In the summer, a three-bedroom Presidential Suite costs $4,000 per night at the popular Las Ventanas resort in Cabo San Lucas, Mexico. A one-week winter ski trip to Telluride, Colorado runs $19,315 for a three-bedroom cabin at The Peaks ($2,759 per night).

How do you compare these rates to the cost of destination club membership? Often described as a hybrid between luxury resort rentals and five-star hotels, the fee structure for destination clubs is closer to membership in your local country club: a large up-front deposit with annual dues.

Cost-per-night

Helium Report analyzed the membership deposits, annual dues, and nightly fees of the leading destination clubs. We calculated a “cost-per-night” for each club to create a benchmark for comparison to other luxury travel alternatives.

We published a similar analysis in May 2006. The chart has been updated to include three new destination clubs along with a column to indicate the average value of the homes, as reported by each club.

Methodology

Our proprietary model factors in the opportunity cost of the sizable membership deposits (5% cost of capital) but assumes the cost of annual dues would be spent on alternative travel options such as villa rentals or hotel rooms.

We assume a 10-year membership span and an 80-100% refund of the deposit upon leaving (varies based on specific club’s program). We excluded any potential deposit appreciation programs since they’re unproven and difficult to estimate.

To calculate the cost-per-night, we used thirty days as the denominator, or the maximum number of days offered for a given plan, whichever is greater. Our research indicates most members manage to travel four weeks per year. Some destination clubs offer plans with more usage days for frequent travelers or unlimited access for spontaneous travel.

Conclusion

On a nightly cost basis, destination clubs can actually be cheaper than other luxury hospitality options. Families who travel with children, grandparents, or friends find destination club homes more intimate than hotel rooms and less hassle than vacation rentals. A fully-furnished, $3 million home with a gourmet kitchen, family room, and cleaning service is a compelling alternative to three-bedroom suites at Las Ventanas or The Peaks.

In general, we find higher membership deposits correlate with a higher cost-per-night and higher reported home values. When reviewing the industry average of $1,638 per night, it’s important to note that destination club homes typically include four bedrooms, yielding a “cost-per-room” closer to $400 per night.

We conducted a separate analysis comparing destination club membership to the cost of second home ownership. Click here to read our findings.

To download a copy of the cost-per-night analysis model for your own use, download a copy here.