Based out of Omaha, Nebraska, Grand Resort Properties had a distinctly midwestern approach to their destination club. Amongst the club's launch portfolio included destinations like Lake of the Ozarks, Missouri and Dahlonega, Georgia. In addition, the club also had properties in more common destination club areas such as Cabo San Lucas, Scottsdale, and Steamboat Springs.
Founded by Brad Brown, Chief Executive Officer of Archistructure, an award winning designer and builder of luxury homes, Grand Resort Properties averaged $2.3 million each. Early in the club's launch phase, members could choose between two membership options: membership or equity ownership. "We have taken all of the positive attributes of vacation living and established a company that provides a financial option based on your level of comfort. Grand Resort Properties even gives qualified investors the opportunity to share in the appreciation and profits with our equity ownership option. The choice is yours."
Grand Resort Properties had five different membership plans, ranging from a $50,000 membership fee with $2,995 in annual dues to $500,000 with $7,995 in annual dues. The club was one of the few in the industry who also attach a nightly fee to their membership.
As an additional revenue source, the club also allowed prospective members and luxury travelers the opportunity to rent properties on a last minute availability. As the club moved past the launch phase, the club would transition away from this and make properties exclusive to members.
The club's conservative business model was met with a very lean staff, modeled for a stable and organic membership acquisition plan, but it still was not enough as the club filed for bankruptcy early in 2010. "Grand Resort Properties has filed for Chapter 11 and we are in the process of developing a new business model," Brown told us following the announcement. While working towards this new business structure, Grand Resort Properties also would consider other ideas, including an acquisition or merger with another destination club. "I feel there could be an opportunity here for both parties," Brown would continue about a possible union with another club.
MEMBERSHIP PLANS
Each of Grand Resort Properties' five membership plans offers unlimited annual travel, but each offers different levels of advanced reservations, space available windows, membership deposits, and annual dues. In addition, Grand Resort Properties' structure uses annual dues and nightly usage fees, providing members with a variable annual cost for membership use.
Intro Membership
Allowing members seven nights of advanced reservations per year, Intro Memberships are offered for $50,000 with accompanying annual dues of $2,995 per year. Members are allowed to make their advanced reservation up to 150 days in advance of travel and can make unlimited space available stays up to 45 days in advance.
Like all of the other membership plans within Grand Resort Properties, a nightly fee is required for every night of occupancy. The Intro Membership charges $549 per night of usage.
Level 1 Membership
Doubling the number of advanced reservation nights available to members from the Intro Membership level, Level 1 members are allotted 14 nights of advanced bookings each year. Members can make these reservations up to 210 days in advance and receive unlimited space available stays within 60 days of travel.
Level 1 Memberships are available for a one time membership deposit of $100,000 and annual dues of $3,495. Like other memberships within Grand Resort Properties, a nightly fee is attached to club membership. Level 1 members pay a nightly usage rate of $525.
Level 2 Membership
Level 2 Memberships in Grand Resort Properties are available for a membership deposit of $200,000 and annual dues of $3,995. Members were allowed 28 nights of advanced reservations annually and were able to make unlimited space available trips within 60 days of the first night of occupancy.
The Level 2 Membership is the lowest membership within the Grand Resort Properties collection of plans that guaranteed one week of holiday access each year. Like the other membership plans within the club, members paid a nightly fee in addition to annual dues for using the clubs properties. Members paid a nightly rate of $465 per night.
Level 3 Membership
Grand Resort Properties' highest individual club level, members can make reservations up 300 days in advance and can reserve up to 42 nights of advanced reservations each year. For a membership deposit of $300,000 and annual dues of $4,495 per year, members also receive one guaranteed holiday per year and can make unlimited space available reservations, called Moment's Notice Bookings, within 60 nights of the first day of travel.
Grand Resort Properties also charges a nightly fee for each day of travel. The Level 3 Membership charges the lowest of all five plans at $395 per night. Like the Level 2 Membership, Level 3 members are entitled to one guaranteed holiday week per year.
Corporate Membership
Providing members up to 63 nights of advanced reservation usage each year, Grand Resort Properties' Corporate Membership offers three weeks of additional usage past its closest membership plan, the Level 3 Membership. Corporate Memberships are available for $500,000 and annual dues of $7,995. Members are able to make moment's notice bookings within 60 nights of travel on an unlimited basis.
In addition to annual dues, members pay a nightly fee for each night of travel throughout the year. While the Corporate Membership does allow for the most access throughout the year, it also has the highest per night cost of $575 per night.
