Diamond Equity Estates

Part of Diamond Bay Holdings, Inc., a holding company that also included career, telecommunications, and internet marketing subsidiaries, Diamond Equity Estates would be one of many destination clubs introduced to the market that never progressed past launch.

"DBHD is a global holding company with subsidiary operations in diverse yet complementary industries that currently include telecommunications, luxury real estate, Internet marketing and career services. The company recently began trading on the OTC Pink Sheets and has been introduced at a price level that is likely to attract many investors."

Ultimate Escapes is widely known as the first publicly traded destination club, but Diamond Equity Estates would be the first to have major ties to Wall Street.

"Diamond Equity Estates plans to operate an exclusive vacation destination club known as the Diamond Equity Club. This exclusive Club will offer two distinct membership categories: Destiny and Equity. Destiny members pay a minimum initiation fee of $150,000 and are entitled to specific usage privileges at the company 's resort facilities during the year. Equity members pay an initiation fee of $500,000, and in addition to usage privileges, they also take an ownership stake in selected Club properties. Equity members are able to resell their stake, much as they would with any real estate holding."

Limited to 250 Destiny members and 50 Equity members, Diamond Equity Estates would use the estimated $62.5 million in member contributions to purchase, maintain, and operate the club's residences.

According to Diamond Bay Holding's President, Jeffrey Guzy, the club was "planning on acquiring properties such as private wineries, castles, ocean and ski resorts and other, similar properties that will enable our members to experience the very finest in vacation luxury."

The minimum initiation fee of $150,000 was reduced from $200,000 early in the club's history. "We are in the final stages of contract negotiations on two very exclusive Destiny properties and expect to finalize pricing and contracts before the end of the first quarter of this year," said Guzy early in 2005. When pressed further, the club would not reveal the terms of these contractions or even their countries.

It seems that Diamond Equity Estates would plan to acquire these introductory properties through new membership sales. Recruiting new members without any properties is often a very difficult task. From the public side of the equation, shares in DBHD were selling for roughly $0.17.

Neither of the properties that the club had planned to purchase were acquired and Diamond Equity Estates ceased operations before making any headway in the highly competitive destination club space.

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