Exclusive Resorts Party 9-20-07 -> UN-Invited!

[PerryM]

So are you a "flashy dude" or a "dress-down dude"?

Probably a flashy dud.

 

[Steamboat Bill]

Probably a flashy dud.

I am sure you mean Dude!!!!!

 

[Steamboat Bill]

Today is the big day and I am looking forward to these two events.

I asked a few friends (qualified, if you know what I mean) if they wanted to go with me as my wife is staying home with the kids to help with homework.

However, several of my friends informed me that Friday is Yom Kippur - the most solemn of Jewish religious holidays and they were preparing for the holiday.

If I was Merrill Lynch or Exclusive Resorts, I would NOT have scheduled these events at this time...at least it was on Thursday, not Friday or Saturday.

Shalom ya all

 

[PerryM]

Today is the big day and I am looking forward to these two events.

I asked a few friends (qualified, if you know what I mean) if they wanted to go with me as my wife is staying home with the kids to help with homework.

However, several of my friends informed me that Friday is Yom Kippur - the most solemn of Jewish religious holidays and they were preparing for the holiday.

If I was Merrill Lynch or Exclusive Resorts, I would NOT have scheduled these events at this time...at least it was on Thursday, not Friday or Saturday.

Shalom ya all

More blunders ER? Good grief.

I'm sure the next event will be scheduled for December 25.

P.S.
All of this sounds like something the second string of managers would do - is the first string in China or something? No doubt staying at a Marriott or Westin or something much better.

 

[Steamboat Bill]

I am back home after an incredible evening. I will post details tomorrow as it would be too long to post tonight.

Everyone at ER was very professional and their presentation was first class all the way.

My one word impression...."Wow"

 

[Steamboat Bill]

The Review

The Merrill Lynch party was great. Lots of Ferraris, Lamborghinis, Bentleys, Austin Martins and many of them cost over $250k each. The best yacht was an 88 foot Ferretti that you could actually live on…just one small detail was the $7m price tag and docking fees. I can’t imagine what the fuel costs would be for a boat like this. I left early as I wanted to go to the ER event and did not want to be late.

I invited a good friend of mine to attend the ER event at the St Regis Resort with me. He owns a lot of expensive real estate on Atlantic Avenue in Delray Beach and likes to travel via the Ritz, Four Seasons, etc. I did not tell him anything about ER or TUG and simply told him that this was a destination club for high-end travel. He was immediately interested.

The St. Regis Resort was very nice and brand new….typical 5-star resort that should please everyone. Because I grew up in this area, I found the transformation from the old places like the Candy Store, Poop Deck, and Elbow Room to St Regis, W, and Trump an amazing (and much improved) change.

We were welcomed at the ballroom by the ER staff and everyone was dressed nice and serving drinks and appetizers. The food choices were very gourmet and upscale. I really loved the lobster bisque in small tea cups…I went back for seconds and thirds on that one!

We actually started to talk to the Marquis Jet reps as they service the Boca Raton airport that both myself and my friend live near. The bottom line is that you too can bypass the hassle of flying commercial for a $5,000 per hour on a private jet. This may seem expensive, but you can fit 7 people on the smallest plane and for short trips (less than 2 hours) it is actually a reasonable expense if you have the means. Three of my neighbors have their own planes and one of them is a Marquis member. I have not been bitten by the “got to have a private plane bug” but this summer was a complete hassle in every airport I visited and if this trend continues, I may seriously consider Marquis Jet.

I also bumped into “Multiz321” a TUG user that PMed me for an invite. He and his wife were there and were very pleasant. The service of the staff at this party was the best as they probably had a 1:1 ratio of guests to staff. Once the xylophone music played, it was time to go into the presentation by Scott about the club. He reviewed the club, where they are at, and where they are going.

ER has $1b in current property and another $400m under contract. Their new properties look even more amazing than the current ones and their buying power is unmatched in the industry. ER is a unique club in the industry due to their buying power. They are now going after “economics of scale” by buying 10, 20, or 30 properties at a single location. Thus, the days of buying a single home at a single location are over. Also, ER is so powerful that real estate developers are approaching them “first” as they can make a quick sale of 10-30 homes pre-construction. This is smart as ER will always be getting the best prices. Thus, I have ZERO worry that ER will suffer the same fate as T&H….this is a very smart and savvy group of investors.

