The Suite Life

One of the main drawbacks to investing in vacation property is that some sort of ownership and maintenance is usually required. Whether it’s a time-share, a pied-a-terre, or a second home, each can often drain the relaxation out of your vacation.

Thus, destination clubs were born. While at first they had a rocky start, these exclusive, high-end clubs give luxury travelers the chance to feel at home around the world. With a hefty deposit (which NY Times says runs anywhere from 50k to 1mil) club members can access homes in top travel destinations for extended stays. From Los Cabos to Cairo, club members can enjoy the privacy and luxury amenities of the club-owned homes and ideally without enduring the competition of typical high travel seasons.

However there is a great variety in the availability, price and size of the destination clubs and they can be risky endeavors. The smaller clubs face less competition and more select properties, but also are more susceptible to risky investors who quickly find they can’t finance such high dues. Larger clubs are not as expensive, but also have to host more properties to meet larger membership demand, and often the properties are not equally luxurious. There is also the difficulty of securing the luxury properties that in top destinations are often very pricey and hard to come by. Especially when exclusive membership also means very high expectations.

To combat the substantial risks and to find a balance between the need for membership growth and need for exclusivity (after all why spend 500k for a luxury beachside bungalow if you are just one of 15 just like it on the block), the clubs have begun some self-regulation measures to ensure their success such as annual resource evaluations and standards.

Plus, there are some perks of being a club member. Not only do you get unique, spacious accommodations in a hot destination, but there is concierge service to help you plan get-togethers, special outings and more ensuring you do get what you pay for (at least for the most part). When the stakes are high, the results can sky-rocket you to a new level of luxury travel, but then again, what goes up must come down…

Visit Perfect Escapes to find luxury accommodations for your next vacation in top destinations around the world:

New York City

Mexico

Hawaii

London

Paris

Hong Kong

By Sarah Ziering for Perfect Escapes

Luxury travel isn’t just limited to fancy hotels, high-end restaurants, the best shopping, and the most exclusive beaches. These days, if you have the money to spend, you can afford to trump even the highest of high-end and reserve time in some of the most fantastic homes all over the world. ForbesTraveler published an article about the rise of these Destination Clubs, but at Perfect Escapes, we also give you direct ways to find out more information from the top of the business - the Helium Report.

Perfect Escapes has partnered with the experts at Helium Report to offer our members free access to Helium’s popular Decision Guide to Destination Clubs.

If – like many frequent guests of luxury hotels – you have considered the benefits of high-end destination club membership as an alternative to owning a vacation property, you can’t afford to miss this opportunity. This 50-page report compares the benefits of all 24 destination clubs listed below, and provides the answers you need to make a smart decision. Helium analysts interview club executives, speak with members, and compare the different options.

The Decision Guide to Destination Clubs explains the risks and rewards of membership. Learn more about member-to-home ratios, holiday reservations, definitions of key terms, and how destination clubs can actually be cheaper than staying in a luxury hotel. An invaluable resource, the guide also includes 175 questions you need to ask before joining any destination club.

You can find information on the following Destination Clubs in the Helium Report:

Ultra-Luxury Destination Clubs
• Yellowstone Club World
• Ciel
• Solstice
• My Global Playground

Luxury Destination Clubs
• Premier Destinations
• Exclusive Resorts
• M Private Residences
• The Hideaways Club
• The Oyster Circle
• Quintess, The Leading Residences of the World
• Crescendo
• The LUSSO Collection
• Private Escapes Pinnacle
• The Markers
• Portofino Club
• Ultimate Resort
• Private Escapes Platinum
• BelleHavens

Premium Destination Clubs
• Portofino Club (Signature)
• Private Escapes Premiere
• High Country Club
• Fly Fishing Destinations

Below is an abstract of the Forbes Traveler artcle - The Rise of Destination Clubs:

“As family travel has grown in popularity, so have destination clubs, which offer affluent vacationers a relatively new way to travel. The major selling point: destination clubs offer both the space and privacy of private homes as well as all the services that come with staying at a luxury resort.

Unlike fractional residences or timeshares, destination clubs for the most part do not give members an ownership stake in real estate (though there are a couple of exceptions to this rule, including BelleHavens.). Rather, the typical destination club is structured more like a country club, with members on average paying anywhere from $200,000 to $400,000 in the form of a membership deposit (usually 80% refundable), and annual dues that range from around $15,000 to $30,000 on top of that. This sizeable investment allows the use of whatever properties the club owns for a set number of days in a year, with locations from the Bahamas to Tuscany. Clubs typically offer concierge services such as stocking the fridge, housecleaning and helping with travel arrangements.

The industry was launched in 1998, with a company called Private Retreats that is no longer in existence (more on that later). Now there are more than 20 clubs, according to industry consulting firm Helium Report. The largest club by far is Exclusive Resorts — chaired by America Online co-founder Steve Case — which boasts about 2,500 members and more than 300 properties, for about a 65 percent share of the destination club market. The membership fee to join Exclusive Resorts is $475,000, and annual dues are $27,500. The second-largest club, Ultimate Resorts, has 775 members and 105 homes in 26 locations (membership deposit $215,000; annual dues $22,000).

There are a handful of clubs that focus on travelers with a particular interest, such as fly-fishing or golf. And there are some super-luxury clubs with a very limited membership and only a handful of homes. One example: Solstice, with 9 homes (plus one under construction) with an average value of $6 million, and a membership of deposit of $875,000 plus annual dues of $42,000.”

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