Recent Destination Club News

[ClubsRDead]

I'm not sure that paying anyone a "fee" for membership whereby in addition you just pay market nightly rates makes a bunch of sense. Unless you just want to remove the headache of having to do your google searches yourself.

 

[BetterClient]

What are you going to do now that UE is dead?

Looking at all my options now that UE is for all intensive purposes, dead without any hope of recovery.

What are the other members looking at?

VRBO? Lots of work-but it does create savings and no upfront costs.

DUO? Not wowed with locations or venues. The Carlyle & the Von Trapp Lodge, please! So 1980's.

ER? Not if a full fare option is the only one choice there.

Q? Again, not if a full fare option is the only choice there.

Demure? Rob McG didn't burn me-would sooner do business with Christian K.

EE? Can't follow their math.

Renting timeshares? There are lots of choice units available for rent.

Perry-what's your thought here?

 

[Kagehitokiri2]

second home destinations
HCC offer http://destinationclubnews.com/News...duces_Offer_For_High_Country_Club_Members.php
recap - UE offer http://destinationclubnews.com/News...resents_Offer_To_Ultimate_Escapes_Members.php

if EE wants to do lonestar, now might be a good time

same for luxus if they want to launch a US club or open up to US members

 

[Desties]

Sheron strikes back

Well, this could be promising -- though I'm out if it involves sending in good money after bad. . .

Dear Ultimate Escapes Members,

I am delighted to inform you of the results of yesterday’s Auction. Subject to the necessary approvals, the Company accepted bids for a number of assets, including a bulk bid that may allow members to vacation in most of the homes to which you are accustomed to travel.

Details are being finalized and will be presented to the Court tomorrow at the sales hearing for approval. Soon thereafter, we, together with the successful bidder for the bulk properties, will be in touch with you regarding proposed membership benefits and future plans.

We believe this would be a very good result for members, and we look forward to being in touch soon.

We thank you again for your support. If you have questions, you may continue to submit questions via email to bankruptcy@ultimateescapes.com.

Thank you,

Sheon Karol
CRO

 

[travelguy]

second home destinations
HCC offer http://destinationclubnews.com/News...duces_Offer_For_High_Country_Club_Members.php

Still no website for Second Home Destinations? How can they expect to operate without this?

 

[Desties]

Soon thereafter, we, together with the successful bidder for the bulk properties, will be in touch with you regarding proposed membership benefits and future plans.

I wonder how this will play out. Even if the "bulk bidder" got all 70 homes, obviously they can't service 1200+ members. Membership would be cut in half. Operating costs per member would climb. Who knows what the fee structure will be here, or if there will be an initial outlay required.

I guess it would be telling if we found out WHO was the bulk bidder, but at least it's better than a total liquidation even though I get the sneaking suspicion that I'm going to be part of the half that walks away at this point.

 

[Kagehitokiri2]

travelguy, theoretically they might? seems odd they took down phoenix site, instead of just moving it.

indeed Desties, how many properties were in the "bulk" bid. funny how details continue to be vague.

http://docs.bmcgroup.com/ultimateescapes/docs/deb_1-10-bk-12915_143_1.pdf
total $65mm, breakdown >
23 elite $210k (lake las vegas) > $3.99mm (maui)
26 signature $369k (scottsdale) > $1.14mm (miami beach)
19 premiere $217k (colorado) > $1mm (new york city)
(68 total)

plus >
private retreats paradiso ltd $6,120,000 (nevis - 7?)
private escapes TCI ltd $1,890,000 (turks and caicos - 4?)
private escapes borgo di vagli llc $500,000 (tuscany - 3?)

BetterClient, re Q investor, why not post?
http://tugbbs.com/forums/showthread.php?p=986253#post986253

 

[OneMoreTime]

Vague, or elusive?

Who is going to pay for the ongoing expenses of the Club for the next 30-60-180 days? Will Demeure pay to open up Member Services again, since Cap Source scheduled the DIP to be done on Wednesday, to try to poll the Members? I wonder how many Member's have to say yes without time to digest the details of paying to be in a "buyers group" and maybe get below rack rates from an internet based open booking system?

I can't wait for Sheon's all member call to explain the benefits of this transaction.

