High Country Club - TUG Special Membership

[VacationPro]

This is HOT news for TUGers!

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High Country Club is proud to announce a one year trial membership that is only available to TUGers for a limited time.

I noticed this "Trial Membership" is on the home page of HCC, so I guess either the promotion with TUG was very successful and they want to offer it to everybody, or they are disappointed and hoping to get more trial members.

http://www.highcountryclub.com/

 

[Steamboat Bill]

I noticed this "Trial Membership" is on the home page of HCC, so I guess either the promotion with TUG was very successful and they want to offer it to everybody, or they are disappointed and hoping to get more trial members.

http://www.highcountryclub.com/

It was offered to TUG first and then expanded to everyone after about a month. I think they had 10-15 new members with this plan.

 

[GOLFNBEACH]

My understanding is that this is a one year offering and you will have to upgrade to a higher category (2 weeks or more) or you will get a 100% refund.

If you upgrade to the $30k membership, you will simply have to pay an extra $10k and the extra annual dues.

This is really a great deal for TUGers and I am surprised that MORE people are not jumping for joy at this offer. I read other threads about people paying TONS of money for an Atlantis timeshare and this TUG offer much better value.

When you upgrade do you pay the difference based on today's pricing - or on the then current pricing?

 

[travelguy]

When you upgrade do you pay the difference based on today's pricing - or on the then current pricing?

"lock-in the current rates as of June 1, 2007" = Today's pricing as I interpret this.

 

[vineyarder]

Back on Board

"lock-in the current rates as of June 1, 2007" = Today's pricing as I interpret this.

Per Heath at HCC, this is correct...

Well after spending the whole summer traveling, I am back home (and back on the TUGboard) and ready to plan further trips, so I am spending the next couple days deciding on DC options (and cleaning out the garage)... Before I left for the summer I was pretty certain that I'd join the HCC trial membership as a supplement to my Private Escapes membership, but now I'm awfully tempted by the thread about Distinctive Holiday Homes, what with the yachts and international destinations. Certainly HCC is the 'safer' option due to size, stability and track record, but DHH is certainly attractive at the charter pricing currently offered... Has anyone else compared the two? I'll also ask on the DHH thread...

 

[Kagehitokiri]

Per Heath at HCC, this is correct...

another great reason for anyone even considering HCC to join the trial before Friday. last minute availability seems to be no problem, and youre locked in to current prices for 1 year. which could save you a lot, depending on how many new members join in that timeframe. have they given current members any kind of timeline with regards to price increases?

vineyarder, that was kind of my intention with the thread on DHH, to let people know about it, because the entry price is comparable to HCC. and their deposits are doubling at the end of September. also, in case you havent been following the thread, the CEO actually joined and is addressing questions/concerns.

personally, im watching these clubs as they expand >
-DHH
-Worldwide Private Residences
-Lusso Collection
-Ciel

 

[GOLFNBEACH]

Did you know the Membership Agreement includes the following clause:

High Country Club has the right to cancel Member's Membership at any time by notifying Member of the cancellation and refunding one hundred percent (100%) of member's Initiation Fee.

I realize that most folks are more concerned about the Member's right to cancel, however, HCC could excercise their right to cancel membersips purchased at lower introductary rates and add members at more profitable rates in the future.

 

[Kagehitokiri]

High Country Club has the right to cancel Member's Membership at any time

i would imagine its a common clause, especially for clubs that are "invite only."

but there is no real incentive, especially for HCC, to do so.

IIRC Exclusive Resorts is still currently waitlisting, and some of their charter members have plans with more nights etc. that could be an incentive to do this, if its in their contract. but they havent.

HCC has been around about 2 years now i believe, during which there have been no huge fee increases.

and when a club's annual membership fees are increased, it affects all members.

 

[GOLFNBEACH]

i would imagine its a common clause, especially for clubs that are "invite only."

but there is no real incentive, especially for HCC, to do so.

IIRC Exclusive Resorts is still currently waitlisting, and some of their charter members have plans with more nights etc. that could be an incentive to do this, if its in their contract. but they havent.

