My Global Playground: Destination Club Profile

Headquartered in Belmont, California, My Global Playground brought a newfound focus on philanthropy and financial disclosure that hadn't been seen in the destination club industry when they were founded in 2005.

Outlined in the club's membership documents were strict commitments about how My Global Playground would use membership deposits and annual dues and the financial status of the club. Annually a reputable accounting firm would conduct an audit to verify the club's commitment to the terms in the membership agreement.

"We have an open door policy at MGP," wrote the club's President and CEO Joyce Kohn. "We welcome questions about the club, it's financial structure and our long term goals. On a personal note, we have, from the beginning, launched this company with the truest belief of giving back. We are very committed to our alliances with charitable foundations and it is of great pride that we will be involved in some of the world's most important causes both financially and emotionally."

In addition to Kohn, the club was also co-founded by Christine Frost, a veteran in the destination club industry who had served at Private Retreats, widely considered the first true destination club, and was with the club as they transitioned to become Abercrombie & Kent Destinations and ultimately to Tanner & Haley Destination Club, where she served on the club's executive team.

My Global Playground created two different philanthropic programs; the My Global Playground Rising Star and the My Global Playground 3 Wishes, both apparently focused on providing support to young children. Members were encouraged to refer applicants to the program.

According to the club's website, "we believe that we have priced our business model to guard against economic or market conditions without compromising any club service or asset."

Unfortunately, the one market condition the model could not account for was a lack of sufficient interest. With others in the destination club space already having established models and a full portfolio of properties available to members, My Global Playground was unable to adequately generate enough interest and new membership sales to survive the highly competitive destination club space. Late in 2007, the club quietly faded away, apparently with only a handful of members.

MEMBERSHIP PLANS

Based out of Belmont, California, My Global Playground was one of a handful of destination clubs that launched and was unable to gain the requisite traction within the industry to survive against the more established players in the sector such as Exclusive Resorts, Quintess, and Ultimate Escapes. During their time in the industry, the club never progressed past their Charter Membership offer, but did have Corporate, Family, and Specialized Memberships in addition to the Charter Membership that was offered up until the club ceased operations.

Charter Membership

Limited to just 30 members, it appears that the club never reached this threshold as the Charter Membership was offered up until the club ceased operations. Seeking the higher end of the destination club sector, Charter Memberships were originally offered at $490,000 with accompanying annual dues of $30,000 per year.

Corporate Membership

Much like the club's Charter Membership, Corporate Memberships provided for 35 nights of annual travel. Unlike the Individual Membership that required the primary member to be in residence when the membership was used, Corporate members could allow colleagues, clients, and other business associates the ability to travel on their membership.

Family Membership

Like the other membership plans within My Global Playground, the Family Membership provided members access to 35 nights of vacation within the club's portfolio each year. Much the same as the Corporate Membership option, Family Memberships provided the primary member the ability to gift as many or as few of their allotted annual nights to extended family members without having to be in residence when the membership was used.

Specialized Membership

"We realize that some members have restrictions on their time for vacation travel. With this in mind, we offer the MGP Specialized Membership, which is customized around your personal needs. This unique option includes access to the same portfolio of residences as offered all other club memberships as well as the same level of quality services. Members will "own" any membership appreciation."

With full customization of their membership plan allowed to members, no set membership details are available on the plan. The primary decision point was the number of nights allowed within the membership.

The vast majority of other destination clubs do help potential members craft a membership plan specific to them, including different access rights, annual usage, and other travel benefits. While My Global Playground fully customized plans for members, these other destination clubs traditionally use their current membership plans as a foundation for any alterations.

MEMBERSHIP PRICING

When My Global Playground launched in 2005, the young club earmarked 30 Charter Memberships to be sold before commencing with normal membership sales. According to the club, these Charter Memberships would offer a "significant opportunity to purchase a membership at a substantial discount."

Like many other destination clubs, My Global Playground would have Individual, Corporate, and Family Membership options available but also had specialized plans where the club and prospective member would work to create a customized membership plan designed solely for them.

Individual Charter Membership

Charging a $245,000 membership deposit, My Global Playground's Charter Membership was in effect their Individual Membership. As part of the Charter Membership offer, members would receive "pay back at years three, four, and five."

Corporate Charter Membership

My Global Playground would also include a Charter Corporate Membership Plan, available for $490,000. Like the Charter Individual Membership, members would be "paid back" in years three, four, and five in their membership.

