Grand Resort Properties is a new destination club designed with Midwestern hospitality in mind - made for the millionaire next door. Following Exclusive's model for destination clubs, Brad Brown of Omaha, Nebraska decided to create a smaller Midwest version in late 2006.
The club is tailored for winter-worn Midwesterners looking for wholesome nearby getaways. "Our Board has made a commitment to creating an offering for people that find meaning not in their net worth but their relationships," said Brad Brown, CEO of Grand Resort. "Our company was founded in the Midwest and many of the positive attributes of this region are part of the fabric of the company."AVAILABLE DESTINATIONS
Still in its early stages, Grand Resort currently has four destinations and four homes/condos in their portfolio. The Beaver Creek, CO location has a 2,400 sq ft condo which sleeps 8; the Marco Island, FL location is a 3,300 sq ft condo which can sleep 6; the Lake of the Ozarks, MO (pictured above left) location has a 6,000 sq ft home which sleeps 13; and the Cabo San Lucas, Mexico home is 3,400 sq ft and can accommodate 10 people.
Today, Grand Resort has 34 equity owners. Once their portfolio of homes grows, they will be ready to open their doors to prospective vacationers at (non equity) membership levels.FUTURE PLANS
Brown and his investors have their eyes on up to 17 additional club locations. All current and prospective properties are located in the United States, the Caribbean and Central America.
The club strategy is not unlike others that have gone before them. Grand Resort plans to broaden and deepen their offerings. "We plan to build where we are lacking. We want to have locations available where our members desire to go. We also want to add homes at our most popular locations, like Lake of the Ozarks, MO," says Mike Carter, Vice President of Grand Resort.
They hope to have a boutique club to offer members. Member-to-unit ratios will be set through a formula of weeks booked and availability. The goal is to have 50 destinations and 300 members.
The club also currently makes some of its homes available to non-members. "We do - on occasion - rent the houses we own on a last minute availability as our model to date indicates that past a certain point it is unlikely that our membership will fill the available nights." said Vice President, Michael Carter. "We would expect that as our membership base grows, the use of rental arrangements for last minute availability of inventory would decrease." This certainly gives non-members a chance to try out the clubs four current homes.SERVICES
Currently, Grand Resort Properties has the following services for its members/owners:
- A concierge at each property
- Maid services
- Food and beverage pre-stocking
- Access to a private chef or caterer
- Boat charters
- In-home spa treatments
- Transportation to and from the airport
The management's goal is to build in locations where there are already established resorts and clubs to partner with. This will allow members to have access to private golf courses, spas, etc.2007 MEMBERSHIP/OWNERSHIP OPTIONS
New destination clubs often offer great deals to entice early members and build momentum. As such, early members of some of today's more established clubs paid a fraction of the current membership prices. But caveat emptor and make sure you do your due diligence; clubs will need a significant amount of capital if they are to grow and supply you with a wide selection of homes. Read our guide to destination clubs for a full list of suggested questions to ask the clubs before joining.
Grand Resort is currently offering 5 levels of equity ownership (for accredited investors) and offers the similar terms excluding the equity piece for non-accredited investors. The club expects to change these options at the start of 2008. Below is a sample of their current pricing.
|Nightly Usage Rates||$525||$395||$355|
|Nights per Year||14||42||70|
|Advanced Booking Period||210 days out||300 days out||360 days out|
The membership structure differs from most other destination clubs in that the annual dues are very low but there is a nightly fee. Most other destination clubs don't have a nightly fee, and instead have much higher annual dues. With this nightly fee payment structure, Grand Resort Properties gives all members unlimited nights of usage for bookings made within 60 days of travel.