Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is the difference between an equity and non-equity destination club?

April 26, 2017club destination difference equity non-equity

0

Posted

What is the difference between an equity and non-equity destination club?

1 Answer

0

Posted

The core difference between these two club models is related to the ownership of the club assets. In an equity club, the members own the club and the club owns the property portfolio. In a non-equity club, members do not own the club; they simply have rights to use the properties. Also, in a non-equity club, properties are typically financed with significant debt, whereas with an equity club, properties are wholly owned by the club with no debt.