# Hyatt Puerto Rico MF up almost 2X



## breezez (Dec 11, 2018)

Just saw this on Hyatt Owners FB Page.




 

Ouch!


----------



## Sugarcubesea (Dec 11, 2018)

Wow, I sure hope that does not happen to the Key's where my girlfriend bought at...and ouch is right...


----------



## Kal (Dec 11, 2018)

Hyatt has told me they are "well insured" for all the properties because the policy is Hyatt system wide.  The system would include hotels therefore with such a large coverage any deductible would be minor for any single property.  As always, they speak with forked tongue.  They keep the rates low by using a very high deductible on the policy.  Thus, guess who pays the deductible for a single time share property.


----------



## Sapper (Dec 11, 2018)

Didn't Hyatt cut the PR maintenance fees in half after the storm?  Wouldn't doubling the current maintenance fee just be returning them to what they originally were?  Ie, they were $1600 then a little over $800, now back to $1600.


----------



## WalnutBaron (Dec 13, 2018)

Kal said:


> Hyatt has told me they are "well insured" for all the properties because the policy is Hyatt system wide.  The system would include hotels therefore with such a large coverage any deductible would be minor for any single property.  As always, they speak with forked tongue.  They keep the rates low by using a very high deductible on the policy.  Thus, guess who pays the deductible for a single time share property.


By your description, Kal, “well-insured” is probably better described as “insured”. Hyatt has a blanket insurance policy, but also carries large deductibles on its timeshare properties, forcing the onus of any natural disaster on the backs of the owners of an affected property. Thanks for the insight, as this is most certainly one of those hidden costs of ownership that all os us need to keep in mind.


----------



## NWTRVLRS (Dec 14, 2018)

Our insurance company actually asked us what kind of insurance is carried on our timeshare.


----------



## Kal (Dec 14, 2018)

WalnutBaron said:


> By your description, Kal, “well-insured” is probably better described as “insured”. Hyatt has a blanket insurance policy, but also carries large deductibles on its timeshare properties, forcing the onus of any natural disaster on the backs of the owners of an affected property. Thanks for the insight, as this is most certainly one of those hidden costs of ownership that all os us need to keep in mind.


The fact that Hyatt relied upon rolling in the hotel properties with the timeshare properties to manage the deductible sounds logical, but does it really work?  On an individual property damage issue, that property would have exposure to the full deductible.  When there are multiple properties the deductible might get spread out on the basis of a broad claim.  But would the insurance company see the claim as a single event (i.e. one hurricane) or multiple events at different times in different countries?  Just the thought of that type of claim would cast significant doubt on a viable response from the insurance company.


----------



## Pathways (Dec 14, 2018)

WalnutBaron said:


> Hyatt has a blanket insurance policy, but also carries large deductibles on its timeshare properties





Kal said:


> The fact that Hyatt relied upon rolling in the hotel properties with the timeshare properties



Key wording here is 'relied'.  After the split and ILG took over, the insurance agreement with the Hyatt hotels was terminated.  (At least at the KW properties, I am assuming at all HRC locations)   The insurance hike was the single largest line item increase in the MFs at the time.  

I believe all the resorts are insured with a deductible that is manageable under the current MFs.  The issue that occurs is when the damage is so severe that a substantial rebuild is required. The insurance covers the current structure. However, building codes change and when the damage is substantial, the rebuild must be to the new codes. Insurance will not cover the increased cost to rebuild a structure beyond the original 'insured' state.  Hence, maintenance fees must cover the difference. 

Also - the facts around the title of this thread still do not appear to have been confirmed.


----------



## PerryKing (Jan 3, 2019)

The maintenance fee is just back to what it would have been this year anyway as  if no hurricane had hit the property. .  (it was lowered in 2018 because the cost were lower because no one could or was straying there, and also 52 staff members were not being paid because they were are out of jobs until the property is rebuilt.   So its got nothing to do with the insurance settlement.


----------



## Caligirlfrtx (Jan 25, 2019)

Sapper said:


> Didn't Hyatt cut the PR maintenance fees in half after the storm?  Wouldn't doubling the current maintenance fee just be returning them to what they originally were?  Ie, they were $1600 then a little over $800, now back to $1600.


