joining fee that covers a number of travel nights per year. Exclusive Resorts exclusively owns each home in their portfolio. Each year, members commit to and pay for a certain number of nights at a flat rate. At Exclusive Resorts, members are only subject to refunds at a 3 to 1 basis, meaning a member will only receive a refund if three new members join. Equity Club Model - With equity clubs, the up-front payment can be considered an investment of sorts (or at least a reduction in the opportunity cost of making the up-front payment), subject to typical investment risks. When exiting the club, the refund of that fee is adjusted to reflect changes to the value of the home portfolio or in the fee for new members. Various clubs have different ways of providing this benefit. Also, with an equity club, the members own the club's real estate portfolio, which provides additional security of the membership deposits. The Hideaways Club (launched in 2007) is an example of this model. Members purchase a share of the property company that entitles them to nights or points redeemable as weeks throughout the year. The members therefore collectively own the properties through this property company, and the services provided to the members are operated through the operating company. At The Hideaways Club, members are subject to leaving the club on a 2 in 1 out basis, meaning a member can sell their share when another two members join with the same share type. Managed and Controlled Club Model - During the real estate boom of the 2000s the equity model had appeal because members could benefit from the rapid appreciation of real estate assets. The economic changes between 2008-2011 resulted in innovation within the destination club marketplace and has provided more options for luxury travelers. The travel product and services available to members through a managed and controlled model are consistent with equity and non-equity clubs, but, because this model hinges on the club long-term leasing the properties in its portfolio as opposed to owning them, the cost of membership is significantly lower. Typically, members pay an up-front membership fee and an annual renewal fee and do not gain equity or appreciation. Members gain access to a portfolio of residences and members are able to book travel by paying below-market, members-only nightly rates as they travel. Unlike traditional equity-based travel clubs, travel