The fact of the matter is ER is NOT for average people and that’s ok. If you wonder why people will spend $1,500 per night in a club like this, when you can stay somewhere for much less, then you probably don’t fit their profile. I estimate that you need a net worth of $5-10m to be comfortable joining this club and most of them are probably NOT reading TUG.

One of the highlights of the evening was when an ER member took the stage. He was a cool dude that lived in Boca in a 25,000 sq foot house and sent his kids to the same school as my kids. I immediately liked him. He was an original T&H member that choose to join ER rather than UR and really loves ER. For someone like him….ER is a dream come true. His stories of his ER travel really hit home and happy members like him will be the reason new people will want to join the club. His informal and unrehearsed presentation was more valuable than any fancy brochure or magazine ads.

My friend who attended the event with me started taking notes and asking a ton of questions…as I said, I didn’t prep him before the event….he really did not know what a DC was. He really loved the concept of ER and wants to discuss joining with his wife. The one property that “sold him” over any other, was the five cabins on “The World”. My friend was considering buying a condo on a competing yacht and feels that joining ER will actually “SAVE money” as compared to buying a floating condo….go figure.

They then took us on a tour of one of the ER 3 bedroom suites which, of course, was very nice. I will simply say that this is the “good life” and if you can afford it will satisfy you in every way. After the tour, it was back to the reception for desert…awesome again and chatting with Scott.

For the record, Scott and everyone at ER are first class people and very hospitable. This was not a hard sell or even a sales pitch at all. It felt more like a “welcome to our home” or “welcome to our club” feel and if you are interested, then we can discuss details when you want. All in all, it was a great presentation that has piqued my interest in the club again.

 

[LTTravel]

The one property that “sold him” over any other, was the five cabins on “The World”. My friend was considering buying a condo on a competing yacht and feels that joining ER will actually “SAVE money” as compared to buying a floating condo….go figure.

.

ER will be honest with you and remember to tell your friend. "The World" is almost impossible to book. 3000 members and only 5 cabins and a daily fee. 75% of the cruising sites are not very desireable. Make sure he does not join just for "The World" but their other offerings are good.

 

[Kagehitokiri]

very interesting report

also re the world - its only a 50% discount if you look at ~$1000/nt for ER + ER's new $450/nt fee for the world. total = ~$1500 = 50% of $3000 rental rate. ($2300 for first two pax + $700 for second two pax)

bill, id imagine your friend could get an incredible unit on the FS ship if he wanted to.

 

[PerryM]

But did they have....

So, Bill; the most burning question in my mind is did they have pigs in a blanket? I just love those things. How about a fondue? 5 layer bean dip? Ritz crackers and cheese? These are what the high rollers in St. Louis eat. Then a great Two Buck Chuck wine from Trader Joes.

Sounds like ER knows what it wants to sell and who to sell it to. I believe there are more than 1,000,000 Americans who are millionaires so they should be able to grow and grow.

P.S.

If ER owns $1 B in real estate they are as large as WorldMark - they have about $1 B in 5,000 condos worth $200,000 each. This is truly amazing and why the timeshare folks and hotel chains should be looking to do the same exact thing. Keep in mind that the fimeshare folks would now OWN the condos/homes and get a management fee to boot.


P.P.S.
My barber, Carl, who has cut my hair for 35 years now is a multi-millionaire. He is a commercial real estate broker and cuts hair at the same time. Carl is 72 and doesn't drive a Bently but owns a lot of real estate that he has bought over the years - all the while remaining a barber. This is a vast untapped market for DC's - the millionaire small business owner who doesn't go to fancy parties.

 

[jim23]

As the only resident ER member, I'm glad to hear that you had a good experience at the St. Regis event. Actually, I'm not officially a member yet - I just got off the waitlist and have my "orientation" next week. For some reason they won't let me access the member website before my orientation.

It seems like people are down on ER in this forum, which is why I have been hesitant to post anything. I stumbled on this website when I was doing my due diligence on the club and check it occasionally. I get the sense that many of you think that they are arrogant and that the club does not offer good value. I can only tell you that I've only had good interactions with the people there. In terms of value, I don't know if I can comment on that until after my first trip.

Bill touched on something in his review that was a big selling point for us in joining the club, particularly because of the T&H debacle: the size of the club. As the biggest DC by far, it should be much better protected from going under in a T&H-style event than any of its competitors. In order for my wife and I to be comfortable with the DC model, we needed to have confidence in the club's solvency, which ER gave us much more than any other club. Not to say that I think any of the other clubs are going under, but size helps a lot. I think the T&H bankruptcy still weighs on the minds of a lot of prospective DC members.

