Destination Clubs Expand Outside The United States
By: Destination Club News
Date: August 28, 2008
The humble beginnings of the destination club industry are rooted just 50 feet from a Telluride, Colorado ski lift. Rob McGrath and two other partners purchased the 29-unit Franz Klammer Lodge in 1996 for $28 million and began selling tenth-share interests in each unit. As opposed to the traditional time-share and fractional interest models that required owners to stay during a particular week, owners could travel whenever the property was available for up to five weeks per year. In its first year, the Franz Klammer Lodge took in $29 million.
Sales for the Franz Klammer Lodge continued and expanded to the Teton Club in Jackson Hole, Wyoming. Although sales remained strong, McGrath believed buyers wanted more destinations, the ability to vacation whenever they pleased, and even more spatial and luxurious accommodations. In 1998, McGrath sold his share to his partners and began a new venture. “I saw the fractional jet industry and the country club model combined as one new idea.”
McGrath’s vision allowed members to access a global portfolio of luxury vacation homes by paying a refundable membership deposit and annual dues. The destination club model had been born in McGrath’s new business venture, Private Retreats.
McGrath’s Private Retreats, Exclusive Resorts, and Portofino were the three earliest entrants into the industry. The now-bankrupt Private Retreats set up its operations in Connecticut while eventual market leader Exclusive Resorts and Portofino found homes in Colorado. In the ten years since destination clubs have opened throughout the United States but also Canada, Mexico, The United Kingdom, Ireland, New Zealand, Singapore and South Africa. The global expansion of destination clubs has also led to an expansion in international marketing by US based clubs and an increase in international real estate acquisitions to court these potential members.
Canada
Based out of Calgary, M Private Residences remains the closest of the international destination clubs. Building a strong list of accommodations in British Columbia, M Private Residences has grown to be a strong player in the destination club world with homes throughout the United States, Mexico, Europe and the Caribbean, averaging over $2 million each.
Diamante Residences also hails out of Calgary and is one of the newest destination club options available. Still in its founding membership phase, Diamante Residences took no time in acquiring their first international home. Located on the Amber Coast of the Dominican Republic, Diamante’s first property is a luxurious five bedroom, 7,700 square foot mansion available exclusively to members.
Exclusive Resorts counts four homes in Whistler, British Columbia amongst their ever expanding list of worldwide residences. Averaging four bedrooms and over 4,000 square feet each, Exclusive Resorts’ members have some of the most lavish accommodations to retire to after a long day enjoy the many activities Whistler has to offer. Both Quintess and the LUSSO Collection plan on following Exclusive Resorts’ cue and purchase homes in Whistler in the near future.
Finally, Moncasa Capital, based out of Toronto, is planning the launch of an all-Caribbean destination club later this year. A fascinating development in the growing Specialty Destination Club segment, Moncasa Caribbean Experience will have properties in several Caribbean locations at launch.
Mexico
One of the most popular destinations for destination club members remains Los Cabos, Mexico. Nearly every club has not one, but multiple homes in the area and each remains among the highest reserved properties in each club’s portfolio.
2004 saw the introduction of the first and only Mexico based destination club in Destinos Exclusivos. Pursuing a Mexico based clientele, the club acquired homes in Ixtapa, Miami, and Marina Real. Destinos Exclusivos never solidified a place in the destination club industry and soon thereafter quietly ceased operations.
United Kingdom
Home to The Hideaways Club, London remains one of the most sought after destinations available. The Hideaways Club models their real estate acquisition after their member’s travel patterns. Nearly all of their nearly 20 properties are located just a short flight out of London. In addition, The Hideaway’s Club boasts some of the most unique destination club locales available between Mauritius, a small island off the coast of Madagascar, and two luxury villas in Turkey.
Also based out of London, Botiga is a new destination club with several unique initial properties including a villa in Marrakech, and two chalets in the Alps. With formal launch planned for Spring 2009, Botiga is now accepting Founder memberships, which include a 2 year waived dues period as special incentive for helping build the club.
Ireland
The Oyster Circle finds their home in Dublin, Ireland and has one of the strongest European offerings currently available. Featuring homes in over 10 countries including Austria, France, Spain, Portugal and South Africa, The Oyster Circle members buy a stake in the company when they join. If a member elects to resign their membership, the redemption amount is calculated by current market value of the real estate.
Both Ultimate Escapes and The Markers Club count Ireland one their list of planned acquisitions for the near future.
New Zealand
One of the few destination clubs with offices around the world, Distinctive Holiday Homes has branch offices in New Zealand, North America, the United Kingdom and France. With homes averaging over $3.25 million each, Distinctive Holiday Homes offers potential clients six different membership options, allowing members to select how much they would like to travel each year. Founder and CEO Nick Wood was a recognized businessman and the largest shareholder of New Zealand’s largest internet service provider before developing Distinctive Holiday Homes.
Distinctive Holiday Homes is planning on introducing their third New Zealand home shortly, adding to their 4,500 square foot lodge outside Queenstown and beautifully furnished apartment in Auckland’s harbor, complete with a 25 foot motor boat.
Singapore
Banyan Tree Private Collection is based out of Singapore, but much like Distinctive Holiday Homes, has satellite offices in China, Japan, and the United Kingdom. A new entrant into the sector, Banyan Tree has already created a global collection of homes and members. Featuring a diverse list of distinct two bedroom villas in locations such as Thailand and Indonesia, Banyan Tree Private Collection memberships are asset backed, held by an independent company.
South Africa
The year 2008 saw the introduction of South Africa’s first destination club, Dream Circle Destinations. Operating one of the most fascinating models in the destination club sector, Dream Circle Destinations will only be operational for 12 years. At that point, Dream Circle will liquidate the 20 plus homes they plan to own and repay membership deposits to members in addition to a percentage of the real estate profits.
Private Retreats focused on selling the destination club concept to a small subset of early adopters. Since then, over 60 destination clubs have attempted to do the same, throwing a gradually wider net around the globe. To learn more about any of these clubs benefits, please consult our destination club directory.
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