Portofino Club has acquired Signature Destinations to form Portofino Destination Clubs. The combined entity has 141 members and 30 properties, moving the club onto Helium Report’s Top 5 list by member count.

We spoke with Ron Tapp, Chairman and founder (pictured, right) and Rance Rogers, President (pictured, below) to learn more about the transaction and how the merger affects both current and new members. According to the two executives, the similarities in philosophy between Portofino and Signature drove the deal. Both clubs have a regional focus (Northwestern U.S. and Colorado, respectively), a strategy which is designed to appeal to members who want to access multiple vacation homes in a reasonable driving time.

Two Collections with a Third Coming Soon

The new entity offers two separate collections of residences with two tiers of membership deposits. The Signature Collection is the entry level program, with deposits from $100,000 to $150,000 and home values averaging $1 million. The Portofino Collection ranges from $195,000 to $250,000 depending on the number of days of access to its $2 million value homes. Group plans are also available. Click here to download a two-page chart of their various pricing plans (PDF, 124kb).

“The [tiered model] allows members to join the club at any price point they’re comfortable with and either stay at the price point or upgrade,” explains Rogers.

Rogers also hinted the club will announce a third tier later this year, a high-end collection with $3 million homes. The addition of the third tier makes Portofino Club a direct competitor to Private Escapes, the #2 destination club by member size that also offers three separate portfolios of homes at various price points. (Private Escapes recently launched its Pinnacle line, a luxury tier complement to its Platinum and Premiere collections.)

Membership Details

The membership deposit for new members is 80% refundable. Rogers stated all of the refundable funds are targeted to real estate acquisition. He asserted the club has sufficient net assets to refund member deposits at all times and explained a member-represented finance committee has access to the club’s financial reports. Portofino is currently looking into an independent auditor, as well.

Rogers stated the club currently owns 60% of its homes and leases 40%, mostly in preferred hotels internationally. Portofino Destination Clubs expects to move to 75% ownership as the club expands. Helium Report recommends at least 70% of the club’s homes are owned to ensure a base of assets to protect member deposits.

The two collections currently both have homes in Cabo San Lucas and Lake Tahoe. The plan is to add homes for each tier in existing destinations. According to Rogers, about 75% of the residences are single family homes and 25% are condo style properties in resort developments.

Looking Forward

With no member cap, Tapp and Rogers hope to expand the destination club to more than 600 members and 100+ homes in the next 3-5 years. The duo believes the multitude of customized plans and regional focus fit “how people want to travel, where they want to travel, and the price point they want.” In anticipation of future growth, Chairman Ron Tapp said that he personally added more capital to the club and additional funds were raised as well.

Click here to request more information from Portofino or other leading destination clubs.

Rance Rogers photo credit: Bill Swartz