Like the Intro and Level 1 Memberships, Corporate members can make holiday reservations only on a moment's notice basis.
A structure like the one used at Grand Resort Properties may be a strong fit for your travel needs, but there are several other models in the destination club industry that may be of interest to you.
MEMBERSHIP PRICING
The Omaha based destination club Grand Resort Properties offers five different membership plans, ranging between $50,000 and $500,000 to join. Each membership plan provides unlimited space available usage, but each offers different levels of advanced reservation usage, annual dues, and holiday access.
Intro Membership
Grand Resort Properties Intro members receive seven nights of advanced reservations per year. Members pay a one time $50,000 membership deposit to join and are allowed to make their advanced reservation up to 150 days in advance of travel and can make unlimited space available stays up to 45 days in advance.
Like all of the other membership plans within Grand Resort Properties, a nightly fee of $549 per night of usage is charged to members at the Intro Membership level.
Level 1 Membership
Level 1 Memberships are available for a one time membership deposit of $100,000. Like other memberships within Grand Resort Properties, a nightly fee is attached to club membership. Level 1 members pay a nightly usage rate of $525.
Level 2 Membership
Level 2 Memberships in Grand Resort Properties are available for a membership deposit of $200,000. Members were allowed 28 nights of advanced reservations annually and were able to make unlimited space available trips within 60 days of the first night of occupancy.
Level 3 Membership
Grand Resort Properties' highest individual club level, members can make reservations up 300 days in advance and can reserve up to 42 nights of advanced reservations each year. For a membership deposit of $300,000, members also receive one guaranteed holiday per year and can make unlimited space available reservations, called Moment's Notice Bookings, within 60 nights of the first day of travel.
Corporate Membership
Providing members up to 63 nights of advanced reservation usage each year, Grand Resort Properties' Corporate Membership offers three weeks of additional usage past its closest membership plan, the Level 3 Membership. Corporate Memberships are available for a $500,000 membership deposit. Members are able to make moment's notice bookings within 60 nights of travel on an unlimited basis.
ANNUAL DUES
On the surface, it appears that Grand Resort Properties have some of the lowest annual dues across all five of their membership plans, topping off at under $8,000 for the highest membership plan. While still significant savings off comparable luxury travel alternatives, Grand Resort Properties also charges a nightly fee for each night in occupancy, ranging between $395 and $575 per night.
Intro Membership
The accurately titled Intro Membership is the club's introductory offering, allowing members seven nights of advanced reservations per year. Members are allowed to make their advanced reservation up to 150 days in advance of travel and can have unlimited space available stays up to 45 days in advance for $2,995 per year in annual dues.
Like all of the other membership plans within Grand Resort Properties, a nightly fee required for every night of occupancy. The Intro Membership charges $549 per night of usage.
Level 1 Membership
Level 1 Memberships require annual dues of $3,495 per year. Like other memberships within Grand Resort Properties, a nightly fee is attached to club membership. Level 1 members pay a nightly usage rate of $525.
Level 2 Membership
Level 2 Memberships in Grand Resort Properties require annual dues of $3,995 per annum. Members were allowed 28 nights of advanced reservations annually and were able to make unlimited space available trips within 60 days of the first night of occupancy.
The Level 2 Membership is the lowest membership within the Grand Resort Properties collection of plans that guarantee one week of holiday access each year. Like the other membership plans within the club, members paid a nightly fee in addition to annual dues for using the clubs properties. Members paid a nightly rate of $465 per night.
Level 3 Membership
Grand Resort Properties' highest individual club level, members can make reservations up 300 days in advance and can reserve up to 42 nights of advanced reservations each year for annual dues of $4,495 per year, members also receive one guaranteed holiday per year and can make unlimited space available reservations, called Moment's Notice Bookings, within 60 nights of the first day of travel.
Corporate Membership
Providing members up to 63 nights of advanced reservation usage each year, Grand Resort Properties' Corporate Membership offers three weeks of additional usage past its closest membership plan, the Level 3 Membership. Members are able to make moment's notice bookings within 60 nights of travel on an unlimited basis. Grand Resort Properties charges members annual dues of $7,995 per year.
PROPERTIES
Like many other destination clubs, Grand Resort Properties started their growth regionally, in their case focusing on the Midwest. While still decidedly Midwestern, Grand Resort Properties has continued their expansion and now features international properties into Mexico, France, and the Caribbean.
