In a press release issued last Friday, Quintess and Dream Catcher Retreats formally announced the merger of their two luxury destination clubs. According to the release, the transaction was valued at $62 million and included $10 million in new investment capital. (Download official release, 140kb PDF), answering a question we raised at the end of our interview with CEO Pete Estler.

Quintess, Catch the Dream – the new name of the combined club – reiterates its commitment to fiscal transparency and cites an estimated $110 million real estate portfolio (including properties under development), with sufficient “pro forma net assets which cover 100% of the 80% member deposit refund obligations.”

WIth 230 members at an average deposit of $330,000 ($325,000 for Dream Catcher and $345,000 for Quintess, prior to the merger), we estimate Quintess, Catch the Dream has a membership deposit liability of up to $60.7 million in order to cover the 80% refundable portion. Some members joined at charter rates, so the total figure is probably somewhat lower.

Assuming no more than 50% leverage on their nearly $4 million value homes, Quintess, Catch the Dream has some $55 million in real estate assets (half of the $110 million at fair market value) on the books, along with the new infusion of $10 million. Presumably, some of the added capital will be used to market the new club and compete with the rapid growth of industry leader Exclusive Resorts.

  Deposit liability: 230 members x $330,000 deposit x 80% refundable = $60.7 million (est.)
  Assets: ($110 million real estate x 50% equity) + $10 million = $65 million (est.)

Using these figures, it appears Quiness, Catch the Dream does have sufficient assets to refund all membership deposits at any time, a critical due diligence factor Helium Report recommends when evaluating destination clubs. For our complete list of 175 questions to ask before joining, request our Decision Guide here.

The websites of both clubs have been updated to reflect the merger, including a chart of membership plans (below, courtesy Dream Catcher) and a comprehensive list of questions and answers.