 

[Kagehitokiri2]

Who is going to pay for the ongoing expenses of the Club for the next 30-60-180 days? Will Demeure pay to open up Member Services again, since Cap Source scheduled the DIP to be done on Wednesday, to try to poll the Members? I wonder how many Member's have to say yes without time to digest the details of paying to be in a "buyers group" and maybe get below rack rates from an internet based open booking system?

I can't wait for Sheon's all member call to explain the benefits of this transaction.

demeure eh, so back to their partial ownership model.

- # of properties and $?
- what $ do they want from members, and are they talking equity?

...

second home destinations must not have site, or they would have told someone i just asked about it. very odd considering phoenix site. and when you have points, you need to know the point range...

 

[ClubsRDead]

Who is going to pay for the ongoing expenses of the Club for the next 30-60-180 days?

Simple question, simple answer. We (the members) are, apparently.

If I understand correctly, the Demeure "bid" is based on them trying to buy a small number of "coveted" homes (not sure which those would be), having Cap Source carry the paper, and leasing a large majority of the remaining ones from CS who retains ownership and right to sell. Lease costs alone with Ops would be, let's say $1MM per month? So what's next, put their hands out to us and ask 1000 to pay $1000, or 500 to pay $2000, or whatever? And do this each month? So we're back to $25k per year of dues, give or take?

What happens when we want to use one of the "other" homes on their web site? Easy - we pack rack rate, right? But would we be allowed to use the ones from UE for no nightly cost since we're likely going to have to upfront the carry costs? Well that's problematic too, because there's too many of us to cram into those homes unless we all start traveling together as friends.

The equity models where we OWN something are looking better and better. But at this point, so is VRBO...

Nice job, CRG and Sheon - you "sell" us to someone provided that we once again front the purchase price, and now even worse - the rental costs?

Maybe we'll get lucky and the UCC and Judge will laugh all over this.

 

[DCworker]

If any of you rich members do some math you will see that you can travel other ways for cheaper and might not have to send in your complaints about all the properties. This latest deal is a joke and may get some planners paid a while longer but when you see what they have in store for you and the homes you will just start renting or buy your own homes. Its funny the pool we have betting on which of you will once again write checks to someone you dont know who have done no diligence on then be pissed later when it doesnt work.

 

[Kagehitokiri2]

buy some and lease more? what do they want from members? not equity. up front for buy and then annual for lease and operate?

isnt second home destinations mainly leasing as well? although they have option for decent sized deposit. but leasing is only real option for no-deposit. that concept was discussed more on DC4MS, post HCC.

for an equity club, EE also has a high target for leases, but they described how thats built into dues.

 

[Leonardo]

Its funny the pool we have betting on which of you will once again write checks to someone you dont know who have done no diligence on then be pissed later when it doesnt work.

Hope no one bet on me writing another check!

 

[travelguy]

travelguy, theoretically they might? seems odd they took down phoenix site, instead of just moving it.

Especially since I thought Bourne said he was a consultant for Second Home and his business is web sites!

 

[Bourne]

Especially since I thought Bourne said he was a consultant for Second Home and his business is web sites!

Technically, I did not say anything...on the record, that is...

And for the record, my sugar mom is an old Gray Lady on LaSalle Street. And no, the business is not technically websites... it helps bean counters that work for these Grey Ladies count their beans better. :hysterical:

 

[Bourne]

Another rule in business...

Thou shalth not do business with these fickle minded 20 somethings that may look hot and s***, but in the end will pump and dump you. Stick with the sugar moms...

 

[Kagehitokiri2]

http://destinationclubnews.com/News_The_2010_Outlook_Letter_From_Jim_Tousignant.php

sigh. good luck to UE members.

was just checking emails. emailed elan collection (fractional plus) recently and 6 months ago - no response.

 

[ClubsRDead]

NEW 5 Week DIP Extension

Well they have done it again, posted another DIP budget. $1.3MM+. $720k of new professional fees (absent from this however is any fees for the UCC, which is peculiar). Claims agent expenses gone, filing fees, etc.

Still paying "board fees" of $4k / week and office rents for both KC and FL so we can assume JT is still riding this train somehow.

They zeroed out the columns for "wind down" disbursements and "contingency" so this must be the end. They also have limited to no field expenses. Payroll and employee expenses seems high.

