On Valentine's Day in 2005, Ultimate Resort launched, marketing themselves as "the most affordable luxury destination club on earth, designed to provide individuals, families and corporate members with virtually unlimited access to 100 luxury residence club properties planned over the next few years, each averaging $1.5 million in value and located in premier beach, mountain, golf and city resort destinations throughout the United States, Mexico, the Caribbean and Europe."
Founded by Jim Tousignant, a former Thomson Financial and Morgan Stanley Managing Director, the club's approach was to cater to luxury travelers, but also make an aggressive play at the untapped corporate market.
"Now the corporate market can enjoy access to a growing portfolio of luxury homes at tope destinations with all the amenities and concierge services of a private country club - all at a very affordable corporate membership fee," Tousignant said in the club's launch press release.
"Ultimate Resort appeals to the growing base of 6 million 'mass affluent' luxury travelers, many of whom are looking for the flexibility and benefits of a luxury destination club, but at a fraction of the high cost of other leading destination clubs. Membership fees in Ultimate Resort are very affordable - 50% less expensive than other leading clubs such as Exclusive Resorts and Abercrombie & Kent Destination Clubs, offering our club members a great value," Tousignant continued.
By August, Ultimate Resort had sold out the first phase of their Charter Membership offering while Abercrombie & Kent Destination Clubs was moving in the other direction. Founder and CEO Rob McGrath had partnered his clubs with Abercrombie & Kent back in 2003, but due to increased competition and dozens of costly short-term leases to satisfy occupancy, McGrath was unable to continue payments to access the A&K name.
McGrath quickly rebranded his collected three clubs, Private Retreats, Distinctive Retreats, and Legendary Retreats, under a new club called Tanner & Haley, named after his two children. As the industry titan began to collapse, Ultimate Resort quietly continued to generate momentum, signing a partnership with Stirling Sotheby's International Realty, winning Panache magazine's "Finest Luxury Destination Club award, and signing Boston Celtic's Coach Doc Rivers as a member.
Over 1,000 miles away in Westport, Connecticut, the ramifications of Tanner and Haley's business model and drastic rebranding had taken their toll on membership sales. On July 23, 2006, the club filed for Chapter 11 bankruptcy to reorganize. According to Holly Felder Etlin, the club's Chief Restructuring Officer, "As part of the Chapter 11 process, we will be reviewing and, where appropriate, revising Tanner & Haley's business model so that, upon completion of the financial reorganization, the company will be better positioned to achieve long-term strength, stability, profitability and growth. We are also committed to having the company emerge from the process with greatly enhanced corporate governance and financial transparency."
While the club began the process, Ultimate Resort and Tousignant saw an opportunity. Ultimate Resort submitted a $98 million bid to acquired the assets of Tanner and Haley that was unanimously approved by Tanner & Haley's Unsecured Creditors' Committee. Just days after the approval, billionaire J. Joe Ricketts, the Founder of TD Ameritrade and of upstart ultra-luxury destination club Ciel, submitted a $108 million bid for the assets. Ultimate Resort would eventually up their offer to $100 million and Ciel to $112 million, but the Committee and Judge Alan H.W. Swiff remained with Ultimate Resort.
"I’m delighted that — less than four months after Tanner & Haley’s Chapter 11 filing — our intense efforts to preserve as much value as possible for Tanner & Haley’s members and other creditors have been so well rewarded. Ultimate Resort is one of the industry leaders in the luxury destination club business, and will assume ownership and management of most of T&H’s current properties. I’m also pleased that the vast majority of Tanner & Haley’s current employees will continue to be employed by Ultimate Resort once the purchase agreement is approved and the transaction executed. In my view, this is the best possible result, under challenging circumstances, for everyone involved," said Etlin.
Overnight, Ultimate Resort went from a young club with under 100 members to the dominant number two club with almost 1,000 members, passing other leading clubs Private Escapes, Quintess, and Solstice Collection.
In September of 2007, Ultimate Resort announced another substantial merger when news hit that they would merge with Private Escapes, the industry's third largest club for a reported $200 million. Months later in February of 2008, Ultimate Resort acquired equity destination club Ventures Equity Vacation Club, bringing in six homes and approximately $17 million in real estate.
As Ultimate Resort and Private Escapes continued to work towards finalizing their merger, now branded as Ultimate Escapes Destination Club, the financial and credit markets began their historic meltdown, punctuated by plummeting real estate values. Forced to delay, the merger agreement was completed in June of 2009.
