Solstice Collection and Parallel Announce Merger
By: Destination Club News
Date: November 22, 2006
In a merger of equals, Solstice Collection and Parallel, the industry's two largest ultra-luxury clubs, have joined forces to create a singularity at the top of the destination club sector.
The combined club, which will use the Solstice Collection brand moving forward, will include nearly 80 total members, roughly 40 from the original Solstice and nearly 30 from Parallel. The ultra-luxury Solstice had originally planned to limit their club to just 42 members, but with the merger, it appears the club will move forward well beyond that original benchmark.
"What began as casual conversations between two respected industry peers quickly elevated to recognition of complimentary assets that, when combined, would create the undeniable elite destination club in the world," the club wrote, referencing a meeting between Solstice Collection's Graham Kos and Parallel's Tim Wolff. "We believe that the premier destination club should deliver architecturally significant and uniquely appointed homes, backed by a high level of personalized service, financial transparency and member deposit protection. The new Solstice marries Solstice’s growing collection of remarkable homes with Parallel’s best-in-class services, resulting in a member experience unmatched by any club model, or for that matter, outright ownership. Further, Solstice continues its commitment to provide the highest standards of financial transparency to its members, and now introduces, for the first time in the industry, a choice between two deposit reimbursement models based upon each participant’s financial goals."
These two reimbursement models will allow members the opportunity to either receive 100% of their membership deposit refunded to them when they elect to resign their membership or 80% of the then current value of their membership, allowing members the opportunity to receive more than they originally paid to join if the club increases their prices more than 25%. In January, the club plans on increasing the prices for their three membership plans by approximately 6% each, making it an attractive time to buy for those looking at the 80% of the future value membership structure.
The new Solstice will bring together 10 homes averaging $6 million each and a 90 foot Dover motor yacht, all available exclusively to club members. Currently, the club boasts properties in popular vacation destination such as Aspen, Cabo San Lucas, St. Barths, London, and Paris amongst others. According to the merger frequently asked questions, the club is currently evaluating properties in New York and Hawaii with Costa Rica, Kiawah Island, and the Swiss Alps also under consideration.
Moving forward, the club will be under the guidance of executives from both Parallel and Solstice. The primary executive team will consist of:
- Chad Morse (Parallel) - Founder and Chief Executive Officer
- Graham Kos (Solstice) - Founder
- Tim Wolff (Parallel) - Founder
- Jeffrey Scult (Solstice) - Founder and Managing Director, Membership & Alliances
- Mark Cibik (Parallel) - Managing Director, Membership
- Mark Cain (Parallel) - Managing Director, Marketing
- Michel Ducamp (Parallel) - Managing Director, Hospitality
The merger cements Solstice as the undisputed leader in the ultra-luxury segment of the destination club industry, but they aren't without competition. J. Joseph Rickett's Ciel is looking to close the gap with a collection of $10 million vacation properties available to club members.
If you are currently considering destination club membership and would like to make comparisons between several clubs, request a free copy of our Destination Club Guide, where you will receive suggested due diligence questions, a history of the sector, pros and cons of membership, and backgrounds about each major club.
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