# Diamond in process of acquiring Island One, What might I expect? Info? Opinions?



## eastkane (Jul 17, 2013)

A NEWBIE ti TUG here whom is rather distressed.  We just received an email that Diamond Resorts is in the process of acquiring Island One/Club Navigo.  We own week 16 at the Charter Club in Naples.  We typically go somewhere else in the Island One family rather than the Charter Club due to kids in school.  I always thought we had a "floating" week in the system because we can choose to go at other times and other places using our points, however we are deeded week 16.  What is going to happen to us when the takeover comes?  I have heard some less than positive things that may be coming our way, but I am asking you good folks, the Experts what I may be expecting to happen.  I would greatly appreciate any info, experiences, thoughts and opinions that may occur.  We have been told nothing by Island One, have paid well over 20K for our timeshare, 1k a year in MT and have that when this takeover occurs, we will be asked for more $$$ to join their "club" or else we won't be able to use any of the other resorts.  Thats what we liked about CN, we could go to Orlando, Daytona (the Cove) if we chose to do so, or any of the other Club Navigo resorts.  Will we loose this ability unless we upgrade for crazy fees?  This timeshare has at times been an albatross around our neck, exchanges internal CN and external II can be hard to come by.  Is this going to get worse?  Is it time to get out of owning a timeshare?  I am really nervous/distressed because of not knowing, sorry for being long winded, but I would GREATLY appreciate any feedback.  Knowledge is power, and being in the dark is distressing.  Thank you SO much in advance


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## ttt (Jul 17, 2013)

My guess is that there may be a special assessment of they may raise maint. fees to upgrade the resorts and bring them up to the quality of Diamond Resorts....only a guess. Hopefully, you will still be able to trade internally to other Island One resorts, maybe even other Diamond resorts. I'm sure they will try to sell you an upgrade, but it won't be mandatory. Again, only guessing.


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## Bill4728 (Jul 17, 2013)

My TS system was taken over by DRI about a year and half ago ( Monarch Grand) So Far so good. MFs have gone up but no more than they have in past years. Reservations are now done online instead of by phone. 

The biggest negative was the salespeople telling owners at updates how worthless their current ownership was and how you were crazy not to buy points in DRI so you could access all the hundred DRI resorts instead of continuing to be stuck with the 9 Monarch resorts. While it might be true that having more DRI points would allow access to other DRI resorts paying the "upgrade price " was way too much money since you can buy resale DRI pts in the US collection for next to nothing.


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## Rent_Share (Jul 17, 2013)

Bill4728 said:


> DRI resorts paying the "upgrade price " was way too much money since you can buy resale DRI pts in the US collection for next to nothing.


 
Aren't there limitations once you try to resell them


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## artringwald (Jul 17, 2013)

A deed can be floating, even though it is tied to a specific week and unit number. Look carefully through the whole deed to see if anything describes the usage. If it really is a floating week, DRI won't be able to take that away from you. If the resort is affiliated with RCI or II, you could join them and trade for other resorts. DRI may make you an offer to join their point system, The Club. If they do, just make sure the points they offer can cover your deeded usage.

DRI does have a reputation for trying to keep resorts in good condition. If maintenance has been neglected and the reserves have been underfunded, you may see increases in your annual fees. Special assessments are only done when there's a big problem that the reserves can't cover. It's really up to the HOA to make the decisions, but DRI is good at controlling the HOA.


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## artringwald (Jul 17, 2013)

Rent_Share said:


> Aren't there limitations once you try to resell them



Owners of DRI points belong to a collection. If you sell the points, the buyer can use them at any of the properties in the collection. The MF is assessed for the total cost of the collection (which includes DRI's fees for managing the collection). 

The Club membership allows you to book outside the collection. What many sellers/buyers don't seem to understand, is that when points are sold, the Club membership is not transferable. Even if you are already a Club member, if you buy more points through resale, they will not be added to the Club points. You may hear them called "dirty" points. DRI may let you add them to the Club for a price, and often the price is buying more points directly from DRI. The terms for adding  "dirty" points to the Club are usually negotiable so it can pay to hold out for a better deal. As usual, you can't believe anything they say unless it is written in the contract.