Anyone have any clear picture or insight as to what is going on here?

I suspect they are just preparing for shut down in lieu of Demeure knocking one out of the park tomorrow on the conference call, but don't see how that can even come close to happening.

 

[willmyclubmakeit]

status

not sure of the status but I did get an email from Phil, CFO, and he said he has left UE so I'm not sure who is in the Florida office any longer (maybe it has some computer equipment and files).

Looks like the CRO and attorneys at least will get something out of this--but not us...normal for a BK unfortunately.

 

[willmyclubmakeit]

offices and the like

I was told the office space is being used by the attorneys working on the closings and the rent is $6500 (and its a one month lease)....not enough for JT's car payment I suspect.

 

[TarheelTraveler]

At the risk of being repetitive (earlier comments) (of course that has not stopped any of us before):

Interesting. I didn't see any details on the properties though. Also the $5,000 dues are not ever suppposed to increase for the first 500 members, which seems a little odd, considering that the concierge and travel planning costs covered would presumably increase each year. Seems like the industry would be smart to get away from supposedly locked in perpetual pricing for early members.

These sorts of arrangements have their pros and cons, and the cons are typically glossed over, just like DCs gloss over their negatives. Off the top, it seems like the big advantage is no deposit and, therefore, no club risk or downside investment risk. Also no long term commitment. The disadvantages would seem to be no upside investment potential, no ownership, so you're subject to whatever the lease costs are in the future (i.e., the nightly fee), and less standardization and consistency in house specifications, amenities and operations. I'm curious whether the properties will be exclusive to the Club or if it will consist of excess inventory like some other "lease clubs."

Kage's and CRD's comments:

yet another rental broker (calling itself DC)
http://www.boundlessjourneysclub.com/
surprisingly, connected to well reputed tour operator

$5K is a lot for just membership - for example quintessentially and amex centurion are less

IIRC there has not been a (public) rental broker with exclusive properties, but discounts are always possible

I'm not sure that paying anyone a "fee" for membership whereby in addition you just pay market nightly rates makes a bunch of sense. Unless you just want to remove the headache of having to do your google searches yourself.


Separately, how was the Demeure webinar? Did the unknowns get clarified some?

 

[ClubsRDead]

Separately, how was the Demeure webinar? Did the unknowns get clarified some?

It's tomorrow. PM me with your email and I will send you a link, more than welcome to attend I presume. They say it's "limited to the first 1000 responders," so you know there will be many sad souls who can't get in and will be extremely heartbroken.

 

[OneMoreTime]

10K + to Florida?

I was told the office space is being used by the attorneys working on the closings and the rent is $6500 (and its a one month lease)....not enough for JT's car payment I suspect.

Unbeleivable that the Estate is allowing even a penny to make it to JT and crew...

 

[Leonardo]

Dear Ultimate Escapes Members,

It has come to our attention that our members are receiving emails from unknown parties offering information and requesting your contact information. Please be aware that neither Ultimate Escapes nor Demeure has authorized these emails. We recommend that you exercise caution before providing any of personal, financial or contact information to unauthorized parties.

Thank you,
Sheon Karol, CRO

 

[Leonardo]

Dear Ultimate Escapes Members,

It has come to our attention that our members are receiving emails from unknown parties offering information and requesting your contact information. Please be aware that neither Ultimate Escapes nor Demeure has authorized these emails. We recommend that you exercise caution before providing any of personal, financial or contact information to unauthorized parties.

Thank you,
Sheon Karol, CRO

Dear Mr. Karol,

Thank you very much for your sage advice. In fact, less than an hour after receiving your advisory notice, I received an unauthorized solicitation; in person, no less. How they found out my home address, and gained access to our gated community is a mystery, but my doorbell rang, and a pair of clean-cut folks in green uniforms offered to provide me with ‘quality baked goods’ at a future time, in exchange for a cash payment up front. I asked them if Ultimate Escapes had authorized this solicitation, and they acted as if they had no idea what I was talking about! The nerve of these folks; trying to sell me cookies without the consent of my bankrupt destination club!

I really don’t know what would have happened to my hard-earned money without you and your colleagues looking out for us!

With eternal gratitude,
Leonardo