Residences at Ritz Sharing Discussed
Friday, April 23, 2004
The developer of The Residences at The Ritz-Carlton, Grand Cayman has opened
discussions with a company called Exclusive Resorts toward the purchase of
condominiums at the project that would be shared by its club members.
Exclusive Resorts is a club that currently offers members luxury residence
vacations in 21 destinations around the world, and that is planning to expand to
60 destinations. The club’s website claims that the average cost of their
lavishly furnished residences is $2.5 million each.
Similar to timesharing, members have a choice to visit any of the club’s
residences for between two and four weeks every year, depending on the usage
plan they select.
Vice President and General Manager of The Ritz-Carlton, Grand Cayman, Jean
Cohen, told Cayman Net News on Wednesday that she was aware of the possibility
of Exclusive Resorts buying at The Residences. “I heard about it three weeks
ago,” she said.
Sources indicate that Exclusive Resorts might be interested in buying as many
as four of the units at The Residences at this time, although Melissa Perkins,
spokesperson for The Ritz-Carlton project owner and developer Michael Ryan, said
she could not confirm the reports. “We don’t comment on discussions that are
underway,” she said.
Exclusive Resorts membership costs $375,000 initially, with annual dues of
between $15,000 and $19,000. Among the destinations that it currently has
residences are Hawaii, Mexico, New York, London, Paris and Italy. Planned for
the future are residences in the British Virgin Islands, Turks and Caicos, Abaco
in the Bahamas, and Fiji, among many others.
Should the current discussions come to fruition, Grand Cayman would become
the first Exclusive Resorts residence associated with a Ritz-Carlton property,
according to Ms Cohen.
“There aren’t any obstacles that would prevent this,” said Ms Cohen, “but
there would be certain stipulations the Ritz-Carlton would want addressed to
ensure our quality standards.”
Ms Cohen indicated that the possibility of Exclusive Resorts becoming
involved with The Residences at the Ritz-Carlton, Grand Cayman was not a source
of conflict. “There is no rift between the Ritz-Carlton, Grand Cayman and the
owner on this,” she said. “Our goal is to work together amicably on this deal.”
According to one local attorney, one possible rift that a Residences at the
Ritz-Carlton relationship with Exclusive Resorts could cause concerns purchasers
who have bought PIP (Permanent Income Pool) units. These purchasers only have
personal usage of their condominiums for 10 weeks per year, with the units being
in the rental pool for the rest of the time.
Should Exclusive Resorts have units at the The Residences, it could create
direct competition with the rental pool units, something to which previous PIP
unit purchasers might object, suggests the local attorney.
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