In another sign of the increasing transparency that's coming to the Destination Club industry, Lusso Collection announced today that all of the interests in its properties will be held by subsidiary LLCs owned 100 percent by the club.
Lusso is one of the clubs that is now highlighting it's annual independent audit and in addition provides members:
- Semi-annual financial reports
- Security interest in all of the Club's real estate, second only to any debt secured against the real estate
- a commitment that 85% of member deposits are either used for Club Property purposes, or held in cash.
All of this is a great move towards the transparency that needs to come into the industry, especially given the large sums that members invest. And these changes have in part been spurred by the Tanner & Haley bankruptcy this summer.
Note: Lusso now has about 50 members and 17 private luxury properties.