Exclusive Resorts

Has anyone heard of Exclusive Resorts? I have a friend who is thinking about joining the Exclusive Resorts. Appreciate any opinions - pros and cons. Thanks.

I have tinkered with joining also. One of the best ways to learn about ER is to go to their website, and you can actually look at availability and newly made reservations. One of the best websites in the business. Pretty expensive program. I would have joined except for the no equity clause. All you get back if you cancel is 80% of deposit.

If you can afford it, I think it could be fabulous.

There are a number of companies like Exclusive Resorts. They're called 'destination clubs'. There is some some good info on them at www.heliumreport.com.

In most timeshares, you actually *own* real estate. You may have paid too much, but in most cases you aren't at risk of losing 100% because the original developer has financial problems.

In destinations clubs all you have is an unsecured promise from the developer to let you use the properties. Typically, the sponsor is highly leveraged. If they run into problems, your investment will be *worthless*.

The second largest destination club after Exclusive was Tanner & Haley, previously know as Abercrombie & Kent. They filed for Chapter 11 in July and their members in aggregate lost approximately $300 million.

I wish I can afford it. Just wondering if anyone knows someone who does own it. I checked out the website a little bit just out of curiosity. But it would be nice to hear from someone who is a member or knows of someone and what they have to say about it. My friend's husband is thinking about joining, but the wife is a little hesitant since it is a lot of money.

RLG said:

There are a number of companies like Exclusive Resorts. They're called 'destination clubs'. There is some some good info on them at www.heliumreport.com.

In most timeshares, you actually *own* real estate. You may have paid too much, but in most cases you aren't at risk of losing 100% because the original developer has financial problems.

In destinations clubs all you have is an unsecured promise from the developer to let you use the properties. Typically, the sponsor is highly leveraged. If they run into problems, your investment will be *worthless*.

The second largest destination club after Exclusive was Tanner & Haley, previously know as Abercrombie & Kent. They filed for Chapter 11 in July and their members in aggregate lost approximately $300 million.

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Thank you very much. I will definitely pass this on to my friend.

Abercrombie & Kent have filed chapter 11!! Wow, I didn't know that.

Thanks for the info.

Bill4728 said:

Abercrombie & Kent have filed chapter 11!! Wow, I didn't know that.

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I should have been clearer.

In 2003, Abercrombie and Kent entered into an agreement with what at the time was the largest destination club, "Private Retreats". Private Retreats then rebranded itself as Abercrombie & Kent Destination Club and operated that way for several years.

The destination club later changed its name to Tanner & Haley and filed for bankruptcy in July.

Abercrombie & Kent, the travel agency, did not file for bankruptcy.

It is unclear at this time what legal responsibility Abercrombie & Kent will be determined to have for the activities undertaken in their name by A&K Destination Club.

Exclusive Resorts is a fantastic idea... for the investors in that company, that is

As already pointed out, they take your money, add a lot of wall street money (debt), and buy so much high end property in key destinations that they can single handedly create price increases in their own property... and who benefits from the capital gain ? Not the members, but the investors.

They say there are two ways to make money. One, make people work for you. Two, make money work for you. Exclusive Resorts makes "OPM" work for the investors.

Now, one thought though. If they really do generate an exclusive offering, then perhaps for a certain type of member it is worth it. For example, here in Cayman they are right now building townhomes on their own island on the golf course at the Ritz Carlton. Definitely exclusive !