With regards to the net worth of the average member being $5-10m - I guess then I'm a below average member. But I'm still young and am working towards that end.

 

[PerryM]

As the only resident ER member, I'm glad to hear that you had a good experience at the St. Regis event. Actually, I'm not officially a member yet - I just got off the waitlist and have my "orientation" next week. For some reason they won't let me access the member website before my orientation.

It seems like people are down on ER in this forum, which is why I have been hesitant to post anything. I stumbled on this website when I was doing my due diligence on the club and check it occasionally. I get the sense that many of you think that they are arrogant and that the club does not offer good value. I can only tell you that I've only had good interactions with the people there. In terms of value, I don't know if I can comment on that until after my first trip.

Bill touched on something in his review that was a big selling point for us in joining the club, particularly because of the T&H debacle: the size of the club. As the biggest DC by far, it should be much better protected from going under in a T&H-style event than any of its competitors. In order for my wife and I to be comfortable with the DC model, we needed to have confidence in the club's solvency, which ER gave us much more than any other club. Not to say that I think any of the other clubs are going under, but size helps a lot. I think the T&H bankruptcy still weighs on the minds of a lot of prospective DC members.

With regards to the net worth of the average member being $5-10m - I guess then I'm a below average member. But I'm still young and am working towards that end.

Jim,

Good grief don't let others here deter you from participating in TUG. This is the New Media where folks get to present various sides in a debate that most of the time stays civil.

If you think we are wrong then tell us or show us another point of view. If you don't participate we will never learn.

 

[jim23]

Jim,

Good grief don't let others here deter you from participating in TUG. This is the New Media where folks get to present various sides in a debate that most of the time stays civil.

If you think we are wrong then tell us or show us another point of view. If you don't participate we will never learn.

I know. I have to learn not to be so sensitive.

 

[Steamboat Bill]

Jim

I am happy to see you return to TUG. The over riding theme last night was that Exclusive Resorts is a "Luxury" and "Lifestyle" purchase, not an investment, unless you consider fantastic vacations with your family and having lifelong memories an investment (like I do).

There are many different types of people in the world.

People think I am crazy to stay in an expensive 2 bedroom on-site Disney property when I could stay in Kissimmee for $25 a night or swap for a no-name timeshare.

I think some of my friends are crazy chartering a private plane and renting a suite on Peter Island or joining Trumps golf club for $300k when you can play on a ton of golf courses in Florida.

One of my best vacations was a private week-long catamaran charter with a captain and crew in the BVIs and that cost about $2k per day.

On the other hand, I had fun camping in North Carolina and only spent $10 a day...but you get the message.

 

[jim23]

Bill:

It's funny, since I've joined ER, I've felt like I need to justify our membership to people who just don't understand spending all that money for something you don't own. Bottom line, my wife and I just love going on luxury vacations, and that's where we want to spend our money. We don't spend a lot of money on other things like expensive cars and country club memberships (although I used to be a golf addict and quit the game, but that's a story for another time...). We now have a 1 1/2 year old daughter, and before she was born, the thought of joining a DC never crossed our minds. However, after having gone on vacation with her and having to watch DVDs in the bathroom after she went to sleep at 7 PM, we decided that we needed another option for our vacations, particularly since we're planning on having at least one more kid. We could always get 2 hotel rooms, but that would cost $1500 at the places we've stayed (Parrot Cay, One & Only Ocean Club, FS, RC, etc.), or we could rent, but it's a hassle to have to do research on rentals, not to mention the uncertainty about the condition of the unit. When we heard about DCs, it seemed like such a natural fit. To be able to get a beautiful house for basically the same price as 2 hotel rooms without the hassle of trying to find a rental really appealed to us. And that's how we ended up as members of ER.

 

[DosMasCervesos]

However, after having gone on vacation with her and having to watch DVDs in the bathroom after she went to sleep at 7 PM...

Ha! And I thought we were the only one doing that. For us it is normally having a glass of wine (or two) in the bathroom after the kids crash from a full day of activities.

That is what sparked my interest in timeshares, and now DCs. Hotel travel just doesn't work well (or isn't economical when you need multiple rooms) with kids-in-tow.

Matt

 

[Steamboat Bill]

It's funny, since I've joined ER, I've felt like I need to justify our membership to people who just don't understand spending all that money for something you don't own.

I agree as this applies to all DCs.

For the record (again)...I am a firm believer that the Destination Club industry is the BEST option for families with $10k-20k per year in disposable income to be spent on travel.

