"As we have assessed the market and the various offerings, we believe there is a significant opportunity to create a destination club that provides the best of what other clubs do, while addressing some of the key deficiencies. Such deficiencies include offering equity memberships; lower up front membership fees and flexible membership options; properties that are located both regionally, nationally and internationally, to allow a good mix of both drive-to and fly-to destinations; and a club that if required, can comply with timeshare regulation to offer the ultimate protection to its members."
These words from BelleHavens Founder Darin Gilson launched the club's first round of venture funding in early September of 2003. Joining Gilson on the executive team was Scott DeGhetto, a seasoned senior banker of UBS Investment Bank, a subsidiary of UBS AG, one of the world's largest diversified financial institutions, and at Bear Stearns and Citigroup. The club's executive team developed a member-owned model where membership deposits were used to purchase real estate outright. As new memberships were sold, the club held membership deposits in escrow until ten members joined and then purchased a property debt-free.
In August of 2004, the club began to officially sell their Charter Membership offer. The club's member owned model and portfolio of $1.5 million luxury residences proved to be a potent combination. Less than two years later, Tanner & Haley, the pioneer of the destination club industry was forced into bankruptcy, confirming the appeal of the equity club model created by BelleHavens and Gilson.
In March of 2007, BelleHavens reached out to the struggling and similarly named club Havens. A non-equity club, Havens had seen some initial success following their launch, but growing competition had pushed the club to the brink of bankruptcy. Approximately 40 Havens members joined the BelleHavens' family with the opportunity to join as non-equity members or upgrade to a full equity membership. Havens' members that did not upgrade to equity members were allowed redemption rights after three years.
April of 2008 saw BelleHavens on the other end of a merger when luxury travel giant Abercrombie & Kent acquired both BelleHavens and another equity club Crescendo Residences to start their new venture, Abercrombie & Kent Residence Club. The combined strength of the two equity clubs and the Abercrombie & Kent branding immediately made the new club a powerful player in the destination club industry. The vast majority of members and properties from BelleHavens and Crescendo were rolled into the new club, and BelleHaven's Founder Darin Gilson joined the club's executive team as Senior Vice President of Sales and Business Development as A&K Residence Club implemented much of the model that was pioneered at BelleHavens.
MEMBERSHIP PLANS
When BelleHavens was first introduced to the market, club memberships were sold for $200,000 with flexible membership plans for General, Family, Partnerships, and Corporate memberships within.
General Memberships required that one of the two primary members be in residence whenever traveling. Family Memberships allowed for the primary members to allow direct family members the ability to enjoy the membership as well without the primary members in residence. Partnership Memberships allowed multiple parties the opportunity to cooperatively purchase a membership and enjoy the club's benefits. The Corporate Membership allowed the primary member the ability to bestow travel priviliges to clients, customers, and employees, and were sold on a limited basis.
Each year, members chose between two, three, four, five, or six week travel plans.
Eventually, BelleHavens transistioned to a nomadic membership tiered structure with new membership plans Traveler, Adventurer, Voyager, and Explorer.
Traveler
The Traveler Membership plan afforded members 15 nights of annual travel for a membership deposit of $125,000 and $9,000 in annual dues.
Adventurer
Offering 30 nights of annual travel, the Adventurer Membership was sold for $225,000 and annual dues of $18,500. Interestingly, members could receive a refund of $275 for each of their unused nights and similarly pay $275 per night if they exceeded their nightly capacity.
Voyager
The 45 night membership plan for BelleHavens was sold for $325,000 with accompanying annual dues of $26,500. Much like the Adventurer level, members could receive a refund of $275 for each of their unused nights and pay $275 per night if they exceeded their nightly capacity.
Explorer
BelleHaven's highest membership plan, the Explorer level offered members 60 nights of annual travel for $425,000 and $33,500 in annual dues. Members could receive a $275 refund for every night they did not use, but did not have to pay for additional nights used in excess of the 60 nights provided within the membership.
The club would increase membership deposits for all four membership plans as new properties became available to members.
MEMBERSHIP PRICING
At the time of the club's launch, BelleHavens offered a significantly different pricing model, but eventually transitioned to have four distinct membership plans: Traveler, Adventurer, Voyager, and Explorer.
Traveler
The Traveler Membership plan afforded members 15 nights of annual travel for a membership deposit of $125,000 to join.
Adventurer
Offering 30 nights of annual travel, the Adventurer Membership was sold for $225,000.
Voyager
The 45 night membership plan for BelleHavens was sold for $325,000.
Explorer
BelleHaven's highest membership plan, the Explorer level offered members 60 nights of annual travel for $425,000.
ANNUAL DUES
When the club launched, BelleHavens offered four different membership plans: General, Family, Partnership, and Corporate. Members of each plan elected between two, three, four, five, or six weeks of annual travel, with dues priced based on their decision.
