Destination club Ultimate Escapes to be acquired by public company

In the latest news from the sometimes troubled luxury destination club market, the leading club in terms of properties -- Ultimate Escapes -- is getting a big new public partner.

Secure America Acquisition Corp. has announced it is about to invest a minimum of $20-million in Ultimate Escapes, which itself is in the process of absorbing Private Escapes, another destination club. Ultimate is the second largest club in terms of number of members, with more than 1300 members. (Number One is Exclusive Resorts, with more than 3,000 members.) The club has handsome homes in desirable locations such as Nevis, pictured above.

The deal means that Ultimate Escapes not only gets a cash infusion but becomes a public company. Time will tell if that is good for members. In the short run, it undoubtedly is good for Ultimate Escapes, which lost over $15-million last year,according to the Washington Business Journal. As for Secure America, its previous acquisitions have been in the field of homeland security. Guess you could call this one "vacation homeland security."

Destination Clubs failing? LUSSO and Yellowstone bankrupt -- Who is next?

The LUSSO Collection, one of the "destination clubs" that offers wealthy vacationers a choice of private homes around the world, has filed for bankruptcy in Minnesota, according to Halogen Guides. LUSSO has homes in 16 prestigious locations around the world, and will continue operating, according to a statement given to Halogen. But the chatter among owners in luxe land suggests everyone is wondering which club will be the next into bankruptcy court. Exclusive Resorts, the largest of the clubs, has apparently laid off staff. The Yellowstone Club, the private Montana ski resort that was a poster child for ultra-rich digs in flush times, and which grew into a network of 10 resorts worldwide, filed for bankruptcy in November, Other clubs are said to be raising their rates and fees. Stay tuned.

"Best:" Exclusive, Quintess, Solstice

Would you choose a destination club simply because it was named "Best of the Best" by the luxury-goods magazine Robb Report? Of course not. Still, it is undoubtedly a good selling point for Exclusive Resorts (best "full-size" club), Quintess ("mid-sized") and Solstice ("boutique") to advertise in looking for new members. The Best of the Best June 2008 issue notes that instead of 10 properties promised a year ago, Solstice winds up with 14 (including one at Villa Dolce in Florence, shown above) plus a 90-foot yacht, for its 92 members. By comparison Quintess has 425 members at over 80 homes, while Exclusive has a whopping 350 homes and more than 3,000 members.

A & K Rejoins Luxe Vacation Home Biz

News of consolidation in the luxury shared vacation home field -- two leading outfits, Crescendo and BelleHavens, have been acquired by Abercrombie & Kent, which will thus become a big player in the destination club market. Sound familiar? A & K, a subsidiary of Fortress Investment Group, lent its name to an earlier club that later morphed into the infamous Tanner and Haley. That club went bust into bankruptcy in August 2006, leaving some very angry rich folks in the lurch. The difference now: the new club's portfolio of homes will be owned debt-free, which was the selling point of BelleHavens. And that's a good thing in the current mortgage-wary business climate.

Top dog in the destination club kennel remains Exclusive Resorts. Last September number two and three Ultimate Resort and Private Escapes announced they would merge.

An Abercrombie and Kent spokesman said it will roll out new membership options this summer. Most such clubs offer several tiers, with the most days and best choices going to those who pay heftiest annual membership fees. Presumably members will be able to take advantage of A & K's many ultra-luxury trips, such as African safaris. (Note: this post was amended 4/30 to clarify some points at the request of an A & K spokesman.)

No Debt: BelleHavens' Smart Club Pitch

The destination club BelleHavens, which is in the same deluxe class as Exclusive Resorts and Quintess, has a unique selling point that should appeal to mortgage-wary travelers: the homes in its portfolio are owned by members rather than the club's overseers, and are debt-free. BelleHavens thus calls itself the first "equity membership" club with asset protection as a key factor. That doesn't mean that visits to properties such as those at La Quinta, CA (shown); Palm Coast, FL; Kohala Coast, Hawaii; Hilton Head, SC; Los Cabos, Mexico; and midtown Manhattan come cheaply. The current price of a BelleHavens Equity Membership is a one-time deposit of $225,000 and annual dues of $18,500. Still, that means a reasonable average price of about $615 per night based on 30 nights annual usage. And peace of mind? Priceless.

Aspen Favorite of Destination Clubs

No surprise as more and more "destination clubs" are putting down roots in Aspen. A recent Aspen Daily News article indicated the following clubs have properties there

• LUSSO Collection -- townhome at Aspen Highlands.
• Exclusive Resorts, -- townhome at Two Creeks and a large block of time at the Timbers Club.
• Portofino Club -- condo at the Snowmass Club
• Quintess (includes The Leading Residences of the World)-- three properties in Aspen
• Solstice Club -- two houses in Aspen's best year-round neighborhood, the West End
• High Country Club -- condo in Snowmass
• Oyster Circle Club -- said to have plans to buy in Aspen or Snowmass.