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## Rent_Share (Jul 17, 2013)

artringwald said:


> Owners of DRI points belong to a collection. If you sell the points, the buyer can use them at any of the properties in the collection. The MF is assessed for the total cost of the collection (which includes DRI's fees for managing the collection).
> 
> The Club membership allows you to book outside the collection. What many sellers/buyers don't seem to understand, is that when points are sold, the Club membership is not transferable. Even if you are already a Club member, if you buy more points through resale, they will not be added to the Club points. You may hear them called "dirty" points. DRI may let you add them to the Club for a price, and often the price is buying more points directly from DRI. The terms for adding "dirty" points to the Club are usually negotiable so it can pay to hold out for a better deal. As usual, you can't believe anything they say unless it is written in the contract.


 

With all of the acquisitions is there a table of all of the collections that make up the club?


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## artringwald (Jul 17, 2013)

Rent_Share said:


> With all of the acquisitions is there a table of all of the collections that make up the club?



This link shows all the DRI resorts and any of them can be booked if you're in the Club, but I don't have a list of all the collections.

https://www.diamondresorts.com/resorts


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## csalter2 (Jul 17, 2013)

eastkane said:


> A NEWBIE ti TUG here whom is rather distressed.  We just received an email that Diamond Resorts is in the process of acquiring Island One/Club Navigo.  We own week 16 at the Charter Club in Naples.  We typically go somewhere else in the Island One family rather than the Charter Club due to kids in school.  I always thought we had a "floating" week in the system because we can choose to go at other times and other places using our points, however we are deeded week 16.  What is going to happen to us when the takeover comes?  I have heard some less than positive things that may be coming our way, but I am asking you good folks, the Experts what I may be expecting to happen.  I would greatly appreciate any info, experiences, thoughts and opinions that may occur.  We have been told nothing by Island One, have paid well over 20K for our timeshare, 1k a year in MT and have that when this takeover occurs, we will be asked for more $$$ to join their "club" or else we won't be able to use any of the other resorts.  Thats what we liked about CN, we could go to Orlando, Daytona (the Cove) if we chose to do so, or any of the other Club Navigo resorts.  Will we loose this ability unless we upgrade for crazy fees?  This timeshare has at times been an albatross around our neck, exchanges internal CN and external II can be hard to come by.  Is this going to get worse?  Is it time to get out of owning a timeshare?  I am really nervous/distressed because of not knowing, sorry for being long winded, but I would GREATLY appreciate any feedback.  Knowledge is power, and being in the dark is distressing.  Thank you SO much in advance



First, let me tell you that there is no need to worry. You will be entitled to all of the same benefits of your timshare that you had before.  If you have a deeded week, then you will still have your deeded week. If you could exchange within your system before, you will still be able to do so. 

Here's what you can expect. DRI will have you go to  a sales presentation to update you on what services you can get now that you're a part of the DRI family.  Expect heavy sales pressure from the salesman.  If you are pleased with the what you currently have and have no desire to do more than you already do, then stay put and tell them no thanks. 

However, here is what DRI will try to do. They will offer you points. They sell points and not weeks in their system. DRI has the Club which is a points based system. They will offer you points for your week. Depending on the season of your week and the size of your unit, you will recieve a certain amount of points.  This is important and we discussed a bit in an earlier post.  If your deeded week allows you to reserve your unit for anytime of year, you want to make sure that DRI gives you enough points so that you can stay in your unit anytime of the year. Often I have heard people say that DRI offers only enough points that only allows them to stay in their unit during low season and/or high season but not enough for peak season (which are July 4th week, Christmas, New Years, Thanksgiving and President week) These weeks requre the most  points for the week. If you are goingto join the Club, you need to make sure that you get enough points that cover you to stay in the unit you have now. Why turn to point to have less.  If he can't show you the points requirement in DRI's published document, then you should not  make the deal.  I would let you know now, but I don't think it's been determined yet.