- Two Weeks: $8,000 annually
- Three Weeks: $9,000 annually
- Four Weeks: $10,000 annually
- Five Weeks: $13,500 annually
- Six Weeks: $18,000 annually
BelleHavens would transition away from this structure and have four predefined membership plans: Traveler, Adventurer, Voyager, and Explorer.
Traveler
The Traveler Membership plan allowed for 15 nights of annual travel for $9,000 in annual dues.
Adventurer
Offering 30 nights of annual travel, the Adventurer Membership required annual dues payments totalling $18,500. Members could receive a refund of $275 for each of their unused nights and similarly pay $275 per night if they exceeded their nightly capacity.
Voyager
The 45 night membership plan for BelleHavens included annual dues of $26,500. Much like the Adventurer level, members could receive a refund of $275 for each of their unused nights and pay $275 per night if they exceeded their nightly capacity.
Explorer
BelleHaven's highest membership plan, the Explorer level offered members 60 nights of travel for $33,500 annually. Members could receive a $275 refund for every night they did not use, but did not have to pay for additional nights used in excess of the 60 nights provided within the membership.
PROPERTIES
A leading player in the destination club sector and launching with the tagline of "the world's first equity destination club," BelleHavens was ultimately acquired by Abercrombie & Kent for their new venture, the Abercrombie & Kent Residence Club.
Prior to the acquisition, BelleHavens segmented their properties into categories for beach, ski, leisure, and city, using the "Belle" prefix for each.
BelleSol
- Kiawah Island, South Carolina
- Kohala Coast, Hawaii
- La Quinta, California
- Lake Las Vegas, Nevada
- Los Cabos, Mexico
- Palm Coast, Florida
- Riviera Maya, Mexico
- Scottsdale, Arizona
BellePlaza
- New York City, New York
BelleSummit
- Deer Valley, Utah
- Jackson Hole, Wyoming
BelleVista
- Midway, Utah
USAGE
Primarily known throughout the destination club industry for their creation of the equity model, the occupancy levels at BelleHavens were also exemplary. In 2006, the club had an occupancy rate of just 25%.
Publishing a member to property ratio that would not top ten to one, BelleHavens usually remained well below this mark.
Many young destination clubs still in their launch phase also have similar low levels of travel as the club has a surplus of real estate as membership growth is ramped up.
MEMBERS
Pioneering a new "equity" model to the destination club industry, BelleHavens' members owned the club, which in turn owned the properties.
Non-equity clubs dominated the sector when BelleHavens launched, but the value of the BelleHavens' model was validated when Tanner & Haley, the creator of the non-equity destination club model, filed for bankruptcy. With a growing number of destination club prospects concerned about the security of their membership deposit, many were drawn to the more secure offering at BelleHavens.
In March of 2007, BelleHavens acquired approximately 40 members from the similarly named, but vastly different Havens. The non-equity Havens launched just three months after BelleHavens and managed some initial success, but the highly competitive industry soon began to weigh heavily on the young club. With bankruptcy looming, many of the Havens' members were absorbed by BelleHavens, helping the club to continue their growth.
April of 2008 saw BelleHavens on the other end of a merger when luxury travel giant Abercrombie & Kent acquired both BelleHavens and another equity club Crescendo Residences to start their new venture, Abercrombie & Kent Residence Club. The vast majority of the two clubs' members elected to stay with the new club and continue to travel within the A&K portfolio.
EXECUTIVES
Blending a mix of several backgrounds, BelleHavens' Founder Darin Gilson would say, "I didn't intend to start a club. My wife and I were looking for a second home about six or seven years ago, and then the rational part of my mind took over and I thought, 'How much will we really use it?' and my wife reminded me that 'you can't even take care of one home.'"
Led by Gilson, BelleHavens would bring a new equity structure to the design of their destination club. The club would own properties debt-free and members would own the club. The club would grow successfully and the benefits of their structure would be validated when Tanner & Haley, the pioneer of the non-equity destination club model, would file for bankruptcy.
"Fortunately, members of BelleHavens, the first equity destination club, have no cause for concern," the club would write following the Tanner & Haley bankruptcy. "We have built a club around the goal of providing unprecedented asset protection for our members. BelleHavens’ members are equity owners of the club that owns a collection of magnificent homes, free and clear of all debt. Therefore, a membership in BelleHavens is backed by a diversified portfolio of real estate, providing true asset protection behind the membership deposit. This differs from most other clubs, which offer non-equity memberships and often rely on attracting enough new members to keep ahead of large debt burdens and lease payments."
The club would continue to show positive strides and establish themselves as one of the premier clubs in the sector before being acquired alongside Crescendo Residences, another leading equity destination club, to form the foundation for the Abercrombie & Kent Residence Club.
Prior to the acquisition by Abercrombie & Kent, the BelleHavens Board of Directors was composed of individuals with backgrounds in corporate law, real estate, venture capital, insurance, and technology, giving the club a strong entrepreneurial support structure.
