# Fractional Ownership - Hyatt



## Kelsie (Sep 16, 2007)

I received an email from Hyatt today saying all of the new Hyatt Vacation clubs are going to be "fractional" ownership stating a 4 week block for $250,000, with "substantial" fees.
Can someone elaborate on this please.  Thank you.  kelsie


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## Kal (Sep 17, 2007)

Was this email from a sales person?  If so, if you can't believe a timeshare sales person, who can you believe????


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## Carmel85 (Sep 17, 2007)

Kelsie said:


> I received an email from Hyatt today saying all of the new Hyatt Vacation clubs are going to be "fractional" ownership stating a 4 week block for $250,000, with "substantial" fees.
> Can someone elaborate on this please.  Thank you.  kelsie




Could you please post what you got today from Hyatt!  Or tell us where we can view it.


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## househtr123 (Sep 18, 2007)

Hello,

I have heard the same thing from Hyatt Reps - when I asked 2 weeks ago.  I was visiting a current Hyatt VC property.  I do not know how it will work, but was told exactly what this post is saying  $250,000 to buy a month, and fees.  Someone mentioned that it maybe a couple of set weeks and some float weeks.  And that if you had bought already that was probably a good thing but can't figure how that will work for folks who only bought a week....

And yes they said for the next 5 properties.  

Any Additional insight is helpful.....


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## JeffW (Sep 18, 2007)

Maybe I'm naive, but I'm not sure I believe it.  Are there THAT many people with $1/4M willing to spend on fractional ownership?  Hyatt Vacation Club is still relatively small, and they need some of the destinations talked about in the past (Maui, Paris, the Carribbean) to continue to expand.  I don't think they have the resources to focus on developing 'weeks' timeshare resorts and fractional resorts at the same time.

Jeff


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## Kal (Sep 18, 2007)

Hyatt is so secretive on future development we won't know the details until the actual sales program starts.  Windward Pointe offered fractional ownership, but that didn't go very well.  Originally they reserved two buildings as fractionals, but it appears those are now weekly units.

The Manhattan property will be fractional and by its placement on the top floors of the Grand Hyatt Hotel offers an interesting combination.

With the fractional program you would own say 4 weeks of the year but would be a member of the Hyatt Vacation Club.  Points will be posted for each week.  If the owner does not want to use the unit for a week the unit will go into the HVC pool and the points will be available to the owner to use as desired.  The owner could also rent out their unit on their own or using Hyatt Management Services (for a fee).  Maintenance fees and property taxes will be applied to each week.  It could be a real challenge in points management!  

Hyatt does a good job in market analysis so with the boutique locations we have heard about, it should be a very successful development program.  The cost will eliminate the Wal-Mart shoppers.


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## JeffW (Sep 18, 2007)

I thought Windward Pointe started out as a standard 'weeks' resort, but because of the condo boom a few years ago, decided to sell units in 2 of the buildings as condos (for I thought a little shy of $1M each).  I never heard them officially stopping that, but I never got the impression it caught on.  Certainly now with depressed housing prices, I can see then reverting back to selling the units in weekly parcels.

I'm not sure why a resorts couldn't be mixed used.  What would be the problem is say some units at Windward Pointe are straight timeshares (week), fractionals (multiple weeks to months), or condos (full year)?  Obviously the big killer would be annual fees, which really should be discounted for multiple ownership.  I can't imagine how a 2br unit at say Windward Pointe legitimately requires $45k worth of expenses during the course of a year (~$900/wk annual fee x 52 wks/year).

Another possibility is easier approvals.  Maui, for example, might be easier to get approved from local gov't authorities if it's advertised as fractional ownership, say 6-7 owners per unit per year, each owning 8 weeks, instead of 52 separate owners.  Local people maybe see more stability and peace thinking there will be less weekly turnover.  Hyatt knows that many of those owners will deposit some of their weeks into HVC, making those resorts available to HVC members (sort of a back-door approach).

Jeff


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## Steamboat Bill (Sep 18, 2007)

JeffW said:


> Maybe I'm naive, but I'm not sure I believe it.  Are there THAT many people with $1/4M willing to spend on fractional ownership?



Ye, there are MANY people that HAVE spent this much and MORE on Destination Clubs, fractionals, etc.

Check out our forum dedicated to these properties

http://tugbbs.com/forums/forumdisplay.php?f=48


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## VacationPro (Sep 19, 2007)

Kal said:


> With the fractional program you would own say 4 weeks of the year but would be a member of the Hyatt Vacation Club.  Points will be posted for each week.  If the owner does not want to use the unit for a week the unit will go into the HVC pool and the points will be available to the owner to use as desired.  The owner could also rent out their unit on their own or using Hyatt Management Services (for a fee).  Maintenance fees and property taxes will be applied to each week.  It could be a real challenge in points management!



Does that mean the new resorts will be available via points exchange for existing owners?


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## Carmel85 (Sep 19, 2007)

VacationPro said:


> Does that mean the new resorts will be available via points exchange for existing owners?



yes that is correct


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## robertr55 (Sep 19, 2007)

I found the following at http://www.vacationtimesharerentals.com/listings/23457/

Hyatt Mountain Lodge
Beaver Creek, Colorado, United States 

Rent: Not for Rent
Buy: US$105,000 plus closing costs (more info)
Availability: Week #8 (Feb 23 - Mar 1, 2008) 

Unit Size: 2 Bedroom/2 Bath (sleeps 8)
Check-In Day: Saturday
Available Season: High Season
Use Type: Annual Fix Wk

Ownership Type: Deeded Timeshare 
Points Based Timeshare: 1,440 Points
Annual Maintenance Fees: US$2,400

And this one at http://www.vacationtimesharerentals.com/listings/29923/

Hyatt Main Street Station
Breckenridge, Colorado, United States 

Rent: Not for Rent
Buy: US$90,000 plus closing costs (more info)
Availability: Week #9 (Mar 1 - Mar 8, 2008) 

Unit Size: 3 Bedroom/3 Bath (sleeps 8)
Check-In Day: Saturday
Available Season: High Season
Use Type: Other - See Description

Ownership Type: Deeded Timeshare 
Points Based Timeshare: 4,850 Points
Annual Maintenance Fees: US$2,950

These seem like a bit of a hybrid between the regular Hyatt Resorts and the more expensive fractional ownership, but they’re resales too, so it’s hard to tell what the original Hyatt offer was.


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