I have seen and tried all the alternatives. DCs may NOT be the best use of money or the best investment...it is just the best way to travel (IMHO). The fact that there are only 5,000 members worldwide and ER has 3,000 or those members, means that the future is very bright (for the entire industry...especially ER).

I have friends with large boats and they spend $200k or more per year just for the pleasure of having a nice boat (60-100 feet) that they only take out a few times per year. I think this is money wasted as I can charter a boat for much less. The best boat is a boat that is owned by your friend.

Lots of things compete for our discretionary dollars: jewelery, vacations, cars, boats, planes, clothes, entertainment, investments, etc.

I put nice vacations that the entire family can enjoy near the top of my list.

 

[Steamboat Bill]

I think ER and all DCs are missing the boat when it comes to marketing DCs. I am not privy to any inside info on demographics, but the crowd at the ER party was on the gray side and I think this may represent the current DC membership.

DCs need to market to "families with kids in elite private schools" as things move in trends there very fast. This is the ultimate keeping up with the Jones.

Here is a short list of the elite private schools in South Florida that charge over $20,000 per student per year.

Ransom Everglades
Gulliver
Carrollton
Saint Andrews
Palmer Trinity
North Borward Prep
Community School Naples
Miami Country Day
Pine Crest
American Heritage

There may be more, but these are the ones I know about.

How do you target them....support their parents association by making a donation of a vacation to the silent auctions. That's what HCC did for me last year and it raised over $3,000 for the school and got them some nice exposure. This is a win-win situation.

 

[LTTravel]

It seems like people are down on ER in this forum, which is why I have been hesitant to post anything.

I have had interactions with several of the clubs. ER is superb and very high quality and I am sure the most financially secure. I am sure most of the other clubs are also, but they have superb service, selection, quality and financial strength and is my first choice in choosing a DC for myself.
I have stated this before and I hate to be redundant, but a very important point in all of these clubs are the fine print. It is important that you know the fine details before chosing a destination club. It may or may not effect your decision, and may not effect you, but they are important to know.
For example:
With ER, you lose 20% the minute you send them the check. If you think that you have made a mistake, its too late. Quintess, for example, will refund 100% the first year and others have even better refund policies.
ER's increase in yearly dues is higher than the other clubs at CPI + 4.5% plus reset to market at ten years. This will make a significant difference in 5-10 years!
ER does not allow you to transfer ownership of the membership (except to your spouse) even to your children. If you die, your estate gets 80% of your membership fee and your children are allowed to rejoin the club at a 10% discount of the then current price, which may be double or triple what you paid, depending on how long you live. For example, if you paid $400,000 for a membership and you and your spouse die and the then current membership fee is $800,000. Your estate gets $320,000 and your children can get a new membership at a 10% discount or $720,000, costing them an additional $400,000 to maintain the membership. Other clubs allow you to will the membership without any fees or penalties. That is a huge difference. Many of the once in a lifetimes and the services provided while in house have additional fees, check these out.

As long as you know and accept these, I think that ER is clearly the leader, has the greatest selection of homes. BUT READ THE FINE PRINT OF ALL THE CLUBS. Each one may have something that may bite you in the a-- at sometime. But ER's financial stability will not bite you as badly as Tanner and Haley did to their members.
Not to just pick on ER, for example, UR does not include daily maid service and will charge you extra if you want it. I don't know what will happen after the merger because PE Platinum and Pinnacle do include daily maid service but PE Premiere does not. You would like to have daily maid service in a $3million home. Some of the DC's have a no tipping policies, others have recommended gratuities. Some charge a service charge on anything they book for you (even airport transfers, groceries, activities, etc) others not only don't charge a service fee but provide the service( such as airport transfers for free-Lusso) for free.
I am surprised that when clubs compare themselves to others (especially the leader) they just say they have great service and homes and availability but they will never be able to compete against ER with those type of statements because all it takes is one look at there expansive portfolio and there is no comparison with the other clubs. They need to compare the FINE PRINT.

 

[MULTIZ321]

ER 9/20/07 St. Regis Reception/Presentation

My wife and I attended the ER Reception/Presentation as Steamboat Bill's guests. It was fun to meet Bill in person and put a face to his great dynamic personality. I think Bill has been a fantastic addition to Tug and the Destination Club Forum (i.e., Non-traditional Interval Ownership) which he started and moderates has been a great source for broadening our horizons.