Darin Gilson
President - BelleHavens
Scott DeGhetto
Managing Director - JP Morgan Investment Bank
Spencer Hoole
Partner - Diversified Insurance Brokers
John Dunn
Partner - Banyan Ventures
Stephen Rich
Director - Utah Sports Commission
Nate Thurgood
Vice President - BelleHavens
NOTES FROM THE CLUB
One of the destination club industry's leading equity based destination clubs, BelleHavens was created by Darin Gilson and began their first round of venture funding in September of 2003.
The Utah based destination club officially launched in August of 2004 and grew organically due largely to their unique club structure where the members owned the club and the club owned the properties available to members.
After several years of continued success, Abercrombie & Kent acquired the club, along with fellow equity club Crescendo Residences, to provide the foundation for their new destination club Abercrombie & Kent Residence Club.
To learn more about the A&K Residence Club from the club's executive team, please visit our Abercrombie & Kent Residence Club Notes From The Club page.
PARTNERSHIPS
Prior to their acquisition by Abercrombie & Kent to form the Abercrombie & Kent Residence Club, BelleHavens had a series of partnerships to help augment the membership experience, both inside and outside the destination club industry.
The destination club focused on the golf enthusiast, The Markers Club and BelleHavens entered into a reciprocity agreement in early 2007, allowing members from both clubs the ability to access the other's collection of vacation properties on a limited basis.
Announced in July of 2005, Darin Gilson stated, "The inclusion of Kimpton Hotels in our BellePlaza portfolio will allow us to measure our members' usage and demand for specific metropolitan destinations while we research opportunities to purchase million-dollar, luxury residences in these cities."
BelleHavens members had the ability to reserve one and two bedroom suites at participating Kimpton Hotels, including New York City, Boston, Washington D.C., Chicago, San Diego, and San Francisco.
Expanding the international access of club members, BelleHavens and Stein Hotels and Resorts entered into a partnership in June of 2007, providing members the ability to access residences in seven European countries. The nightly costs of traveling at Stein Hotels and Resorts properties was covered by the membership and greatly increased occupancy during peak periods.
Members of the Inernational Club Network's Privileged Play received "exclusive benefits and savings" on a BelleHavens' membership.
PRESS RELEASES
A leading equity destination club virtually throughout their tenure in the destination club industry, BelleHavens was acquired alongside fellow equity club Crescendo Residences by Abercrombie & Kent in April of 2008.
The two clubs created the foundation for A&K's new venture, the Abercrombie & Kent Residence Club. Well over 90% of the two club's collected members elected to stay with A&K and much of the BelleHavens' business model is used to forge the structure that A&K Residence Club uses today.
Abercrombie & Kent To Launch Groundbreaking Destination Club
Date: April 18, 2008
BelleHavens and fellow equity club Crescendo Residences have been acquired by Abercrombie & Kent, a leader in the luxury travel world, to provide a foundation for their new destination club venture, the Abercrombie & Kent Residence Club.
For The Wanderlust, The Ultimate Luxury Travel Gift That Keeps On Giving
Date: October 3, 2007
With early bird holiday shoppers getting a head start on their gifts for the season, BelleHavens suggests getting those close to you a destination club membership at their equity club, calling it "the gift that truly keeps on giving - a lifetime of exclusive travel experiences.
August Is Discovery Month
Date: August 1, 2007
Each week of the month of August, BelleHavens will unveil a new membership benefit to their collection of equity members, including new membership reports, billing convenience, and partnerships to help augment the membership experience.
BelleHavens Announces The European Getaways Portfolio June 11, 2007
BelleHavens Announces 11 New Luxury Homes and New Membership Levels May 15, 2007
BelleHavens Launches GreenHome Initiative March 29, 2007
BelleHavens Expands Through Acquisition of Havens March 1, 2007
Striking The Perfect Balance January 29, 2007
BelleHavens Secures Backing From Leading Investment Firms December 19, 2006
BelleHavens Announces Lifetime Unaccompanied Guest Privileges As Holiday Gift
November 11, 2006
BelleHavens' Equity Model is Safer for Club Members August 3, 2006
BelleHavens Announces Two New Residences and Continues To Grow Real Estate Portfolio
June 20, 2006
BelleHavens Membership Provides Equity in Luxury Home at Deer Valley January 1, 2006
BelleHavens Announces Acquisition of Beach Properties, Doubling Size of BelleSol Portfolio December 15, 2005
BelleHavens Announces Acquisition of Los Cabos, Mexico Residence October 4, 2005
BelleHavens Completes Second Phase of Sales August 9, 2005
BelleHavens Forms Strategic Alliance With Kimpton Hotels and Restaurant Group July 21, 2005
BelleHavens, World's First Equity Destination Club, Completes Initial Property Acquisitions
February 10, 2005