee that starts from around
$10,000 for rental based clubs to over $500,000
for high tiers at equity clubs. For equity clubs this
is an investment in the clubs realestate and money
will be repaid when a member resigns. Members
also pay annual dues ranging from $1,500 to over
$60,000.
Affluent Members, Hassle Free
Vacations
Significant groups that are members of these
clubs include:
•Affluent families who want to enjoy the
spaciousness of a vacation home, but do
not want the hassle of maintaining a second
home.
•Successful professionals and entrepreneurs
who plan to enjoy the personalized services
and spacious, luxury accommodations offered
by the clubs.
• Corporations that want to
use the homes for incentive
programs to reward key clients
and employees.
• Retirees who plan to travel,
especially with friends or
family.
Left: G2G Collection, Los Cabos; Right: Inspirato, Beaver Creek, CO
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2. Features & Benefits
2.1 Services
Destination clubs offer elevated standards
of services that are both high-end and hightech, ranging from five-star hotel amenities to
personalized tasteful offerings at each of their
destinations. These complete services are a key
part of the destination club offering; ensuring
that members are fully looked after, both before
and during their trips and in some cases offering
other non-travel related concierge services as well.
2.1.1 Vacation Planning &
Pre-trip Services
Pre-trip services involve all aspects of vacation
planning, coordination and organization.
Destination club staff (variously called service
managers, escape planners, personal member
experience managers, personal travel assistants,
member service representatives, etc.) help their
members in planning a hassle free vacation and
ensure that the process is extremely smooth and
efficient.
The member services manager helps club
members with the following:
• Determining the most desirable locations i.e.,
whether it’s beach, desert, mountain, city or
countryside.
• Planning the dates and duration of stay.
• Deciding the number of guests to visit the
location, i.e., family, relatives, friends.
• Finalizing, booking and confirming each
mode of transport from the member’s home
to the destination club residence and back,
i.e., including air, rail, or limo tickets, etc.
• Providing information about the destination
and activities that can be undertaken there –
sports and leisure activities, cultural activities,
events and amenities as well as sightseeing.
• Making reservations, i.e., finding the
availability and making bookings in clubs,
resorts, restaurants, etc.
2.1.2 During-trip Services
During-trip services include all amenities provided
to members during their stay. Member services
managers work closely with the destination
concierge (sometimes called the “local host”),
who is a local resident of the destination club
location, to arrange an itinerary of services and
activities.
Almost all the clubs provide concierge services. A
concierge takes care of the guests, their luggage,
and any other local services they need. These
can include arrangements for local vehicles,
local travel, private chef, food and beverages,
reservations for dinner, movies, event tickets, spa
times as well as arrangements for tee times, tennis
courts, lift tickets and any other activities.
• Ensuring timely confirmations.
• Helping a member to choose any other
preferred services.
Equity Estates, Telluride, CO
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One of the most common and popular services is
pre-arrival grocery shopping whereby the shelves
are stocked with your favorite food and wine
before you arrive, and in some cases your favorite
fresh cut flowers are waiting for you.
All the homes have housekeeping services, which
may be weekly or daily depending on the club.
Some concierges will meet you at the local airport.
Most clubs have arranged memberships in, or
preferred access to, resorts, leisure clubs, spas
and golf courses located close to their residences.
These allow members to enjoy special pricing on
local services. They are also given privileges that
are normally available only to full-time residents.
• Personal Chefs: Private chefs can either make
special meals or serve every meal. Some
clubs offer chef-prepared meals on the day of
arrival.
• Personalized Lessons: Clubs will arrange
personalized lessons in golf, skiing or other
sports and can arrange tutors for children.
2.1.3 Partnership Services
Most destination clubs have partnered with
other companies to increase the level of services
provided to members.
These services cover a wide range of facilities such
as jet travel, five star dining, golf tournaments or
coaching, financial services, spas, car travel, and
health assessments.
2.2 The Homes & Residences
Destination clubs offer portfolios of
multimillion- dollar properties around the globe.
Sometimes the homes have classic architecture
and sometimes they have modern architecture;
they may have private swimming pools, be on
golf courses, may be situated in vibrant cities or
nestled in the countryside. The size, style, and
locations of the residences are some of the key
factors that help people to look for the most
suitable destination clubs.
Other services that the clubs can
provide include:
• Shipping of Luggage: As well as personal air
travel, the clubs will also arrange shipping of
luggage to and from airports.
• Insurance: Some clubs will insure members’
luggage.
• Wine Services: Some of the clubs have wine
experts to assist members in their selections,
both for the club and at their primary
homes.
Hideaways, Majorca, Spain
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2.2.1 Locations
Most clubs offer a wide mix of locations both
geographically and in terms of beach, city,
mountain and leisure locations. Some examples
of the most popular locations include:
BEACH: Turks & Caicos, Cabo San Lucas, Amelia
Island, Hawaii, Florida, Kiawah Island, etc.
MOUNTAIN: Aspen, Deer Valley, French Alps,
Jackson Hole, Steamboat Springs, Stowe, Vail, etc.
METROPOLITAN: London, Paris, New York,
Chicago, etc.
GOLF & LEISURE: Scottsdale, Napa Valley, La
Quinta, Pinehurst, Tuscany, etc.
North America, the Caribbean and Europe are
the main locations, but there are also clubs with
homes in Asia, Africa and Australasia.
Rocksure, Breckenridge, CO
Exclusive Resorts, Paris, France
The distribution of properties across these locations
varies from one club to another; therefore as part
of your due diligence ensure that the locations
suit your travel plans. A list of the locations for
some of the leading clubs is provided in section
7.3 at the back of this Guide. For an up-to-date
list of club locations visit www.sherpareport.com/
homes.
Home values vary from US$ 750,000 to millions
of dollars depending on the club. This difference
in home values is primarily reflected in the size
and location of homes (proximity to the beach,
the fairway, or ski slopes), rather than in the
amenities and furnishings provided. All homes
are very well equipped and very nicely furnished.
M Private Residences, Provence, France
Inspirato, Punta de Mita, Mexico
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2.2.2 Furnishings and Amenities
Amenities Provided at the Properties
Examples of the types of furnishings and
amenities provided include:
• Gourmet kitchens with professional-grade
refrigerators, dishwashers, fine dishes and
glassware, high-grade counter top appliances,
wine cellars.
• First-rate electronics, plasma or LCD high
definition televisions, state-of-the-art home
theater systems, extensive selection of movies,
digital music channels, i-Pods, video game
consoles (Xbox).
• Home office with computer, high-speed
internet connection, fax machine, copier,
printer.