I would suggest that you look at the DRI resort locations. There are resorts that DRI runs and owns and there are affiliate resorts that are other timeshares that have agreements with DRI that allows DRI to have a certain number of units at their resort. You can use your points to reserve your stay.  Once you have points depending on which collection you select, you will have home resort reservations advantage for that collection. You will be able to make reservations 13 months out. With your deed, you can reserve 12 months out unless your original contract says otherwise. In the Club, you would have the flexibility of shorter stays, differen size units, and any season of travel as long as you have enough points. You can use your points for a variety of things such as cruises, airline miles, safari's and other excursions, etc. However, it is important to know that the most value for points is through accommodations. Many of the other "benefits" can often be achieved at a lower rate by paying for them with cash instead of your points. 

My suggestion to you is to not do anything for about a year. Use your timeshare as you have and DRI will be there and offer you the same deal if not better next year.  Stay on this board and learn more first. Understand points and what your options. I will recommend that you not buy anything if you go to a sales meeting. They will tell you you will get this and it's a one shot deal. Don't do it!!!!! Come back here after you've gathered more information and we can guide you.   

I say this being a happy DRI owner since they took over my timeshare back in 2007. Be patient, don't worry and learn.


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## T_R_Oglodyte (Jul 17, 2013)

artringwald said:


> ... It's really up to the HOA to make the decisions, but DRI is good at controlling the HOA.



"Good job" as in they do a good job of ensuring that the HOA is controlled by their thralls.   Of course that's not necessarily a "good job" from an owners perspective.

DRI is very much into growth by acquisition and not by development.  On the operations side they seem to have generally properly respected the rights and privileges of owners at the properties which they assimilate.  

On the sales side there is a pretty persistent practice of trying to make owners who are not part of the Club (both long term owners as well as owners who have just been assimilated) think that if they don't join the Club they will lose out on their ability to book reservations.


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## artringwald (Jul 17, 2013)

T_R_Oglodyte said:


> "Good job" as in they do a good job of ensuring that the HOA is controlled by their thralls.   Of course that's not necessarily a "good job" from an owners perspective..



Exactly! Unfortunately, the majority of owners don't even vote for the HOA board members, making easy for DRI to elect the people they want.


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## Bill4728 (Jul 17, 2013)

artringwald said:


> This link shows all the DRI resorts and any of them can be booked if you're in the Club, but I don't have a list of all the collections.
> 
> https://www.diamondresorts.com/resorts


Just because DRI lists the resort as a DRI resort doesn't mean that a DRI Club member can reserve at that resort. Many resorts have very little inventory available in "the club".  The Island One resorts may be like that for the first few years till more of the weeks move into the DRI controlled inventory.


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## T_R_Oglodyte (Jul 17, 2013)

Bill4728 said:


> Just because DRI lists the resort as a DRI resort doesn't mean that a DRI Club member can reserve at that resort. Many resorts have very little inventory available in "the club".  The Island One resorts may be like that for the first few years till more of the weeks move into the DRI controlled inventory.


Correct.  And this reflects a reality that get's glossed over by many people, particularly sales people.  And it's worthy of emphasis.

The picture that is oft painted - whether by owner fear-mongers or sales staff touting conversion - is that after DRI gets involved with a resort suddenly all of the inventory at the resort will get transferred to the Club, so that if you aren't part of the Club you won't be able to reserve at your own resort any longer.

That is just not correct.  The DRI Club access to any resort is limited to the inventory associated with people who have joined the club.  That consists of two components:



Inventory from owners at the resort/resort group who have joined the Club.  So if a particular resort has deeded weeks and from that resort only two off-season weeks owners have joined the Club, then the Club only has rights to two off-season weeks.
Inventory that DRI owns as the developer and that DRI opts to make available to Club members.  So if DRI itself owns 10 prime season weeks at the resort (either because those weeks were never sold or they have been foreclosed on and title has gone to DRI) then DRI can give some of those weeks to the Club if it chooses.  But the Club cannot access more weeks than the number of weeks that have been given to it by DRI.
In my experience and exposure to the DRI inventory control system these restrictions are adhered to.  There is often a big disconnect between the story presented by sales staff and the reality that occurs in operations. 



Personally, I have reasonable amount of confidence in the opreational side of DRI. I have less confidence in the DRI sales program, but even then my overall experiences with DRI "owner updates" haven't been nearly as bad as what I have found with other programs.