Correct! This is something that a certain reseller on eBay refused to disclose when listing MFs as $800. Glad I did detailed research.


----------



## Sapper (Jan 25, 2019)

Caligirlfrtx said:


> Correct! This is something that a certain reseller on eBay refused to disclose when listing MFs as $800. Glad I did detailed research.



I remember seeing that auction.  I sent them an email through eBay stating they were showing the incorrect fee and why. Their response was that they listed what it stated on the estoppel, and would not change it.


----------



## Caligirlfrtx (Jan 26, 2019)

Sapper said:


> I remember seeing that auction.  I sent them an email through eBay stating they were showing the incorrect fee and why. Their response was that they listed what it stated on the estoppel, and would not change it.


Yep. Same here. They were very rude.


----------



## bogey21 (Jan 26, 2019)

I have no idea how Hyatt handles insurance.  What I do know is I had two Independent HOA Controlled Resorts wiped out by hurricanes and they were both put back together without Special Assessments or raising the MFs.  I did lose usage for about a year in both cases.  Resorts were Peregrine (a few miles from Galveston, TX and Chateau LeGrand in Biloxi, MS...

George


----------



## Sapper (Jan 27, 2019)

Caligirlfrtx said:


> Yep. Same here. They were very rude.



There's only so much you can do.


----------



## Sapper (Jan 27, 2019)

bogey21 said:


> I have no idea how Hyatt handles insurance.  What I do know is I had two Independent HOA Controlled Resorts wiped out by hurricanes and they were both put back together without Special Assessments or raising the MFs.  I did lose usage for about a year in both cases.  Resorts were Peregrine (a few miles from Galveston, TX and Chateau LeGrand in Biloxi, MS...
> 
> George



To the best of my knowledge, Hyatt has never charged a special assessment. They have not raised maintenance fees significantly (ie to cover unfunded damages) on any of the Key West properties. In fact, for the Puerto Rico property, they cut the maintenance fees in half while reconstruction occurred.  Hyatt even helped impacted owners use their points at other locations.  Some people believe they doubled the fee, but it's only returning to a little higher than what it once was. All that being said, it would not surprise me if the PR property does end up charging some kind of assessment. From what I understand, the place was destroyed and had to be rebuilt (so not just replacing a roof and furniture).  All in all, I think Hyatt management has done well for their owners.


----------



## bogey21 (Jan 27, 2019)

Sapper said:


> All in all, I think Hyatt management has done well for their owners.



Good to hear that one of the bigs is doing things right...

George


----------



## Sapper (Jan 27, 2019)

bogey21 said:


> Good to hear that one of the bigs is doing things right...
> 
> George



Hope it continues under the new (Marriott) management.


----------



## Kal (Jan 28, 2019)

Sapper said:


> To the best of my knowledge, Hyatt has never charged a special assessment. They have not raised maintenance fees significantly (ie to cover unfunded damages) on any of the Key West properties. In fact, for the Puerto Rico property, they cut the maintenance fees in half while reconstruction occurred.  Hyatt even helped impacted owners use their points at other locations.  Some people believe they doubled the fee, but it's only returning to a little higher than what it once was. All that being said, it would not surprise me if the PR property does end up charging some kind of assessment. From what I understand, the place was destroyed and had to be rebuilt (so not just replacing a roof and furniture).  All in all, I think Hyatt management has done well for their owners.


A special assessment is a one-time event.  When the maintenance fees are increased, it continues forever.  Other than PR, I have never seen a MF decrease to after that specific need was resolved.


----------



## Sapper (Jan 29, 2019)

Kal said:


> A special assessment is a one-time event.  When the maintenance fees are increased, it continues forever.  Other than PR, I have never seen a MF decrease to after that specific need was resolved.



Kal, did I miss something?  Has Hyatt raised maintenance fees to cover damages somewhere?


----------



## Kal (Jan 29, 2019)

Not specifically, but they always have specific renovation/upgrade projects that they put on the maintenance fees.  So once that project is completed, the maintenance fees are never reduced by the increment associated with that project.  Pay for that project again and again forever.


----------