• Spa-like bathrooms, luxury brand name bath
products, high thread count sheets and linens
of the highest quality.
• Exclusive furnishing, custom-made fabrics,
beautiful rugs, digital art systems (where
personal digital photos can be displayed).
• Infinity edge private pools, hot tubs, outdoor
kitchens, and fire pits in landscaped gardens
with private patios and verandahs.
Most clubs have some homes in resort areas and
provide access to all the resort facilities including
spas, golf, private dining and more.
Amenities
•
•
•
•
•
•
Spa-like bathrooms
Hot tubs
Designer decorated bedrooms
Custom designed furniture
Fireplaces
Digital picture frames with personal
pictures of members
• Fine dishes and glassware
• Professional grade appliances
• Stocked wine cellars
Technology
•
•
•
•
•
•
Entertainment
• Collection of movies and games
• Game rooms
• Access to golf courses, skiing, spas, health
clubs, etc.
• Equipment, such as golf accessories,
bicycles, tennis racquets, etc.
High-speed Internet access
Plasma or LCD TVs
Home theater systems
Game systems
iPods
Personal Computer
Outdoor
•
•
•
•
•
•
•
Barbecue and wet bars
Outdoor kitchen
Open-air fire pit
Private swimming pools
Balconies and patios
Hot tubs
Landscaped gardens
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2.3 Other Travel Experiences
Several clubs have partnerships with hotels and
yachts to give their members a wider selection
of locations to visit. For example:
Many of the clubs offer their members both
special unique travel packages and/or the
opportunity to use their membership nights
at certain hotel or other residence partners. By
providing these additional travel options the
clubs can be a single source for all their members’
vacation travel needs.
• G2G Collection members have access to
several hotels in major US cities.
• Inspirato has hotel partnerships throughout
the world in cities and resort locations.
• Ritz-Carlton Destination Club members
can use some of their points for stays at
some Ritz-Carlton hotels.
Examples include:
• Exclusive Resorts offers “Once in a
Lifetime” trips to such places as the
Galapagos Islands, Bhutan in the
Himalayas and the Antarctic. The fees vary
by trip.
Several clubs have formed mutual partnerships
with other clubs. So the members have access
to homes in both of the clubs. For instance:
• Inspirato members can travel on adventures
to Patagonia, Africa, the Galapagos,
Machu Pichu and more.
• Equity Estates is partnered with the
Hideaways Club
• M Private Residences is partnered with
Rocksure.
• Equity Residences is partnered with the
Elite Alliance for additional locations.
Some clubs offer unique travel tours such as African
Safaris through their partnerships. Many clubs offer stays
through thier partners in four & five-star hotels.
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3. How They Work
The destination club market has been evolving
and the clubs continue to roll out new features and
new services. The main features and characteristics
that you’ll find in the clubs are covered below.
3.1 Membership Structure
There are two broad membership structures.
In some destination clubs the members are
essentially customers and the ownership of the
club remains with the investors and founders –
these are known as rental based or non-equity
clubs. In other clubs, members are also owners
and have an equity position in the club and/or it’s
real estate – these are referred to as offering equity
membership.
There is no right or wrong structure for a club
to adopt. As a potential member you should
consider the membership structure along with the
homes, the services, the locations, the costs and
all the other characteristics. For most members
the principal decision to join a club is a lifestyle
decision – you want to enjoy the spacious homes
and private, carefree vacations.
3.1.1 Rental Clubs
In this structure, members have the right to use
all the club’s properties and services but do not
have any share of ownership in the club or in the
loss or gain of the property value of the club.
Most of the rental based clubs, have a lower fee to
join, sometimes much lower, but none of this fee
is refundable on resignation.
There are two variations on usage plans for these
clubs i) a pre-paid annual fee for a set number of
nights each year – Exclusive Resorts and Quintess
offer these plans or ii) members pay as they
use the properties on a discounted rental basis.
Examples of clubs in this group include Inspirato,
G2G Collection.
Members of these clubs regard their membership
as buying access to an exclusive portfolio of luxury
homes and related services.
Ownership Structure of
Destination Clubs
Rental
Rental
Prepaid
Equity Ownership
Most of the memberships are lifetime
memberships, but some clubs have introduced a
variety of shorter term prepaid memberships for
periods from two to ten years.
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3.1.2 Equity Clubs
As well as having access to the club’s homes,
members of equity clubs own shares in the
company, partnership, or trust that owns the
club and/or its properties. Members can benefit
from an increase in the property value of club
homes – or may lose if the property prices drop.
The equity owners have their investment spread
across multiple homes in multiple locations, so
are effectively distributing their investment across
multiple property markets.
Some of these clubs issue shares (registered
securities) to their owner members, so that the
members are also shareholders in the company
that owns the properties – essentially the owners
are investing in a property company. Clubs with
an equity structure like this include Equity Estates,
Equity Residences, Luxus Vacation Properties,
Lifestyle Assets and Rocksure.
Since they are issuing shares, these clubs need to
comply with relevant securities laws. In the USA
this generally means that members must also be
“accredited investors” (qualified to assess the risks
of investment), and have a net worth of more
than US$ 1 million, or have earned at least US$
200,000 in each of the last two years. The US
securities laws also make it harder for the clubs
to market themselves to potential members, since
3.2 Membership Plans
they can only talk to accredited investors. This has
meant that the equity clubs have not grown as fast
as some of the other clubs that do not have any
marketing restrictions.
Other clubs often refer to themselves as “equity”
clubs, but they don’t issue registered securities.
The club members do have a secure interest over
the clubs properties, so that their membership
deposits are backed by the clubs real estate.
Members also receive a share of any increase or
decrease in value if they sell their membership
interest. The exact legal structure varies from
club to club, but the net effect is very similar. M
Private Residences and Ritz-Carlton Destination
Club have adopted this model.
Nearly all clubs have several types or tiers of
membership plans.
For clubs with prepaid memberships, the main
differences between the plans are the number of
days of access that they provide and the types of
reservations that can be made. Membership plans
offered by these clubs can be broadly classified
into four categories – introductory, standard,
premium and corporate. In the past few years
clubs have tended to offer a wider array of plans to
provide more flexible alternatives to prospective
members.
Some of the rental based clubs typically offer just
one level of plan, since all usage is based on a first
come , first served, pay as you use it model.
Most of the clubs, and certainly the larger clubs,
now allow family members to use plan nights
without the primary member being present. This
family usage allows siblings, adult children and
parents to use the club homes and effectively this
means that a family can share a membership.