Family Membership

Virtually identical to the Corporate Membership, Family Memberships allowed members the ability to "enjoy sharing their vacations with extended family members that they can't always see." Members were provided 35 nights of annual access to the My Global Playground portfolio.

Specialized Membership

Members could help design a membership plan customized specifically to them, including the number of nights, travel benefits, and various other parameters relating to membership.

Unfortunately, by 2007, My Global Playground ceased operations. While more established clubs such as Exclusive Resorts, Private Escapes, and Quintess would have tremendous years, My Global Playground never created enough interest in their club to continue in the competitive destination club sector. At the time of their closure, the Charter Membership was still publicly available, indicating that the club likely had less than the 30 members that were originally planned.

ANNUAL DUES

One of the first destination clubs to consider philanthropy a pillar of their structure, My Global Playground would provide members exclusive access to a collection of $4 to $6 million properties.

"At My Global Playground, our vision is simply to be the world’s only choice in a destination club," the club said. "We want to assist you and your family in an effortless experience, transcending from one life into another."

The young club would limit their initial membership to just 200 members, with special Charter Memberships available to the first 30.

Like many other destination clubs, My Global Playground would offer Individual, Family, and Corporate Membership options to interested parties, each with different benefits.

Individual Charter Membership

Also called the "Get Away Charter Membership," the My Global Playground Individual Membership required $17,500 per year in annual dues.

Unlike the Corporate and Family Memberships, Get Away Members and/or their significant others were required to be in residence whenever the membership was used.

Corporate Charter Membership

"With a focus on companies that require luxurious places to entertain their clients, senior management, or board members. This is also a very popular 'team building' or 'corporate retreat' alternative for corporations who seek to retain and reward sales executives and senior management. It has been proven that the economics of retaining key employees is a major concern to Corporations in today’s market place. Members will 'own' any membership appreciation."

Corporate Memberships allowed the business owner to allow clients, business colleagues, or any other employees the ability to travel on the membership. Identical to the Family Membership, annual dues during the Charter Membership phase were $30,000.

Family Membership

Known as the "Family and Friends Charter Membership," members could allow those outside their immediate family the ability to use their membership. During the Charter Membership phase, the club would charge $30,000 per year for the 35 nights of annual access.

Specialized Membership

A key point to the My Global Playground's team was the ability for a member to customize their own membership plan. "We realize that some members have restrictions on their time for vacation travel," said the club. "This unique option includes access to the same portfolio of residences as offered all other club memberships as well as the same level of quality services."

Primarily, the customization of these specialized plans revolved around the number of nights of access available to a member each year. As a member wanted more nights, their annual dues would go up in kind.

Many other destination clubs allow for the customization of their membership plans, but My Global Playground was the first to publicly disclose the information.

A key point of all of these membership plans during the Charter Membership phase of the young club was "Members will 'own' any membership appreciation." In years three, four, and five of membership, members would be "paid back." Details regarding how this program would work, but it likely would operate much like the second club launched by Private Escapes, Private Escapes Platinum. Members would be repaid a portion of the real estate appreciation each year, which could be used to offset annual dues. As such, annual dues from these published rates would likely be less as real estate prices increased.

Unfortunately, My Global Playground never made it to this threshold and ceased operations in 2007. When the club did close its doors, the Charter Membership options were still publicly available, indicating that My Global Playground had less than 30 members.

PROPERTIES

"We believe that your vacation experience with MGP should be fun, exciting and effortless. With this philosophy we strive to purchase homes that quite simply – are not ordinary or comparable to your everyday life, rather to capture the extraordinary lifestyle of a MGP membership."

"MGP is committed to a 'club-owned' vs. 'club-managed' portfolio. This clearly sets us apart from the rest. We are very select and yet deliberate in our execution of purchase. Understanding the underlying inherent cost of the transaction itself, we work tirelessly with expert real estate advisors in each destination to identify several homes that fit our portfolio criteria. We then will execute a rather lengthy process of due diligence to qualify the residence and determined if it is a viable fit before acquisition."

Dedicated to responsible spending and full disclosure to members, My Global Playground would limit their debt on each property to no more than 35%. The club would limit their initial club to just 200 members with an estimated 35 homes across 15 locations.

