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One Year as a Marriott Owner: My Observations

JIMinNC

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A year ago this week we became Marriott owners. So since there have been several threads recently started by new owners or prospective owners asking questions about the system, I thought I would post my impressions as a new Marriott owner after that first year.

After a lot of research and reading on TUG, last June, we bought 1750 DC Points and a Marriott Barony Beach Club Silver week worth 1625 Points in a hybrid/combo package from Marriott. Our cost came in at about $6.98 per point since the cost of an Encore package was credited to our purchase. We were new to Marriott, but not new to timeshare having owned at Diamond's Kaanapali Beach Club for 16 years. We sold that 2BR last fall after buying Marriott.

Successful Points Bookings: 3 for 3
We have yet to actually travel using our ownership, primarily because in 2014 and 2015 we've been using up several banked weeks from our Kaanapali ownership that we had sitting in RCI and II. But we have made three Marriott reservations and have "shopped" the online system extensively to get a sense of availability. The bottom line is I have been very pleased with the availability we've seen within the DC and we are 3 for 3 in getting the exact reservation we want.

Our first reservation was made last December at the opening of the 10-month reservation window for Hilton Head Harbour Point for Columbus Day Weekend 2015. We specifically targeted Harbour Point because point requirements there were modest and we could book four nights - Friday through Monday nights - with 650 of the 750 incentive points we got with our purchase. We later had to cancel that reservation due to a change in plans.

Last Tuesday we used the same 650 points to book the same Harbour Point resort for Wednesday night through Saturday night next April 2016 for the week of the RBC Heritage PGA Golf tournament. That turned out to be an excellent value for the points as, just out of curiosity, I looked to see what Harbour Point would rent for this same four nights on Marriott.com and it was $1,535 - over $380/night.

Then last Friday, when the 12-month window opened up for the week we wanted in June 2016, I used our banked 2015 trust and elected points, our 2016 trust and elected points, the 100 leftover incentive points, plus 650 points we rented using VPE to book a week next June in a 2BR Oceanfront at Maui Ocean Club. We're pairing that week with an RCI exchange we booked a couple months ago into the HGVC Waikoloa Kohala Suites on the Big Island using one of our leftover Kaanapali weeks.

The Maui booking is not nearly as good of a value as the Harbour Point booking, but given that we've never been particularly comfortable with owner direct rentals from somewhere like Redweek.com, even the 7450 points it required compares favorably with rentals on Marriott.com. (A 1BR OF costs over $4,600 in the summer and I've never even seen 2BR OF units on Marriott.com.)

A Better Use for Our Barony Week
We elected our Barony week for DC Points for 2015 and 2016 because we wanted a critical mass of points to play with these first couple of years, and because we were planning our first trip back to Hawaii since 2011. But going forward, I think we will use that week in a different manner based on what we've learned here on TUG.

That Silver week only generates 1625 points, so given the $1190 maintenance fee, it is not a terribly efficient point generator. It worked well these first two years to give us the critical mass of points we were looking for at the outset, but going forward, the cost of those points is just too high to use that as a long term strategy. Based on TUGgers reporting they regularly use Silver Barony weeks to up-trade to Gold season in HHI, I think that we will try that for 2017. We'll finally be free of the public school calendar that fall when our youngest heads to college, so we are definitely going to try to reserve a high-value 2017 Silver week in late March and see what we can do in II to trade back into Barony, Grande Ocean, or Surf Watch during Gold season in fall 2017 or spring 2018. If that works, that will likely become our primary strategy for the Silver Barony week. We may also choose to use the week at Barony from time to time either in March or over one of the November or December holiday periods.

Point Rentals for Points Reservations
The Barony week will, of course, still be electable for points, so that will always be an option, but with point rentals going for $0.50 or less per point, I see very few reasons to ever elect at a MF cost of over $0.70/pt. So if we don't elect our Barony week for DC Points any more, we'll need more points for other bookings, I'm sure.

Based on my first VPE transaction last week, we'll do a lot more point rentals in the future. Since once the transfer is made, those points are mine and the ensuing reservation is 100% in my name, I'm more comfortable with that model than renting weeks direct from owners.

We'll continue to have our 1750 trust points every year and will add to that through rentals, I suspect.

