Ultimate Escapes Reactivates Over 300 Suspended Members

By: Destination Club News
Date: August 11, 2009

More than 300 members have been reinstated into the Ultimate Escapes family after being suspended for non-payment following a special member assessment that took place in January.

High Country Club was just days from filing for Chapter 7 bankruptcy. LUSSO Collection was already well into their Chapter 11 filing. Nearly every other destination club in the sector was suffering through one of the worst economic climates in recent history in late 2008 and into early 2009 and Ultimate Escapes was not above the dwindling economy. After making staff layoffs and salary cuts resulting in staffing costs dropping by 30%, the club considered a series of options to put the club in a stronger financial position, including reducing the number of properties, destinations, and services available to members, a permanent dues increase, and a one-time special assessment.

After a thorough analysis of each, Ultimate Escapes elected to move forward with the latter, seeking approximately $22 million from members, a total that would equal 100% of what members paid in annual dues and nightly fees in 2008. The vast majority of the club's members elected to pay the assessment and continued to enjoy the Ultimate Escapes experience, receiving up to seven additional space available reservations annually for the next three years, an increase in the membership's redemption amount, and additional access capabilities for their prompt payment and support.

While most of the club's 1,200 members paid the assessment, more than 300 did not and had their membership suspended. Following the injection of roughly $16 million from club members, Ultimate Escapes cut an additional $15 million from their operational costs and began to again look to the future.

"Issuing an assessment in January was a tough but necessary and prudent decision, and time has shown it was absolutely the right decision to help strengthen the Club for long-term sustainability in an unprecedented economic environment," said Jim Tousignant, Ultimate Escapes' President and CEO in the club's press release. "We want to continue to reward those Members who have been supportive through this process, while at the same time, make decisions that allow the Club to operate effectively for the long term."

This long term plan started with reactivating the club's 300+ suspended members, saying it was "in the best interest of all members and the Club." As part of the Ultimate Escapes' Assessment Repayment Plan, members will be charged their outstanding dues and any unpaid assessment charges, plus 10% annual interest, off of their redemption proceeds once a member elects to resign.

Ultimate Escapes now counts over 1,200 active members and continues to make positive steps towards the closure of their official merger, planned to be announced soon. With the addition of 300 dues paying members and an official merger pending, Ultimate Escapes continues to make headway on the goal they had back at the beginning of the year: long term sustainability.