St. Thomas
Los Cabos
Italy
Paris
Maui

With a bottleneck of other destination clubs purchasing real estate in the $2 to $4 million price range, My Global Playground set their price range in the $4 to $6 million market. Homes would have five to six bedroom configurations and between 5,000 and 12,000 square feet. In addition to their high price tags and space, each would also be lavishly appointed for an optimal vacation experience. "We select each MGP residence with family and friends in mind. Our spectacular residences all feature inviting floor plans, entertainment centers filled will the latest plasma tv’s, dvd's, games, home offices with personal computers including high speed internet access, kitchens made for a chef, spa like bathrooms accentuated with personal MGP robes and accessories. This will not only inspire you, but will afford you the generous space you need to make your vacation with family and friends a memorable and fun experience for everyone."

Created in 2005, My Global Playground launched during one of the most competitive eras in the history of the destination club sector. In 2005 alone, Ultimate Resort, Quintess, and Dream Catcher Retreats all launched and other established clubs such as Exclusive Resorts and Private Escapes continued to make positive strides in new membership growth. Against the stiff competition, My Global Playground never managed to fully establish a foothold in the destination club industry.

In 2007, My Global Playground quietly ceased operations, still offering their Charter Membership to prospective clients evaluating the club.

USAGE

Implementing the near universal six to one member to property ratio that most all destination clubs adhere to, My Global Playground would structure all of their standard membership plans to provide 35 nights of annual access.

On the surface, this would equate to a model where properties would be vacant roughly 43% of the year. These $4 to $6 million properties would each have their own signature flair for members to enjoy.

"We select each MGP residence with family and friends in mind," the club said. "Our spectacular residences all feature inviting floor plans, entertainment centers filled will the latest plasma tv’s, dvd's, games, home offices with personal computers including high speed internet access, kitchens made for a chef, spa like bathrooms accentuated with personal MGP robes and accessories. This will not only inspire you, but will afford you the generous space you need to make your vacation with family and friends a memorable and fun experience for everyone."

In addition to Individual, Family, and Corporate Membership Plans, My Global Playground would also offer customized memberships that allowed members the ability to specify exactly what they were looking for in a destination club.

All of the club's memberships, including the customized plans, were offered during the club's launch phase. Limited to just 30 members, My Global Playground would offer Charter Memberships with discounted pricing on the membership deposit and annual dues. Unfortunately, when the club ceased operations in 2007, they were still offering the memberships, indicating that they likely fell well short of their sales goals.

Against industry titans like Exclusive Resorts, Private Escapes, and Quintess, My Global Playground was never able to establish themselves in the destination club sector.

Joining a new destination club can often provide numerous benefits that a member would not ordinarily receive if they joined later in the club's existence. Unfortunatley, it is often the riskiest time to join as the club has very little incoming revenue from members and likely thin operating margins.

Nonetheless, many do find joining a new destination club to be an exiting opportunity to enjoy preferred access and pricing.

MEMBERS

My Global Playground's story began with "Members of My Global Playground experience an absolute sense of belonging and the utmost attention to even the smallest of details. We share our Members’ personal tastes in ultimately, lavish standards making Members, their families and guests our paramount priority. Our dedication to meeting individual Member needs and desires confirms that My Global Playground recognizes that our Members are and always will be our most valuable asset."

When the destination club was created late in 2005, My Global Playground would offer early adopters a Charter Membership in the club. Limited to just 30 members, these memberships would be available at a reduced rate with preferred travel benefits.

My Global Playground members would receive:

100% refundable deposit with appreciation
Average home value 4-6 million dollars
Highly desirable destinations across the globe
24x7 MGP Concierge Service available 365 days per year, even when not in residence
Limo transportation for members’ pickup and departure (in most locations)
Personal vehicles ready and waiting at your residence (in most locations)
Spa-like bathrooms accentuated with personal MGP robes and accessories
Twice daily maid service
Entertainment rooms stocked with the latest dvd's and games
Fresh flowers
Your own favorite scents and candles to ensure a “home like” experience
The latest in “home” technology
Grocery shopping and onsite house managers
Chef and butler (in most locations)

Ultimately, My Global Playground planned to limit their total membership to just 200 affluent members before likely creating companion clubs, following the same model used at Private Retreats with sister clubs Distinctive Retreats and Legendary Retreats or Private Escapes, who had just launched their second club in the form of Private Escapes Platinum.

