# Abercrombie & Kent Residence Club



## NeilGoBlue

Hello everyone!

If you are a member of AK residence club, please join our facebook group at:

http://www.facebook.com/groups/331475033633350/

Given the conference call today, this could be very valuable.

Or you can private message me.


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## DazedandConfused

good or bad news coming?


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## TarheelTraveler

From my perspective, it is a positive change.


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## travelguy

Anyone care to expand on this?  It's always good to hear something positive about a DC!!!


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## NeilGoBlue

Can't talk about it yet.. But probably considered good news by most of the members.


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## ClubsRDead

So what was the tally of the vote?  Move forward with ER or no?


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## Kagehitokiri2

removed....


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## NeilGoBlue

It was approved. (ER transaction was approved)


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## RLG

transaction is announced:

Exclusive Resorts and Abercrombie & Kent Announce Strategic Partnership

Iconic Luxury Destination Club Assumes Operations of Abercrombie & Kent Residence Club

Exclusive Resorts Names Abercrombie & Kent Worldwide Travel Experience Provider 



http://finance.yahoo.com/news/exclusive-resorts-abercrombie-kent-announce-180000011.html


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## travelguy

*Equity?*

So my memory of how A&K RC was structured is foggy ... but wasn't it an equity club?  If so, how does that mesh with ER which is a non-equity club IIRC?

I've obviously missed out on the recent history of A&K as I assume that there was some catalyst to move them to merge with ER?


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## NeilGoBlue

I'll let Mark answer more legally, but we still own the homes in an entity, and then we in effect lease the homes to ER so they can use them.  It, in effect, becomes our equity payment to be in ER. 

If in a few years, we don't like how things are going.. The owners of the holding company (us) can vote to liquidate the real estate, or find a new manager, or go at it alone..

The fact that we have ownership in the properties and have no debt is saving our ass...


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## travelguy

Thanks for the clarification.  Sounds like a creative solution that could potentially be ... dare I say it ... "win/win".


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## NeilGoBlue

It's definitely a win-win-win-win.  Members that want to get out, get to get out. Members that want more locations get more locations. Members that want to downgrade to less nights can.   AK is happy, ER is happy with all the new dues paying members.  

Etc.


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## ClubsRDead

What happens to the development company homes, are they going to ER too?  Will members now be calling Denver instead of Chicago?  Club managers such as Darin, Stephanie, etc - how does the club afford to continue paying these people when ER's staff is obviously capable of handling the bookings for 100 people.  What about those who wanted OUT of A&K for the past couple of years, how do they get made whole if the entire premise of resignation was based upon new sales coming in, which one would assume there is no longer an A&K sales team as nothing's been sold in over a year.  Seems odd that club members could have selected any group to "manage" their business and appears to have taken one where they will just be a # in a computer.  If it however affords new travel opportunities and new assets it probably is a win to that degree as the landscape hadn't changed with homes at A&K since inception.  Good luck to all.


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## TarheelTraveler

A&K is leasing development co. homes to ER for a period of time to transition existing reservations.  Former AKRC members (now Residence Club Holding Co. members) will have an ER ambassador, and ER will be managing the properties.  RCHC will not be using the A&K Management Company after the end of the year.  The ER portfolio broadly expands the travel portfolio for traveling members, which as CRD points out was stuck since inception.  A&K becomes a major travel provider to ER, so A&K benefits.  ER gets more dues paying members and ER members get a few more destinations and some nice homes.  

I will say that the equity structure really was helpful, because it gave us a significant asset (i.e., homes that had no debt) and helped us control our destiny.


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## Chicagomark

If you are on the resignation list at A&K now and would like to get cash now, instead of later. Please reach out to me. Interested in finding someone who has been on the resignation list for a while with a reasonable plan who wants out.


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## NeilGoBlue

ClubsRDead said:


> What happens to the development company homes, are they going to ER too?  Will members now be calling Denver instead of Chicago?  Club managers such as Darin, Stephanie, etc - how does the club afford to continue paying these people when ER's staff is obviously capable of handling the bookings for 100 people.  What about those who wanted OUT of A&K for the past couple of years, how do they get made whole if the entire premise of resignation was based upon new sales coming in, which one would assume there is no longer an A&K sales team as nothing's been sold in over a year.  Seems odd that club members could have selected any group to "manage" their business and appears to have taken one where they will just be a # in a computer.  If it however affords new travel opportunities and new assets it probably is a win to that degree as the landscape hadn't changed with homes at A&K since inception.  Good luck to all.





The RCHC will appraise the homes, sell off the homes necessary to pay off members on resignation list. Resigning members will get pro rata shares of monies from sale... It will be less than they put in because real estate prices went down.. probably somewhere between 50-70%. We'll see when the appraisals come in.


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## RLG

NeilGoBlue said:


> real estate prices went down.. probably somewhere between 50-70%.



Real estate prices went down 70 percent?

Another spectacular result for the destination club industry.  At least a 70% loss is better than the 100% loss absorbed by the victims of Abercrombie & Kent's first venture into the industry.

Remind me again why anyone signs up for destination clubs when they know what's happened to all who went before them?


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## TarheelTraveler

I think what NeilGoBlue meant is that real estate prices have come down 30-50%, meaning you'd net the difference (i.e., 50-70%).  As a practical matter, we don't know where it'll fall out, because it's totally real estate driven, dependent on timing.  

I for one am going to continute to travel and let my equity ride for a while to see if we can get back closer to where we were.  I guess it's all a matter of perspective.  Most DCs, particularly the non-equity kind, have been absolute disasters, timeshare values have mostly tanked, fractionals have mostly tanked, the secondary whole ownership market has mostly tanked.  Definitely some signs of life out there now, but it'll probably be a long road....


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## NeilGoBlue

TarheelTraveler said:


> I think what NeilGoBlue meant is that real estate prices have come down 30-50%, meaning you'd net the difference (i.e., 50-70%).



Correct.  Sorry for the confusion.


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## Beta49

Has anyone who resigned from A&K prior to the switch to ER been contracted yet?


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## NeilGoBlue

Beta49 said:


> Has anyone who resigned from A&K prior to the switch to ER been contracted yet?



I don't know the answer to your question.  But there is a Facebook group for members that have chosen not to join ER.  Send me a private message I can point you in the right direction to get added to the group.


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