Equity Estaes, Anguilla
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3.2.1 Prepaid Plans
For clubs with prepaid plans – where a member
has a set number of nights each year – the
membership plans can be broadly classified as:
Introductory Plans: These plans have the lowest
membership fees and annual dues, and offer the
lowest number of days and the most limited
reservation types. The number of days of usage is
in the range of 7 – 21, meaning you can stay at
club residences for 7 to 21 days a year. Different
clubs may have different names for this plan or
may just refer to it by the number of days.
• In some cases, members under these plans may
not be given priority holiday reservations and
will usually have fewer advance reservations.
Standard Plans: The membership fee, annual
dues, and the number of days of use and
reservation types under this plan are higher than
the introductory plan. The number of days usually
is in the range of 22 – 44.
Standard plans feature:
• More “Advance” and “Holiday” reservations
than Introductory Plans
• Longer reservation window for “Space
Available,” potentially longer reservation window
for “Advance” and “Holiday” reservations.
3.2.2 Points Based Plans
Premium Plans: These plans offer the highest
levels of usage (usually 40+ days), the most
flexible reservation selections, and charge the
highest initial fees and annual dues. Despite the
higher fees, the actual cost per night under these
plans comes out at the lowest of the 3 individual
plan types (See Section 3.6.1 for more on cost
per night). The Premium Plans make sense if you
know you will be traveling a lot as a member.
These are variations on the prepaid plans. Rather
than paying for a set number of nights each year,
a member is allocated a set number of points
each year. Different homes have different point
values that may vary depending on the size of the
home and the time of year. So peak holiday times
require more points than quieter, non-peak, offseason times.
Premium plans feature:
• The maximum days of usage at any of their
club destinations.
• The most holiday usage and flexible usage at
any time of the year.
• The longest window for “Space Available”
reservations. For example a Premium Plan
may offer space available reservations up to
90 days ahead (whereas a
standard plan member could
only reserve space available
60 days ahead).
3.2.3 Pay as You Stay Plans
As the name suggests members pay for the nights
they reserve, as they book them. Pricing for the
nights varies by residence, by location, by time
of year. So for example larger homes in prime
locations at peak times command the highest
nightly rates.
M Private Residences, Hawaii
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3.2.4 Corporate Plans
Many of the clubs offer “Corporate” or “Group”
plans. These are designed to have multiple
individuals who can make reservations and stay
at the club’s homes as members. Companies
may use these memberships for executives or as
incentives for staff, partners or customers. These
plans usually allow members the ability to reserve
more than one residence on the same day.
3.3 Reservation Types
Most clubs let members reserve up to one or
two years in advance. For pay as you stay plans,
members can simply reserve residences whenever
they want to.
Equity Residences, Big Island, Hawaii
For prepaid plans each membership has certain
reservation rights, which are typically broken
down into the following types:
Advance Reservations: This allows members to
plan their vacations well in advance and gives
them plenty of time to confirm availability of
their relatives or friends. Under this reservation
type, a member can typically book a desired
residence between 2 months and 2 years in
advance depending on the club. The number of
advance reservations typically varies from 1 to 5
depending on the membership plan.
Peak/Holiday Reservations: Most clubs have a
separate category for holiday reservations in order
to alot usage at these peak periods. All the clubs
apply these reservation types to the obvious peak
demand times such as Christmas/New Year, but
some clubs have a broader definition of holiday
than others. So, as part of your due diligence, it’s
worth asking which days of the year are covered
by the holiday reservation type (Sherpareport.
com includes occasional articles listing out the
holiday dates for the leading clubs).
The number of holiday reservations that you can have
open, again, varies depending on the membership
plan, with the typical numbers between 0 and 2. The
window for making these reservations is normally
the same as for advance reservations – so, between 2
months and 2 years depending on the club. Holiday
reservations may also have limits on the maximum
number of days that you can stay during a holiday
time. For example an “advance reservation” may
allow up to 14 consecutive days to be reserved, but
only 7 consecutive days for a “holiday reservation”.
Some of the clubs charge an extra membership fee
for you to buy more peak reservations – this is useful
if you know you will travel a lot during peak times.
Other clubs use a points system with peak periods
having a higher point charge.
Space Available Reservations: Booking under this
type is made on the basis of space available at the desired
location. Members typically file for reservations within
0-90 days of departure, although the reservations could
be as far as 180 days in advance depending on the club
and the membership plan. While the advance booking
often has to be for a minimum number of days, the
space available option usually offers a lower minimum
stay. These types of bookings are very useful for short
notice, short duration trips such as weekend getaways,
as well as for longer duration vacations. Some clubs
count these reservations towards a members number of
included days under their plan, other clubs and plans
have a separate limit for space available reservations, and
other clubs have unlimited usage, with the only limit
being the number of open reservations at any one time.
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the reservations into various types and giving
members a certain number of reservations, or a
certain number of reserved days, that they can
have open at any one time. This is defined by the
types and quantity of membership plans sold.
Equity Residences, Longboat Key
Rocksure, Barcelona, Spain
3.3.1 Days Usage
3.4 Occupancy & Reservations
Depending on their prepaid membership plan,
members can enjoy between 7 and 75 days of
usage by booking the reservation types above.
Some clubs offer unlimited space available usage
and some limit the number of days or the number
of reservations of a given type. The key thing
is to match the plan you buy to your expected
number of days of travel and to make sure that
your membership agreement will let you easily
upgrade or downgrade between plans. Several
clubs let you change your prepaid plan level and
days of usage each year, giving you flexibility to
suit different travel plans. Some clubs also let you
purchase additional days at short notice.
The clubs experience the highest demand and
therefore the highest occupancy levels during
holidays, including Christmas, New Year’s
week, President’s Day, Spring Break/ Easter,
Independence Day, Thanksgiving etc. Similarly,
in locations such as ski destinations, there is
heavy demand in the winter but this drops off
significantly in the spring and fall. The occupancy
rate refers to the amount of time that a home
or all the homes are occupied by members. It
is expressed as a percentage. For instance, 40%
occupancy means that the homes are occupied
40% of the time and are empty, and available,
60% of the time.
The other factor that affects the occupancy
percentage is the ratio of members to homes. In
simple terms the more members there are per
home (that the club has in its portfolio) the greater
will be the demand from members on each home
in the portfolio, and so the higher the occupancy.
As you’ll see in the next section, the clubs target
an average of 50-75% occupancy across the whole
portfolio over a year.
