Investment led by Perry Capital to fuel acquisition of $250 million of luxury real estate Jack Nicklaus, golf legend, forms alliance with club to develop golf program Clubs membership hits industry milestone; now exceeds all competitors combined
DENVER and WASHINGTON, June 7, 2006–Exclusive Resorts today announced significant expansion plans, fueled by new investments in the company and record levels of membership growth. The club also announced that golf legend Jack Nicklaus has joined the company to lead its golf program and that it has formed an alliance with his global golf course development firm to enhance the destination clubs golf offerings.
Specifically, the announcements include:
- New residences and destinations for the club: A $72 million equity investment, led by Perry Capital, will help fuel $250 million of future real estate acquisitions for the club. Among the most intriguing acquisitions are: (1) new members-only developments in luxury resort destinations; and (2) new club residences in additional exotic destinations.
- New golf program with Jack Nicklaus and Nicklaus Design: Exclusive Resorts is further strengthening its golf amenities and services with assistance from the most legendary golfer of all time, Jack Nicklaus, and the worlds leading golf course design firm, Nicklaus Design. Nicklaus is personally working with the club to elevate its current golf offerings and explore various development opportunities with his design firm to create one-of-a-kind golf destinations for club members. Nicklaus will participate in golf events organized by the club and assist in developing golf training programs for members through the Nicklaus Academies.
- Significant milestone in Exclusive Resorts membership growth: Just a little more than a year after Exclusive Resorts became the first destination club to have 1,000 members, it has now broken through the 2,000-member mark — giving the club what it believes to be more members than all other destination clubs combined. As the largest destination club in the industry, Exclusive Resorts is able to offer its members more unique vacation experiences in more destinations than any other club. Exclusive Resorts is leading the growth of the entire destination club category, which has grown three times faster than the fractional jet industry did in its early years.
"Exclusive Resorts has come a long way in a short time," said Donn Davis, chief executive officer of Exclusive Resorts. “Now we are raising the bar even higher—with new members-only destinations, expansion in more exotic locations and an incredible new golf program led by Jack Nicklaus. We have delivered more than 20,000 vacations to our members at an astounding member satisfaction rate of 95 percent. With this expansion, the best way for affluent families to vacation will become even better.”
"Our expansion continues to solidify Exclusive Resorts as the premier destination club in the industry," said Steve Case, chairman of Exclusive Resorts. "By partnering with Perry Capital and Jack Nicklaus, Exclusive Resorts is creating more memorable experiences for our members and further defining excellence within a category that has truly arrived for consumers."
New Real Estate Acquisitions and Investment
The $72 million equity investment was led by Perry Capital. Robert Stern, managing director of Perry Capital, has joined Exclusive Resorts board of directors, bringing extensive expertise in real estate acquisition and finance. Steve Case retains majority control of ER through his holding company, Revolution LLC, which, along with the companys founders, also invested in this round.
Exclusive Resorts plans to use the funds for a number of purposes, but largely to expand its vast real estate holdings for members with $250 million in new acquisitions, which include:
- New members-only developments : The club plans to establish additional members-only developments around the world that provide compelling "six-star" vacation experiences in resort destinations created especially for Exclusive Resorts members. The club already has under construction two of these developments, scheduled to open in 2007: the Exclusive Enclave, Ritz-Carlton, Grand Cayman, and Poro Poro, Peninsula Papagayo, Costa Rica.
- New exotic destinations : Exclusive Resorts currently owns more residences than all other luxury destination clubs combined. The new investment will allow the club to expand into new exotic locations to provide members the luxury, service and certainty of the Exclusive Resorts experience in "off the beaten path" locations.
"Exclusive Resorts is a very compelling company and we are proud to have made a significant investment in its future growth," said Richard Perry, founder and chief executive officer of Perry Capital. "Exclusive Resorts can now add several additional 'wow' destinations around the world in the coming years. Exclusive Resorts is the trusted brand that is guiding families effortlessly into new and unique vacation locales."
New Golf Program Led by Jack Nicklaus
With assistance from golf legend Jack Nicklaus, Exclusive Resorts expects to strengthen its golf amenities and services, including a number of members-only events and programs to be launched in 2006 and beyond. Jack Nicklaus will attend these member golf events, provide exclusive online golfing tips and insight into Nicklaus Designs world-class courses at which Exclusive Resorts members have privileges and provide guidance on the clubs overall golf program. In addition, Nicklaus Design and Exclusive Resorts will embark on a partnership to explore new destinations and developments for future golf courses and resort real estate communities that Nicklaus organization is targeting worldwide.
