Destination: Luxury

Todd Harris, senior vice president of member services and hospitality at Denver-based destination club Exclusive Resorts, used to be a general manager at a five-star resort that also had a fractional-ownership program, and saw firsthand what patrons like the Laceks wanted from their vacation experience. “With a destination club, you have the benefits of a large home when you travel, and you have all the services and amenities of a five-star resort,” Harris says.

Steve Greer, founder and CEO of the Lusso Collection, touts the fiscal benefits of destination clubs. “If you had a second home, it would cost more than $25,000 a year in property taxes alone, plus the cost to maintain it,” he says. “Rather than own a home they would only use a few times a year, they’d rather have access to [multiple] properties anytime.”

Rich Keith of Private Escapes says he has been surprised by who is joining. “When we started the club concept, we thought one’s net worth would be the indicator of the club they’d join,” says Keith, whose club offers three tiers of membership. “Some of our wealthiest members are in the [least expensive tier] because they are empty-nesters, practical Midwesterners who don’t need that 6,000-square-foot house in Deer Valley.”

Greer has seen a similar trend in Lusso. “The nucleus of our members is the ‘millionaire next door,’ or the frugal millionaire,” he says. “They’ve attained a reasonable amount of wealth. They’re smart with their money. They’re busy people. They see this is a much smarter investment than buying a $2 million home.”

Making it Personal

Two factors that best distinguish luxury destination clubs from hotels or rental properties are the homes themselves and the services provided to members. The multimillion-dollar residences feature all the amenities expected in a high-end home. “In terms of appointments in the homes, we have extensive technology capabilities with touch panels for audio/visual, lighting, heating, and the sound system,” says Karen Short, president of Quintess, a luxury destination club based in Boulder, Colorado. “We partner with Duxiana beds. The homes are highly appointed with high-end kitchen appliances.”

Furthermore, destination clubs ensure that their property amenities are the same from location to location. “Our kitchens are all outfitted identically,” Lusso’s Greer says. “The flat-screen TVs and DVD players are always the same and have the same universal remote. The robes, linens, and soaps are even the same.” Members can also expect items that are appropriate to the destination—for example, golf carts at resort destinations or bicycles for the beach.