# Beneficial interest



## jimf41 (Jun 27, 2010)

Does anyone know what a beneficial interest is as it pertains to this point system. The reason I ask is that I came across this Q&A in a sort of briefing given to some COA's.

Q: How will Marriott reassure buyers that Vacation Club Points will not be devalued?
A: One Beneficial Interest in the MVC Trust will always equal 250 Vacation Club Points.


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## DanCali (Jun 28, 2010)

jimf41 said:


> Does anyone know what a beneficial interest is as it pertains to this point system. The reason I ask is that I came across this Q&A in a sort of briefing given to some COA's.
> 
> Q: How will Marriott reassure buyers that Vacation Club Points will not be devalued?
> A: One Beneficial Interest in the MVC Trust will always equal 250 Vacation Club Points.



A beneficial interest is 250 points. Marriott will sell you X beneficial interests. They work in chunks of 250 points.

As far as it relates to the Q&A, their answer is equivalent to saying "one plus two will always be equal three"... The question was a good one; the answer ignored what was asked.


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## m61376 (Jun 28, 2010)

The scary thing is that many people sitting in a presentation will be like a deer in headlights, assuming that means that the point values will always be the same. All I can say is 3 word: rewards points program- they already have a wonderful history to exemplify how they treat fixed valuations.


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## steveg11 (Jun 28, 2010)

DanCali said:


> A beneficial interest is 250 points. Marriott will sell you X beneficial interests. They work in chunks of 250 points.
> 
> As far as it relates to the Q&A, their answer is equivalent to saying "one plus two will always be equal three"... The question was a good one; the answer ignored what was asked.



I think that what you have a beneficial interest in is the inventory that was recorded in the filing, listed in another thread. Looks like what you own is a beneficial interest in those 12 resorts. I like it. I couldn't afford to buy a week at all 12 of those resorts, but can now buy a slice of each of them.


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## jimf41 (Jun 28, 2010)

I'm trying to understand this but it's not sinking in with me. If someone buys 1000 pts in the initial offer does that mean they get 4 beneficial interests. Or are they saying that a beneficial interest is a beneficial interest. The price will differ but the points will always have equal value as far as what accommodations they will command?

Initially I was leaning strongly toward enrolling but when I read stuff like this I'm getting confused and I don't usually buy stuff I don't understand.


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## DanCali (Jun 28, 2010)

My understanding is that 1000 points is 4 beneficial interests.


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## RedDogSD (Jun 28, 2010)

This is funny.

So, my $25 in my pocket will always represent the value of 1/4 of $100.  Of course, what $25 buys today is far different than what $25 bought for my grandparents.


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## m61376 (Jun 28, 2010)

I think the issue here is that points allocated do not equal points required. Even if the points owner continues to own the set number of points, and even if the points allocated to the trust (and therefore the number of beneficial interests) remain stable, Marriott can change the number of points required to book each night. Unless the sum total of the number of points allocated and the number of points required to book are fixed, then you can still own the same number of beneficial interests, but it could cost you more points to book in the future.

Since clearly they have not done that with weeks owners, as evidenced by the skimming or whatever you want to call the disparity between allocated and cost points, why should we expect that to be consistent with points owners, especially when the contracts indicate they have the right to change things at their discretion at any time?


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## jimf41 (Jun 28, 2010)

m61376 said:


> I think the issue here is that points allocated do not equal points required. Even if the points owner continues to own the set number of points, and even if the points allocated to the trust (and therefore the number of beneficial interests) remain stable, Marriott can change the number of points required to book each night. Unless the sum total of the number of points allocated and the number of points required to book are fixed, then you can still own the same number of beneficial interests, but it could cost you more points to book in the future.
> 
> Since clearly they have not done that with weeks owners, as evidenced by the skimming or whatever you want to call the disparity between allocated and cost points, why should we expect that to be consistent with points owners, especially when the contracts indicate they have the right to change things at their discretion at any time?



That would be one of doing it but a very complex way IMO. They'd have to go to each resort and redo the math for every period (season). It would be much easier to just raise the cost of a point. Today it's .92. You better buy today the prices are going up and tomorrow a point will cost you $1.05. All the people that own points/weeks are unaffected by a price increase to new buyers.

I like this way because then they can keep my favorite sales line. I go to the tours just to here them say it. "You better buy today because this low price will never be repeated."


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