DC4MS

Just Don't Call Them Time Shares

2005 FAST 50 WINNER
Donn Davis, 42

CEO
Exclusive Resorts LLC
Denver, Colorado

3. Just Don't Call Them Time Shares

Read Donn's original entry:

Donn Davis isn't going to call your house during dinner and try to get you to come to a "no pressure" meeting in an airport hotel ballroom. Six to eight weeks' vacation in an array of multimillion-dollar homes in worldwide glam spots, complete with high-end hotel services, gets a softer sell. "Our members can experience the world without worrying if it'll be okay," he says. "That kind of certainty doesn't have a price." Well, actually, it does: $375,000 to join and annual dues of up to $25,000. When Davis came in as CEO of Exclusive Resorts in the middle of 2004, he took over an interesting idea and a few properties. He has since won more than 1,000 customers and built 150 homes. With more than $300 million in 2004 sales and real-estate assets topping $600 million, Davis could probably use a vacation. But none's coming: He's planning to build another 150 homes this year.

Pioneering a New Category

What did you accomplish in 2004?

Less than one year ago, Exclusive Resorts was a start-up company with a great idea. Since becoming CEO earlier this year, I have successfully launched a new company and a new category that has transformed the way people view luxury vacation travel. I have grown the Company to become the undisputed leader in the luxury residence club sector with over 1,000 members and the largest real estate portfolio in the consumer marketplace - valued at over $600 million. In fact, former AOL Chairman Steve Case was so impressed with Exclusive Resorts that, in 2003, he bought a fifty-percent stake and assumed a position on the board of directors. In November 2004, Case became Chairman and the majority shareholder of the Company.

How did you do it?

One of my first tasks was to build the necessary platforms from which to grow the business. I assembled a world class management team of executives from top hospitality and travel companies to enable us to harness the consumer focus and growth of the Company. I took a personal interest in our real estate selection process and forged relationships with world class real estate developers. These relationships have helped Exclusive Resorts gain access to properties during the early financing, planning and development stages. This has enabled us to purchase multiple residences in our desired destinations at a reduced cost, and has allowed us to build each residence to fit our business model and specifications, for example, ocean front beach villas with private plunge pools, four bedroom ski-in/ski-out chalets and tree houses in the cliffs of Costa Rica. We have been successful in forging the most lucrative real estate development relationships in the industry, which have significantly helped us to secure properties at a rapid pace to meet consumer demand, while ensuring the highest standards of excellence for our members.

What were the major obstacles that you faced?

When I became CEO, the management team of Exclusive Resorts consisted of the three founders and needed to be rounded out with hospitality and travel industry expertise that would help to bring the Company to the next level. At the time, Exclusive Resorts only had a handful of residences in limited destinations, and consumer demand and memberships were growing rapidly. We needed quick access to more residences in order to keep up with consumer demand and needed access to significant captial in order to finance and develop the residences. We needed to develop and foster relationships with world class developers in order to learn about properties before they came to market in order to obtain multiple properties in our desired destinations that were favorably priced and that were consistent with the Company’s business model and residence specifications. Additionally, with copycats and competitors emerging daily, it was important for Exclusive Resorts to establish key metrics and milestones to measure this industry, the Company and its competitors in order to continue to attract members at the fastest rate in the industry. Most importantly, and perhaps our biggest challenge, was positioning Exclusive Resorts as the undisputable leader in the industry. We successfully did this by setting the business metrics that have now become the industry standard, and also by being the leader in those metrics with the most members - 1,000 - and the largest real estate portfolio in the consumer marketplace - $600 million.

What was the result?

We have created a new means of luxury vacation travel for the consumer marketplace, by eliminating the hassles and limitations of fractional real estate and vacation home ownership and are the undisputable industry leader. In just over two years, Exclusive Resorts has grown from a start-up company to the industry leader with over $250 million from membership sales, the largest membership base of over 1,000 members and the largest real estate portfolio valued at over $600 million. We offer our members exclusive access to over 300 private residences in 30 of the most desired vacation destinations around the world. Exclusive Resorts has become the partner of choice in the luxury residence club segment, having established strategic alliances with many leading luxury/travel companies including American Express, Christie’s Great Estates, Marquis Jet, Neiman Marcus and Virtuoso. Over the past year, Exclusive Resorts emerged from a start-up Company to become a viable and credible luxury vacation travel Company and clearly defined itself as the leader in the industry.

What are your goals for 2005?

In 2005 Exclusive Resorts will continue to focus on growth. Growth through membership and grwoth through acquisition of the most spectacular residences in the worlds most desirable destinations at the best price. We will also focus squarely on continuing to delight our members while exceeding their expectations.