HCC has been around about 2 years now i believe, during which there have been no huge fee increases.

and when a club's annual membership fees are increased, it affects all members.

The "incentive" for HCC to cancel could be to eliminate early members who paid less and add new members at higher membership fees and higher annual dues.

HCC's membership fees have tripled since the introduction of the club.

 

[Kagehitokiri]

the private membership originally launched at $20K/$7200 in Q3 2005.

http://highcountryclub.com/pdf/featured/03_06_Cabo.pdf
4/1/06 - private increased from $20K/$7200 to $30K/$7200. (50 members)

http://www.heliumreport.com/archives/333-high-country-club-joins-century-club
8/15/06 - private increased from $30K/$7200 to $50K/$8400. (100 members)

this past summer it increased from $50K/$8400 to $60K/$8400.

http://www.heliumreport.com/archives/566-high-country-club-ceo-responds-to-our-concern (2/13/07)

We are well underway with our plan to raise our pricing to the $100k pricing within the next couple of years.

dont annual fee increases apply to all members?

 

[Steamboat Bill]

The "incentive" for HCC to cancel could be to eliminate early members who paid less and add new members at higher membership fees and higher annual dues.

HCC's membership fees have tripled since the introduction of the club.

I HIGHLY doubt that HCC or any Destination Club would penalize the early adopters that bought in low by kicking them out of the club. This is more fantasy than reality.

All DCs start low prices and RAPIDLY increase the buy-in fee as they get to certain milestones like 50, 100, 150 members etc. This is a common DC practice where it really does pay to get in early.

 

[saluki]

dont annual fee increases apply to all members?

The HCC membership dues increase on a percentage basis. There is an annual cap on the increase (CPI + 2% max). So, your increase is a function of your individual existing dues.

 

[Kagehitokiri]

gotcha, thanks saluki.

 

[Steamboat Bill]

The HCC membership dues increase on a percentage basis. There is an annual cap on the increase (CPI + 2% max). So, your increase is a function of your individual existing dues.

This is a huge advantage as most annual dues for Marriott timeshares went up 15% last year.

 

[GOLFNBEACH]

This is a huge advantage as most annual dues for Marriott timeshares went up 15% last year.

In theory. The agreement states that...The Club retains the rights at any time and from time to time to amend these Rules and Regulations...

In other words, HCC will probably keep to the terms of the agreement as long as they are profitable and things are working out well for them. If maintenace costs increase beacuse of uninsured losses, higher operating costs, or whatever reason...they can and will increse the annual fee or change the terms of the agreement.

 

[LTTravel]

the private membership originally launched at $20K/$7200 in Q3 2005.

http://highcountryclub.com/pdf/featured/03_06_Cabo.pdf
4/1/06 - private increased from $20K/$7200 to $30K/$7200. (50 members)

http://www.heliumreport.com/archives/333-high-country-club-joins-century-club
8/15/06 - private increased from $30K/$7200 to $50K/$8400. (100 members)

this past summer it increased from $50K/$8400 to $60K/$8400.

http://www.heliumreport.com/archives/566-high-country-club-ceo-responds-to-our-concern (2/13/07)


dont annual fee increases apply to all members?

The first 100 members were also "equity" members and they receive 80% of the current membership fee on exit. Someone who joined for $20,000 can now get 80% of $60,000 or $48,000 on exit. I think that HCC will commit to their limit of 2% over CPI and do not have much incentive to get rid of early members. Those who are early adopters of DC's got great deals, but then again, the risk is very high for a new club. Quintess charter membership was $325,000 with a return of 80% of current membership on exit. It is up to $375,000 and going up to $395,000 soon. The charter membership period, however, is over. And Lusso, though expensive, gives you 100% of your membership fee plus 50% of the increase in fee. But I think that they may change that after the first 100 members. It started at $325,000 and is going up to $395,000 in September. They are very near or may be past that point now. It is still a good deal if you have the money, risk and like what they offer. DHH is sounding like a good deal right now also. I think that HCC still, at current prices, offers a great product.

