Capital club

Originally published on www.businesstravellerme.com 04/01/2012 - Filed under:

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Capital club

The Hideaways Club's City Collection has upscale business travellers firmly in its sights, reports Dominic Ellis

One of the two bedrooms in The Hideaways Club's chic 29th floor apartment in The Address Downtown Dubai has 'sleep' inscribed on the wall, which itself is interestingly decorated with pages of a book. One imagines sleep is not something that Chairman Mike Balfour O.B.E, has probably seen much of in the last 24 hours, as he stops off in Dubai from Kuala Lumpur en route to London.

Much like Hideaway members, Balfour, who launched Fitness First in the UK in 1992 – the chain which has certainly found its legs across Dubai – is a man on the move. Where his initial focus was the stylish villas in its Classic Collection, when the club launched in 2007, nowadays he’s on the urban trail after it rolled out its City Collection last summer.

The Address pad has that reassuring mix of homely familiarity and working mod cons for high-end executives, with a wireless printer, local mobile phone ready to go, iPad, flatscreen TVs, kitchen and bathrooms, complete with Molton Brown toiletries.

Photo: Oliver Doran / Photosolutions.me

Such high-end apartments come at a price of course; full share membership for the City Collection costs £120,000 and associate half share is £65,000. But this capital is invested in the property company and represent the members’ investment.

Full members receive access to any apartments 23 days a year, while associates receive 12 days a year. On top are annual cost contributions too, £5,300 a year for full or £2,760 for associate, which cover services, maintenance and insurance.

On the full membership, alongside the 23 apartment days a year, members have the right to 'space available nights' which gives them access to available apartments on 30-days notice, for a fixed fee of £150 a night.

"There's no limit to the amount of space available days that members can use and that's an attractive option for busy travelling executives whose trips often come up at short notice," says Martin Bond, Middle East Membership Director. "Full membership equates to £230 a night which is exceptional value bearing in mind the standard and location of these properties."

While such sums may be beyond the reach of many executives, Bond stresses that members effectively own an equity slice of all the apartments, and benefit from the fund’s capital growth as well as the service benefits.

“We come back to the fact the portfolio is diverse and the risk is spread and the apartments are well maintained in central locations. So we don't really see large price fluctations in these areas,” says Bond.

“We're finding that where members start as associate members, they often choose to upgrade to full membership and want more days. Apartments can be bought and sold within the fund but it's not a trading portfolio. Should a member wish to leave at any stage - we haven't had anyone yet - they are able to; it's a one-in-one-out policy, and the next person will buy their share at the current market price.”

The Concierge Service is also available in both collections. Local concierges are assigned to each property, so in advance of a stay, they can be called up to arrange anything from restaurant and theatre bookings to putting milk in the fridge.

"A typical stay is three days so you want to make sure that when members land, they hit the ground running. The concierges are around 24/7, so should something happen in the middle of the night, they are there for you," says Bond.

Another bonus is that days can be rolled over to the next year, for a maximum three years and there aren't restrictions - you can use the apartments for yourself, for your family, or gift it to your top sales person as an incentive. All the apartments sleep four comfortably, sometimes six, with ensuite bathrooms.

Peering over the Dubai apartment’s living room balcony, which offers an imperious view of Burj Khalifa, I half feel I’m in the world’s tallest tower, not directly opposite it.

This is one of the City Collection’s key propositions, providing centrally located apartments where members can walk to key attractions. In Kuala Lumpur, it’s directly opposite the Petronas Towers; in Vienna, next to the Opera House, and in London, near Kensington Park Gardens. Not all City Collection properties are in urban settings however; Miami, for example, is on the beach.

Balfour says its urban tally now stands at 15, with Istanbul, overlooking the Bosphorous, coming on stream in January, and ultimately it aims to have as many as 120 across the world. All apartments are ‘oversized’ two and three-bedroom residences with an average size of 1600-1800sq ft.

"I expect we will be in all the major cities within the next 12 to 24 months," he says, speaking earlier at the less giddy ground floor outdoor venue, where the view isn’t bad either. "I am sure we’ll have one in Abu Dhabi and Beirut in time. Shanghai and Beijing will be on the list, as will Mumbai. In Asia, we’re in Singapore and Bangkok, but with Hong Kong, we’re still waiting as there have been reports that the property market is heading for a correction."

Australia, for now, is also notable by its absence, although the same can’t be said of Europe where travellers are spoilt for choice with apartments in Paris, Barcelona, Florence, Rome, Vienna, Berlin and Prague.

It’s perhaps no surprise that London and New York are the two stand-out destinations, however. Every year, Hideaways goes back to members and asks them where they’d like to see more properties and these two top the list.

London

New York

Alongside its Kensington apartment, Hideways recently secured another apartment on the South Bank, a stone’s throw from The Tate Gallery and St. Paul's Cathedral. The New York penthouse also scores highly on the ‘wow’ factor, overlooking Times Square.

"We’re finding that as membership grows, more members refer the club to their friends and contacts through word-of-mouth," adds Balfour.

Another key aspect of the City Collection is the hotel-style on-call concierge services.

Bond believes apartments are ideal for the business traveller. "We're seeing a lot of demand from individuals who like to visit cities, but also executives who can use them on their business trips," he says.

In the next two to three years, it aims to add 10-15 apartments a year in key cities.

Up to now, most Hideaways members have been drawn from the UK and Europe, but increasingly it's the Middle East and Asia, which currently account for 30% of the client base and 50% of the City Collection.

Developers are kept happy as apartments are bought through cash, and the club gets deals on behalf of its members through its purchasing power. When the fund closes, there will be 1,200 members and 120 apartments. So effectively, as it increases its membership by 10, it buys another property. So far, the City Collection has 60 members, a significant uptake given it only launched last summer.

Ultimately, Bond says the club’s central appeal is that it is a “low-hassle way” of owning international property.

"Obviously when you're buying in different markets, with different jurisdictions and language issues, it can be a nightmare to buy and manage, so we take that hassle away."

For more information, email: martinbond@thehideawaysclub.com