Equity Estates 2009 Year In Review

By: Destination Club News
Date: March 2, 2010

Last week, we recapped Exclusive Resorts 2009 year in review. Today, we move from the world's largest destination club to one of the world's fastest growing destination clubs, Equity Estates.

While many destination clubs in the industry saw sales slow to a virtual halt during the course of the year, Equity Estates grew by another 40% in 2009, adding more than 30 members representing 21 full membership equivalents. Like Exclusive Resorts, who closed 2009 with their best month of the year, Equity Estates posted a strong fourth quarter in terms of new membership growth, with one quarter of new members coming from other destination clubs.

"I think our growth is extraordinary given that 2009 represented not only the largest downturn ever in the sector, but perhaps the worst overall year in recent economic history," said Adam Capes, Co-Founder of Equity Estates. "Our success is a testament to our unique model and our commitment to creating outstanding vacation experiences."

New membership growth remained strong for the club throughout 2009, as did their real estate acquisitions. In 2009, Equity Estates added over $8 million in real estate with acquisitions in Telluride and Hilton Head. While not announced until 2010, Equity Estates and The Hideaways Club, Europe's leading destination club, announced a strategic alliance that allows members of both club's reciprocal access to the other club's property portfolio. Through the club's new properties and their partnership with The Hideaways Club, members now have access to over 30 properties spanning 13 countries.

New membership growth and property acquisitions may be the headlines, but the most important gain taken from 2009 lies in the club's model. During the course of 2009, Equity Estates has managed to reduce their leverage to below 20% of total assets and expects to be debt-free by the end of the year. In addition, Equity Estates currently has no members on their resignation list.

"We ended 2009, a perilous year for many, at the top of the industry in regards to performance and yet see endless opportunities for success in 2010 and beyond," said Philip Mekelburg, the club's Co-Founder. "Our growth this past year shows that we are not only the most successful organization in the luxury second home alternative industry, but by far the model that most appeals to savvy buyers."

We spoke to Mekelburg last week about the club and Equity Estates is planning on releasing more positive news about the growth of their club in the near future. Check back soon for more information as it becomes available.

If you would like to compare Equity Estates to other destination clubs, request a free copy of our Destination Club Guide for additional insight into the benefits and risks of membership, comparisons to other luxury travel options, and a list of suggested due diligence questions to discuss when speaking with a club.