Seasonal Impact on the Occupancy
Rates of Destination Clubs
As discussed above, the clubs with prepaid
plans balance out this demand by splitting
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3.4.1 Occupancy Rate
3.4.2 Making Reservations
3.5 Trial Memberships
Clubs usually have average occupancy rates of 5075%, which increase to around 80-95% for specific
properties during peak seasons. This seasonal
variation is shown in the diagram on the prior
page. Most of the clubs plan for an average annual
occupancy rate around 70%, which means they
are occupied 70% of the time and vacant 30% of
the time. This appears to allow enough flexibility
and vacancy within the reservation system, and
for instance means that there is availability for
short term “space available” reservations.
The booking process for making reservations in
destination clubs is very simple and can be carried
out in any of the following ways:
• By calling your member service representative.
• By sending an e-mail to your member service
representative.
• By booking online via the club’s member
website.
Several of the clubs offer trial memberships to
enable you to try out the club prior to joining as a
full member. It’s well worth asking the club if you
can try before you buy, since some will arrange
this and others won’t.
Members are provided a unique membership
identification, with which they can access
any information related to reservations, space
availability, etc., either online or with their
member services representative. The member
service representative can also answer any queries
about a specific home or location and the
amenities and facilities or local actvities.
The clubs offer a variety of membership structures
and plans, so comparing them financially takes a
bit of thought. You need to consider what you’re
getting for your money – so the homes and their
typical value and the services the clubs provide.
Then compare this to the initial fees, annual dues
and any nightly charges.
The occupancy rate affects the reservation
procedure as it is the opposite of space availability.
In other words, a lower occupancy rate ensures
greater availability of homes for a member to book
at their desired locations. A lower occupancy rate
can also mean that annual dues are higher to cover
these empty periods. As a club grows, it needs to
add homes at a fast enough pace to ensure that
there is sufficient occupancy across its portfolio.
The club must balance the number of members
and the type of membership plans, and therefore
the potential days of use, against the number of
homes, and therefore the total days available.
Section 6 of this report includes several questions
for you to ask about a club’s occupancy rate.
3.6 Costs
Reservation procedures, space availability, and
booking related information are some of the
key issues that a member should understand
and inquire about in detail before joining any
particular club. In particular it’s worth walking
through the booking process and looking at the
space availability prior to joining.
Inspirato, Vail, CO
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3.6.1 Cost-per-night Analysis
This cost-per-night calculation enables you to make
a financial comparison of the clubs – particularly
the clubs with large initial membership fees and
prepaid annual dues. It also allows you to compare
destination clubs with other alternative vacation
options. Once you have this calculation, you
can easily compare destination clubs with luxury
hotels, house or villa rentals. (See Section 4 for a
more detailed discussion on alternatives to Destination
Clubs.)
For clubs that use pay as you stay plans, we’ve
taken the average nightly rates provided by the
clubs, for peak periods and non-peak periods,
and used these in the model. Obviously the actual
rates paid by any given member may vary a lot
depending on where and when they stay.
The analysis calculates the effective amount paid
by a member for a night’s stay at a destination
club. The calculation takes into account the
initial membership deposit, annual dues, and
any nightly fees that a member pays for a given
membership plan.
With the electronic version you can see the
calculation in detail, adjust any of the amounts for
recent adjustments by the clubs, or adjust any of the
assumptions in the calculation. The online version
also includes two alternative methods of calculating
the cost per night, including one version with a Net
Present Value calculation.
In our model we use a 4% opportunity cost
applied to the initial membership fee, since the
capital used to pay the initial fee could instead be
invested to earn an annual return. For the analysis,
we have assumed that the average membership
period is 10 years. For clubs that offer a potential
increase in the initial fee on resignation, we
have not considered any increase as there is no
guarantee of such an occurrence (particularly
where this is tied to property values).
An electronic version of this cost-per-night spreadsheet
is available at http://www.sherpareport.com/
images/dccostnight.xls
Note if you’re not financially or mathematically
inclined then the details of the calculation may be
a bit too in depth.
In summary the typical full cost per night varies
between $500 and $2,800 depending on the
club, membership level and for rental based clubs
the properties you use for vacations.
Top: Equity Estates, Turks & Caicos
Bottom: M Private, Paradise Valley, AZ
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3.6.2 Initial Membership Fee & Average Home Value
EQUITY
RENTAL
There are a wide range of initial membership fees depending on the club you join and the membership
plan you choose. In the table below, a sample of the clubs are split into two groups based on whether
they are rental clubs or equity clubs. The table shows the initial fee, the average home values and the
cost per night.
Clubs
Membership
Plans
Avg Home
Values
Cost per
Night
Membership
Fee
Quintess
Prepaid
$4m
$2,821
$169,000+
Exclusive Resorts
Prepaid
$3m
$2,666
$170,000+
Inspirato
Pay as you go
$3.5m
$1,143
$15,000
G2G Collection
Pay as you go
$2.5m
$1,000
$15,000
Equity Estates
Prepaid
$3m
$1,249
$197,500+
Ritz Carlton
Prepaid
$2m
N/A
$72,540+
M Private Residences
Prepaid
$2m
$925
$147,500+
Equity Residences
Prepaid
$1.2m
$360
$108,000+
Luxus Vacation Properties
Prepaid
$2.5m
$1,442
$165,000+
Lifestyle Asset Group
Prepaid
$1.4m
$569
$82,500+
Rocksure Property
Prepaid
$1.6m
$898
$75,000+
4. Comparing the
Alternatives
There are several alternatives to destination clubs
that affluent families can use for their vacations.
These traditional alternatives include luxury hotels,
villa and house rentals, second home ownership,
and more recently condo hotels and luxury
fractionals.
4.1 Second Home Ownership
As a vacation home owner you can select
furnishings, appliances, décor and customize the
home to suit your own personal tastes. On the
flip side, as the owner you are responsible for
all expenses related to maintenance, repairs and
operation, including mortgages, taxes, insurance,
utilities, cleaning, etc. and also have the hassles of
managing and running the property.
Owners of second homes tend to have a large
amount of capital (both emotional capital and
monetary capital) invested in them, so there is
often a feeling that vacations should be spent at
the second home, rather than traveling to new
locations. Sometimes this can even produce a
sense of guilt, when second home owners spend
their vacations elsewhere, but at the same time
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know their vacation home is empty and costing
them money. Overall this leads to some levels
of inflexibility as owners tend to spend their
vacations in the one location (at their second
home). Several destination clubs have reported that
some members have sold their second (or third or
fourth) home upon joining the club in order to
fully enjoy the wide flexibility that clubs offer.
As a second home owner, you are totally on your
own in regards to services, travel planning, etc.,
whereas the destination club members receive full
five-star services for all aspects of their vacations.