 

[Kagehitokiri]

The first 100 [HCC] members were also "equity" members

interesting. i presume some TUG members made it?

that also raises the point that clubs would never have an incentive to terminate equity members, because theyd be paying out assets.

 

[travelguy]

The first 100 members were also "equity" members and they receive 80% of the current membership fee on exit. Someone who joined for $20,000 can now get 80% of $60,000 or $48,000 on exit. I think that HCC will commit to their limit of 2% over CPI and do not have much incentive to get rid of early members. Those who are early adopters of DC's got great deals, but then again, the risk is very high for a new club. Quintess charter membership was $325,000 with a return of 80% of current membership on exit. It is up to $375,000 and going up to $395,000 soon. The charter membership period, however, is over. And Lusso, though expensive, gives you 100% of your membership fee plus 50% of the increase in fee. But I think that they may change that after the first 100 members. It started at $325,000 and is going up to $395,000 in September. They are very near or may be past that point now. It is still a good deal if you have the money, risk and like what they offer. DHH is sounding like a good deal right now also. I think that HCC still, at current prices, offers a great product.

In addition, many of the early members of HCC are investors in HCC outside of their memberships. Twice now HCC has offered investment opportunities to it's members. IMHO, this is better than a membership in an equity DC because it's a pure form investment with appropriate risk and return!

 

[travelguy]

Did you know the Membership Agreement includes the following clause:

High Country Club has the right to cancel Member's Membership at any time by notifying Member of the cancellation and refunding one hundred percent (100%) of member's Initiation Fee.

I realize that most folks are more concerned about the Member's right to cancel, however, HCC could excercise their right to cancel membersips purchased at lower introductary rates and add members at more profitable rates in the future.

Unlike timeshares, condos or other vacation property ownership that includes the transfer-of-ownership, DCs retain ownership of the properties and must have the ability to protect their investment, and therefore contain costs for their members. This clause is specifically to give the DC the right to terminate a member who violates club rules and/or damages the DCs investment. Granted it's a wide open clause but this is a membership agreement and not a thirty page commercial lease which requires total specificity. As a member, I want the DC to be able to protect it's investment and maintain it's cost efficiency.

 

[Kagehitokiri]

deposit based equity has a much higher potential return, but it does require you to resign.

 

[travelguy]

deposit based equity has a much higher potential return, but it does require you to resign.

I don't think you would say that if you did any due diligence with the HCC PPM. Think real estate appreciation vs. IPO with cash dividends!

 

[Kagehitokiri]

i guess i phrased that badly, i mean percentage wise.

how did they structure the investment?

 

[vineyarder]

Newest HCC member

Well, I stretched it out to the last minute, but did join as a trial member yesterday! As I see it, HCC and PE are very complementary clubs; PE is light on ski destinations whereas HCC is heavy on them; HCC has the fixed 7 night advanced reservation rule, which prevents a long weekend reservation from blocking two one week reservations, but PE allows short breaks to be booked far in advance... PE allows 2 week stays, where HCC only allows that in afew destinations... and in destinations where the 2 clubs both have homes (Cabo, Punta Mita, Outer Banks, La Costa, NYC, Tuscany, Turks, etc) we have the flexibility to use whichever club has an opening when we want to travel, and in some locations one club has the bigger home but the other club has the better views, so we can choose based on how many are traveling with us as to which best suits our needs. Both clubs are very open & transparent, with very accessible management and a fair degree of flexibility, and both seem fiscally conservative. Hopefully it will work out as well in real life as it seems to on paper! At this point I am hoping to use my trial week at either Costa Rica, Puerto Vallarta, or Playa del Carmen, so I can't wait to see pictures as the properties come on line... Any feedback on the Playa Del Carmen property?

