The Hideaways Club Launches

By: Destination Club News
Date: January 29, 2007

"After years of frustration encountered from owning and running holiday homes, with the restrictions of always returning to the same destination, or the disappointment of taking luxury vacations that failed to live up to our expectations, we knew there must be a better solution. So The Hideaways Club was born."

Founder and CEO Stephen Wise introduced the genesis of Europe's newest destination club today, evolving the successful destination club model pioneered in the US but with a distinct European focus. The Hideaways Club plans to acquire their initial property collection of £1m residences with a decidedly European focus, where each property will be within a four hour flight time from the United Kingdom. Members will be able to begin accessing the club's properties in May, with plans to expand into destinations such as Croatia, Cyprus, Southern France, Majorca, Italy, Portugal, Switzerland, Turkey, Spain, and Morocco.

Working with "over 40 people already going through the membership process," The Hideaways appears to have hit the ground running. Two of the club's initial twelve properties have already been purchased, while four others have already had their offers accepted. The remaining six are still under negotiation, each averaging over 2,500 square feet and four bedroom, three bath configurations at a minimum.

As part of the club structure, members will also be shareholders in the club's properties. "The club eliminates the downside of sole ownership and offers members the opportunity to enjoy a wide range of luxurious properties in Europe and the Mediterranean, combined with a level of service and care that exceeds expectation. The share in the upside when the value of the property portfolio increases makes the club an interesting investment as well as a wonderful way to holiday," continued Wise.

This share in the upside allows a member the opportunity to receive more than they initially paid in if they elect to resign from the club. To determine the redemption value of a membership, The Hideaways Club will use two factors: the purchase price the resigning member paid and the market rate the club is offering to new members at the time of the resignation request. If the club has increased their membership prices since the resigning member joined, that member would receive the amount they originally paid plus 80% of the difference between their purchase amount and the then current membership rate, allowing a member the opportunity to enjoy significant appreciation on their membership.

While it likely won't get the most press regarding the club's launch, The Hideaways Club has £15m in initial financing from the founders and Investec. Many destinations clubs launch dangerously undercapitalized and are immediately dependant on new membership sales to meet their costs.

The Hideaways Club executives have a wide range of business experience. Mike Balfour is the Founder and Chairman of the health club change Fitness First. John Lovering is the Chairman of both Debenhams and Somerfield. Patrick Henchoz is the Founder of the health club Esporta and was formerly the Operations Director at Country Club Hotels. Helmut Schön is an experienced venture capitalist and Stephen Wise is a former Bain & Co management consultant.

We look forward to seeing how The Hideaways Club progresses as several existing US based clubs continue to add new members in the European market. If you would like to compare The Hideaways Club to other destination clubs, request a free copy of our Destination Club Guide.