Hideaways Club

"The Hideaways Club is Europe's premier fractional ownership property company offering its members exclusive usage and 100% safeguarded ownership of an entire portfolio of magnificent properties."

That is the brief introduction from The Hideaways Club, the "club run by Europeans, for Europeans." Hideaways has a unique real estate acquisition model, focusing on destinations all within a short flight from London. As such, the club has a distinctly central European angle with homes already in France, Spain, Italy, and Switzerland, but the club has plans to expand outside of the region with homes in Thailand, Vietnam, Oman, and South Africa.

Launched in January of 2007, the club's executive team of Mike Balfour, John Loverling, Stephen Wise, Helmut Schön, and Patrick Henchoz brought a diverse collection of entrepreneurial skills to the table, ranging from hospitality experts to venture capitalists.

Despite the European focus, the club is crafted highly after the United States fractional market. "We have refined a business model, which is already proven in the USA, to create a proposition that is even stronger for the European market," said Balfour.

Similar to most other European based destination clubs, members purchase a stake in the entire property portfolio rather than a right to use like many US based clubs. A membership is actually a share in a Gibraltar-registered property company which owns all of the properties. A seperate Gibraltar-registered company manages the properies for members' use. The managing company receives 20% of any capital appreciation and 80% of the appreciation belongs to members. The club also complies with regulations and rules of the Financial Services Commission in Gibraltar.

In April of 2009, two new investors, Jonathan Feuer and Nick Bettany, each purchased a 10% stake in the club, providing the club both capital and experience. "Obviously it provides us more capital," began Chris Moody, The Hideaways Club's Director of Sales. "But it also brings in some very experienced investors putting money into the real estate investment. They are two very experienced guys and our founders are very pleased to be able to raise capital in the current environment. I think that more than anything it illustrates the business model is a good one."

This business model that Moody refers to has helped to establish The Hideaways Club as one of the leading destination clubs in the European market, with a growing level of international interest.

NEWS

One of the global leaders in the destination club industry, The Hideaways Club launched in 2007 with a focus on London, providing members access to a collection of properties within a four hour flight from London.

Limited to 600 total members, the growth the young club would enjoy would lead to a more worldwide vision with properties in Bali, Phuket, and South Africa.

Members of the club own a stake in the entire Hideaways Club property portfolio, an increasingly popular club model as the financial elements of destination club membership has gained attention in recent years.

The Hideaways Club 2009 International Destination Club of the Year
Date: January 19, 2010

Despite a year they call filled with "economic uncertainties and difficulties," The Hideaways Club nearly doubled their total number of member investors in 2009 and expanded the scope of their destination club into Asia to win our International Destination Club of the Year award.

Featured Property: The Hideaways Club France
Date: January 17, 2010

Located in Southern France, The Hideaways Club's La Retraite features four bedrooms, a beautiful stone exterior, and wilderness garden and garners the praise of tennis legend and Hideaways Club member Tim Henman as "the perfect holiday home."

Equity Estates and The Hideaways Club Announce Strategic Alliance
Date: January 11, 2010

Equity Estates and The Hideaways Club, two of the fastest growing destination clubs in the industry, have announced a strategic alliance that will allow members of both clubs reciprocal access to the other club's portfolio of luxury vacation properties.

2009 Destination Club Review
Date: January 1, 2010

Arguably the most influential year in the history of the destination club industry, 2009 has come to its end and 2010 begins with far greater hopes than one year prior. Learn more about all of the positive and negative news that took place during a long 2009 in the destination club sector.

The Hideaways Club CEO Stephen Wise Describes Phuket Villa
Date: December 29, 2009

The Hideaways Club CEO and Co-Founder Stephen Wise describes the club's newest acquisition, a villa in the private enclave of the Layan Peninsula, Phuket that he describes as "perfect for entertaining" with its large pool, bar, external dining area, and barbeque.

The Hideaways Club Opens New Asia Office
Date: November 17, 2009

Adding properties in Bali and Phuket, The Hideaways Club has introduced new offices in Singapore and Hong Kong to court the untapped Asian market. Over the next several years, the club plans to add residences in Sri Lanka, Malaysia, Japan, and several other highly sought after destinations.