 

[LTTravel]

Well, I stretched it out to the last minute, but did join as a trial member yesterday! As I see it, HCC and PE are very complementary clubs; PE is light on ski destinations whereas HCC is heavy on them; HCC has the fixed 7 night advanced reservation rule, which prevents a long weekend reservation from blocking two one week reservations, but PE allows short breaks to be booked far in advance... PE allows 2 week stays, where HCC only allows that in afew destinations... and in destinations where the 2 clubs both have homes (Cabo, Punta Mita, Outer Banks, La Costa, NYC, Tuscany, Turks, etc) we have the flexibility to use whichever club has an opening when we want to travel, and in some locations one club has the bigger home but the other club has the better views, so we can choose based on how many are traveling with us as to which best suits our needs. Both clubs are very open & transparent, with very accessible management and a fair degree of flexibility, and both seem fiscally conservative. Hopefully it will work out as well in real life as it seems to on paper! At this point I am hoping to use my trial week at either Costa Rica, Puerto Vallarta, or Playa del Carmen, so I can't wait to see pictures as the properties come on line... Any feedback on the Playa Del Carmen property?

Congratulations on your membership. I think that you will enjoy it. I envy you, a member of Marriott, 4-Seasons, Private Escapes and now HCC. You must have alot of free time. I can't wait till I get to that point. I have not stayed at the properties but I have seen them from the outside. You have just one week to evaluate your membership so remember the following about the destinations if you have not been. The Costa Rica property is in Guanacaste and probably not oceanfront. Costa Rica has two seasons, summer and winter, or dry and wet. Wet season is from May to October and dry from October to May. February to May gets VERY HOT. The best time of the year to go is in January. It is in the dry season but not too hot. If you go in April, you may not like it. Though our summer is their rainy season, the temperatures are actually cooler (high 80's as opposed to the 90's) but it rains nearly every day after 2 PM. The sun rises at 5 AM and you have to plan accordingly. Costa Rica is an activity destination, surfing, visitng the volcano, Zip lines, etc. The beaches are not great swimming beaches or pretty. They are good surfing beaches. There is no night life. Their properties in Puerto Vallarta will be either the Villa la Estancia in Neuvo Vallarta or the Punta Mita property. The Villa la Estancia is a very nice 2 bedroom condo. I saw it when they were building it. Nuevo Vallarta is a "planned" resort area in the middle of the Bay of Banderas, near the airport and about 20 minutes from downtown Puerto Vallarta but an easy drive. There are many restaurants, activities and night life in downtown Puerto Vallarta and some in the area of Nuevo Vallarta. The Punta Mita property I suspect will be very nice home in the Punta Mita development. Remember that this is on the northernmost point of the Bay of Banderas and about a 1 hour drive from downtown Puerto Vallarta. It can be an annoying drive, especially at night. There are not many restaurants or activities in the area. This area is now developing. You can see from the photos that the Playa del Carmen residence is right on the water. Playa del Carmen is not at all like the other Mexican destinations like Cancun, Puerto Vallarta or Cabo. It is a small town with a little European and South American flair(you will be able to spot some speedo's on the men). From your unit you can walk to restaurants and you are right on the beach. The beach is nice but minimal wave activity and not as blue as Cancun. The waves are subdued by the Island of Cozumel which you can see from the home. There are many things to do. If you have been to these destinations this won't be useful to you but I want to make sure you are not disappointed because you are picking the home alone and not the home and location combination.

 

[Kagehitokiri]

LTTravel, if you dont mind me asking, do you work with HCC, or another developer / in the industry? definitely nice to have you here as a resource

Nuevo Vallarta >
http://villalaestancia.com/cms/nuevo-vallarta/2bedroom

Costa Rica >
http://www.reservaconchal.com/
(probably going to be a condo, oceanview = toss up)

Costa Rica and Playa del Carmen are 3BR VS 2BR in Vallarta / Cabo.

i believe HCC also has 3 ski-in/ski-out townhomes - Beaver Creek(3BR), Keystone(4BR), Telluride(3BR)

i hope the trial combines well with PE i definitely am thinking the same sorts of things in terms of joining more than one club for maximum flexibility/use.