From a purely financial aspect, the membership
deposit to join a destination club is less than the
20% down payment that you would need to buy an
equivalent second home. The annual membership
dues for a destination club are significantly lower
than the annual costs of running and maintaining
a comparable home. However, with second home
ownership, you do have the potential upside (or
downside) of changes in the value of your home,
whereas only equity destination clubs offer this
potential.
The calculation to the right compares the longterm value of being a member of a destination
club compared to the value of owning a second
home. This is done by calculating the net present
value (NPV) of the cash flow for club membership
compared to second home ownership. The
calculation has two scenarios for second home
ownership:
• Home Values Equal: The first comparison
assumes that instead of joining a club a person
buys a house of equivalent value to the ones
in the club.
• Down Payment Equal: The second assumes
that the club membership fee is equivalent to
the 20% down payment on a house purchase.
The value of the purchased house would be
lower than under the first scenario.
The calculation assumes a 10-year ownership
or membership period and assumes joining a
club with US$ 3m homes with a US$ 325,000
membership plan and annual dues of US $
27,500, giving you 28 days of use (the equivalent
amount of days most people use their second
homes).
When compared to both home ownership
scenarios, the destination club membership has
a less negative NPV and so is a better value than
home ownership. A simple representation of the
same is provided in the table below.
The full spreadsheet along with the assumptions
and calculation details is available at: http://www.
sherpareport.com/images/dc2ndhomenpv.xls.
Within the electronic spreadsheet you can adjust
the assumptions and see how this affects the NPV
calculation. Most notably if you assume that house
prices will rise at 8% per year over the 10 year period
then the NPV of home ownership becomes more
favorable.
Option
Destination Club
2nd Home Ownership - Equivalent Value
2nd Home Ownership - Equivalent Down Payment
Net Present Value (NPV)
($376,587)
($1,246,874)
($676,675)
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4.2 Luxury Hotel
With a wide variety of locations, luxury hotels
can provide a high degree of flexibility in terms
of destinations. Guests enjoy consistent five-star
services and amenities, such as valet services,
concierge service (albeit shared amongst all the
hotel guests), restaurants, swimming pools,
fitness centers, etc. However, guests may not
have complete privacy as they have to share all
common areas with other guests in the hotel.
Only a few luxury hotels are designed for family
travel as they lack appropriate-sized rooms or
units. Booking multiple rooms is an option but
such an arrangement lacks the spaciousness of
a home and also significantly increases the cost.
Most hotel rooms are 300-600 sq ft, whereas
destination club homes typically provide 2,0004,000 sq ft of space.
4.3 Private Residence Clubs/
Fractional Ownership
These are commonly known as ‘fractionals’ or
‘PRCs’ and combine the services offered by
luxury hotel chains with some of the amenities of
a second home. Fractional owners buy a share of
a property (normally between 1/12 and ¼.) This
deeded interest in a property means that it can be
used for between 4-12 weeks in a year, depending
on the size of the member’s share. The properties
are typically 2-3 bedroom condominium units
and so are usually smaller than destination club
homes, although some PRCs do offer 4 bedroom
properties. They usually offer five-star services to
their owners/ members. As owners have a shared
interest, they can use the property, but cannot
select the interior decoration of the homes.
Usage systems vary, with some fractionals offering
use for fixed periods. For example, an owner has
Christmas week every year, and some offering
a floating booking system, where owners must
book ahead for their required occupancy weeks. A
management company maintains the properties,
and also manages the owner reservation process.
Several luxury hotel brands, such as Ritz-Carlton,
Four Seasons and Fairmont, have developed
their own Private Residence Clubs. Many private
residence clubs are independently developed and
managed.
4.4 Villa Rentals
Renting a home or a villa provides access to a
variety of locations, and offers accommodation of
a similar size to homes in destination clubs. With
this spacious accommodation, family and friends
can travel together and enjoy vacations together.
One of the biggest drawbacks of using rental
homes is the hassle of finding an appropriate home
in a particular location. It can take quite a bit of
searching to locate the ideal home. As a result,
families may rent the same home for several years,
simply because they know what they are getting
and they don’t want to spend the time looking for
alternatives. When you do look around for rental
homes, you find that there is no consistency in
terms of furnishings, amenities, support, etc., and
generally, no concierge or service is offered either
before or during the trip.
The growth of clubs such as Inspirato and G2G
Collection has been driven by people wanting
the flexibility of rentals, with the consistency and
assurance of a club structure.
This is a good option for the vacationer that likes
to go to the same location time after time.
Owners buy a share of one property in one destination,
but there may be some opportunities to trade for
other destinations either through the management
company or through independent exchanges.
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Overview of Alternatives in the Second Home Market
Destination
Clubs
2nd Home
Ownership
Always
Luxury
Hotel
Sometimes
Luxury
Fractional
Never
Villa
Rental
Many Locations
3+ Bedrooms
Hassle Free
Travel Services
Concierge Services
Consistency
Ownership/Equity
Personalized
Resort Amenities
Initial Cost
$10k-$600k+
20% Deposit
None
$100k-$1m+
None
Annual Cost
$5k-$50k
Mortgage/Insure/
Maintain/etc
$500++/night
$5k-$30k
$5k++/week
Summary
If you enjoy vacationing in the same
location each year, want to benefit from
house price appreciation, and want
100% availability, but do not mind the
overhead costs and effort to maintain
another property, then a second home
may be better for you. If you like one
location, enjoy excellent service, have
some flexibility on when you travel, and
prefer to keep your costs low, then look
at luxury fractionals and private residence
clubs.
If you prefer to travel to various locations,
enjoy traveling with your friends and
family, enjoy high service levels and have
some degree of flexibility or do not mind
planning ahead, then a destination club
could be the answer.
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5. Are they Right for You?
6. Things to Consider
By thinking through the questions below about your vacation preferences,
you’ll be better prepared to decide if a destination club is for you and your
family, and to identify the clubs that meet your preferences.
Before joining a destination club we recommend doing some research to
select the club that meets your requirements. All the clubs offer fabulous
homes and high levels of service, but there are differences in locations, prices
and structure. Use the questions below to guide this research process. All
the questions below are not relevant to every club and some questions may
not be relevant for you, but overall, if you go through them with the clubs
you’re really interested in, you’ll get a good idea which club is a “fit” for your
vacation plans.
Questions to Ask Yourself
• Does my family like to visit one location or how much do we prefer to
visit multiple destinations?
• When do we take our vacations – are they all at holiday times or peak
times, are they spread throughout the year? (Helps you in looking at the
reservation systems and rules for each club/plan)
• How much do we typically spend on vacations each year? (If it’s under
$5,000 per year, then you may want to look at alternative, cheaper options)
• How many and how long are our usual vacations each year? (This helps you
identify the clubs and the membership plans that may fit)
Membership & Fees
• What are the different membership levels and how do they work?
