Richard Keith, founder and CEO of Private Escapes, walked us through his club’s upcoming announcement of their Pinnacle Plan, the third and highest tier membership of Private Escapes.

Based on what we heard, we expect the new club will be a legitimate contender in the luxury destination club tier, competing with Exclusive Resorts, Quintess, Dream Catcher Retreats and others. With 300 members and a three-year track record of conservative club management, Private Escapes now has the following line-up:

The Pinnacle Plan has 15 founding members (all of whom upgraded from existing Private Escapes’ plans) and is now accepting about 20 members at the deposit fee of $350,000.

Keith expects to the membership deposit to end up at $375,000, once a more extensive home portfolio is in place. For now the club has four Pinnacle homes purchased, and two more under contract:

• Charleston, South Carolina
• Kiawah Island
• Blue Sky Lodge in Deer Valley
• Los Cabos, Mexico
• Cap Cana, in the Dominican Republic
• New York City

Keith believes that he will be able to effectively compete with Exclusive Resorts by offering free standing homes or more unique condos (in the urban markets). He does not need to acquire or build 10+ residences at any one location.

We’ve detailed Exclusive Resort’s development plans before and they are extensive resort developments that allow the club to handle the demand that 2300+ members create. Keith expects to add about six new Pinnacle members and one new residence each month, so he has the flexibility to acquire a single unit in a location. For example, in Chicago, they acquired the penthouse in the recently re-developed, art deco landmark building, the Raffaello.

The luxury tier of the destination club industry has been crowded, although we expect some club consolidation and shake-out. It has not been easy for prospective members to decide on the best club for them. The addition of the Pinnacle Plan from Private Escapes adds another option, but one worth a close look.