The Eden Residence Club - Simplicity Works Best!

SIMPLICITY

WORKS BEST!

By Steve Harrison

I

t’s been some time since something new, innovative and exciting happened in the Destination Club world. There was an excitement that heralded the launch of Inspirato in January 2011, when Brent and Brad Handler the Founders of Exclusive Resorts, re-entered the destination club marketplace with a low cost alternative to Quintess and Exclusive Resorts, the two main players in the Destination Club space.

Instead of using a mixture of debt and equity to purchase multiple luxury homes to build a billion dollar portfolio for their members, Inspirato focused on leasing or renting homes. They broke with tradition of guaranteeing a fixed nightly rate and introduced rates according to the season which effectively meant that in low season when it was better to have some money

coming in the door, homes would rent for as little as $283 per night and in high season homes would go to the highest bidder and rent for as much as $6,000 a night. With only $17,500 required to join and $3,600 a year in dues, it’s no wonder that Inspirato

“The Eden Residence Club is set to turn the industry on its head”

have become the biggest Destination Club on the market with over 10,000 members.

Yet like most industries, disruptive ideas that rethink the ways systems have operated and improve the offering for the buyer, are the next great things in the world we live in.

Six years on from Inspirato, a new company enters the market in January 2017, The Eden Residence Club is set to turn the industry on its head as it addresses the needs of the consumer. By way of background, as we entered the 21st century, luxury fractional residence clubs opened up all over the world with leading hotel brands scrambling to open bigger and better clubs in iconic ski, golf, beach and city destinations, for vacationers who wanted a piece of a $4m-$5m home with world class facilities at a fraction of the price. The concept of buying what you

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would use, rather than have a home sitting for 40+ weeks a year un-used was appealing as investors purchased from 6 to 12 weeks in different properties to meet their vacation needs. As time went by things changed and while most investors still used a fraction of the time they had purchased, large volumes of weeks in amazing properties were going left empty, as due to their private nature, owners were prevented from renting their un-used nights to the general public and could only rent to other members who were already not even using what they had themselves. Like the clubs with whom it

partners the Eden Residence Club owns its own luxury private properties, but have created the first association or Club of Club’s for luxury operators in the industry.

By reciprocating with The Eden Residence Club these luxury private residence clubs don’t break their constitution. Their members have access to the ERC’s home Pittormie Castle and the Residences at Pittormie in St Andrews, Scotland, the “home of golf”.

More importantly owners may place their unused nights with the Eden Residence Club who rent out the nights to other members, who benefit from a low-cost fixed rate

per night. The model is a win-win-win as developers enhance the deal they deliver to their members while giving them the option to opt into utilising all the other properties in the clubs portfolio. Like a private, high-end, Airbnb, the club are utilising the unused real estate of owners all over the world. Instead of moving into someone’s home where the décor and furnishings may or may not meet your expectations, this is a pool of luxury $4m to $5m homes that are designed, furnished and operated by the world’s best.

It’s not an exchange programme. Just a simple solution to an age old problem that’s

been effecting the industry for years. The ERC is by-invitation with membership limited to members of the participating clubs, which in turn enhances the value of belonging to a particular club in the first place. If you sell your real estate interest, you can include your ERC membership and benefit from any uplift in value the combination creates. But you can’t split them and just keep your ERC membership.

Although you would be forgiven for thinking that the appeal of all this is just access to world class accommodation at hugely discounted rates, you would be wrong. The

focus is actually on service and experiences which drives the desire to visit different destinations. “If you think of why we travel there is typically a motivation” said Tom Lawrence, Founder and Chairman of The Eden Residence Club. “Whether it’s to visit family or friends, enjoy a beach vacation, ski, golf or watch a Broadway show, it’s the activity you remember but the accommodation that makes it special”.

“Think of the times you’ve stayed in horrible hotels, its ruins your mood and you find it hard to relax and enjoy yourself”. “Just the thought of going somewhere beautiful, in

luxurious accommodations strikes a cord in all of us” said Lawrence. For the tens of thousands of owners that currently own fractional interests in luxury resorts, the Eden Residence Club sounds like a gift from the gods. Not only will it substantially enhance their lifestyle, but it will go a long way to increasing the value of their resale estate.

Remember the name – you read it here first, now ill quickly call my broker to buy some stock. For more information visit www.theedenresidenceclub.com

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