In Virginia Beach, there's no other timeshare resorts that remotely compare to the Gold Key Resorts timeshares. I think owners will find "themselves getting squeezed more and more each year" when the MFs begin escalating. The ones that will be hurt the most are the owners of off-season weeks that probably will not be able to rent their unused fixed weeks to cover the fees.
My Gold Key Resorts MF's are already higher than other resorts where I own. However, the GKR properties are more modern and have nicer amenities. There aren't any Marriott or other name brands in Virginia Beach or the Outer Banks. If prospective owners want to own at the nicest possible resorts in either of these two locations, then they will have to bite the maintenance fee bullet or settle for less than what they want in timeshare accommodations and amenities.
I am sure the maintenance fees will definitely be a talking point at the Owners Update. There was an entire segment at last year's presentation dedicated to maintenance fees and the need to increase them at Beachwoods. Diamond may have been one of the mentioned timeshare organizations as having higher maintenance fees. Bruce Thompson indicated that while the maintenance fee was being increased from $625 to $710, it was still lower than the "industry" standard. I'm not sure that this Update will be in the same format as last year's. If it is, then Owners will have the opportunity to question the "executives" during the update. If no one raises the point about Diamond maintenance fees being higher than the "industry" standard, then I certainly won't hesitate to bring that up. It will be interesting to hear "the spin."
Yes, I completely agree that there is no real comparison in VB (or OBX for that matter) to the Gold Key / DRI timeshare properties…when only comparing timeshare properties. I also agree about possible impact to shoulder seasons for timeshare owners, not just in rentals, but also in resale value.
We intentionally spent some extended weekends at various hotels along VB oceanfront this summer (not only enjoy VB), but also to get a more educated feel for what the comparisons are between some of the hotels to the timeshare properties. And we made sure to visit and tour multiple timeshare properties in VB as well.
Using just one example (a more expensive one)…for direct shoulder weeks (April-May, late Aug into early October) you can stay in one of the Marriott’s for about $600-1000 during the week and about $500 to $800 for the weekend. Or about $1100 to $1800 for the week (based on exact dates staying, discounts / specials, or timing of booking).
That is only a 1BR / 1BA. But you get a King size bed (with better quality mattress) facing the ocean, larger room, large oceanfront balcony, and in some cases a larger and nicer outdoor pool area than even the OBC complex.
In fact, it one uses the Courtyard at 37th street, you get the above and can walk down and sit outside at Tortuga’s or Lager Head’s lounge in the evening for drinks, snack/dinner, and live music. You might pay more for the week, but do have the freedom of a “rental” vs. ownership, and in many ways can enjoy similar or the same amenities (with some exceptions of course) as those at OBC.
I don’t really have any conclusions from my comments above. There are too many moving parts and unknowns right now. But I do think that if DRI ends up taking MF’s up $300-$400 or more per year from where they are now to match their fees at other properties in the U.S., that is going to present some different calculations in the math of ownership vs rental, and even potentially resale values.
Again, too many moving parts right now to come to any conclusions I think.
Hope you enjoy your trip to the meeting.
