Luxury Returns On Lifestyle      

STRATEGY – LUXURY LIFESTYLE CLUB DEVELOPMENT

A wholly owned resort development, complete with club facilities, golf course and other resort amenities would cost US $100 million plus to develop.

Instead of investing in one such property, we propose to purchase luxury residences within such resort-style settings, either completed or as a pre-construction purchase in a variety of desirable destinations worldwide. These luxury homes will then be resold as "right to use" Luxury Lifestyle Club memberships, complete with all the resort facilities already available. Additionally we will create a network of luxury products and services in each destination for use by our members.

The Club membership pricing will be fashioned after the existing fractional model. However, unlike fractional ownership, which generally appreciates or depreciates based on the real estate value of the selected property in a particular area, the value of the Luxury Lifestyle membership will be determined by the entire Club’s assets and exclusivity. Appreciation and value retention will not be limited to any one property or area, but will grow in proportion to the total number of properties and assets available for Club member use. If for some reason the property value should decrease in one area, this will be offset by appreciation of our other locations, thereby maintaining the overall membership value.

Thus, the Luxury Lifestyle Club will feature luxury resort style accommodations in several desirable vacation destinations, an exceptional list of amenities and membership services, and an internal destination exchange feature available through our own exclusive global network. Therefore, the Luxury Lifestyle Club membership will be more attractive and valuable to potential buyers than the typical fractional product, giving us a strong competitive edge and a unique marketing advantage.

BUYER PROFILE

Understanding the typical buyer profile of the Luxury Lifestyle Club drives the product concept, design, and marketing program. To be successful, the Luxury Lifestyle product must be differentiated from the typical timeshare program, which may have a negative connotation due to high pressure sales tactics and gimmicks.

Buyers of the Luxury Club concept will typically be high-echelon professionals, corporate executives, and entrepreneurs whose most precious asset is time. When they vacation they want a high level of luxury and service and usually stay in a four or five star resort hotel, or an expensive vacation home in their favorite resort destination. They are constantly seeking something new that suits their sophisticated taste. The annual median income of such buyers can be in excess of $240,000 and net worth can range into the millions.

While these buyers can afford expensive vacation homes, the possibility of infrequent use or the desire to experience a variety of locations worldwide, may make such a large investment difficult to justify.

The Luxury Lifestyle Club provides the benefits of the desired amenities, including a lavish clubhouse and five star hotel services that are not available with most wholly owned vacation homes. The club functions like a private golf club or country club where the members are entertained with social events and form social relationships with other members.

The Luxury Lifestyle Club is marketed as a high-end real estate and full service lifestyle investment, and not simply as vacation time. The emphasis is placed on "relationship selling" rather than "mass merchandising". It is a soft sell strategy, and repeat visits prior to closing are the norm.