The Hideaways Club Founder Mike Balfour On Bloomberg
Date: November 11, 2009

The Hideaways Club Founder and Chairman Mike Balfour sits down for an interview on Bloomberg to discuss the origin of his leading destination club, benefits of membership, and what the club's plans are for the upcoming year.

The Hideaways Club Adds Villa In Phuket
Date: November 4, 2009

The Hideaways Club, one of Europe's leading destination clubs, has announced the introduction of Villa Layan, a near 3,000 square foot villa in the popular Phuket, Thailand, complete with its own powerboat and vehicle for members to enjoy.

The Hideaways Club Adds Nintendo Wii Console To Properties
Date: September 28, 2009

The Hideaways Club has announced that over the next year they will add Nintendo Wii consoles and video games to each of the properties in their growing portfolio, continuing the trend of making destination club properties more "kid friendly."

The Hideaways Club Plans For 2009
Date: April 27, 2009

Europe's first private residence owners club, The Hideaways Club, has ambitious goals for the rest of 2009, including expanding into Africa and Asia while striving to increase their portfolio of luxury properties to 30 by year end.

The Hideaways Club Sells Partial Stake In Club
Date: April 16, 2009

Europe's The Hideaways Club has sold off a partial stake in their club to two investors, bringing the club new capital for upcoming property expansion plans and a pair of experienced executives in Jonathan Feuer and Nick Bettany.

2008 Destination Club Review
Date: January 1, 2009

In 2008, the Dow fell over 33%, making for a rather difficult economic climate for nearly every industry, including destination clubs. Read about the failures and successes in the destination club sector over the past year.

Destination Clubs Expand Outside The United States
Date: August 28, 2008

As the destination club industry continues to grow, the concept is more readily being applied outside of the United States. Over the past several years, clubs have emerged in the United Kingdom, Canada, Mexico, and South Africa to name but a few.

The Hideaways Club Launches
Date: January 29, 2007

Today, Europe's first "private residence owner's club" launches in the form of The Hideaways Club. The new club will focus initially on the European market, with each of their £1 million properties within a four hour flight from the United Kingdom.

MEMBERSHIP PLANS

Based out of the United Kingdom, The Hideaways Club offers members three different membership options, all using a points based reservation system.

Associate Membership

Designed for members targeting two to three weeks of annual travel, Associate Memberships are available for £122,500, which includes a Placement Fee of £10,000.

Annual dues, which the Hideaways Club refers to as an Annual Cost Contribution Fee, total £7,000 per year. Members can make reservations up to nine months in advance. Associate Memberships provide members with 60 usage points annually, and unlike the Lifestyle and Premium Memberships, Associate members are unable to purchase additional usage points.

To learn more about the club's point system, please visit our Hideaways Club Usage page.

Lifestyle Membership

Created for those who already have holiday plans and travel predominately during slower seasons, Lifestyle members can travel during the club's "Mid Peak and Off Peak" periods for £160,000, which includes a Placement Fee of £10,000. Members are allowed to make property reservations on an extended 12 month window.

Lifestyle members receive 80 usage points of annual usage for their annual dues, which the Hideaways Club calls an "Annual Cost Contribution Fee," of £9,333. Lifestyle members can also purchase additional points in 10 block increments for £1,167.

Premium Membership

The Hideaways Club's highest membership plan, Premium provides members the ability to travel during Peak, Mid Peak, and Non Peak periods. Members pay £235,000, which includes a Placement Fee of £10,000. Members are allowed to make reservations up to 12 months in advance, a three month extended window past the introductory Associate Membership.

Identical to annual dues, the Hideaways Club charges members a yearly "Annual Cost Contribution Fee" at all club levels. Premium members pay £14,000 per year, which provides them 120 points of annual access, a 50% increase from the next highest membership plan, the Lifestyle Membership. Members are able to purchase additional points for £1,167, which provides an additional 10 points of access.

