Dividends will be issued either as cash or as a tax-free club credit, which may be applied to a portion of annual dues, nightly fees, golf course fees, ski passes, spa services, airline tickets, private air travel, and limousine services. The real estate holdings, which eventually will have 70 properties in 25 resorts worldwide, will be appraised annually to see if they are appreciating.
Destination clubs are seen as alternatives to second homes and timeshares. Private Escapes Platinum, for example, is based on a member-to-property ratio of approximately five members per property, similar to a country club models where occupancy is designed never to approach 100%. Occupancies, in fact, typically are at 50% or less. This low occupancy model allows members more flexibility to secure the destination of their choice.
Currently, the company has a $1.3-million property on Kiawah Island, SC and has an 85-foot yacht under contract in the British Virgin Islands. It also has a reciprocity agreement with a sister company allowing members to stay in properties in Steamboat Springs and Fox Acres in Colorado, Los Cabos, Mexico, New York City and Lake Tahoe. Soon, it will be adding properties from 22 more cities including Beaver Creek, CO; Cape Code, MA; San Diego; Barefoot Bay, FL; Maui; Laguna Beach, CA; Jackson Hole, WY; Punta Mita, Mexico; Miami; San Francisco; Chicago, Outer Banks, NC; Rome; Napa Valley, CA, Whistler, BC; and Paris.
It costs $180,000 to join. After that, the annual cost is $9,500 and the nightly fees are $125 for the duration of the stay.
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