Destination Club Forecast

  • by Toby Jake
  • 12 Months ago
  • Comments Off

Lehman Brother’s recent personal bankruptcy filing sent shockwaves with the heart of Wall Street and could soon have an affect on the destination club industry.

Lehman Brothers’ personal bankruptcy joins major changes at AIG, Goldman Sachs and Morgan Stanley, causing drastic market swings on Wall Street as well as an unsure financial market. Within the destination club realm, Ken May, James Millership and Bob Burch, the executives from the conservation focused destination club Everlands, might have been watching the marketplace nearest. Lehman Siblings offered as both financiers and investors within the ultra-luxury destination club. An Everlands Existence spokesperson established that their firm was “doing great” regardless of the Lehman Siblings personal bankruptcy and declined to create any more discuss the subject. Telephone calls for their PR agency weren’t came back.

Because of the chance of a slower growth period within the coming several weeks, expect a shake out period soon for destination clubs. Expect a couple of smaller sized clubs to merge with each other, in addition to acquisitions by bigger, competent clubs. Undercapitalized start-up clubs may have difficulty making headway as evidenced through the Diamante Residences cancelled launch. Expect other similarly sized firms to fade from the industry soon after their launch. Basically we don’t anticipate any major changes prior to the finish of the season, destination clubs typically publish more powerful sales in Q4, coinciding with year-finish sales promotions. Be prepared to hear merger and acquisition news by Q1 of 2009.

The economy is beneficial for well capitalized firms to create positive jumps. Anticipate seeing one or two clubs with strong financial resources to get quality property at well underneath the market rates of in the past. Individuals better capitalized clubs may also weather the economical storm, and so will individuals clubs purposefully created for slower, steadier growth.

These market conditions reinforce the requirement of strong research when searching at destination clubs and fractional possession options.

The Veras Group may be the only impartial destination club news, talking to and broker. As our client, we accompany for your destination club purchase from beginning to end: customized reviews of the travel needs, unrestricted use of our ea’s, insiders’ advice from industry veterans, insightful research support, thorough club comparisons and points of difference, and also the best available terms & prices in your membership, all free of charge for you.

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