"Exclusive Resorts is a one-of-a-kind club for families, and it provides a first-class experience for golfers and non-golfers alike," said Nicklaus, the designer of nearly 250 golf courses around the world. "We have a distinct advantage in being able to provide Exclusive Resorts with insight into unique, high-end destinations and properties that will be a perfect fit for its members. I look forward to helping my fellow club members enjoy the great game of golf on some of the finest courses in the world."
New Membership Milestone
The club also announced that the Finnegan family of Houston, Texas, became its 2,000th member. With 2,000 families now experiencing the Exclusive Resorts vacation lifestyle, the club has what it believes to be more members than all other destination clubs combined. Exclusive Resorts has grown rapidly from fewer than 100 members at the end of 2003 as its distinctive luxury vacation experience has met the needs and desires of todays affluent consumers.
"Exclusive Resorts is the only destination club with a membership base large enough to allow us to span the globe in terms of locations, employ the best team to provide personalized service, and offer members the most amazing vacation experiences imaginable," said Davis. "Simply put, our club makes it possible to take more and better vacations than ever before."
With three membership plans designed to meet the needs of a variety of affluent consumers, Exclusive Resorts offers its members access to custom-designed vacation homes in 35 of the worlds most desirable destinations. Through its team of experienced service managers and its proprietary, easy-to-use Web-based reservation system, members enjoy personalized and effortless vacation experiences with family and friends.
ABOUT PERRY CAPITAL
Founded in 1988, Perry Capital is a private investment management firm with approximately $12 billion under management and offices in New York, London and Hong Kong. Perry Capital generally considers its investments to be long-term and seeks to develop close working relationships with the key members of a company's management and operating team.
ABOUT JACK NICKLAUS AND NICKLAUS DESIGN
No name is more synonymous with greatness in the sport of golf than the name Jack Nicklaus, and no single person has changed the face of the sport more than Jack Nicklaus–the player, the designer, and the good-will ambassador. Jack has been named “Golfer of the Century” by almost every major golf publication in the world. He was also named Individual Male Athlete of the Century by Sports Illustrated, and one of the 10 Greatest Athletes of the Century by ESPN. For close to 35 years, the mission of the Nicklaus Companies has been to enhance the golf experience, and to bring to the national and international consumer golf-related businesses and services that mirror the high standards established in the career and life of Jack Nicklaus. These services include golf-course design, the development of golf and real estate communities, and the marketing and licensing of golf products and services. Nicklaus Design, recognized as the world leader in golf course design, has been involved with 300 courses open for play in 28 countries and 37 states. At least 47 Nicklaus Design courses have been ranked in various national or international Top-100 lists, and by the end of 2006, at least 79 Nicklaus Design courses will have hosted a combined total of over 500 professional tournaments worldwide.
About Exclusive Resorts:
Exclusive Resorts is the leader in the new consumer segment of luxury residence clubs. Exclusive Resorts offers its members unprecedented access to a portfolio of hundreds of the finest luxury vacation residences in dozens of the worlds most desirable destinations. With an average value of approximately $3.0 million, each residence combines the spaciousness and elegance of a private home with the services, amenities and conveniences of a five star resort. Membership in Exclusive Resorts eliminates the burdens of owning a second home, the limitations of fractional real estate, and the uncertainties of renting a villa. Members of Exclusive Resorts pay a one-time membership fee that is 80 percent refundable upon resignation, plus annual dues. Exclusive Resorts is the partner of choice in the luxury residence club segment, with strategic alliances with leading companies including American Express, Neiman Marcus, Merrill Lynch, and Marquis Jet, the fleet provided by NetJets. The Company is based in Denver, Colorado and Washington, D.C. Membership is subject to the terms and conditions of the club membership agreement with Exclusive Resorts. For more information on membership, please call 800.447.8988 or visit www.exclusiveresorts.com.
FOR FURTHER INFORMATION
Corporate Contact
Exclusive Resorts, LLC
Rachel Neumann
Director of Communications
1530 16th Street, Suite 500
Denver, CO 80202
Telephone: 303.493.6106
Fax: 303.474.7910
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