# Atrium Shocker - (Sint Maarten)



## JoeP (Oct 11, 2006)

Fall Owner Newsletter October, 2006

Thank You From Festiva Resorts

Thank you for choosing to become an owner with The Atrium Resort and now Festiva Resorts. We hope that you have enjoyed your ownership at The Atrium Resort and we hope to increase your ownership enjoyment now that The Atrium Resort is a full fledged member of the Festiva Family. What does that mean? It means whether you purchased with Festiva Resorts or prior to Festiva Resorts, you now have full Festiva benefits. 

In addition to the internal trade possibilities you have had previously, you will now be a member of Festiva Travel and Cruises, you have access to cruise with Elite Island Yachts, you can take advantage of Festiva Bonus week specials at any of our participating resorts, and you will have the same 50% discount on rental reservations at most Festiva resorts. You can now call toll free and speak with a trained owner services professional to answer any of your questions and you will be immediately notified and enrolled in any new benefits offered by Festiva. For more information on any of these benefits please visit www.festivaresorts.com or call 1-866-933-7848. 

As most of you are no doubt aware, Festiva Resorts purchased The Atrium Resort and assumed management in October 2005. In the past year we have found that the resort is in need of many things. First and foremost, the resort needs to be able to operate on its own financially. In 2005 The Atrium Resort lost more than $150,000 and is forecasted to lose at least that much in 2006. Festiva has subsidized that loss to date, but we cannot continue to do so. 

The overall condition of the resort is another critical area of need. Room furnishings, exterior, electrical wiring, generators and many other areas are in need of a full refurbishment as the resort goes into its 14th year. Finally there is the issue of a reserve fund. The resort has never operated at a surplus and therefore has never been able to establish a reserve fund. A reserve fund should be set aside to provide for financial shortfalls, major renovation projects and emergency funds in case of natural disaster. 

As the operating budget cannot afford hurricane insurance, it is of the utmost importance that a reserve be established to ensure that there are repair funds in case of a disaster. For these reasons Festiva has determined that the operating revenues which are primarily sourced from maintenance fees must increase, that capital funds for renovation and structural improvement must be raised and that a reserve fund must be put in place.

*Unfortunately, as the new owner and manager of the Atrium, Festiva Resorts must pass along the never welcome news that a 10% increase in your annual maintenance fees and a special assessment fee equal to two times (annual owners) or one times (biennial owners) your annual maintenance fees per unit week are required from you as an owner in order to provide the funds necessary to satisfy the previously mentioned needs. *You, as a resort owner, have entrusted your investment in family vacations to the Atrium Resort. Rest assured, we take that responsibility seriously and are making the investments necessary to enhance the resort and resort experience to the level you demand. We trust that you will understand and agree that we must work together in order to maintain The Atrium Resort at the Gold Crown level you expect. 

We again welcome you to our family of resorts and hope that through Festiva and our partners, all of your vacation dreams come true. 

As always, should you have any questions or concerns, we are just a phone call away at 1-866-933-7848.

Thank you,
Festiva Resorts


 Owner Services/Central Res. 1-866-933-7848 www.festivaresorts.com


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## timeos2 (Oct 11, 2006)

*All ten year old resorts needs work*

As all resorts age you will see more and more of this. What they say is true but it leaves out the part about the previous management not properly funding for the future needs.  Too late now- the opportunity to collect the needed cash slowly is gone - they are doing the right thing to get the resort up to snuff, get the finances in order and set up a proper reserve fund.  The owners of today will bear the brunt and, hopefully, will get the value back over years of ownership and enjoyment.  If they bough "just to trade" they may not be so happy...

By the way what is the annual fee there?


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## Carolinian (Oct 11, 2006)

Where is the HOA in all of this?  If the management can arbitrarily and unilaterally raise these fees, I would not touch owning there with a ten foot pole.  Is there no HOA to look over their shoulder and have a voice in fees, both how they are raised and how they are spent?

Another huge red flag is lack of hurricane insurance.  I would not want to own at an oceanfront resort on the Atlantic, Gulf, or Caribbean coast without it.  Wind insurance is usually connected to fire coverage as well.  Does this resort even have fire insurance?


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## RMitchell (Oct 11, 2006)

All timeshares are like this. When they need money they call you an owner. When you want to be treated like a owner they call you a renter.


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## Kal (Oct 11, 2006)

The key words are *"...resort goes into its 14th year...".  *That's the real end game for all timeshares.  As the properties age, the maintenance fees will all take a step change.  Actually any time beyond 10 years, hold on for the bad news.

Unfortunately, take a serious look at Festiva Yachts and get ready for a continual string of major special assessments.  Those boats are low end and WILL require a continual infusion of funds.  A building is far different from something you toss into salt water and bad weather 365 days a year.


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## Laurie (Oct 11, 2006)

Kal said:
			
		

> The key words are *"...resort goes into its 14th year...".  *That's the real end game for all timeshares. As the properties age, the maintenance fees will all take a step change.  Actually any time beyond 10 years, hold on for the bad news.


Just to be philosophical for a moment, don't you think it's amazing that so many European structures were built to last not 10x these numbers, but 100x these numbers? 

(Of course they renovate every now and then - maybe every 100 years or so...!)


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## Carolinian (Oct 11, 2006)

Good point.  I have exchanged into timeshares in Europe that were originally built centuries ago and they are still going strong!




			
				Laurie said:
			
		

> Just to be philosophical for a moment, don't you think it's amazing that so many European structures were built to last not 10x these numbers, but 100x these numbers?
> 
> (Of course they renovate every now and then - maybe every 100 years or so...!)


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## Carolinian (Oct 11, 2006)

If you own at a sold out resort with an owner-controlled HOA, you will be treated as an owner.  The problem comes in when either the developer or management controls the HOA.  At both of my OBX timeshares, both m/f's and any special assessment have to be approved by vote of the members.  The HOA board can only recommend those fees.



			
				RMitchell said:
			
		

> All timeshares are like this. When they need money they call you an owner. When you want to be treated like a owner they call you a renter.


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## Kal (Oct 12, 2006)

Laurie - That's a good point.  In the US most people consider a timeshare built in say 1985 as an OLD, out of date property.  In Europe it would be YOUNG.


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## JoeP (Oct 12, 2006)

2007 Maintenance Fee Amounts
Studio- $455 
1 Bedroom- $560 
2 Bedroom- $690
3 Bedroom- $925
3 Bedroom PH- $985


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## Tia (Oct 15, 2006)

Sure hope that Festiva hasn't studied under Equivest. Equivest took over our resort group and handed owners a similar bunch of words. The action was our low fees went up extremely fast but maint. was not done...in a nutshell. Owners at our resort were unprepared to fight what happened and are still in battle with the developer over control. 

I understand FF, who bought Equivest, is still fighting to vote for our board positions this Oct., even though the bylaws say not and  judge has ruled they can't.  The arguement being manipulated now is -when is a unit considered SOLD!! :annoyed:


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## Babs from UK (Oct 17, 2006)

Festiva are also involved in Windjammer Landing so will keep an eye on this one, although I think the maintenance charges at the Atrium are slightly less than we are currently paying at Windjammer.


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## Sandy (Oct 17, 2006)

*One bright point*

Now that you are a Festiva, you can include Elite Island Yacht Club.  This is a great catamaran cruise, similar to the Tradewinds group.  So if you get the chance as an owner, take that cruise. 

Read the review of this as well as the various Tradewind cruises to get some idea of what these are like.  I have been on two (one of each) as a trader and both were very similar.  I am not an Elite, Tradewinds or Festiva owner, but will try to trade for one of the cruises again in a few years.


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