Exclusive Resorts and Quintess Confirm They Did Not Bid On Ultimate Escapes

By: Destination Club News
Date: October 16, 2010

Last week, Ultimate Escapes Chief Restructuring Officer Sheon Karol reached out to members predicting at least one bidder for the world's second largest destination club as they make their way through their bankruptcy filing.

"I wanted to send this status update to you as we are close to resolution of the future of the company," Karol wrote members. "Tomorrow, October 15, 2010, is the deadline for submission of bids for the purchase of the company’s assets and the auction is set for Monday, October 18, 2010. The sales hearing will be on Wednesday, October 20, 2010. I am pleased to tell you that we believe that we shall receive at least one bid that provides for operation of properties by another company."

Who this potential bid will come from is not yet known, but it will not be coming from the top of the destination club sector as the two largest active clubs, Exclusive Resorts and Quintess, have both confirmed that they would not be purchasing the club.

Organic growth has long been a fixture in Exclusive Resorts operational structure, reaching roughly 3,500 members without any major acquisitions or mergers. Instead of considering the purchase of Ultimate Escapes, the club has introduced a trial membership option for a limited number of Ultimate Escapes members giving 10 nights of access to the club's residences through nearly the end of next year.

While Quintess has actively pursued the club and considered the purchase, instead they have launched DUO, a new destination club available to the public but with their eye on members of Ultimate Escapes at launch. Via a special plan, Ultimate Escapes members will be able to join DUO by paying a charter membership fee of between $12,500 and $26,500 for between 20 and 50 nights of annual access. According to our sources, DUO expects to sell out their first wave of memberships by the end of the month.

The upcoming week should provide much more clarity about the future of Ultimate Escapes, its properties, and members. Check back frequently for more information.