A points based membership structure like the one used at The Hideaways Club has grown increasingly popular in recent years, with clubs like the Ritz-Carlton Destination Club and The Discovery Club using similar structures.

MEMBERSHIP PRICING

Based out of the United Kingdom, The Hideaways Club is structured like the majority of most European based destination clubs, where members are "owners" of the property portfolio.

Associate Membership

For members targeting two to three weeks of annual travel, The Hideaways Club created the Associate Membership. Members pay a £122,500, which includes a Placement Fee of £10,000.

Associate members can make reservations up to nine months in advance and are provided with 60 usage points annually. Unlike the Lifestyle and Premium Memberships, Associate members are unable to purchase additional usage points.

Lifestyle Membership

For those who already have holiday plans and travel predominately during slower seasons, Lifestyle members can travel during the club's "Mid Peak and Off Peak" periods for £160,000, which includes a Placement Fee of £10,000. Members are allowed to make property reservations on an extended 12 month window.

Lifestyle members receive 80 usage points and can also purchase additional points in 10 block increments for £1,167, the lowest club level that allows for additional point purchases.

Premium Membership

The Hideaways Club's highest membership plan, Premium provides members the ability to travel during Peak, Mid Peak, and Non Peak periods. Members pay £235,000, which includes a Placement Fee of £10,000, and are able to make reservations up to 12 months in advance, a three month extended window past the introductory Associate Membership.

Premium members receive 120 points of annual access, a 50% increase from the next highest membership plan, the Lifestyle Membership. Members are able to purchase additional points for £1,167, which provides an additional 10 points of access.

ANNUAL DUES

Like virtually every other destination club, membership in the Hideaways Club requires an annual dues structure, but the UK based club uses the term "Annual Cost Contribution Fee" for the yearly payments.

This annual cost contribution fee provides members at all three club levels different point levels that are used to reserve properties.

Associate Membership

Designed for members targeting two to three weeks of annual travel, Associate Memberships require what the Hideaways Club refers to as an Annual Cost Contribution Fee, total £7,000 per year. Members can make reservations up to nine months in advance. Associate Memberships provide members with 60 usage points annually.

Unlike the Lifestyle and Premium Memberships, Associate members are unable to purchase additional usage points.

Lifestyle Membership

Created for those who already have holiday plans and travel predominately during slower seasons, Lifestyle members can travel during the club's "Mid Peak and Off Peak" periods. Members are allowed to make property reservations on an extended 12 month window.

Premium Membership

The Hideaways Club's highest membership plan, Premium provides members the ability to travel during Peak, Mid Peak, and Non Peak periods. Members are allowed to make reservations up to 12 months in advance, a three month extended window past the introductory Associate Membership.

PROPERTIES

Aiming to provide 100 properties to 600 members, The Hideaways Club plans to increase their property portfolio by 10 to 15 each year, tied to membership growth.

The average Hideaways Club property averages four bedrooms, sleeping up to eight guests, and typically feature private gardens and pools. Flat screen televisions, DVD players and DVDs, Bose sound systems, and broadband internet connections are staples at each Hideaways property. Based out of the United Kingdom, The Hideaways Club has a distinct European focus with a collection of vacation properties in some of Europe's and Africa's leading destinations, with a planned 60% of all properties within a short flight from Europe.

• Chalet Soleil, France
• Villa Dorada, Spain
• La Retraite, France
• Podere Le Sensaie, Italy
• Gran Vista, Majorca
• La Pleta, Majorca
• Dar Hasnaa, Morocco
• Dar Lain, Morocco
• Kalkan Heights, Turkey
• Kalkan View, Turkey
• Villa Livka, Croatia
• Quinta Algarvia, Portugal
• Chalet Etoile, Switzerland
• Chalet Lune, Switzerland
• Valgrande Penthouse, Spain
• Stargazer, Mauritius
• Villa Arabella, South Africa
• Villa Steenberg, South Africa
• Phuket, Thailand

According to the club, property scouts travel to between 70 and 100 properties when searching for a new residence to add to the portfolio, recommending the top 10 to the club. The club's directors personally visit the properties to make the final selection, with constant feedback from members to decide which destinations are the highest priority for members.