When the club launched officially, other notable start up clubs had already generated a great deal of interest. Ultimate Resort, Quintess, and Dream Catcher had all launched in 2005 and were well past their Charter Membership phase. Other more established clubs like Exclusive Resorts also continued to achieve lofty sales numbers. "The highest percentage of people who join a luxury residence club opt for MGP after evaluating countless other options, a fact that speaks volumes of the validity of our operating model and its potential for long-term financial health," the club wrote. Unfortunately, while interest in these other clubs continued to soar, My Global Playground was unable to garner enough interest and subsequently ceased operations.

When the club closed, they were still actively marketing their Charter Membership offer, reserved for the club's first 30 members. It would seem that the club never met this threshold and likely only had a select group of members when they closed their doors.

RESIGNATION

A pillar in My Global Playground's structure was a focus on being financially secure. The club's membership agreements outlined "specific commitments from MGP regarding the use of membership deposits and our financial status," My Global Playground stated. The young club would conduct an annual audit to verify that they were in compliance with these commitments and pledged to used membership deposits solely for real estate and acquisition costs.

While the terms of how membership funds would be used were clearly defined by the club, the member's resignation and redemption policies were less transparent. Like many other destination clubs, resigning members were redeemed on a three in, one out basis.

The amount that would be repaid at the time of resignation was never fully identified. According to the club's website, numerous redemption policies existed, including the following contradictory statements:

"MGP Memberships features a 100% refundable deposit with appreciation."
"Once a member should decide to leave, the Club will refund 100% of your deposit."
"If I resign my MGP membership, am I entitled to a refund? Yes, minus a nominal transfer fee."

Launched during one of the most competitive eras of the destination club sector, My Global Playground never fully emerged as a leading player in the space. Exclusive Resorts dominated the industry with smaller clubs like Quintess, Dream Catcher Retreats, and Private Escapes making significant progress in the growing field. Up until their closure, My Global Playground continued to offer "Equity Charter Memberships," a sign of slower growth in the booming destination club industry.

Likely, these different resignation and redemption policies were planned to be implemented as the club grew, allowing charter members appreciation on their deposit and absorbing a portion of the membership fee of new members once the club established themselves.

Unfortunately, My Global Playground never grew to this point and ceased operations in 2007, likely with only a select group of members.

When considering a new destination club, understanding the details of the resignation process and your redemption rights should be a chief concern.

EXECUTIVES

Created in 2005 in part by a former Abercrombie & Kent Destination Club and Tanner & Haley executive, My Global Playground would build their club around financial transparency to members and sound business spending.

"We are here to deliver an unparalleled experience and nothing less," wrote CEO Joyce Kohn. "We have aligned ourselves with the industry's 'best in class' advisors and management team to deliver what is ultimately your reason in joining a destination club. The ultimate deliverance of a vacation experience."

"I truly believe that this is the most rewarding and fulfilling industry known to mankind. With that belief, I personally would like to extend to you an invitation to join us at My Global Playground."

"We have an open door policy at MGP. We welcome questions about the club, it’s financial structure and our long term goals."

"On a personal note, we have, from the beginning, launched this company with the truest belief of giving back. We are very committed to our alliances with charitable foundations and it is of great pride that we will be involved in some of the world’s most important causes both financially and emotionally."

The primary executives of My Global Playground included:

Joyce Kohn
Chief Executive Officer and Co-Founder

Chris Frost
Co-Founder

Raul Contreras
Managing Partner and Co-Founder

Despite the experienced team, My Global Playground wasn't able to compete with the more established clubs such as Exclusive Resorts and Private Escapes or the other young start up clubs that entered the sector just months before them, including Quintess, Ultimate Resort, and Dream Catcher Retreats.

When the club did cease operations in 2007, they were still offering their Charter Memberships to new inquiries, a membership offer that was to be limited to just 30 members. Likely, the young club had just a handful of members.

NOTES FROM THE CLUB

Created in part by a former Abercrombie & Kent Destination Club and Tanner & Haley executive, My Global Playground started their young destination club with an experienced management team knowledgeable about the pitfalls of the model.

The young destination club would structure their model around responsible spending. "Our members have the benefit and advantage of our Club Membership Agreement, which documents specific commitments from MGP regarding the use of membership deposits and our financial status," the club's literature stated. "As such, these commitments from MGP place boundaries on our business and reflect our commitment to integrity and ethics in the area of financial responsibility."

