2010 Recap: M Private Residences

By: Destination Club News
Date: January 25, 2011

For the past several years, M Private Residences has made sustainability a cornerstone of their model. While significantly larger clubs such as High Country Club, LUSSO Collection, and Ultimate Escapes have all filed for bankruptcy, M Private Residences has continued to break down, analyze, and reduce costs to make sure that their members' funds are protected. After achieving many of their goals on the financial side, they are ready to reemerge on the sales front and again organically grow their club.

"During 2010, we decreased our debt by $400,000," said John Beckel, General Manager of M Private Residences. "That was $200,000 more than we anticipated due to accumulated surpluses in 2010. Because of this, we were able to further reduce the cost of running the club, translating to a $4,000 reduction in annual dues for each member. That equates to approximately 12% even with the addition of our newest property in La Quinta."

Late in 2009, M Private Residences announced that there would be no annual dues increases for 2010. This announcement was in stark contrast to the rest of the destination club industry, where nearly all were increasing annual dues for members to remain in operation. As referenced by Beckel, the continued efforts throughout 2010 by M Private Residences not only allowed the club to maintain their annual dues rates, but reduce them.

"All of these new programs have been very positively received," Beckel continued, "And the proof is in the pudding. Since we introduced the program that allows our members to sell on the open market, we have facilitated 12 transfers and we are looking to develop new membership sales in 2011."

Dovetailing off of those comments, we inquired about what were the setbacks the club saw for 2010. "Liquidity for our existing members," Beckel responded. Like many other destination clubs, new membership sales have been difficult over the past 24 months given the state of the economy. Fortunately, it does appear that there is a light at the end of the tunnel as many clubs enjoyed banner months to close out 2010.

Beckel was kind enough to provide his candid insights about the goals and plans for M Private Residences in 2011. Check back soon for more in our 2010 recap and 2011 outlook articles on all of the major clubs in the industry.

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