Attended Owners update at WKORV

[Lentos99]

My wife and I attended an owners update at WKORV this morning and received our points.

We didn't buy anything but asked a lot of questions. There was zero pressure, but a discussion about how SVO could help us "maximize" our vacation plans in the future. This discussion lead to understanding how they could help us "improve" our portfolio.

We indicated we had zero interest to purchase despite the owners discounts and SPG points, and if we were to purchase in the future it would be through the resale market. We were told that we would never be able to close on any resale opportunities for WKORV or WKORVN as they are exercising their ROFR on all resales for these properties due to the lack of inventory. If true, this does not bode well for anyone trying to get into these properties through the resale market.

We had a visit from a sales manager who answered questions regarding the SVO development roadmap. He also tried to entice us into an EOY purchase for WLR. I asked about the development of the vacant Ka'anapali property. He indicated the new development must adhere to new "Green" standards which are far more expensive than traditional construction methods. The development timeline is still a ways out. (3/5yrs.) He indicated the development roadmap also includes new development of properties on Oahu and the Big Island as well.

I asked about Mexico as we own at WLR. He indicated they have plans for Cabo...but only once WLR is sold out.

Does anyone else have any more information regarding SVO development plans?

Enjoying Maui for another 10days! Aloha everyone!

 

[Pedro]

How many points did you receive?

 

[DeniseM]

Right now - everything is on indefinite hold. There is no financing for new timeshares in this economy.

 

[mrzman]

I just sold my WKORV unit and Starwood did not exercise ROFR. Not that anyone needed confirmation that the sales reps are wrong when they say that, but just in case.

-Tim

 

[Lentos99]

How many points did you receive?

We received 4,500 points.

 

[vacationtime1]

I just sold my WKORV unit and Starwood did not exercise ROFR. Not that anyone needed confirmation that the sales reps are wrong when they say that, but just in case.

-Tim

Assuming your deal has closed, would you mind sharing what size unit, what view category, and what price? We have a number of data points showing prices where Starwood is exercising ROFR; it would help to have data points at which it waives ROFR. Thanks.

 

[SDKath]

I just sold my WKORV unit and Starwood did not exercise ROFR. Not that anyone needed confirmation that the sales reps are wrong when they say that, but just in case.

-Tim

Can you be more specific please?

 

[Sea Six]

How's that WIND treating you ?

 

[Maui_ed]

I asked about Mexico as we own at WLR. He indicated they have plans for Cabo...but only once WLR is sold out.

Does anyone else have any more information regarding SVO development plans?

I would absolutely love it if Starwood developed something in Cabo. I don't know if I would love it enough to buy another property, but it is one of the few places they could develop that would make me pause to consider.

 

[mrzman]

Assuming your deal has closed, would you mind sharing what size unit, what view category, and what price? We have a number of data points showing prices where Starwood is exercising ROFR; it would help to have data points at which it waives ROFR. Thanks.

2 bedroom lock off
Ocean View
$20k

-Tim

 

[Scott & Laura]

Hello;

Here is the CEO and CFO February 2012 Earnings Call quote

Before I turn to our outlook for 2012, I want to share some highlights from our Vacation Ownership business. Like our hotels, SVO had a strong year. Contract sales in the fourth quarter were up 6%, with pricing up 1%. Delinquencies and defaults are now back to pre-crisis levels. For the full year, revenues grew 8%. SVO generated $200 million in cash, which brings the 3-year total to about $700 million. By comparison, that's roughly equal to the market cap of the newly spun-off Marriott Vacations business. Looking ahead, we have several years of inventory left to monetize, and our team is looking at capital friendly and high return ways to maintain our sales pace.

Starwood is becoming a FEE Driven and not a Real Estate owned company
They also say they are looking at growing through oppurtunity that enhances their brand more than investing Capital

Go here and you can read earnings calls, with ability to highlight Key words

http://seekingalpha.com/symbol/hot?source=search_general&s=hot

Scott & Laura