Hideaways Club
Resignation and Redemption

Resigning members of The Hideaways Club must remain within the club for three years before they are eligible to leave.

The resigning member informs The Hideaways Club of their intent to leave and are placed on the club's resignation list. For every three new member shares sold, the member at the top of the resignation list is redeemed. Once the club reaches the 600 member mark, members are redeemed on a one in, one out structure.

If a resigning member introduces the club to a prospective member who elects to join, the club will transfer the membership to the new member, subject to the new member meeting the club's requirements and Board approval.

The redemption policy used at The Hideaways Club is unique in the destination club industry and can potentially provided for a very advantageous refund to resigning members. According to the club, "The exiting Member will receive the full amount less 20% of the increase from the price the share was originally acquired at. This 20% is the management’s share of the gain generated during the membership. The exiting shareholder benefits from 80% of the gain. There is a further administration cost of 5% of the net proceeds which covers the marketing costs of bringing in the new Member. This 5% is not charged if the Member introduces the new shareholder himself."

Essentially, a resigning member receives 80% of the difference between the price point at which they joined and the prevailing market price the club is selling.

Understanding the details of resigning a destination club membership should be a chief concern when conducting your evaluation of a club. To learn more about the resignation models used throughout the industry and to receive a free list of suggested due diligence questions to ask regarding redemption, request a copy of our Destination Club Guide.