Each property also includes a standardized list of amenities, including:

• A local concierge
• Housekeeping up to four hours per day
• iPod music system
• Paperback library
• High quality bed linens
• Kitchen essentials
• Molton Brown toiletries
• Nintendo Wii console and games

HOLIDAY ACCESS

The Hideaways Club, Europe's largest destination club, uses a points based reservation system where members receive an annual contribution of points that are used to access properties in the club's portfolio.

This type of structure requires a different number of points for reservations during peak periods, forcing members to spend more points if they wish to travel during these seasons.

• One Week: Priority - 30 Destination Points
• One Week: Peak - 30 Destination Points
• One Week: Mid Peak - 25 Destination Points
• One Week: Off Peak - 20 Destination Points
• Up To Four Nights: Mid Peak - 18 Destination Points
• Up To Four Nights: Off Peak - 14 Destination Points
• Up To Three Nights: Mid Peak - 14 Destination Points
• Up To Three Nights: Off Peak - 11 Destination Points

The Hideaways Club has three different membership plans, each with their own level of annual points, ranging between 60 and 120 each year. Select membership plans allow for the ability to purchase additional points each year while one membership plan is designed specifically for those who do not need to travel during peak periods. Learn more about each at our Hideaways Club Membership Plans page.

This type of usage structure continues to gain momentum in the destination club sector, with other clubs such as the Ritz-Carlton Destination Club and The Discovery Club using points based models for property reservations.

MEMBERS

One of the leading international destination clubs in the world, The Hideaways Club is based in London but continues to reach a global audience. Originally conceived as a "club run by Europeans, for Europeans," The Hideaways Club would launch with a focus on London, with a property acquisition plan that would include properties all within a four hour flight of their core group of members. While the club would be centered primarily around London, three of the club's inaugural members following their 2007 launch would come from Southeast Asia, leading the club to evaluate a more worldwide vision.

In 2009, The Hideaways Club would introduce a sales office in Singapore and Hong Kong to tap into the growingly affluent Asian market.

"We are well aware of the number of high net worth individuals that reside in both Singapore and Hong Kong," Mike Lamb told us, The Hideaway Club's Managing Director in Asia. "Naturally for The Hideaways Club, these type of individuals fit the profile of our members - namely Chairmen, CEO's, FD's, Investment Bankers, partners of Law Firms and Medical Practices, Entrepreneurs, etc. For those who are looking to place funds into a global property portfolio with sensible returns and can see the value of subsidized luxury vacations, The Hideaways Club represents a unique investment opportunity."

RESIGNATION

Resigning members of The Hideaways Club must remain within the club for three years before they are eligible to leave.

The resigning member informs The Hideaways Club of their intent to leave and are placed on the club's resignation list. For every three new member shares sold, the member at the top of the resignation list is redeemed. Once the club reaches the 600 member mark, members are redeemed on a one in, one out structure.

If a resigning member introduces the club to a prospective member who elects to join, the club will transfer the membership to the new member, subject to the new member meeting the club's requirements and Board approval.

The redemption policy used at The Hideaways Club is unique in the destination club industry and can potentially provided for a very advantageous refund to resigning members. According to the club, "The exiting Member will receive the full amount less 20% of the increase from the price the share was originally acquired at. This 20% is the management’s share of the gain generated during the membership. The exiting shareholder benefits from 80% of the gain. There is a further administration cost of 5% of the net proceeds which covers the marketing costs of bringing in the new Member. This 5% is not charged if the Member introduces the new shareholder himself."

Essentially, a resigning member receives 80% of the difference between the price point at which they joined and the prevailing market price the club is selling.

Understanding the details of resigning a destination club membership should be a chief concern when conducting your evaluation of a club.

EXECUTIVES

"The founders and principal investors of The Hideaways Club have an unrivalled and proven track record in business start-ups, investment, hospitality, and property investment and management."

