The equity-based destination club has a limited-time offer, under which prospective members have the chance to buy into the Club for 40% less than the initial membership pricing. Annual dues remain the same, all Club benefits apply and the offer expires March 31, 2010.
Membership provides access to a portfolio of private homes and villas in sought after destinations around the globe, for less than the cost of a typical down payment on a comparable second home. There has never been a better time to join the club nor a better value, says Scott Wiseman, president of the Abercrombie & Kent Residence Club. The Clubs residences which are each typically 4,000 square feet with four bedrooms and at least four bathrooms are comfortable homes away from home for family and friends, and the perfect places to experience your most memorable family vacations.
Darin Gilson, SVP of A&K Residence Club told me very simply "real estate prices have dropped, and therefore we don't need as much capital." "For $2 1/2 million, we can now buy everybit as good a home as we could for $3 million or $3 1/2 million a year or two ago", he continued. A large part of this decrease is because A&K, the clubs manager, has reduced its management fee, that it receives from initial capital.
Darin also explained that because of the economic conditions and market factors, there was certainly a hesitancy amongst prospective members about writing checks to join. A&K had debated internally about how much to lower the price and felt "if we are going to do it, then lets really do it, and send a really big signal. So people know they are never going to get a better deal." said Darin.The new limited-time Equity Membership Pricing is as follows:
|One-Time Capital Contribution||Annual Dues|
|15-Night Annual Plan||Was $225,000||Now $135,000||$17,000|
|30-Night Annual Plan||Was $390,000||Now $234,000||$29,000|
|45-Night Annual Plan||Was $495,000||Now $297,000||$42,000|
Like other destination clubs, membership in the Abercrombie & Kent Residence Club is an alternative to owning a second home that is typically only used a few weeks each year. The clubs portfolio features multi-million-dollar residences in beach, mountain and golf destinations worldwide, allowing members to return to a favorite year after year, or explore new destinations as family interests change.
Members can also exchange nights towards Abercrombie & Kent travel experiences, such as an adventure cruise in the Galapagos Islands, an African safari, a journey to Egypt or an expedition to Antarctica.
The club has recently also amended its by-laws with the approval of its board. Under the new rules the club manager, A&K, can apply a resignation ratio of 1 in and 1 out at its discretion. This means that should a member wish to leave the club, they only have to wait for one new member to join. "We don't want people to feel they are stuck" explained Darin.
A two-year trial membership in the Abercrombie & Kent Residence Club is also still available for those who want an extended opportunity to experience club life before making a long-term commitment. The trial is a way to "taste test the club for a period of time" said Darin, and continued "the club is confident that once you do then you'll truly appreciate this way to vacation".
This is the longest trial period available amongst the destination clubs, and "45 people are in the trial program right now" said Darin. The two-year trial members pay normal Club dues plus a 10% premium that will be credited to their capital contribution if they later join as a permanent equity member, and they don't pay any initial membership fees during the trial.