• How much do you charge as a membership fee for each different
membership level?
• What percentage of the membership fee is refundable?
• Who normally comes on the vacations? Do I want to travel alone, in
small groups, with friends and family? (If you normally travel alone, then
destination clubs may not be the answer)
• How many members does the club currently have, by membership level?
• Which locations do we like to visit, and would we like to visit? (Use the
tables in the Appendix to see which clubs have homes in which destinations, or
visit www.sherpareport.com/homes/ for the latest information)
• How is the annual fee planned to increase and what are the limits on this
increase? (Normally this is restricted to CPI + some percentage)
• What level of luxury are we seeking in a vacation option ? (This helps you
identify the clubs and plans that may fit your needs. Different clubs offer
homes with values from under US$ 1m to around $4m.)
• How do I resign from the club?
• What level of services are we looking for, what are the minimum services
that we want from our vacation/travel arrangements? (Destination clubs
offer full service travel options)
• Are there currently any special membership offers?
• Are there any additional fees for booking any of the properties, (Special
properties, special dates such as holidays, etc.)?
• Are there any other fees or any extra charges?
• Who can use the membership? Who is it transferable to and under what
circumstances?
• What surveys of members has the club carried out in the last year?
• What do the surveys show? How was member satisfaction?
• Which members can I talk to prior to joining?
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Destinations & Properties
Services
• How many homes do you currently offer to members?
• What are the various pre-trip services that you offer? See section 2.1 for
some of the typical services.
• What information do you provide to members before they arrive at their
destination?
• What types of things can the local concierge help with? Are there any
things that the local concierge can’t help with?
• Which local services are included and which are extra?
• How often do you provide housekeeping services, daily, weekly?
• If applicable ask, What does the club do to accommodate children, and
what services and facilities are provided for children? Are these available
at all locations?
• Can members use any other properties (e.g. are there any reciprocity
agreements with other clubs or agreements with hotels, etc.)? How does this
reciprocity work?
• How do you select the destinations?
• What input do members get to provide on the selection of locations and
properties?
• What is the average size of the homes (square feet, number of bedrooms,
baths, etc.)?
• Can I see pictures and location for all of the homes?
Reservations
• How does your reservation mechanism work?
• What is your planned occupancy rate? (The percent of time that the homes
are occupied by members)
• What was the actual occupancy rate last year and how did it vary over the year?
• Can I see the reservation system, try it out and check availability?
• Can members reserve multiple locations at the same time? (This would be
important if for instance one wanted to do a father/son golfing trip at the same
time as a mother/daughter spa trip.)
• How far in advance can reservations be made (usually 1 or 2 years)?
• How many reservations have been made and how many trips to club
homes have members made?
• What is the club’s strategy to help facilitate reservations in high demand
locations during peak travel times?
Club Structure & Financials
• What is the background of the key management?
• Who are the members of the board of directors of the club?
• Does the club have an advisory committee? Who are the members of that
committee?
• Are the members involved in the clubs strategy and decision making?
• Does the club rent out any of its properties?
If you are writing a six figure check to join, it’s worth asking the following:
• Are financial statements available to club members? Can I see both historic
and projected financial statements?
• How often are they available?
• When will the annual dues alone cover all the operating costs for the club?
• What sort of assurances do you provide for any membership fee refunds?
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7 Summary
Six Reasons Not to Join a Club
Seven Reasons to Join a Destination Club
1. You Travel Alone: If you only travel alone or as a couple, a club probably isn’t
right for you. The clubs typically offer large spacious vacation homes with 3, 4
or 5 bedrooms– great for families or larger groups of friends.
1. Variety: A destination club gives you access to multiple homes in stunning
geographical locales across the globe. You can spend time in a tropical paradise
in a home at the beach, or you might prefer jetting off to a home set in a winter
wonderland with the ski slopes at your door. You get to choose.
2. You Do All Exotic or Adventure Travel: If all your vacations are either unique
adventures or exotic escapades to remote and unusual places, then a club isn’t
for you. The club homes are nearly all in world-class resorts and major cities
including: Aspen, Vail, New York, London, Los Cabos, Bahamas, Maui, Tuscany,
etc. Yes, some clubs do provide remote adventure travel, such as Galapagos cruises
and African safaris, but they are only supplements to the core vacation homes.
3. You Can’t Commit to Regular Vacations: If you’re a workaholic and can’t stand
to be away from the office for too long; or you’re a homebody and prefer to just
relax in your own four walls, then clubs won’t be the answer. Part of being a
club member is committing (to yourself and to your family and friends) to take
regular vacations and enjoy relaxing time away with friends and family.
4. You Like & Have The Time to Organize & Research: If you like organizing
your own trips and don’t mind searching for the ideal flights, accommodation,
theatre tickets, restaurant bookings, ideas for kids activities etc, then membership
may not be for you. The clubs are truly full-service. They will arrange as much or
as little as you want and can save you a lot of time and energy.
2. Service: In a destination club every detail is taken care of so that the member
doesn’t have to worry. Prior to arrival, the kitchen is stocked with the member’s
preferred groceries and beverages. Local concierges will arrange for restaurant
bookings, tickets and help plan and reserve for any activities.
3. No Worries: Clubs maintain a high level of quality assurance over their homes’
interiors, upkeep and service. There’s no worrying about burst pipes, what it will
look like, or what condition will the home be in. Members don’t have the same
concerns as renters or second home owners.
4. Reconnecting with Family: Joining a club is a way to commit to travel, enjoy
quality friends and family time, and make unforgettable memories now – before
time gets away from you.
5. Lots of Space: Club homes provide plenty of space with lots of room to stretch
out, relax and entertain. Even in big cities accommodations include typical floor
space of around 1,500 square feet in 2 or 3 bedroom apartments; rural retreats,
with more land, may have up to 6,000 square feet.
5. You like One Location If you find yourself frequenting one or maybe two
favorite locations, then a destination club probably isn’t the ideal vacation option.
You’ll be better off buying a vacation home or a private residence club. That way
you can return time after time, leave belongings and even personalize the home.
6. Privacy: Compared to hotels, guests will enjoy much more privacy without the
common areas of a typical hotel. Scenic and beach front retreats are typically
surrounded by beautifully landscaped gardens that are secluded enough to offer
a true sense of privacy.
6. Price: A typical nights stay at a club residence will work out to be around
$1,000. Yes there are clubs where the cost per night is lower, and clubs where
the cost per night is much more, but $1,000 is an easy number to have in mind.
