Ultimate Escapes Expects To Remain Listed On NYSE

By: Destination Club News
Date: February 9, 2010

Ultimate Escapes, the world's first publicly-traded destination club, will remain listed on the New York Stock Exchange, pending the completion of their planned public offering. When the club closed on the acquisition of Ultimate Escapes Holdings LLC, the Exchange notified that it had failed to satisfy some original listing standards. Ultimate Escapes appeared before a panel late last month and advised them that a registration statement had been filed with the U.S. Securities and Exchange Commission for a secondary public offering that should enable the club to meet all applicable original listing criteria.

Earlier this month, the panel issued their decision. The Exchange Staff will continue with the "delisting procedures without prejudice to the Company going through the initial listings process once it has definitively met the initial listings criteria." The suspension would go into effect on February 17, 2010, unless Ultimate Escapes completes the planned public offering and meets the applicable listing requirements on or before February 16, 2010.

On February 4, the Exchange Staff notified Ultimate Escapes that could file an Original Listing Application, which Ultimate Escapes filed the next day.

Since it was first announced that Ultimate Escapes would go public, it has arguably been the most newsworthy destination club in the sector. In recent weeks, the club has hired a new Chief Operations Officer and Chief Sales and Marketing Officer to further their leadership team. New members have also been able to take advantage of one of two lucrative incentives over the past several months. Members have been able to receive free annual dues or free airfare during their first year of membership.

While the second largest destination club in terms of total members, Ultimate Escapes actually has more total destinations than any other destination club. The club has already added a property in Florence this year and an ultra-luxury villa in the Dominican Republic through a partnership agreement with Villa Castellamonte del Mare late last year.

We have been in contact with multiple upstart destination clubs who are closely monitoring how Ultimate Escapes progresses as the first publicly-traded destination club. The new model pioneered by the club is being considered by several of these new ventures and how Ultimate Escapes fares in their first year as a public company will play a major role in how these new clubs launch and the models they will use when they do enter the industry.

For more news on Ultimate Escapes and the rest of the destination club industry, check back soon. If you are currently considering destination club membership and would like to learn more about the benefits and risks of membership and to receive a list of suggested due diligence questions to ask when speaking with a club, request a free copy of our Destination Club Guide.