"MGP conducts its business operations in a manner that will enable us to always fulfill its obligations. On an annual basis, MGP undergoes an audit conducted by a highly reputable accounting firm, which checks and verifies the club’s compliance with its commitments under the Club Membership Agreement."

"The highest percentage of people who join a luxury residence club opt for MGP after evaluating countless other options, a fact that speaks volumes of the validity of our operating model and its potential for long-term financial health."

Joining My Global Playground's "strong commitment to financial transparency" was a philanthropic pillar to help those less fortunate. The young club created two programs, My Global Playground 3 Wishes and My Global Playground Rising Stars. The MGP Three Wishes Foundations provided terminally ill children and their families two week stays at club properties and the MGP Rising Stars Program would help provide college students with scholarships.

Despite the financial diligence, My Global Playground never emerged as a significant player in the sector. When the club launched, they marketed a limited Charter Membership available to just 30 members. When they finally ceased operations in 2007, the club was still selling the Charter Membership plan, indicating a high liklihood that just a handful of members joined the club. During their time in the industry, clubs such as Exclusive Resorts, Private Escapes, Ultimate Resort, and Quintess all made major steps forwards and many clients that may have been drawn to My Global Playground would instead join the more established clubs in the sector.

No notes from the My Global Playground executive team are currently available.

PARTNERSHIPS

Created in 2005, My Global Playground launched at the top of the destination club spectrum with homes valued at between $4 and $6 million, each available exclusively to members. Members would also enjoy five-star service including twice daily maid cleaning, anytime and anywhere access to travel planners and concierge services from the club, down to "your own favorite scents and candles to ensure a 'home like' experience."

These benefits didn't start upon arrival at the home, but the member's front door. My Global Playground would provide limo transport to and from the airport. "At MGP, we’re always thinking of you and anticipate your needs far in advance of your arrival. Our destination homes are spectacular hidden treasures in exotic worldwide locales and MGP members never have to worry about car rentals. Upon your arrival in any of our vacation destinations, your private limousine awaits to take you to your front door."

And once the member arrived at the property, their own personal vehicle was available to explore the local attractions. "As always, MGP is thinking of you and won't leave you stranded when the limo leaves. We want you to be able to explore the destinations you visit on your vacation, shop at off-the-beaten path boutiques for unique treasures or simply take a spontaneous or planned drive to explore the area. Your personal vehicle is at your immediate disposal, with the keys already waiting."

Despite these benefits, My Global Playground never publicly disclosed who their partners were for limo services or if they had any affiliations with a specific car company.

The young club would struggle to make a name for themselves against industry powerhouses like Exclusive Resorts and Private Escapes and upstarts Ultimate Resort, Quintess, and Dream Catcher Retreats.

When the club launched, 30 Charter Membership were planned to be made available for early adopters. When the club ceased operations in 2007, the club was still offering Charter Memberships to interested parties.

PRESS RELEASES

Launched in 2005, My Global Playground launched during one of the destination club industry's largest expansions. Colorado based Dream Catcher Retreats and Quintess had launched earlier in the year and were already making significant headway in the industry. Private Escapes had already soared well past the 100 member mark while the market leader, Exclusive Resorts, added 46 new properties to their portfolio to meet demand.

Unlike these other clubs who all went on to have a great deal of success in the coming years, My Global Playground failed to generate momentum against the competition.

When the club ceased operations in 2007, "Equity Charter Memberships" were still available, indicating that the club likely had but a handful of members.

One of the major selling points the club disclosed was a dedication to financial security. Club documents outlined how membership deposits would be used and lean operations were emphasized. The club "refrained from building excessive management teams and/or strategic partnerships that we know come with a price that ultimately is paid with membership dollars or club usage which we recognize as a 'potential' conflict for our members."

With this efficient structure in mind, My Global Playground only released one press release regarding the club. If you would like to learn more, you may also be interested in accessing our My Global Playground News page.

As the Real Estate Market Cools Down a Destination Club is Turning Up the Heat
Date: July 14, 2006
With real estate gains coming to an abrupt halt in the first quarter of 2006 and the median price of a U.S. home falling 3.3 percent from the fourth quarter of 2005, My Global Playground offers a luxurious alternative to second-home ownership.