# Hyatt Ka'anapali Purchase - Does it Work??



## Kal (Apr 11, 2016)

I've been thinking about what it would mean to purchase a 2 BR unit. Here's my thought process -

Basis: Purchase price of 2 BR unit is $70,000; Annual MF is $2800
Source of funds is cash, NOT LOAN; it could earn 3% per year
Period of ownership is 10 years then resale at $40,000

*The unit will be used as prepaid vacation every year -* 

Annual Cost: $7,900 per week
MF = $2,800
Opportunity loss = $2,100 ($70K x 3%)
Amortize purchase = $30K ($70K-$40K) over 10 yrs = $3,000 per year

Value for staying at Hyatt is a gorgeous property, 2 BR plus ability to substantially off-set meal costs 

This is equivalent to $1,125/night staying elsewhere plus meal costs.

*When the unit is not used as vacation, it would need to generate rental cash -*

$7,900 per week rental ($1,125 per night)

A standard room at the adjacent Hyatt Regency might cost $450/night plus meals. What is the potential rental market??

For some, these numbers might not work very nicely!


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## davidvel (Apr 11, 2016)

If you are considering paying $1125 a night for the place,  I  wouldn't concern yourself with all those details.


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## vacationtime1 (Apr 11, 2016)

I agree with your numbers -- except I think $1,125/night is way above fair market value to rent a two bedroom, high-end, ocean front timeshare on Ka'anapali Beach (i.e. Marriott or Westin).   I would be looking at about $650-700/night -- 40% less than your number.

We looked at the Hyatt property and were very impressed.  We would have purchased but for the inflexibility of the system.  A fixed-week, non-lockout, two bedroom unit for a seven night stay will work for many people, but it is not the same thing as paying by the day for as many days as you want, when you want, or not going at all one year.


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## Kal (Apr 11, 2016)

vacationtime1 said:


> ... A fixed-week, non-lockout, two bedroom unit for a seven night stay will work for many people, but it is not the same thing as paying by the day for as many days as you want, when you want, or not going at all one year.



 You are right on!  There are so many downsides but going to the exact same place at the same time every year is not for all.

 The real cost is one thing, but times change very quickly.  The flexibility and variety presented by AirB&B, HomeAway & VRBO is really a game changer for the timeshare industry.  Then too, like every timeshare operation, the MFs increase every year.  As the property ages the replacement costs no longer fit the original cost basis to make the purchase.

 For me a lockout unit is extremely important.  In most cases it becomes even more difficult to fill the second bedroom and all the while it's on your nickel.


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## jlp879 (Apr 11, 2016)

I see the Hyatt Kaanapali in the Interval Getaways section quite often.

A week getaway purchased through II is $2449 per week or $350 per night.  Pretty hard to compete with that price for a rental.


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## Tucsonadventurer (Apr 11, 2016)

I'll take my chances on trading in or using interval for the neighboring Marriott or Starwood.


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## Kal (Apr 11, 2016)

Then there's always the situation where the $70K is walk around money and the $2,800 MF is coin found in the sofa cushions.


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## Henry M. (Apr 15, 2016)

I think the resale value is likely to be far less than $40k. At least at the Westin you could expect maybe $25k for an oceanfront unit that sells for over $100k if you buy directly from Starwood. 

Are there any downsides to buying a resale unit at this property, instead of directly from Hyatt? I am not familiar with what you lose when buying resale vs. from the developer for any Hyatt property.  With the Westin in Maui, all you give up with Starwood is the ability to convert to hotel points and the unit doesn't count towards elite status. You can still exchange within the Starwood system and Staroptions count the same whether resale or developer purchased.

I toured the property and really like it. I even like the mountain view units a lot. I considered a purchase but in the end the downsides were too much. The downsides for me, as mentioned above, are the fixed week and the lack of a lock-off feature. I much prefer the flexibility I get from Starwood in those areas.


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## Tucsonadventurer (Apr 15, 2016)

For buying resale with Hyatt it is similar, you just loose hotel points which is not a big deal. We just get Hyatt or partner  credit cards to earn the hotel points. There are not very many Hyatt resales at this point however. It l;ooks like Starwood resales in Kaanapali are a good option. We will look into that


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## silentg (Apr 15, 2016)

Will you go every year?


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