Destination clubs, residence funds and luxury travel clubs provide their members with access to multiple luxury vacation homes, located all over the world. The homes are typically multi-million dollar residences, and are sited in major cities, at beaches, in mountains and leisure locations.
Membership of the clubs is an alternative to buying a second home. The clubs are sometimes also compared to, or even mixed up with, private residence clubs, but there are several key differences between the two.
If you're just starting out learning about the clubs and funds read the overview and the glossary. Then you can start to compare them in the comparison table. One way to financially compare them is using a cost per night calculation and we've provided downloadable spreadsheets for these calculations. Here are the top reasons to join a club, but they are not for everybody and here are the reasons not to join.
And for a real in-depth look at the clubs, their homes and services, comparisons to alternatives and questions to consider before joining, download our Guide for Prospective Members.
The map shows some of the main destinations where the clubs have homes. Click on the markers to see the actual homes.
The latest news and research on the clubs is included below.
In another sign of the increasing transparency that's coming to the Destination Club industry, Lusso Collection announced today that all of the interests in its properties will be held by subsidiary LLCs owned 100 percent by the club.
Lusso is one of the clubs that is now highlighting it's annual independent audit and in addition provides members:
As the Destination Club industry consolidates, Ultimate Resort is buying most of the assets of Tanner & Haley, which filed for Chapter 11 about 4 months ago.
This is good news for the whole Destination Club sector and a tidy end to the bankruptcy filing. Tanner & Haley started the whole sector when they were launched in the late 1990s by Rob McGrath.
T&H members should be pleased that their club properties will keep going and that they will be offered membership in Ultimate Resort on special terms. The newly enlarged Ultimate Resort will be the second largest Destination Club behind Exclusive Resorts.
A new Destination Club has recently launched with a primary focus on the Asian market but also with properties in France, Italy and the UK. The Banyan Tree Private Collection has an initial joining fee of $120,000 and annual dues of $3,000, which give 7 days of usage. Members can then buy additional multiples to increase their days.
Banyan Tree Hotels & Resorts, a niche resort developer and operator in Asia-Pacific is the manager of the Club. Members can currently use several villas at Banyan Resorts in Asia.
What are Destination Clubs?
In very simple terms a destination club or luxury residence fund provides access to a portfolio of high-quality, fully serviced, luxury, spacious vacation homes in a variety of locations. Being part of a club entitles a member to the use of the clubs properties. 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. We use the term "destination club" to cover a variety of organizations, but the clubs themselves may use destination club, residence fund or just luxury travel club - see more on the different structures below.
|Initial Membership Fee (range)||C$192,500 - C$385,000|
|Annual Dues (range)||C$15,010 - C$29,080|
|# Nights||21 - 60|
|Membership Resale Policy||92% private sale price|
|# of homes||34|
|# of locations||25|
|Average Value||C$1.5 - C$2m|
|% Homes owned||19 @ 100%, others shared|
Destination M (formerly M Private Residences) is an equity destination club, in which the members join by buying one of the shares in the table below. The members own the club and have a management team that runs and operates the club for them. All the clubs properties are owned by the company in which the members buy shares, so the members initial fee has a good asset backing. The properties in the Destination M portfolio have been curated to provide members with memorable travel experiences. Factors they take into consideration include the location, seasonality, amenities such as golf and spa memberships, potential for appreciation, the overall 'wow' factor of the property and of course, the desires of their membership.
Holidays with Destination M are about experiences, whether it's a wine-tasting tour in the finest wine country in the world, a shopping adventure in the most cosmopolitan cities, or lazy days with family on one of the world's most beautiful beaches. Note the shares are priced in Canadian $ in the table below.
| Share Class
|Membership Fee (Can$)||$385,000||$192,500||$269,500|
|Annual Dues (Can$)||$29,080||$15,010||$25,140|
The club homes vary from a 2 bedroom city apartments to large 4 bedroom, 5,000 sq. ft homes. Members can reserve homes up to 2 years in the future.
The club is structured as a non-profit, so all the dues simply cover the costs of running the club and maintaining the homes. If there is any appreciation in the value of the properties members will receive all the appreciation.
One nice perk is that any stand-alone bookings within 30 days of travel do not count against a member's plan days.
The club is headquartered in Calgary, Alberta.
Read our interview with the club Chairman and CEO, Brian Anderson and read other news and analysis about Destination M in the articles below. If you're seriously considering joining a club, then our free downloadable destination club guide puts everything in one place and is now in it's 13th annual edition.
|Read the chart below to compare the Destination Clubs and Residence Funds. Many of the clubs offer multiple membership levels, including group/corporate levels, and the chart shows the range of their individual levels. Click on the clubs name to read their profiles and related news and research articles.|
Destination Clubs have been receiving quite a bit of coverage in the media over the last few years. This list provides a wide selection of reviews and comments from media sources such as Forbes, Worth Magazine, The New York Times and provides comments on fractional ownership as well as Destination Clubs.