# Ritz-Carlton DC - how does it work?



## PerryM (Apr 17, 2010)

Marriott is rumored to be converting from timeshares to something else - a Point based program like Ritz is one guess.

I never did get back to the RC folks after they couldn't answer most of my questions when they first opened for business as a DC.

Anyone here know how their system works?

Here is the post in question: http://www.timeshareforums.com/foru...-extends-affiliation-interval.html#post382944

Here is my post on the Marriott Forum asking for your input:
http://www.tugbbs.com/forums/showpost.php?p=897849&postcount=983

Hell, maybe I'm about to become a DC member and didn't even know about it!


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## PerryM (Apr 17, 2010)

quesera said:


> What's RC (Royal Crown Cola?).  What's DC (District of Columbia?).



Yes I need to know how Royal Crown Cola is sold in the District of Columbia.


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## PerryM (Apr 17, 2010)

quesera said:


> I hear they're trying to do it in the non existent tower at PH.



Oh yes, a pH of 7 too.


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## Kagehitokiri2 (Apr 17, 2010)

lots of discussion on DC4MS, including you.

unsold fractional inventory, price (plus subsidies), and complexity = not impressive.

you said they told you current fractional owners can exchange 2 weeks into DC points. thats certainly nice for them.


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## PerryM (Apr 17, 2010)

Kagehitokiri2 said:


> lots of discussion on DC4MS, including you.
> 
> so far theyre using unsold fractional inventory. complexity, price, and current subsidies are not impressive.
> 
> you said they told you current fractional owners can exchange 2 weeks into DC points. thats certainly nice for them.



Sadly I lost my notes from the phone interview I did with the RCDC salesrep and of course DC4MS can't help since the review I did is out there.

Well if anyone does know the workings of RC please post here.

Thanks much


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## Kagehitokiri2 (Apr 17, 2010)

what workings? i can pull specific things from DC4MS...

for porfolio > 


			
				TarheelTraveler said:
			
		

> Very odd legal structure. I've not ever seen a trust concept combined with deeds for those with an interest in the trust. Maybe this is common in Florida. Does RC have part ownership or a beneficial interest in the trust? Can owners of a portfolio membership be assessed?



they have ROFR for resales. (for fractionals too?) seem to recall a fee for resale buyers as well. 

some thoughts on resale >
http://tugbbs.com/forums/showpost.php?p=886505&postcount=226

here is more >


Kagehitokiri2 said:


> http://investor.shareholder.com/com...F4163D99&filename=Final_FY_2009_Form_10-K.pdf
> 
> 
> > In 2009, we established a special purpose entity to maintain ownership of real estate for sale of a Portfolio membership in The Ritz-Carlton Destination Club (“RCDC Club”). Although we have no equity ownership in the...RCDC Clubs themselves, we absorb the variability in the assets of the...RCDC Clubs to the extent that inventory has not been sold to the ultimate...RCDC Club member...RCDC Clubs are variable interest entities because the equity investment at risk is not sufficient to permit the entities to finance their activities without additional support from other parties. We determined that we were the primary beneficiary of these entities based upon the proportion of variability that we absorb compared to...RCDC Club members...At year-end 2009, the carrying amount of inventory associated with the RCDC Club was $13 million, all of which resulted from the consolidation of the special purpose entity. The creditors of these entities do not have general recourse to our credit.





TarheelTraveler said:


> Anyone know what the RCDC info. from the 10-K quoted by Kage means?
> 
> It sounds like they don't own the properties in the member's entity.  They are trying to use unsold inventory, and they've got price risk on their hands until the properties are sold to the ultimate member.  Anyone have a different take?





Chicagomark said:


> It strikes me that their "trust" is akin to a closed end mutual fund/or Limited Partnership that does not trade ever, wherein they receive the proceeds of new share issuance and receive the ongoing management fees, and are the sole provider of any new assets going into the fund at a price that is profitable to them. Sounds great, for them!
> 
> Think the 10-K makes it clear that Marriott get all the ups there.


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## Kagehitokiri2 (Apr 17, 2010)

finished updating last post.

re fractional/DC overlap - i found this interesting, but they havent responded to my inquiry >


Kagehitokiri2 said:


> http://www.elanprc.com/FAQ/
> 
> 
> > Owner-Members may also stay at other properties within The Élan Collection on an available, flex-time basis.
> ...


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