- Cabo San Lucas, Mexico
- Panama
- Steamboat Springs, Colorado
- Beaver Creek, Colorado
- Lake of the Ozarks, Missouri
- Dahlonega, Georgia
- Scottsdale, Arizona
In addition to the land based properties, Grand Resort Properties also has a robust collection of sea based yachts available to members.
- Exuma Islands
- Leeward Islands
- South of France
- Virgin Islands
- New England
Homes and yachts within the club typically average in excess of $2 million. Properties typically average over 3,000 square feet with 4 bedrooms and baths.
USAGE
Offering members and non-members alike access to a collection of drivable vacation destinations for mid-westerners like Lake of the Ozarks, Missouri; Dahlonega, Georgia; and Scottsdale, Arizona, Grand Resort Properties also includes destination club mainstays like Cabo San Lucas and Panama amongst their collection of luxury vacation properties.
This type of regional focus has been used throughout the destination club industry, pioneered by the world's first destination club, Private Retreats. As the world's first club, much of the club's model was proven to be unsustainable, but Private Retreats did incorporate a regional allocation policy that only allowed a certain number of members to join from each geographical region to make sure properties near high member hubs were not overused. This would eventually lead to clubs like Signature Destinations and Grand Resort Properties who would encourage members to be able to easily access properties nearby.
Based on the membership plan selected, different reservation windows are given to members.
Intro Membership
Allowing members seven nights of advanced reservations per year, Intro members are allowed to make their advanced reservation up to 150 days in advance of travel and can make unlimited space available stays up to 45 days in advance.
Level 1 Membership
Doubling the number of advanced reservation nights available to members from the Intro Membership level, Level 1 members are allotted 14 nights of advanced bookings each year with reservations able to me made up to 210 days in advance with unlimited space available nights available within 60 days of travel.
A nightly fee is attached to club membership with Level 1 members paying $525 per night of access.
Level 2 Membership
Members are allowed 28 nights of advanced reservations annually and are able to make unlimited space available trips within 60 days of the first night of occupancy.
The Level 2 Membership is the lowest membership within the Grand Resort Properties collection of plans that guaranteed one week of holiday access each year. Like the other membership plans within the club, members pay a nightly fee in addition to annual dues for using the clubs properties. Members paid a nightly rate of $465 per night at the Level 2 plan.
Level 3 Membership
Level 3 members can make reservations up 300 days in advance and can reserve up to 42 nights of advanced reservations each year. Members also receive one guaranteed holiday per year and can make unlimited space available reservations, called Moment's Notice Bookings, within 60 nights of the first day of travel.
Corporate Membership
Providing members up to 63 nights of advanced reservation usage each year, Grand Resort Properties' Corporate Membership offers three weeks of additional usage past its closest membership plan, the Level 3 Membership. Members are able to make moment's notice bookings within 60 nights of travel on an unlimited basis.
MEMBERS
The Omaha based Grand Resort Properties provided members access to a collection of vacation properties valued at over $2 million.
The club blended a mix of popular vacation destinations like Los Cabos and Steamboat Springs with more off the beaten path like Dahlonega, Georgia and Lake of the Ozarks, Missouri.
The young club counted approximately 50 members amongst their ranks but also allowed non-members the ability to use the club's properties on a rental basis. As the club continued to grow, the club planned to discontinue this program and make properties available exclusively to members.
In the club's executive summary, Grand Resort Properties identified their target market.
"10 million baby boomers, 500,000 high level timeshare owners looking to upgrade or expand, medical specialist (doctors, dentists, etc.), professionals (attorneys, CPA's, CEO's) business owners and entrepreneurs. This target demographic would have a net worth at the very highest end of the socio-economic spectrum. Predictions for growth in the market range from 50,000 to 500,000 new member households over the next 10 years. With membership now at approximately 5,000 member households and membership fees approaching $1 billion, a conservative estimate of growth would project a several billion-dollar industry over the next several years."
Unfortunately, Grand Resort Properties would file for Chapter 11 bankruptcy in early 2010, unable to weather the economic storm that claimed so many of the club's competitors during the year prior.
The benefits of joining a young destination club still in their founding membership phase is often demonstrable, including decreased pricing, increased usage, and a myriad of other travel benefits.
On the other side of the coin, young clubs do not have the track record of more established clubs in the sector with less properties available to members and a higher likelihood of ceasing operations.
RESIGNATION
As with many other destination clubs, Grand Resort Property members are not eligible for redemption until they have been with the club for at least two years. Unlike other destination clubs, members are redeemed on a one in, one out basis, where every new member that joins the club replace a member on the club's resignation list.
