The Discovery Club Introduces Financing Offer

By: Destination Club News
Date: January 21, 2009

Canadian based The Discovery Club has introduced a new financing option for luxury travelers looking to join their growing destination club.

"Many people we talk to want to join the club but are hesitant to disturb their other investment funds until some recovery is experienced," says Kevin Walker, The Discovery Club's Founder and Owner. "They have been looking for a financing option through traditional sources; however most lenders seem to be hesitant to loan funds to even their best customers. We have decided to step up to the plate and provide this lending opportunity ourselves."

Under this financing option, members will put down a payment of at least 20% of the purchase price. The remaining unpaid amount will be paid in monthly installments for up to ten years.

"It is a remarkable opportunity that probably would never have been offered but for the difficult economic environment many prospective members find themselves in and, of course, the success and financial strength of The Discovery Club itself," continues Walker.

Members will have full privileges at the time of their initial payment. According to the club, only a limited number of these memberships will be made available and participants will be subject to credit approval.

Unlike the standard destination club model where homes available to members are owned by the club, The Discovery Club has an "affiliate property" network that provides members access to a collection of five star hotels, resorts, and travel experiences around the world. This type of club structure allows the club to rapidly grow their property portfolio without incurring the high cost of property ownership.

With many clubs built around the more traditional destination club model stumbling, including the bankrupt LUSSO Collection and the restructuring High Country Club, the possibility of more new clubs adopting similar philosophies is likely. On the other hand, One Key World, the club most noted for a structure similar to The Discovery Club, announced that they ceased operations earlier this week.

In addition to these destination club models, a growing number of clubs are building around an equity structure, which also has their own set of benefits. No matter the design, conducting a due diligence evaluation of clubs you are considering is crucial to better understand both the travel benefits and the security of your membership. If you would like to receive a list of questions that we suggest you ask when speaking with a club, please request a free copy of our Destination Club Buyer's Guide.