Luxus Vacation Properties Closes In On Important Benchmarks

By: Destination Club News
Date: October 4, 2009

Created in 2007, Luxus Vacation Properties is approaching several key benchmarks regarding the growth of their young club. Based out of Alberta, Canada, Luxus primarily focuses on an affluent base of Canadian members for their equity destination club and continue to see gains in a soft economy that has already claimed many destination clubs.

100 Investor Members
While several other destination clubs have ceased operations over the past year, claiming that new membership sales were a "virtual impossibility," Luxus Vacation Properties continues to quietly grow their club organically and plan to cross the 100 member barrier in the near future.

"Our Limited Partnership currently has nearly 100 investors with an equity position and has achieved positive growth and success during one of the most tumultuous economic years in recent history," the club said. "While other clubs in the industry continue to work to find their footing, Luxus continues to see positive growth and is blazing forward towards its goal to provide Owners with a solid, transparent investment opportunity and a whole new world of incredible vacation experiences."

Luxus members are owners in "an exclusive Partnership that holds a multi-million dollar portfolio of luxury private residences around the world." The club is structured as a Limited Liability Partnership and plans to operate for 11 years before liquidating the club's real estate assets. Luxus members will receive 75% of the gains and the club will take 25% of the appreciation on the properties.

"Despite the recent economic climate, we are currently experiencing a surge of new activity with several New Partners joining Luxus over the past several weeks and many new qualified Prospects," Luxus continued.

1,000 Vacations
As Luxus approaches the 100 member mark, they are also closing in on the 1,000 vacations plateau. With a dedication to a strong financial business model and sustainable operations, Luxus takes a different approach than the majority of other destination clubs. The club does not have local concierges at each of the properties to keep annual dues low and annual expenses lean. 91% of members' capital contributions go towards real estate acquisitions and furnishing and Luxus strives to operate the club with a small staff to further protect the members' investments. "Our Management Company has a relentless focus on keeping costs controlled and ensuring that Partners see maximum value for their investment dollar."

Reaching the level of 1,000 vacations allows the club and their service team to continue to streamline the service component and gain economies of scale. This also shows that members of the young club are accessing the properties available to them at a healthy rate as the club is quoting a year to date occupancy level of 62%.

Property Acquisitions
Having just made their 14th residence available to members, a property located in Ka'anapli Beach in Maui, Luxus will soon close on two properties in the City Center development of Las Vegas. With properties at some of their lowest values in recent memory, Luxus and other destination clubs looking to bolster their portfolio, are seeing monumental discounts on luxurious properties.

Luxus Vacation Properties is one of the most exciting clubs in the destination club industry, and the past quarter has provided signs that many clubs, like Luxus, are seeing increased interest following a turbulent 2008 and 2009.

If you would like to be put in touch with Luxus Vacation Properties or to compare the various destination clubs in the industry to one another, request a free copy of our Destination Club Guide.