Best financial assurance package in the industry offers greater corporate governance, transparency, member security

A bankruptcy filing by a leading luxury destination club recently and an expanding menu of differentiated benefits for its members has inspired The LUSSO Collection (www.lussocollection.com) to launch a financial initiative for its rapidly growing membership base called DepositTrust™. As part of the initiative, all of the Club’s interests in its properties will be held by subsidiary LLCs owned 100 percent by the club, with enhanced business practices to assure members of The LUSSO Collection’s long-term success. 

With emphasis on greater corporate governance and financial transparency, DepositTrust™ makes The LUSSO Collection the best financial assurance package in the luxury destination club category by offering LUSSO members:

A security interest in all of the Club’s real estate (second only to indebtedness secured against the real estate).
The company’s annual financial statements are subject to an independent audit.
 

A financial report to members to be published semi-annually showing, among other things,
 

the extent to which the Club’s net assets cover the Club’s liability to repay member depositsand the uses of membership deposits. 

A Membership Agreement containing a commitment that 85% of member deposits are either used for Club Property purposes, or held in cash.
 

“DepositTrust™ ensures that our member’s deposits are not an unsecured liability of the Club,” notes Steve Greer, founder and CEO of The LUSSO Collection and the former CFO and COO of the internationally known and traded Rapala VMC Corporation (Rapala), a Finnish company listed on the Helsinki Stock Exchange with sales of $220 million and approximately 3,000 employees in 23 countries. “Over the summer, the industry saw Tanner & Haley (the pioneer of destination clubs) file for Chapter 11 bankruptcy protection. Even though that was the apparent result of an unsustainable business model it also focused attention on issues of security for membership deposits even within a sustainable business. DepositTrust™ raises our members’ security above that of an unsecured creditor, and could become a best practice in the destination club industry. The Trust also provides that the members themselves may assume control of the Trust if they so desire. When you combine this important feature with the Club’s contractual commitment to full financial disclosure—you have the best financial assurance package in the destination club industry.”

As part of its LUSSO Life™ member benefits, recently The LUSSO Collection announced a proprietary partnership with JDCS Luxury Attaché in New York that allows members any time use of the concierge service to find tough-to-get tickets to Broadway, the Super Bowl, rock concerts, or simply great tables at the hottest restaurants and clubs in the world. The Club now also provides members any time use of MedjetAssist to meet members’ major medical needs while traveling, from a premium professional team of on-board medical personnel and from a company with more than 16 years of medical evacuation experience.

About The LUSSO Collection
 

An emerging new leader in luxury destination clubs and lifestyle since launching this summer, The LUSSO Collection offers its fast-growing base of 50 members unlimited access (based on availability) to 17 private luxury properties in some of the most sought-after vacation destinations. Residences are located in Hawaii, Cabo San Lucas(Mexico), Kiawah Island (South Carolina), Deer Valley (Utah), New York City, Abaco (Bahamas), La Jolla (California) and other world-class destinations, with expansion into Europe soon. LUSSO residences average more than $3 million in value and an on-site concierge offers hassle-free planning for a truly luxurious vacation. The Club is ultimately targeting 100 properties across 25 destinations with a member cap of 550 and the lowest ratio of members-to-homes in the category. Being a LUSSO member eliminates any burdens brought on by owning a second or third home, a timeshare or the limited usage of fractional ownership. LUSSO members pay a one-time $350,000 membership fee that is 100% refundable upon resignation with the potential for a Membership Reward equal to 50% of the increased value of the Membership Deposit during the time they were a member. Annual dues are $25,000. The company is based in Eden Prairie, Minnesota. For more information on membership, please call 1-866-GO-LUSSO or visit www.lussocollection.com.