What is a Destination Club
Being part of a club entitles a member to the use of the clubs properties, and this applies whether it's a health club, a country club or a golf club. A destination club is no different. The properties offered by this sort of exclusive organization are high-quality, fully serviced, luxury vacation homes. Destination clubs offer their members a flexible alternative to luxury hotels, second homes and vacation home rentals. The clubs have properties located in a variety of destinations, sometimes on a global scale. They also provide the peace of mind that comes from knowing each home will be maintained to a consistent, very high standard.
Locations
Different people have different ideas about what makes a great vacation. For this reason, destination clubs can be found in a variety of settings. Beachfront properties are always popular and so are mountain hideaways with access to great ski mountains. Locations in leisure resorts offer superb golfing, spa and other relaxation opportunities, while urban apartments provide luxurious city accommodation.
ServicesThe luxury homes themselves will normally have a concierge service, and most clubs also offer a lot more than this. Transport to and from the local airport is either provided or can be arranged and a few homes have a car available for members use. Prior to the member's arrival, the kitchen will be stocked with both groceries and beverages. This will include specific items requested by the member. A similar service will be available in the living areas, with books, games, entertainment and even flowers provided according to the member's wishes. Daily or weekly housekeeping is also part of the package. Some locations even offer the services of a personal chef. Anything that might be needed to accommodate small children (highchairs, playpens, safety gates) can also be installed.
The clubs will also help with all the pre trip planning and travel arrangements, and will arrange tickets and reservations for any on site activities that the members would like to participate in. This can include tee times at the local golf course, spa bookings and dinner reservations at exclusive restaurants amongst many others.
Types of property
As a guide to the standard of property available, the homes have a typical market value of $2+ million, with different clubs offering various levels of homes. In metropolitan areas, the accommodation will have a floor space of around 1,500 square feet. Beach front and more rural retreats have more land in general, so floor space can be anything up to 6,000 square feet. The inner city locations tend to be made up of luxury condominiums, and feature all the associated amenities. Beachfront and scenic retreats are usually freestanding houses, often surrounded by well-tended gardens and secluded enough to offer a real sense of privacy. The spacious nature of the homes allows families and friends to all stay together.
CostThe cost of joining a destination club can be split into three categories. There's the initial payment to join, annual membership dues, and occasionally a nightly rate for staying in the accommodation. All of these amounts vary enormously depending on the club, the properties in it's portfolio and the level of service provided.
- High-end accommodation offers the greatest degree of luxury and facilities. Typically there will be an initial fee of $500,000+ and annual membership dues of $30,000+.
- Mid-range clubs offer a slightly more modest degree of luxury. An initial payment might be around $250,000 and annual membership dues of $20,000.
- Entry-level clubs still provide luxurious accommodation, but not at quite the same level as high-end and mid-range. The initial payment will vary from $60,000 to $150,000 and annual dues range from $5,000 to $12,000.
In many destination clubs, the members do not have any legal ownership interests in the properties. But most of the clubs pay back 75% to 100% of the initial payment when you leave the club. Some clubs, do offer their members the opportunity to benefit from the market performance of the valuation of their properties. And in other clubs members have an actual equity participation.
Compared to Private Residence ClubsDestination Clubs and Private Residence Clubs have a lot in common but also have some differences. If you're considering one you should certainly look at the other. Read our article "The Difference between Destination Clubs and Private Residence Clubs" as a starting point in your research.
Destination Clubs are also an alternative to owning a second home, there are pros and cons on both sides which you can read about in the article linked above.
For more information on destination clubs you can start at "Compare destination clubs" which lists the main clubs.
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