Bourne

Exclusive Resorts 2007 Wrap-Up Reports Wait List to Join and Efforts to Improve Availability | Helium Report - Luxury 2.0 Guides and Reviews

1. The membership count as of Dec 2007 is 3088.
2. ER also has more than 180+ members on wait list...
3. Net asset test conpleted.
4. New reservation cancellation notification feature. I personally like this feature. Should be implemented by other DCs too.

and the big one...

5. ER is increasing annual dues on membership plans by the maximum allowed, due to increases in home ownership dues, property taxes, insurance and utility costs. Ouch.

NeilGoBlue

Based on my experiences with ER... it doesn't surprise me and I think ER members better get used to it..

LTTravel

Despite all the negative comments about ER, the fact is that ER has the most destinations, most variety, most homes. The homes are very high quality and service is quite good. It is not perfect, but there is a tradeoff.
To summarize some of the 2007 Year in Review:

1. As of the end of 2007, there were 3088 members(from 48 states and 22 countries) and 181 on the wait list. (wouldn't any destination club wish the could even have 10% of that on the wait list?). There are no members on the wait list to leave the club.
2. Despite complaints of availability, members took an average of 2 trips during the holiday period. and 2 trips during the first quarter
3. 40% of reservations are taken as advanced reservations and 60% as space available
4. Tuscany is the most difficult to get reservation
5. The highest occupancy is mountain destinations over the first quarter of the year but overall the lowest occupancy levels on a year round basis
6. Metropolitan destinations are the most utilized on a year round basis
7. Members take an average of 7 trips per year
8. 53% of members have received a match on the cancellation watch list
9. There are 166 residences in development including:
30 at MGM CityCenter, Las Vegas (2009)
24 at Sea Island, Georgia at the Cloister (2009)
16 at the Residences at the Mandarin Oriental, Chicago (2010)
10 at One Steamboat Place, Steamboat Springs, Colorado (2010)
12 at the Fairmont Heritage Place in San Francisco (2008)
10 at the Arrabelle at Vail Square, (2008)
5 at Castello di Casole, Tuscany (3- 2008, 2- 2009)
11 at the Viceroy Anguilla, (2008-2009)
12 at Ho'Olei, Waillea, (2008)
28 Kapalua Bay, Maui, (2009)
Plus a few more elsewhere.

Bourne

I agree.

ER has the market strength to charge a premium for it's membership.

UR/PE merger is the only viable alternative in terms of sheer size and number of locations/availability.

3DH

...let's also not forget that in addition to the annual dues, ER has the option (and exercised it when we were members last year... don't know about current year) to assess a surcharge for "imposed fees and charges", said to help ER offset "certain taxes and other governmental fees on services [they] provide on ER vacations".

__________________
"Boutique" is better! Another extremely satisfied LUSSO member!

LTTravel

ER mentioned this in the annual report and these are taxes that the local governments may impose on the residences(not property taxes). According to the 2007 summary, they will be down the year 2008 compared to the year 2007. They are less than $500 per year for the Elite, 45 day a year membership.

3DH

My only point is that with a maximum rise in the annual dues, why isn't this insignificant amount absorbed as a "goodwill" gesture, if nothing else?

Are there other clubs with similar surcharges?

__________________
"Boutique" is better! Another extremely satisfied LUSSO member!

Kagehitokiri

"planning four new major property acquisitions this year alone."

maybe thats what halogen was referring to in a recent article, that theyre announcing one or more of those soon.

some possibilities perhaps >

viceroy snowmass
ritz carlton west caicos (looks like quintess beat them there)
ritz carlton rancho mirage

ER Traveler

The various surcharges and resets are not a major concern for me. I expect the club to charge what is necessary to maintain the business model and continue to buy great properties. I would be concerned if they didn't leave the door open for assessing those charges. All the other clubs will eventually have to do the same to continue to deliver. The cost is really minor compared to the expense, hassle and limitations of buying additonal home(s) yourself.

dcsales

ER is the clear winner here. Raise the rates, those that want out can get out and free up availability for others who want to travel more and those that want to join. The bottom line is that the annual dues have to cover the operating costs. UR / PE don't, and TH didn't, ie BK. You can't have a business model that refunds your orignal payment (used to fund real estate acquistions) and then undercharge so you continue to lose on operating costs. Case is the only one who has successfully monetized the real estate portion of this industry - now he just needs his opco to quit bleeding - and this dues realignment is the first step towards that.

Jack

My friend was looking into them and he got pretty serious in joining and there is no waiting list.

I would assume its a waiting list to leave

LTTravel

I can tell you that there is no waiting list to leave. You get a refund within 30-60 days if you decide to leave. At least that is the status as of now. They have added several Once in a lifetime plans to try to increase virtual availability to accommodate new member growth until the homes under construction are completed. I don't know what the actual waiting list is now.

Jack

Oh I thought they had a 3 in 1 out policy, and like I said my buddy was almost signing on the dotted line and the sales rep never said anything about a waiting list.
I like ER but I don't think the can deliver on the small details like a Lusso

LTTravel

They do have a 3 in 1 out policy. But they have not, up until now, had anyone wait for a refund. I think ER and Lusso are different and have their own advantages. Lusso is truly the boutique, excellent club. ER is larger and more variety.

ER Traveler

Since most of the clubs are designed somewhat like a country club it wouldn't be unusual to have a policy of at least 1 in for 1 out. It would be prudent of any club to include a similar clause. ER hasn't had to implement that clause because there's almost always someone waiting to get in. In fact, my latest info is that there is a sizable waitlist to get into ER. If a prospective member is referred by an existing member they will bypass the waitlist.

It would be interesting to see what other clubs have a similar exit clause.

Kagehitokiri

last waitlist count was 181, i believe indicated earlier in this thread.

BTW, welcome to the forum Jack

Jack

Thanks, good to be here!