Paragon Destinations Eyes Launch

By: Destination Club News
Date: February 24, 2009

From the ashes of High Country Club emerges a new destination club in the sub-$100,000 price range, Paragon Destinations.

"It got started back in August or September when I and several other High Country Club members noted that things were not going well with the club. A lot of things were hidden from members and some of the things we were led to believe were factually inaccurate. I had a fair idea of what prospective members want in a destination club and that translated to a business plan. Once High Country Club filed for Chapter 7, we could step in and fill the void."

Earlier this month, The Veras Group met with Jason Bindra, Founder and CEO of Paragon Destinations, to learn more about the club and its similarities, and notably its differences, to High Country Club.

"From the club standpoint, Paragon will be quite different from High Country Club. We see several things wrong with the destination club industry." began Bindra. "New members are looking at clubs in a different eye than old members. They want security of deposit and more disclosure around how it is being spent."

Paragon will provide exhaustive quarterly and annual updates to members and be fully transparent including current debt and equity, debt obligation, position of the resignation list, and financials details for every property. The club will also feature a two person Board of Members at launch and continue adding approximately one new Board Member for every 100 members. "These two members would have a say in anything member related: new property acquisitions, changes to the club, etc., and would have the power to veto decisions. On the financial side, they are the eyes and ears for members. There will be an open book policy with them."

Following the restructuring and ultimate bankruptcy filing of High Country Club, seemingly lost are the membership deposits of the club's 350+ members. The initial marketing approach of Paragon Destinations will be to help those cast off by collapsed or struggling destination clubs with a cost effective charter membership offer.

Charter members will not be charged a Membership Deposit, but rather pay the club's Initiation Fee. Moving forward, the club will function more like a more traditional destination club, charging a Membership Deposit and an Initiation Fee to join.

"We are primarily marketing to the High Country Club and Ultimate Escapes members," said Bindra. "If everything goes well, in two to three months, the club should be in existence. We have already had about 60 members interested in joining Paragon. A direct offer was sent over last week to all 353 active members of High Country Club via mail."

The club will launch by leasing the properties available to members and transition to owned properties as Paragon approaches the 15 home mark, at which point the club will begin to charge Membership Deposits for new members. The four different membership tiers range from $30,000 to $85,000 and are 80% refundable. Paragon plans to use 75% of each new deposit for real estate, approximately 5% for furnishing and the remaining non-refundable 20% for operations.

Despite High Country Club's bankruptcy, the majority of members were satisfied with the destination club travel experience. With High Country Club no longer in operation, a void in the lower end of the destination club industry has been created.

"Adversity precedes growth." The management team of Paragon Destinations knows the shortcomings of High Country Club better than anyone. Paragon's open financial position, one in, one out redemption policy, and cash flow positive aspirations make for a solid foundation and the wellspring of former destination club members already sold on the concept looking to continue traveling without a large cash deposit make for a rare opportunity for the club to reach their goals in an overall tumultuous market.