While Grand Resort Properties publishes that memberships are "100% refundable," an exit fee is applied when the member leaves the club.
Understanding the resignation process can often times get pushed to the back of the importance list as you consider the travel benefits, the properties, and the usage structures at the various destination clubs, but should be high on your list of questions.
EXECUTIVES
Led by a former destination club member, Grand Resort Properties brings a real estate and construction background to their club.
"Grand Resort Properties is led by a strong sales staff and a board of directors and advisors," the club writes. "Their experience and expertise span the worlds of business, design and construction of luxury real estate. They have received national recognition for their innovative designs and ideas, as well as their commitment to excellence."
"The leadership team's incredible ingenuity and exceptional leadership are assets in creating and carrying out Grand Resort Properties' mission and vision. Their acumen and business principles allow Grand Resort Properties to deliver an incredible luxury vacation experience."
Grand Resort Properties aims to be one of the most fiscally responsible clubs in the destination club industry and maintains a low cost structure through a small executive team.
The Board of Directors at Grand Resort Properties includes:
Brad Brown
Founder and Chief Executive Officer
Gregory Duman
President - Prism Technologies
Ray Jacobi
Vice President - Irvine Company Resort Properties
The Omaha based club also lists an Advisory Board that includes:
Lisa Schrager
Advisory Board Member
NOTES FROM THE CLUB
Omaha's first destination club, Grand Resort Properties combined a midwestern approach with a collection of drivable destinations such as Lake of the Ozarks and Dahlonega and more conventional destination club locales such as Cabo and Panama.
The young destination club would offer both equity membership options and more traditional memberships, requiring a refundable membership deposit, annual dues, and nightly fees. Quietly, Grand Resort Properties would grow to roughly 50 members, 10% of their long term goal of 500 members. These members would have access to a collection of vacation residences valued at approximately $2.3 million each. In addition, members would have a portfolio of luxury yachts available to them.
Implementing an organic growth model, Grand Resort Properties would have a small executive staff and focus on stability, but was unable to weather the poor economic conditions of 2009. In January of 2010, Grand Resort Properties filed for Chapter 11 bankruptcy.
"Grand Resort Properties has filed for Chapter 11 and we are in the process of developing a new business model," Brown told us shortly after the news was released. While the club would continue to work towards creating a new business structure, Grand Resort Properties also would consider other ideas, including an acquisition or merger with another destination club. "I feel there could be an opportunity here for both parties," Brown would continue about a possible union with another club.
PARTNERSHIPS
A small destination club built in the vain of Exclusive Resorts, Grand Resort Properties would bring a mid-western element to the architecture of their club.
Grand Resort Properties residences includes:
- Beaver Creek, Colorado
- Cabo San Lucas, Mexico
- Dahlonega, Georgia
- Lake of the Ozarks, Missouri
- Panama
- Scottsdale, Arizona
- Steamboat Springs, Colorado
Striving to maintain a lean operational model, Grand Resort Properties is one of the few destination clubs that rents unused nights within the club to non-members.
Like other similarly sized destination clubs, Grand Resort Properties doesn't have an established partnership network, but does bring experience from the real estate industry.
"Brad Brown's background is in real estate and the construction of luxury homes," the club writes. "In 1991 Brown founded Archistructure, Inc., a privately held company based in Omaha, Nebraska. Archistructure specializes in the designing and building of luxury homes in three states. Brown is currently the chief executive officer of Archistructure. Since its inception, Archistructure has built over 100 custom, luxury homes. Nationally recognized for its innovative designs, Archistructure has secured top quality status in the Omaha Metropolitan area and has received numerous awards. Brown has been selected to judge other builder/developer projects around the country. In 2004 he was nominated as president of the National Home Builder 'Pacesetter' 20 Club."
"This international club has allowed Brown to build relationships with other top luxury home builders in Mexico and the United States. Brown served on the board of directors for the Metro Omaha Builders Association from 1997 to 2001."
PRESS RELEASES
Based in Omaha, Grand Resort Properties brings a mid-western flair to their destination club with properties in the Lake of the Ozarks, Dahlonega, and Scottsdale. Like other destination clubs of the past, including Signature Destinations and Portofino, these properties were acquired so members could have easy, drivable access to the club's residences.
To maintain low annual costs to members, Grand Resort Properties is one of the few clubs within the destination club industry to allow non-members the ability to rent unsused nights.
Like other destination clubs of their respective size, Grand Resort Properties limits their sales and marketing costs and has not released any press releases regarding the club.