The St. Regis is a very elegant property - it's just a little north of the Marriott Beach Place Towers - with great beach and ocean views and easy street-level valet parking. The Reception was on the 4th floor - in an area with floor to ceiling windows overlooking the beach/Atlantic Ocean. It was fun watching the wind surfers as we enjoyed gourmet snacks and top-shelf drinks from the open bar. My favorite was the dates stuffed with gorgonzola cheese.

We moved into an adjacent meeting room for a low-kew presentation that was very professional and not at all high-pressure. ER's list of vacation properties is truly impressive. They also talked about additional properties that will be included in the portfolio in the relatively near future. Included among the attendees (I didn't count but I would guess between 20 to 30) were 2 members. They asked one of the members to come up front and speak to the group. His impromptu talk was fun and he's clearly a satisfied member. For those interested in the cruise ship World - he spoke of his family's trip on the World - and they all were very happy with the trip.

We then did a walk-through of one of the on-site ER 3 BR properties - certainly the wow factor and attention to detail and amenities was evident. The furniture and decorations were a bit too modern for my wife and my tastes - but it wouldn't take long for us to enjoy a stay there.

All in all it was a fun evening and an opportunity to see the new St. Regis and learn more about Exclusive Resorts. Thanks Bill.

Richard

 

[vineyarder]

a very important point in all of these clubs are the fine print. It is important that you know the fine details before chosing a destination club. It may or may not effect your decision, and may not effect you, but they are important to know.

Amen! Having gorgeous homes in great locations with personalized concierge service is the most basic requirement in order to get into the DC game, but alot of the 'details' or 'fine print' is what determines which club is the best fit for a prospective member... In addition to the 'details' discussed by LTTravel, I'd add reservation flexibility (arrival and departure dates, number of nights bookable, how far in advance, holiday restrictions) and availability...

 

[jim23]

Ha! And I thought we were the only one doing that. For us it is normally having a glass of wine (or two) in the bathroom after the kids crash from a full day of activities.

That is what sparked my interest in timeshares, and now DCs. Hotel travel just doesn't work well (or isn't economical when you need multiple rooms) with kids-in-tow.

Matt

Yeah, the vacation isn't quite as relaxing when you have to sneak around your room in the dark after 7 PM. A few glasses of wine does ease the pain though... even if it is in the bathroom.

 

[mjs]

Yeah, the vacation isn't quite as relaxing when you have to sneak around your room in the dark after 7 PM. A few glasses of wine does ease the pain though... even if it is in the bathroom.

Yeah, I remember watching TV at night, yes I mean WATCHING, no sound, didnt want to wake up the kids. AAHH, the good old days?

 

[Steamboat Bill]

One thing I forgot to post is how nice the ER sales brochures are.

The presentation of the thick booklet brochure is like nothing I have ever seen. The quality of the photos, quality of the paper, layout and design, and DVD definitely deserve to win some type of advertising award.

I suggest that ER enters their material in the next CLEO Award Competition or try for an ADDY award.

http://www.clioawards.com/home/index.cfm

http://www.aaf.org/default.asp?id=27

 

[LTTravel]

One thing I forgot to post is how nice the ER sales brochures are.

The presentation of the thick booklet brochure is like nothing I have ever seen. The quality of the photos, quality of the paper, layout and design, and DVD definitely deserve to win some type of advertising award.

Though their brochure is not quite as nice or thick, the Quintess Photos on the internet are excellent. Probably the only ones that come close to or surpass ER's.
The photos alone are a great selling point. A professional photographer is quite expensive and for UR/PE to send one to their 140 homes would cost them alot. But as they say, "a photo is worth 1000 words" and ER has great ones. If you look at the descriptions of some of their properties in Beaver Creek for example there are some as small as 1900 sq ft. The HCC property in Beaver Creek is ski in ski out and 2117 sq ft. The photos of the Beaver Creek property at HCC are some of their best, but somehow, ER has a way of making their homes look exceptional. Compare their Beaver Creek home photos (the largest one is 4800 sq ft) to the 7000 square foot home at DHH. The DHH photos are nice, but the ER photographer desires his fee. He has an incredible mastery of lighting and the wide angle lens.

 

[Steamboat Bill]

One thing I think all DCs should do better is have more photos of their properties online. They should also include a panoramic photo (have you ever seen those iPix photos www.ipix.com) that you can scroll around for each property and in each room. It would also be great if they could show the front and back yard of the properties.

In addition, each property should have an exact Google Earth map link so we can see how far (or close) things like the ski lift or beach really are.