7. No Guilt: Those who own a second home often feel obligated to spend all of
their vacation time there – ultimately defeating the purpose of a vacation in the
first place: to reduce stress, not add to it.
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8 Appendix
8.1 Glossary
These are some of the more common terms that
you may come across.
Advanced Reservation:
A type of reservation that allows club members to
book a residence in the club’s portfolio between
2 months and 2 years prior to the vacation time.
The number of advance reservations varies by
club and membership plan and ranges from 1
to 4. Similarly the actual reservation window
varies by club and membership plan. Some clubs
allow members to book up to 2 years in advance;
others only 1 year. Advanced reservations allow
members to schedule long-term getaways and
ensure availability for their guests.
Annual Dues:
The yearly cost to members, in addition to their
one-time initial fee. Annual dues differ by club
and by membership plan and range from US$
2,500 to US$ 100,000.
Days/Nights Included:
Number of nights available in a club membership
plan. Some clubs refer to usage availability in
terms of number of days and others in nights.
Equity Club:
Members own a share of the company that owns
the club and/or its properties.
Holiday (Period) Reservation:
A reservation made by a member for a highly
popular, peak vacation time of year. All destination
clubs’ holiday periods include Christmas/New
Year’s week and July 4th, but some clubs have a
broader definition of holiday than others, so it
is important to inquire about a club’s definition
of holiday period before joining. The number of
holiday reservations available to members varies
depending on the club and the membership
plan. For clubs with pay as you stay membership
there are no limits to holiday reservations. For
prepaid plans the typical memberships will have
between 0 and 2. The window for making such
reservations is usually between 2 months and 2
years, depending on the club.
Home Value:
Average value of homes in a club. Home values
vary among clubs and range from US$ 750,000
to US$ 5+ million.
Independent Audit:
An official examination of a club’s financial
statements by an outside audit firm. Independent
audits assure members that the club’s financial
records are properly maintained.
Independent Valuation:
Appraisal of club properties by an entity outside
the club’s ownership.
Initial Fee (or Membership Dues or Membership
Deposit or Membership Fee):
The initial one- time membership fee that a
member pays to join the club. The amounts vary
by club and membership plan and are generally
between $10,000 and about $600,000. Part
of this fee may be refundable when a member
resigns, depending on the club policy.
Membership Plan (or Membership Type):
Most clubs offer a variety of plans which may
provide different numbers of nights of use. The
typical prepaid plans can vary from 7 nights to
over 60 nights (or even unlimited nights subject
only to the reservation rules). Plans with larger
numbers of nights have higher initial fees and
higher annual dues but in return usually also
have larger numbers of Advanced Reservations
and Holiday Reservations and may have a longer
window for Space Available Reservations.
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Member Cap:
The limit placed on the number of members who
can join the club. Only a few equity clubs have this
cap. These clubs aim to raise a set amount of money
and buy a set number of homes which they’ll hold
for a fixed period of time before selling them and
distributing the proceeds to members.
Member-to-home Ratio:
Total number of full members divided by total
number of club homes. This number usually
ranges from 5:1 to 8:1. The member-to-home
ratio offers a broad idea of availability. However,
it is better to consider the occupancy ratio (see
below), particularly if clubs have several levels
of membership plans, offering anywhere from 7
nights to over 60 nights. Clubs usually convert
their member numbers into “full member
equivalents,” so for instance they may consider
someone with a twenty five day plan to be a half
member, if a full membership has fifty days.
Nightly Fee:
The (additional) cost to members for a night’s
stay at a club home. Most clubs do not charge
separately per night, and some clubs only charge a
nightly fee once a member exceeds the number of
nights allotted in his or her membership plan.
Non-Equity Club:
The club members have rights to use the homes
but are not shareholders and do not have any
ownership interest in the club.
Occupancy Ratio:
The percentage of a club’s homes that are occupied
at a given time. It is important to look at the
overall occupancy ratio across a club’s entire real
estate portfolio, and to also look at individual
locations by season. For example, ski locations in
winter may well be close to 100% occupied but
could be nearly empty in the Spring mud season.
Pay as You Stay Plans:
In several newer clubs members only pay for homes
as they reserve them. These clubs have low annual
membership fees and relatively low initial fees.
Pre-Paid Plans:
In most clubs, including all the equity clubs,
members pay for a fixed number of nights each
year. These clubs typically offer several different
plan levels with different numbers of nights in each
level. Members can usually buy additional nights if
they use all their plan nights in a given year.
Refundable Deposit:
The proportion of your initial membership fee
refunded upon resignation from the club. For the
few clubs that offer this option the most common
amount refunded is 75%.
Resignation Ratio:
Commonly denoted as “2 in, 1 out,” or “3 in,
1 out,” this number signifies the number of new
members who must join the club before a resigning
member receives their refundable deposit. So “2 in
1 out” means that 2 new members must join the
club before a resigning member’s deposit is paid.
If a club is growing rapidly, members typically do
not wait long to receive their refunds. If growth
slows or stalls, and new members are not being
added, then refund payments will also slow.
Space Available Reservation:
A home reservation made at short notice within
a specific time window before departure. The
window varies by club and membership plan but
is typically less than 90 days before departure
date. Space available reservations usually offer
a lower minimum stay than other types and are
very useful for short notice, short duration trips.
Equity Residences, Maui, HI
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8.2 Snapshots of Leading Clubs
For the most up-to-date profiles of the leading clubs visit http://www.
sherpareport.com/destination-clubs/dest-clubs.html. We regularly update this
page and the club profiles that are linked from this page. In addition, on each
club’s profile page, there are links to the latest news and research about the
clubs. The following pages have overviews of some of the leading clubs.
M Private Residences, New York, NY
Inspirato, Squaw Valley, CA
Rocksure, Antigua
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Inspirato
Inspirato with American Express is a rental based club, which provides
access to the Signature Collection of luxury vacation homes, experiences and
VIP offerings. At the heart of the Signature Collection are 275+ Inspirato
Signature Residences, multimillion-dollar vacation homes fully managed and
controlled by Inspirato for the exclusive use of its members.
In addition, Signature Experiences provide travel and adventures in faraway
lands, while Signature Tickets offer VIP access at celebrated global events.
Initial Fee
$17,500
Annual Dues
$3,500
Nightly Rates
$295-$3,000
Inspirato, Punta Cana, Dominican Republic
“We create memories for our members that are irreplaceable. Family bonds
are strengthened, new friendships are formed while on vacation, and our
members recognize this and want that experience to be a part of their lives.”
