Distinctive Holiday Homes' Nick Wood Discusses Changes in the Destination Club Industry

By: Destination Club News
Date: February 3, 2009

The Veras Group stole a couple of minutes from the always busy schedule of Nick Wood, President and CEO of Distinctive Holiday Homes, to briefly discuss the pending $1 million portfolio of homes planned to be added to the Distinctive Holiday Homes' portfolio, changes needed to the destination club industry, and Nick's thoughts on joining the Destination Club Association.

The Veras Group: When we last spoke, you had indicated a possibility of acquiring and beginning to operate a portfolio of homes in the $1 million price range. How have those plans developed?

Nick Wood: We are still pursuing this plan and we hope to have six to nine properties in the Americas up and running by the end of May.

The Veras Group: Given the happenings at Ultimate Escapes, do you have plans to create an offering for Ultimate Escapes members who may want to switch clubs?

Wood: We plan to offer a "pay as you go" plan to all destination club refugees. It will be the same offer we made to the High Country Club members, but across most of our plan levels.

The Veras Group: What are your plans and goals for 2009 regarding Distinctive Holiday Homes?

Wood: We are focused on developing more of our cash flow positive properties, and will focus on consolidating members from other failed clubs. We will do some targeted marketing in some of our key markets along with other third parties we have marketing relationships with such as American Express.

The Veras Group: Could you explain the operating philosophy utilized by Distinctive Holiday Homes? Do membership deposits get used for operations? Do dues cover operating expenses?

Wood: We have cash flow positive components of our business which generate positive cash flow to cover operating expenses. We also use the annual dues and the 20% non-refundable part of our membership deposits. The 80% refundable part is used to acquire property assets. We maintain a substantial cover on members' deposits, which currently exceeds $8 of net assets to every $1 of refundable member deposits.

The Veras Group: What level of financial disclosure do you provide to members and prospects and do you plan to change this?

Wood: We provide currently a net asset test, and we plan to offer some more detailed information once we complete our first audit, which will be our 2008 year.

The Veras Group: Are you still looking to join the Destination Club Association?

Wood: At this point in time, this is not a priority for us.

The Veras Group: What changes have Distinctive Holiday Homes made recently, if any, to react to the current economic climate?

Wood: We, like many other destination clubs, have acted responsibly and cut costs in areas that are not required during this current economic cycle. Our focus is to operate a strongly cash flow positive business which can continue to increase its property portfolio, taking advantage of the very good opportunities in the market today. Our focus is to be able to do this, irrespective of any membership growth.

The Veras Group: What changes do you think need to be made by other destination clubs to weather this financial storm?

Wood: All clubs need to be able to operate on the basis of no new membership sales and operate within the cash flow provided by operational revenue.

The Veras Group: Any other news coming from Distinctive Holiday Homes we can report?

Wood: Nothing I can talk about...just yet.