M Private Residences Announces No Dues Increases In 2010

By: Destination Club News
Date: December 26, 2009

Despite Christmas now being 364 days away, M Private Residences is still in the giving spirit and has announced that they will not increase annual dues for 2010. Canada’s largest destination club with approximately 150 members has spent much of 2009 on lowering their operating costs and building reserves to assure the maintenance of their property portfolio.

One of the more fiscally lean destination clubs in the sector, M Private Residences counted more than 50% of their new membership growth through member referrals in 2009 and plans to further membership satisfaction with "plans to purchase a new home for the portfolio in 2010."

One of the fastest destination clubs to adapt to the current market climate, M Private Residences became shareholder owned and operated late in 2008. Former executives Paul Poscente and Ken MacLean stepped down, and while both remain with the club as members, the club’s board was composed exclusively of members.

"It really isn’t a loss for shareholders in terms of management," said Poscente regarding their departure at the time. "There were obviously things I was working on as CEO, and Ken in sales and marketing, that we will continue to work on, of course. We are a quasi-public club and we believed this was a necessary change to the club, and also an evolution of the industry."

"Really, shareholders were happy to get rid of us and lower their cost structure!" MacLean added. "Obviously, though, the board saw value in keeping us around."

For every 275 days sold, M Private Residences purchases a new property with 93% of members’ deposits going towards the acquisition. Currently, M Private Residences offers members access to 17 properties with a large percentage based in Canada, the Caribbean, and the United States. While the club has yet to publicly announce where they are looking to acquire, it will likely be in one of these areas.

Real estate prices in all of these areas have seen steep drops in the past years, allowing destination clubs to purchase at sizeable discounts. Equity Estates has disclosed that they have already enjoyed preferential pricing on their recent property acquisitions, much to the delight of members. The Abercrombie & Kent Residence Club has reduced prices 40% to join their equity destination club with properties available at such a premium.

If you are currently evaluating destination club membership and would like to learn more about the current promotions, incentives, and pricing available throughout the destination club industry, please request a free copy of our Destination Club Guide.