Brent Handler, CEO and Founder of Inspirato.
Some example locations include:
Abaco, Bahamas; Cape Cod, MA; Hilton head Island, SC; Kohala Coast,
HI; Los Cabos, Mexico; Naples, FL; Peninsula Papagayo, Costa Rica; San
Diego, California; St. John, U.S. Virgin Islands; Turks and Caicos; Aspen,
CO; Deer Valley, UT; Lake Tahoe, CA; Stowe, VT, Vail, CO; Chicago, IL;
Florence, Italy; San Francisco, CA; Provence, France.
American Express Card Members enjoy exclusive membership offers and
benefits.
http://www.inspirato.com
Inspirato, CA, Wine Country
27
SHERPAREPORT 2015
Equity Estates
Equity Estates is an equity club offering more than 70 residences spanning
30 countries. Homes range from 2 to 6 bedrooms, 2,000 to 7,000 square feet.
The club takes care of each investor’s every need – from vacation itinerary
planning to pre-stocking your favorite groceries – no task is too big or too
small.
Initial Fee
$200,000 - $550,000
Annual Dues
$9,250 - $24,750
Nights/Year
15 - 45
“Success is measured by return on investment and return on living. We take
pride in designing inspired experiences that create lifelong memories.” Philip
Mekelburg, Equity Estates Founder and CEO.
Equity Estates, Anguilla
Cabo San Lucas, Mexico; Paradise Island, Bahamas; Playa Langosta, Costa
Rica; Jopsey Bay, Anguilla; Miami Beach, Florida; Phuket, Thailand; Hilton
Head, South Carolina; WaterSound Beach, Florida; New York, NY; London,
England; Paris, France; Snowmass, CO; Deer Valley, UT; Lake Tahoe, CA,
Scottsdale, AZ.
“Overall we’ve been very impressed with the consistent level of service, and all
the hosts have been outgoing, helpful and have had great recommendations.”
Kevin Adelstein, Equity Estates investor member.
http://www.equityestatestravel.com
Equity Estates, Costa Rica
28
SHERPAREPORT 2015
Lifestyle Asset Group
Lifestyle Asset Group’s “collective asset ownership” model brings together 50
equity owners through an LLC structure. This allows you to own and enjoy a
regional collection of six homes valued between $1 million to $2 million, for
a fraction of the cost of owning a single second home.
St. John, USVI, Seabrook Island, SC, New York City, NY, Miami, FL, Turks
& Caicos, BWI, Outer Banks, NC, Los Cabos, MX, Lake Tahoe, CA, Maui,
HI, San Diego, CA, Palm Desert, CA, Carmel, CA
Homes are selected for their appreciation potential, easy access to resort
amenities and range of activities. Your capital contribution is 100% secured
by the homes your LLC owns, which are paid for free-and-clear. After 7 years,
Lifestyle Asset Group will sell each property and will distribute 90% of the
portfolio’s net appreciation to the owners.
“When you really compare what’s out there, the collective asset ownership
model can’t be beat; the homes are wonderful, the reservation process is clear,
your equity is secure, and you know when you’re getting your capital back.
There’s simply nothing better out there.” Mark T — Investor
Initial Fee
$82,500- $185,000
Annual Dues
$7,500 - $15,000
Nights/Year
21 - 42
Lifestyle Asset Group, Los Cabos
http://www.lifestyleassetgroup.com
Lifestyle Asset Group, St. John
29
SHERPAREPORT 2015
Equity Residences
Equity Residences LLC manages two investment funds – the Equity Villa
Fund and the Equity Platinum Fund – designed for the ownership and
enjoyment of multiple vacation properties.
The Funds acquire vacation properties at today’s low price points and
subsequently sell the properties following an anticipated market recovery for
positive investment returns, all the while allowing partner investors to enjoy
the properties as owners.
After 10 years, the properties will be sold, and investors receive their money
back, plus any positive investment returns.
Initial Fee
$108,000 - $530,000
Annual Dues
$0 - $8,000
Nights/Year
14 - 56+
Deer Valley, UT; Longboat Key, FL; Big Island, HI; Mammoth Lakes, CA;
Palm Beach Shores, FL; Palm Springs, CA; Kauai, HI; Maui, HI; Marathon
Key, FL.
“Our business model appeals to those looking for a solid investment, as well
as luxury vacations,” said Managing Director Greg Salley. “We focus on
acquiring properties in prime locations at discounted prices to optimize longterm appreciation. Our investors like the upside, and love vacationing at the
properties while rental income offsets operating costs.”
http://www.equityresidences.com
Equity Residences: Top: Deer Valley, UT; Bottom: Big Island, Hawaii
30
SHERPAREPORT 2015
M Private Residences
M Private is a non-profit organization whose real estate portfolio is entirely
owned and governed by the members. As a club member you collectively own
the company’s diversified property portfolio and have exclusive access to a
choice of vacation residences valued between $1.5 - $2.5 million.
Initial Fee
$147,500 - $295,000
Annual Dues
$12,350 - $24,000
Nights/Year
21 – 60
Members can also book Space Available time within 0-30 days prior to travel
and this does not use up their membership plan days. “The investment in one’s
lifestyle makes for a good real estate investment as well,” said John Beckel,
GM of M Private Residences.
M Private Residences, London, England
Cabo San Lucas, Mexico; St. Philip, Barbados; Rancho Mirage, CA; Las
Vegas, NV; Mauna Lani, HI; New York, NY; London, England; Paris, France;
Whistler, BC; Kelowna, BC; Scottsdale, AZ; Marrakech, Morocco; Provence,
France
“We like variety in our travel but also really enjoy the comfort of a home not
a hotel room, and the added space that allows family or friends to join us.”
Wilf Gobert, M Private member.
http://www.mprivateresidences.com
M Private Residences, Cabo San Lucas, Mexico
31
SHERPAREPORT 2015
8.3 Assessment Notes
Use this planning checklist for comparing the top clubs you want to consider.
CLUB 1
CLUB 2
CLUB 3
Club Name
______________________ ______________________ ______________________
Club Contact
______________________ ______________________ ______________________
______________________ ______________________ ______________________
Favorite Locations
______________________ ______________________ ______________________
______________________ ______________________ ______________________
______________________ ______________________ ______________________
Preferred Membership Plans
• Days
• Holiday Reservations
• Initial Fees
• Annual Dues
______________________
______________________
______________________
______________________
______________________
______________________
______________________
______________________
______________________
______________________
______________________
______________________
Key Services
Review Reservation System
Other Notes
32

destination clubs- a guide for prospective members

Transcription

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