The Ritz-Carlton Destination Club and Abercrombie & Kent Residence Club Forge Partnership

By: Destination Club News
Date: October 27, 2010

Two of the biggest names in the world of travel, let alone the destination club industry, have announced a strategic alliance that will greatly expand on the travel experiences available to members of both clubs. The Ritz-Carlton Destination Club and the Abercrombie & Kent Residence Club have entered into a reciprocal agreement where members of the Ritz-Carlton Destination Club will have access to the 17 Abercrombie & Kent Residence Club residences in North America while Abercrombie & Kent Residence Club members will be able to convert their nights for use at ten Ritz-Carlton Destination Club residences, effectively bolstering both portfolios.

"Beyond our exceptional Ritz-Carlton Destination Club properties, it is our mission to continually offer our discerning Members the finest partners and most exclusive vacation experiences," said Peter Watzka, the Executive Vice President and Chief Operating Officer for The Ritz-Carlton Development Company, Inc. "We see this relationship as a tremendous first step in building a worldwide, branded network of exchange and travel services for the destination club segment."

"Additionally, we see our alliance with Abercrombie & Kent Residence Club as a logical extension of the newly formed relationship between The Ritz-Carlton and Abercrombie & Kent brands announced with the launch of The Ritz-Carlton Rewards program last month," Watzka added.

Abercrombie & Kent Founder and Executive Chairman Geoffrey Kent echoed Watzka's comments. "This exclusive relationship demonstrates our commitment to expand the range of destinations and luxury vacation experiences our members can enjoy around the world. Both clubs were founded on an equity model, a fundamentally more conservative choice than other clubs in the industry."

As touched on by Kent, the Ritz-Carlton Destination Club and Abercrombie & Kent Residence Club are two of the leading equity clubs in the destination club industry, each with their own twist on the concept.

Members of the Ritz-Carlton Destination Club are deeded owners in a secured real estate trust. The Abercrombie & Kent Residence Club is structured so that members actually own the club.

On June 3, 1932, Lou Gehrig became the first player in the 20th century to hit four home runs in a game in what should have been page one material. Unfortunately, long time manager John McGraw announced his retirement the same day, stealing all the headlines. The news of an alliance between Ritz-Carlton and Abercrombie & Kent would ordinarily be at the top of everyone's interest list in the destination club industry, but similar to Gehrig, most have their eyes on another situation at present: the Ultimate Escapes bankruptcy and the subsequent agreement with Demeure.

We look forward to reporting more about this new partnership in the coming weeks, so check back soon for more details.