Equity Estates President Adam Capes Appears on Fox Business

By: Destination Club News
Date: June 25, 2010

Adam Capes, President of Equity Estates, appeared on Fox Business on Wednesday of this week to discuss his equity destination club, comparing the structure to one of the most widely known vacation options available: timeshares.

"I think I get what you are doing. It is kind of like timesharing, isn't it?" began Host David Asman.

"It's a little different from timesharing, David, because our homes are private villas and residences in some of the most sought after destinations around the world and generally $3 million homes on average," Capes replied. "Our owner members can go to the properties really whenever they want based on availability, which is very high in our portfolio."

Timeshares are typically the first concept that comes to mind for those new to the destination club model. Fox Business goes as far as describing the short interview as "Equity Estates President Adam Capes on how he is revamping the idea of a timeshare." While both are a form of shared usage, timeshares traditionally are shared across more than 50 owners, each with one specific week of travel each year. Destination clubs typically have a member to property ratio of six members to every property. While timeshares approach 100% occupancy because of this high owner to property ratio, destination clubs properties are available roughly 30 to 40% of the time. As touched on by Capes, the accommodations for timeshare owners and destination club members are also radically different. The majority of timeshare units are one to two bedroom units and most timeshare owners must return to the same property year after year. Destination club members have access to an ever growing collection of vacation properties, often including up to five bedrooms, whenever they wish, subject to availability.

Capes would go on to describe the fees associated with membership: a refundable membership deposit paid when joining and annual dues for every year a member remains with the club.

"Our owner members have made an investment that is a small fraction of the price of what they would pay if they were buying any one of these individual homes. The annual dues they pay are a shared cost of the expenses of maintaining these homes and all the services we offer."

These services include pre-travel planning, grocery shopping prior to arrival, and on-site concierges to provide an insider's perspective to the destination and for any last minute needs while in residence, all services not typically available to timeshare owners.

If you would like to compare destination clubs to other luxury travel options, such as timeshares, villa rentals, and second home ownership, request a free copy of our Destination Club Guide.