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## Rent_Share (Jul 17, 2013)

T_R_Oglodyte said:


> Inventory that DRI owns as the developer and that DRI opts to make available to Club members. So if DRI itself owns 10 prime season weeks at the resort (either because those weeks were never sold or they have been foreclosed on and title has gone to DRI) then DRI can give some of those weeks to the Club if it chooses. But the Club cannot access more weeks than the number of weeks that have been given to it by DRI.


 
Does "the club" get access to unsold inventory of the acquisitions ?

If so, that would reduce the availability to the owners of the subsystems being acquired


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## artringwald (Jul 17, 2013)

Bill4728 said:


> Just because DRI lists the resort as a DRI resort doesn't mean that a DRI Club member can reserve at that resort. Many resorts have very little inventory available in "the club".  The Island One resorts may be like that for the first few years till more of the weeks move into the DRI controlled inventory.



There are some locations we have tried to book using Club points and have never been able to get into them, even using a wide range of dates. I suspected it was due to limited inventory.


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## timeos2 (Jul 17, 2013)

The Club only gets whatever DRI controls. If they gained control of unsold inventory then it can be moved to Club. But if it was unsold then it wasn't available to regular owners anyway so nothing really changed. 

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## T_R_Oglodyte (Jul 18, 2013)

Rent_Share said:


> Does "the club" get access to unsold inventory of the acquisitions ?
> 
> If so, that would reduce the availability to the owners of the subsystems being acquired



Only to the extent that the owner of that inventory chooses to give that inventory to the Club. And that is no different than the situation prior to DRI's arrival.  The availability of that unsold inventory has always been controlled by the owner of that inventory - for arguments sake let's call that person the "developer".

If the developer choose to make that inventory available to owners, that's where it went. If the developer choose to give that inventory to RCI, II, or SFX in order to bring in exchangers as "fresh meat", that's where it went.  If the developer chose to give that inventory to Expedia or Travelocity or Living Social in order to recoup maintenance fee obligations and/or tap into  a "meat market" different from RCI or II, that's where it went.

Like any detective, follow the money.  That unsold inventory will go wherever the developer believes they can get the best financial return.  If the developer was making it broadly available to owners, that would only have happened because the developer perceived that s offering the best financial return.  

You can be absolutely certain that no developers was making their owned (unsold) inventory broadly available to owners just because the developer wanted to be a nice guy/gal.

****

I know you like to rag on DRI, but when I have poked under the surface of the inventory allocation system at the DRI resort I am most involved with (Point at Poipu) I came away satisfied with how the inventory control was working.  For example, the Club was not scarfing up all of the highest demanded weeks exclusively for the use of Club members.  Rather the inventory was being rationally and equitably divided.  Further, prior to joining the Club, when I asserted that as an owner I should have access to all unreserved inventory at the resort for the check-in dates I was interested, DRI staff would transfer weeks out of Club control to accommodate my requests as described in my ownerships.


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## NKN (Jul 18, 2013)

We owned at Historic Powhatan when DRI took over, back about 2009.  No major issues with the admin or with the property mgmt.  

The sale team left us alone until we actually stayed at the resort.  Because we owned a fixed week at Powhatan, it would have been necessary for us to purchase Points in order to join The Club.   Since we don't like Points, we said no.

We were restricted to exchanging with RCI because of our fixed week status.  But that wasn't an issue for us as we had been RCI members since the mid-80's.  And many of the DRI resorts are available throught RCI, so we weren't necessarily missing out.

As with any large organization, DRI has its ups and downs.  We have no complaints with DRI, as fixed week owners, for the most part.

NKN


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## Rent_Share (Jul 18, 2013)

T_R_Oglodyte said:


> I know you like to rag on DRI.


 
No ragging, (in this thread), just legitimate questions, with the IPO and other HOA's continuing to struggle as a result of no performing intervals, DRI is likely to continue to grow.


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## eastkane (Jul 18, 2013)

*Thanks to all for the info*

I really appreciate the feedback all of you have provided.  I feel better, as knowledge is power, and you'all have provided me with more knowledge.  I am glad I was forwarded a post to YUG BBS from an II forum.  Thanks so much.


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