Ownership of The Hideaways Club, one of Europe's leading destination clubs, is divided between three group: the club's original founders, Investec, and new investors.

Mike Balfour
Founder, Investor, and Chairman

Stephen Wise
Founder, Investor, and Chief Executive Officer

Helmut Schön
Founder and Investor

Clive Strowger
Chairman UK

Simeon Singer
Managing Director

Jonathan Feuer
Investor

Nick Bettany
Investor

According to The Hideaways Club Frequently Asked Questions, "The relationship between the Property Company and management company is governed by an agreement. Were the management company to go into administration, the agreement would immediately be terminated and the Property Company would be able to appoint a new management company."

If the majority of the Property Company shareholders make a vote of no confidence in the management company, the management company has a period of time to rectify any issues. A second vote of no confidence could lead to a new management company, acquiring members' shares in the fund, or disposal of some or all of the Fund's properties.

PARTNERSHIPS

Introduces as "Europe’s first private residence owner’s club" in early 2007, The Hideaways Club has quickly established themselves as one of the world's leading destination clubs with a global collection of luxury vacation properties.

"Your investment buys a share in a Gibraltar-registered property company which owns all of the individual properties," the club writes. "This company is 100% owned by the Members. The management of the Club do not own any part of this company. If the value of the portfolio increases in value, so does the value of your share."

Like many other equity destination clubs, The Hideaways Club maintains much of their travel experience in house and doesn't procure a large partnership network like many non-equity destination clubs.

One notable partner is an alliance created in early 2010 with Equity Estates, one of the fastest growing equity destination clubs in the sector. As part of the partnership, members of both clubs will have reciprocal access to the other club's collection of luxury vacation properties.

"This alliance between Equity Estates and The Hideaways Club is ideal as it facilitates international growth for both companies and enhances the already stellar value proposition for owner members of both funds," said Adam Capes, Co-Founder of Equity Estates. "We cannot imagine a better way to begin 2010 than doubling our portfolio of accessible properties."

"Our companies have a common model and a common goal: to provide unparalleled vacations coupled with a sound investment, so it seems natural to create this strategic alliance for the benefit of our individual companies and our respective owner members," said Mike Balfour, Chairman of The Hideaways Club. "This is a unique exchange relationship in the industry and greatly enhances our opportunities for growth moving forward."

PRESS RELEASES

Crafted after the US destination club model but with European sensibilities, The Hideaways Club further blurs the line between destination club membership and fractional ownership.

Officially launched in January of 2007, The Hideaways Club takes a distinct European focus in the design of their club. Limited to 600 members, the club plans to ultimately include 100 properties available exclusively to members. Approximately 60% of the club's properties will be purchased within a "short-haul flying distance of Europe."

Since their launch, The Hideaways Club has quickly grown to become a leading player in the destination club industry and continue to expand their global reach outside of Europe.

Equity Estates Forms Strategic Alliance With The Hideaways Club
Date: January 11, 2010
Equity Estates and The Hideaways Club have announced a strategic partnership that will allow members of both club the ability to access the other club's collection of luxury real estate, creating a total portfolio of nearly 30 properties in 23 of the world's most prized destinations.

The Hideaways Club Announces Two Properties In South Africa
Date: September 11, 2009
Starting in November of 2009, Hideaways Club members will be able to book reservations at two new stunning additions to the club's growing portfolio. Both located with easy access to Cape Town, The Hideaways Club is proud to introduce their first properties in South Africa.

The Hideaways Club Announces New Property In Sotogrande
Date: July 30, 2009
Immediately opposite the famed Valderrama Golf Club, The Hideaways Club has acquired a penthouse unit in Sotogrande. The complex features three communal swimming pools, an indoor spa and gym, tennis courts, and its own golf practice area, all available to members.

Tim Henman Joins The Hideaways Club July 24, 2009

The Hideaways Club Sponsors UK's British Beach Polo Championship Charity Race July 9, 2008

Proven Entrepreneurs Launch Europe's First Private Residence Owners Club January 29, 2007

Europe's First Luxury Private Residence Owners Club Launches January 29, 2007