Exclusive Cruises & Resorts Announces Master Franchise For Club Delta
HALLANDALE, Fla., Feb. 16 /PRNewswire/ -- Exclusive Cruises & Resorts, Inc. (OTC Bulletin Board: XCLU - news) today announced that they are in final negotiations with Club Delta to purchase the United States rights of the Club in the form of a master franchise.
Club Delta is a European-based membership club that affiliates cruise ships, hotels and resorts and allows its members to earn or purchase ''points'' which they can use to stay at the various properties. The points which members can earn or purchase are similar to frequent flyer miles in the airline business. The affiliations with the property owning companies fall into two categories -- the long term includes timeshare resorts, while the short term includes regular cruise ships, hotels and resorts. Club Delta's points system is a more contemporary version of the exchange systems which are deployed by such giants as RCI and Interval International, which have affiliated timeshare resorts since the mid-1970s and have grown to become billion-dollar companies with over 4 million members.
Commenting on the negotiations, George Macropulos, President and CEO of Exclusive Cruises & Resorts, said, ''The negotiations we are discussing today have been going on for some time, but we are finally comfortable enough in the closure that we can make a public announcement. We feel that Club Delta has a greater growth potential than that already achieved by the billion-dollar companies like RCI and Interval International. Club Delta has a more flexible exchange system and, since they do not limit their affiliations to timeshare resorts alone, the number of affiliates and memberships can be maximized. With the U.S. rights, we could achieve 1,000,000 U.S. members in a 5-year period which would generate over $50 million in annual revenues. Besides using traditional systems for the members, Club Delta is soon launching its Internet-based reservation system. Internet-based reservation systems are where the most growth in reservations for hotels, cruise ships, timeshare and even airlines have been obtained in the last 2 years. With the Club Delta Internet system, members can visit the club's web site and choose the location, time period and unit they wish. A voucher is immediately e-mailed to them. Club Delta expects to offer other travel-related products and services on the Internet through this web site in the near future.''
Sources of revenue for Exclusive Cruises & Resorts from this operation would include affiliation, annual membership, sub-franchising fees as well as travel services to the membership base. Negotiations are expected to be concluded within the next 30 days.
Financial statements in this press release other than historical facts are ''forward-looking'' statements within the meaning of section 27A of the Securities Act of 1933, section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the safe harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results.
SOURCE: Exclusive Cruises & Resorts, Inc.
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