Grand Resort Properties Considers Options Following Bankruptcy

By: Destination Club News
Date: January 28, 2010

Earlier this month, Grand Resort Properties, an Omaha based destination club, filed for bankruptcy. We have contacted club Founder and CEO Brad Brown to discuss how the club will move forward.

"Grand Resort Properties has filed for Chapter 11 and we are in the process of developing a new business model," Brown began. While working towards this new business structure, Grand Resort Properties is also considering other ideas, including an acquisition or merger with another destination club. "I feel there could be an opportunity here for both parties," Brown would continue about a possible union with another club.

The Grand Resort Properties bankruptcy is the first in 2010 for the destination club industry, and comes nearly a year to the day of High Country Club's bankruptcy announcement.

While the specifics of the "new business model" were not elaborated on, it would likely require higher annual costs for members in terms of annual dues and nightly fees, a reduction in total services available to members, restructuring of agreements with lenders, and/or a reshaping of the club's ownership.

According to Brown, Grand Resort Properties has 41 members and ownership in several properties, including:

  • Lake of the Ozarks, Missouri
  • Beaver Creek, Colorado
  • Scottsdale, Arizona (1/3 ownership)
  • Cabo San Lucas, Mexico
  • Cabo San Lucas, Mexico (1/6 interest)
  • Steamboat Springs, Colorado (New construction)

While the properties within Grand Resort Properties portfolio are all stunning, the 40+ properties will likely be the major talking point for any clubs pursuing Grand Resort Properties.

Everlands, a conservation focused destination club, agreed to a special offer to give their 40+ members preferred membership terms to join Ultimate Escapes last year. "We are offering very special membership values that will benefit Everlands members as well as all stakeholders in Ultimate Escapes," said Ultimate Escapes President and CEO Jim Tousignant.

Grand Resort Properties has asked us to reach out to some of the industry's leading clubs to make introductions and to open more possibilities as they continue to develop their new business model. Check back frequently for more news on Grand Resort Properties and the rest of the destination club industry.