PRESS RELEASES
Introduced on Valentine's Day in 2005, Ultimate Resort quickly sold out of their Charter Memberships as "the most affordable luxury destination club on Earth."
"Ultimate Resort appeals to the growing base of 6 million mass affluent luxury travelers, many of whom are looking for the flexibility and benefits of a luxury destination club, but at a fraction of the high cost of other leading destination clubs. Membership fees in Ultimate Resort are very affordable - 50% less expensive than other leading clubs such as Exclusive Resorts and Abercrombie & Kent Destination Clubs, offering our club members a great value," said Jim Tousignant, Ultimate Resort's Founder and President.
As the young club continued to grow, Tanner & Haley, the destination club formerly known as Abercrombie & Kent Destination Clubs, was falling on hard times. The club had lost the valueable A&K license and years of insufficient annual dues and large leasing costs began to erode the club internally. In July of 2006, the industry pioneer would announce that they would file for chapter 11 bankruptcy.
With nearly 900 members, the assets of the club would be a hot commodity and Ultimate Resort would battle Ciel, a new luxury destination club created by billionaire J. Joseph Ricketts. Ultimate Resort's $98 million bid was approved only to have Ciel submit an eleventh hour bid of $108 million. Both clubs would increase their bids further, but Judge Alan H.W. Swiff's decision remained with Ultimate Resort.
The club would add roughly 650 Tanner & Haley members and transition from an up and coming young club to the industry's solidified number two player in just months. The deal would officially close in May of 2007, just months prior to another industry shaking acquisition involving Ultimate Resort.
In September of 2007, Ultimate Resort and Private Escapes announced their merger that would eventually create Ultimate Escapes Destination Club. According to the club, the combination would "account for more than 25 percent of the total market share and boast a global resort real estate portfolio with a fair market value of $200 million." The acquisition of Private Escapes would be finalized in September of 2009.
Now operating as Ultimate Escapes, the club remains one of the industry's leaders with well over 1,200 members. Below, please find the press releases from the club prior to their transition to the Ultimate Escapes brand name. If you would like to learn more about the new club, please visit our Ultimate Escapes Press Release Archive.
Ultimate Resort and Private Escapes Officially Launch New Brand - Ultimate Escapes
Date: May 27, 2008
Ultimate Resort and Private Escapes have announced their new brand, Ultimate Escapes. Announced in September of 2007, members will now have access to the combined real estate portfolio of the two clubs, totaling over 140 luxury residences in 50 global destinations.
Bombardier Announces A Strategic Marketing Agreement With Ultimate Resort
Date: May 8, 2008
Ultimate Resort and Bombardier Flexjet have announced a strategic marketing agreement that names Ultimate Resort the official destination club of Bombardier and Bombardier the official private jet partner of Ultimate Resort.
University College London Signs Exclusive Agreement With Ultimate Resort
Date: April 15, 2008
Ultimate Resort has been named the exclusive destination club of University College London, one of the most prestigious universities in the world, to provide alumni and parents of current students preferred membership offers and reunions and exclusive events at club properties.
Ultimate Resort Announces Partnership With FirstAgain March 10, 2008
Ultimate Resort Acquires BVG's Ventures Equity Vacation Club February 25, 2008
Ultimate Resort and Private Escapes Sign $200 Million Merger Agreement September 13, 2007
Ultimate Resort Closes $100 Million Acquisition May 9, 2007
Ultimate Resort Agrees To Purchase The Assets of Tanner & Haley For $98 Million In Cash November 21, 2006
Ultimate Resort Introduces Four New Homes to its Members November 15, 2006
Gregg Amonette Joins Ultimate Resort August 3, 2006
Ultimate Resort Introduces New Seasonal Offerings in Lake Tahoe July 26, 2006
Ultimate Resort Announces Partnership June 28, 2006
Ultimate Resort Welcomes Professional Basketball Coach March 7, 2006
Ultimate Resort Launches Phase II Charter Membership Program August 1, 2005
Ultimate Resort Announces Appointment of Chief Operating Officer June 8, 2005
Ultimate Resort Awarded "Finest Luxury Destination Club" April 25, 2005
Introducing Ultimate Resort The Most Affordable Luxury Destination Club February 14, 2005