Other Purchases?
If point rentals work well, I can see few, if any, reasons to own more DC points. While owned points can be banked and borrowed and rented points cannot, I am hopeful we can plan our needs well enough to make that a non-issue. The only other exception might be if we decide there is enough value in becoming Executive for the ability to reserve 1+ days at 13 months. We would need 3625 more points at current levels, so we would need to find another attractive combo purchase that would give us a week we could use and minimize the additional retail points we have to buy. Hopefully the 10 and 12 month booking windows will work well for us and we won't feel the need to do this.

The only other purchase I could realistically see us making might be a Gold week at Grande Ocean -- if we decide we want to go to HHI more than once a year. The Barony week we already own will only get us there once. Since a GO Oceanfront Gold takes 4000 DC points, it makes more sense to own that season and pay the $1200-$1300 MF rather than points that cost almost $2000 in MF. We would then look for a good resale OF or OS unit.

Conclusions
Based on one year's worth of experience, I am very pleased with the Marriott Destination Club Points system. Trading through RCI was always a frustrating exercise for me, with limited online instant availability and long waits for ongoing searches. I hated the uncertainty. What I love about the DC is the ability to go online, see what is available and book a quality vacation without the frustrating search process.

I also am enthusiastic about the shorter stay bookings. The four-night Harbour Point bookings would have been impossible under the old weeks system, and I love that flexibility of the DC.

I realize a lot of legacy weeks owners are happy with that system and don't like the higher cost of the DC. But based on one short year, I can say as a new owner, DC ownership has delivered on the things that we were looking for. But also having the flexibility to play a bit in the weeks system with our Barony week only adds to the value for us.

Sorry for the long post, but I thought some may benefit from a compilation of one Marriott newbie's observations after a year in the system.

Jim
 

BocaBoy

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Jim, I think this was a very interesting and useful post. I think the way you have approached things makes a lot of sense.
 

Fasttr

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Good stuff. We are nearly 4 years in now and also are very happy with the program. Curious why you decided to go the combo/hybrid approach, rather than a pure resale points purchase. Seems as though your all-in costs (with Junk Fees) for a resale points purchase could have been right around your $7/point price point, but with lower overall MF's ($.48 cents per point vs your blended rate on your combo deal of about $.60 cents per point). Was it the fear that MVC may at some point restrict the usage of resale points, or just the comfort of knowing you were dealing with MVC on the purchase rather than a 3rd party.
 

m61376

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Nice post- and a helpful analysis for prospective buyers
Glad it is working out the way you anticipated.
 

Fairwinds

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+1 on the post like list. Great plan. I suspect you'll be even happier when you begin trading your silver for gold weeks and discover how easy it is.
 

jont

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Good post Jim.
I am glad you have been successful in obtaining the reservations you want.
This just proves that a little TUG knowledge goes a long way.
wish you continued success and many happy vacations to come. :)
 

JIMinNC

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Good stuff. We are nearly 4 years in now and also are very happy with the program. Curious why you decided to go the combo/hybrid approach, rather than a pure resale points purchase. Seems as though your all-in costs (with Junk Fees) for a resale points purchase could have been right around your $7/point price point, but with lower overall MF's ($.48 cents per point vs your blended rate on your combo deal of about $.60 cents per point). Was it the fear that MVC may at some point restrict the usage of resale points, or just the comfort of knowing you were dealing with MVC on the purchase rather than a 3rd party.

Yes, the reason we chose the hybrid purchase over a straight points resale was that the price WAS about the same upfront as a pure points resale. By buying from Marriott, we had greater security that the points would not be restricted in some way in the future. Since point system rules are totally set and controlled by the developer, we didn't want to spend $20K and have our usage rights restricted down the road vis-a-vis direct purchasers. While Marriott can and will still change the "Rules" along the way, I felt we would be somewhat protected since we bought our initial purchase from Marriott. If they change it for us they will have to change it for all other direct purchasers as well. The risk that we would at some point be categorized as a "second class citizen" would seem to be remote.

Also factoring into the decision was the fact that we would get a deeded week that could also be used outside of the points system for direct booking or in II. We saw the higher blended per point MF as the "price" for that added flexibility. If trading Silver for Gold proves to be as easy as everyone says it will be, I think we will be very happy with that decision to do the hybrid.

Going forward, if we find we want to pursue adding the deeded Grande Ocean week option I mentioned in the OP, that will almost certainly be from a third party broker rather than Marriott Resales. The only reason I can see right now for buying a resale week from Marriott Resales is to get the enrollment option. But the required matching points purchase for a Gold OF Grande Ocean week would be so onerous as to make that option unworkable for us. Better to buy third party and be content with just using the deeded usage rights - which would be the main reason we would buy a week there anyway.
 

taterhed

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Great post ! thanks

from my cell...
 

