Cabo Casitas

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.


  Overview

 Membership Pricing
 Initial Capital Contribution (range) $550,000 - $950,000
 Annual Dues (range) $12,000 - $17,000
 # Nights  84
 % Membership Refundable Equity
 Refund Basis 1 in 1 out
 Homes
 # of homes 155+
 # of locations 50+
 Average Value $2.0m - $4.0m
 Investors per Home 4.2:1
 Club
 Number of investors 700+
 Founded 2008
 % Homes owned 100%

website

www.21-5.com/

If you're seriously considering joining a destination club or residence fund then download "Destination Clubs: A Guide for Prospective Members". We do ask you to register prior to downloading it. The Guide will give you an in-depth view of the different funds and clubs including their homes, services and questions to consider prior to joining.

Description

21-5 gathers together groups of 21 families who collectively invest in 5 vacation homes - referred to as an "Association". The investor members are owners of the company that owns the club homes. So in addition to enjoying the homes for their vacations, the investors can also benefit if the value of the homes increases.

21-5 first launched in Scandinavia in 2010 and has subsequently bought over 150 homes for 700 families. According to 21-5, 97.2% of their members would recommend 21-5 to their family and friends. The company offers the model in various countries throughout Europe.

With just 21 members for 5 homes, it means that each family can potentially have 12 weeks of vacation time each year, or can share this time with friends and family. Members can also exchange time with other (21-5) Associations, enabling members to visit any of the homes throughout Europe.

21-5 had plans to open Associations in the USA and Canada but cancelled these plans in 2021, to focus back on Europe.

 

  Overview

 Membership Pricing
 Initial Capital Contribution (range) $395,000 - $1,1950,000
 Annual Dues (range) $0 - $45,000
 # Nights  84
 % Membership Refundable Equity
 Refund Basis 1 in 1 out
 Homes
 # of homes 5
 # of locations 5
 Average Value $1.0m - $6.0m
 Investors per Home 4.2:1
 Club
 Number of investors NA
 Founded 2021
 % Homes owned 100%

website

www.my5homes.com

If you're seriously considering joining a destination club or residence fund then download "Destination Clubs: A Guide for Prospective Members". We do ask you to register prior to downloading it. The Guide will give you an in-depth view of the different funds and clubs including their homes, services and questions to consider prior to joining.

Description

My 5 Homes gathers together groups of 21 individuals/families who collectively invest in 5 vacation homes - referred to as a "Homeset". The 21 individuals/families are owners of the company that owns the 5 homes. So, in addition to enjoying the homes for their vacations, the investors can also benefit if the value of the homes increases.

With just 21 members for 5 homes, it means that each family can potentially have 12 weeks (84 nights) of vacation time each year. Owners can also exchange for nights in other Homesets, enabling them to enjoy a variety of homes.

This model is closer to second home ownership, as each owner will have their primary vacation home where they can store personal belongings and potentially have their favorite week or weeks (including holidays) every year.

Each homeset has a unique theme such as:
- City, Beach, Ski
- All Beach Condos
- Outdoor Adventure, and more

If owners don’t use any of their 84 nights, they will automatically be placed in the rental pool with proceeds offsetting annual shared costs, which could result in free vacations every year.

The founder and management team of My 5 Homes has a long history in shared luxury home ownership and usage. 

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.

Overview

 
 Membership Pricing
 Initial Membership Fee (range) C$127,500 - C$255,000
 Annual Dues (range) C$15,010 - C$29,080
 # Nights 21 - 60
 Membership Resale Policy 92% private sale price
 Homes
 # of homes 27
 # of locations 25
 Average Value C$1.5 - C$2m
 Club
 Number members 175
 Founded 2004
 % Homes owned 18 @ 100%, others shared

website


If you're seriously considering joining a destination club then download "Destination Clubs: A Guide for Prospective Members". The Guide will give you an in-depth view of the different clubs including their homes, services and questions to consider prior to joining. We do ask you to register prior to downloading the Guide.

www.destination-m.com

Description

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
A B C
 Membership Fee (Can$) $255,000 $127,500 $178,500
 Annual Dues (Can$) $29,080 $15,010 $25,140
 Included Nights 60 21 42

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.

Unique Features

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.