Taking HCC as an example, does anyone know what their "burn rate" is? That is, assuming that they are still in a "loss" mode, how long would it be before they burn through reserves and are no longer able to meet expenses (especially debt service?) At what point are they expecting to be at breakeven or "profit" mode? How large a cushion of reserves exists, compared to the projected point in time to reach that breakeven point? What are the assumptions underlying the projected time at which breakeven is achieved? How many new memberships do they need to sell, at what intervals, and at what membership fee? How does the purchase of new homes factor in to the projected breakeven date? What is projected to happen to maintenance fees during that period of time? To state the obvious, assuming that those of you who have purchased HCC memberships (or memberships in any DC) are able to answer all of these questions, and you are comfortable with the assumptions underlying the projections, then the decision to acquire your DC memberships are financially sound. If not, well then your strategy is something along the lines of "keeping your fingers crossed" while enjoying the current benefits.
Lots of great questions. I don't have specific answers - I doubt anyone here will have the numbers.
I would hope that HCC would be close to break even on an operating cash flow basis, but running a deficit ("burn") net of capital expenditures.
Assuming a target occupancy rate of 70%, HCC properties would be utilized 255 days per year. This amounts to 10 affiliate members (25 days useage) and gross membership deposits of $400,000. They are buying $1 million properties, so they are suffering a large cash flow deficit net of property acquisitions.
I am concerned that HCC is over promising by charging so little for so much. They will succeed to the extent that they can raise membership dues rapidly/significantly in the future.