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good afternoon

From a "buyers" standpoint....Point rentals will be easy and $$$ will decline. Right now, on VPE the market for 2016 points is flooded and some bargain fire sales on 2015 points. There are few fractional Grand residence owners with 200K points trying to sell at a nice profit for $0.50 pt.. Remember the "basis" for most legacy points is $0.30-$0.35 pt I am at $0.38 for mine... The basis for Trust points is $0.475 but you don't see many of those. I haven't seen a completed transaction at $0.50 recently.

I am not a business man, but I see point prices dropping!!!
 
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Bill4728

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good afternoon

From a "buyers" standpoint....Point rentals will be easy and $$$ will decline. Right now, on VPE the market for 2016 points is flooded and some bargain fire sales on 2015 points. There are few fractional Grand residence owners with 200K points trying to sell at a nice profit for $0.50 pt.. Remember the "basis" for most legacy points is $0.30-$0.35 pt I am at $0.38 for mine... The basis for Trust points is $0.475 but you don't see many of those. I haven't seen a completed transaction at $0.50 recently.

I am not a business man, but I see point prices dropping!!!
Puck
When you say " I haven't seen a completed transaction at $0.50 recently. "
Do you mean that all the transactions have been less than $0.50 ?
 

Fasttr

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good afternoon

From a "buyers" standpoint....Point rentals will be easy and $$$ will d. Right now, on VPE the market for 2016 points is flooded and some bargain fire sales on 2015 points. There are few fractional Grand residence owners with 200K points trying to sell at a nice profit for $0.50 pt.. Remember the "basis" for most legacy points is $0.30-$0.35 pt I am at $0.38 for mine... The basis for Trust points is $0.475 but you don't see many of those. I haven't seen a completed transaction at $0.50 recently.

I am not a business man, but I see point prices dropping!!!

I tend to agree Puck. I snatched a decent chunk of 2015 points midway through 2014 for about $0.35 per point (a really great deal) and I snatched my needed 2016 points early in 2015 for $0.40 per point. I see the market getting closer to the $.40 per point range if you want to move your points and not sit on them for an extended period of time.
 

JIMinNC

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good afternoon

From a "buyers" standpoint....Point rentals will be easy and $$$ will decline. Right now, on VPE the market for 2016 points is flooded and some bargain fire sales on 2015 points. There are few fractional Grand residence owners with 200K points trying to sell at a nice profit for $0.50 pt.. Remember the "basis" for most legacy points is $0.30-$0.35 pt I am at $0.38 for mine... The basis for Trust points is $0.475 but you don't see many of those. I haven't seen a completed transaction at $0.50 recently.

I am not a business man, but I see point prices dropping!!!

I paid $0.50 for the 650 I rented last week. For such a small batch, I didn't feel like negotiating for $20-$30 or less of savings. Just paid the asking price and was happy with my $325 cost for points that could get me a $1500+ reservation at Harbour Point. For a much larger batch, negotiating would have made sense.
 

JIMinNC

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I tend to agree Puck. I snatched a decent chunk of 2015 points midway through 2014 for about $0.35 per point (a really great deal) and I snatched my needed 2016 points early in 2015 for $0.40 per point. I see the market getting closer to the $.40 per point range if you want to move your points and not sit on them for an extended period of time.

Fasttr,

With your experience renting points, do you find most sellers are willing to negotiate substantially for larger blocks? Right now, most all of the 2016 asking prices are $0.48 to $0.50 per point, but your experience is much less than that.
 

Fasttr

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Fasttr,

With your experience renting points, do you find most sellers are willing to negotiate substantially for larger blocks? Right now, most all of the 2016 asking prices are $0.48 to $0.50 per point, but your experience is much less than that.

I have found that some will and some won't. Oddly enough, the mega renters with loads of points, tend to be the ones who want to hold steady. It tends to be the ones with a reasonable amount of points they are trying to rent (2K - 5K of points) that don't see this as a side business, but instead want to turn their points quickly into cash without a lot of hassle, and also seemingly have a low MF per point ratio that see the value in negotiating in order to make a quick transaction. I would say as a general rule, I tend to rent about 3K points each year, but I'm flexible if I need to take a few more to make it work out to be a win on both sides.

I look at VPE regularily...at least a few times a week... to keep up on what's going on. Like Puck, I see a lot of rental listings at $0.50 start at the top of the page and work their way down till they expire, and then they pop back up at the top of the page again...and again. I believe they exist for 30 days before expiring. So they are certainly not selling like hotcakes if they keep reappearing again and again. And these aren't just the mega renters. I think as more and more points show up there for rent, it has to start to depress the rental prices if folks who need to rent points have a little patience and try to negotiate.

I have been lucky, as for the last 2 years, I have rented from the same person and this last transaction, she just reached out to me and said she was going on a cruise in 2016 and was going to list her points for rent, but before she did, she asked me if I was interested at $0.40 per point and I said yes and we did the deal within the same day. She even looked at VPE and saw that most were listing at $0.50 and priced them to me at $0.40 to make it a win-win. If you find one or two who are willing to be reasonable, I would keep in touch with them periodically. For 2016, I really didn't likely need all of the points I rented, but at that price, I can just bank some of my own 2016 points forward and rent less in 2017. It pays to be flexible.
 
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pedro47

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To the OP thanks for sharing your posts. A very good positive thread in my opinion.
 

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good evening

Bill

I have seen 15 successful transactions listed in the past 3 months...Prices not mentioned... but that's only 1 sale/week....

I truly believe prices will come down.... Those Grand Residence mega renters probably have MF's at $0.25-$0.30 point....

Interesting that the massive 200K point renters are hanging steady....obviously, they won't get a sniff until all of the $0.48 and $0.49 sellers rent theirs...
 
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Thanks for sharing your first year experiences. We are new owners and have yet to use our points. We have a reservation at Ko Olina for Spring Break in March 2016 so quite lucky to get that.

As for purchasing additional points on the exchange/resale markets, as I continue to read, will have to learn the ins and outs of how to leverage this. Lots of good information here! Always learning. :D
 

Luvtoride

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Good Post, Jim. It sounds like you have learned to use the system well to maximize value and enjoyment. We are very happy with our ownership of 16 years and find the knowledge gained here on TUG to be the best place to get great strategies.


Sent from my iPad using Tapatalk
 

suzannesimon

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good evening

Bill

I have seen 15 successful transactions listed in the past 3 months...Prices not mentioned... but that's only 1 sale/week....

I truly believe prices will come down.... Those Grand Residence mega renters probably have MF's at $0.25-$0.30 point....

Interesting that the massive 200K point renters are hanging steady....obviously, they won't get a sniff until all of the $0.48 and $0.49 sellers rent theirs...

Point rentals are so reasonable right now, I would probably rent points rather than to elect points with my 2 holiday weeks. I'd rent one of my weeks and use the money to rent points.
 

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This discussion has helped me understand that the Marriott I dumped because they deviated in a big way from what I bought many years ago (which I thought was very unfair) is not the Marriott of today. Although the new Marriott is not my cup of tea, I see where it can be value to those who understand how to use it.

George
 

mjm1

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JiminNC thanks for your post. Glad to hear that you are happy with your ownership. We were in HH for the RBC a couple of years ago and I attended the tournament one day. Fun course to walk and get close to the golfers.

Enjoy that trip and your ownership overall.

Mike
 

AlmostRetired

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You have learned and documented nicely what every owner needs to figure out, how to maximize your ownership to make it work. This is the key to being happy with your ownership. Usage, rental, exchanging and DC points are means to that end. Changes with the Marriott program and our own lives make this a reiterative process.

Though I have learned much from tug on DC points, I have not yet exchanged for or rented any points yet. I am looking forward to trying it in 2016. I have a Monarch OF unit that i will rent to get me more than the 3525 I get from exchanging.

Btw, a challenge Marriott will always have are week owners of desirable weeks renting the unit and to a lesser extent using the money to rent DC points instead of direct DC point exchanges. I read on another post that the Grand Ocean is 80% owner occupied (Highest of all resorts). My guess is some portion of this and most desirable prime time location occupancy are rentals.

Again, great post and thanks for sharing.
 
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puckmanfl

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good morning...

MVCD is not even remotely worried about owners renting their unit for $$$ and then purchasing one time DC points...

A small fraction of over 400,000 owners even know about this site. There are probably about 100 regular contributors (maybe a few more viewers). Even less know about VPE and even fewer use the site. As I stated earlier,only 15 reported transactions in the past 3 months...

Hardly enuf to move the needle of concern...
 
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