Sunset Harbor to vote on terminating Hyatt management contract

[JanT]

Be pissed at me if you want. But, many of my fellow owners aren't doing anything to support me or other owners who aren't appeased with empty platitudes. Push the damned BOD to do their homework and at least present some modeling information they've put together to give us some idea of what they expect to accomplish by dumping Hyatt. Their rationale at this point isn't even rationale. They rushed to put this vote out to the members without a lot of substance, actually, virtually no substance. Again, their comments have pretty much been "Hyatt is bad, Hyatt is price gouging, Hyatt is threatening a substantial increase in management fees, etc.) Ok, so that's their stance. Then they have a responsibility to put together a solid plan to lead SH owners out of the damned mess - not just lip service. TELL owners what their vision is, what they logically think they can accomplish by moving to an independent management company and HOW the BOD is going to protect SH from going the way a lot of other resorts have gone once an independent management company was brought on - down the toilet; give some reasonable expectations what they expect to save in regards to budget if Hyatt is pushed out. They have NOT done that and they're expecting owners to just push the button on "Yes" and go blindly into the night without any light at all to guide them. I'm not doing that.

The board has every right to and should cancel this vote. They rushed to do it and it has blown up in their face - and ours, as owners. Hyatt now knows there is a move to push them out. You think they're not going to do everything in their power to stop it? Of course they are and it's probably going to work, ultimately harming HRC owners the worst. You think I want to get caught up in that mess, where ultimately I have to GIVE my weeks back because they jack up a transfer fee well beyond the current price gouge of $650? Why in the world would I wait until that happens? I don't think Hyatt can move fast enough to gather up weeks to keep full control BUT eventually they will. And now, because of the way this thing was shot out of the gun by the BOD, there might be a big influx of owners trying to sell because they don't want to get caught up in it either. That is only going to accelerate Hyatt's ability to grab up those weeks, shove them in HPP, and force a untenable situation for HRC weeks owners. No, I don't think I'm going to hang on to ride that pony and I won't be the only one.

So, where are we now? The BOD was irresponsible in their rush to push this through and Hyatt now knows what they're up to. Hyatt has deep pockets and the owners don't. The absolute best thing the BOD could do is cancel this damned vote right now. Get some specific information together about how Hyatt/Marriott has failed SH; do some modeling to put together some potential and realistic numbers for cost savings, lay out a vision of what their plans are to bring costs down, get the resort back into the shape it should be in. Then get that out to owners so they have INFORMATION to base a vote on. At least TRY to negotiate with Hyatt and if that fails, then, call for another vote by owners to get rid of Hyatt.

If they think Hyatt is a trainwreck, then tell the owners WHY, have the evidence to back it up, and lay out a reasonable plan they've developed that supports dumping Hyatt. They haven't done that and no one can expect owners to just jump on board to get rid of Hyatt because they say so. This has been handled so poorly, it's infuriating. They have placed owners in a TERRIBLE position by stirring a huge pot of crap and throwing it in Hyatt's face, alerting them to the intention of pushing them out and having absolutely nothing to present to owners to show us WHY it's worth leaving Hyatt. How damned irresponsible and stupid!! The more I've mulled it, the angrier I've become. Stick around SH if you want to, ivywag. That's your choice. Not everyone is willing to and that's OUR prerogative.

Thanks for your consideration and support for your fellow owners.

 

[SteveinHNL]

I think JanT has made the most articulate recitation for why an owner who is open to “yes” might sensibly vote “no.” However, I was under the impression that Hyatt had a representative on the board so none of this information should be new to them. They would and should have known this was coming long ago and yet they have done nothing to try to negotiate or assuage the Board’s concerns. I think that says something.

 

[alameda94501]

I think he might be his own source.

Plot twist... Turns out @Emerson was correct. (Well, it is actually $1.55mm not $1.4mm, but close...)

 

[SteveinHNL]

What are the allegations in the lawsuit?

 

[travelhacker]

Plot twist... Turns out @Emerson was correct. (Well, it is actually $1.55mm not $1.4mm, but close...)

View attachment 58403

This article who the defendant is in this case:

Hyatt loses Grand Aspen Resort management contract to East West

New contract to go into effect in December, current staff to remain in place

www.aspendailynews.com

It would appear that he was president of the board when the resort formerly known as the Hyatt Grand Aspen dropped Hyatt.

 

[alameda94501]

One thing that's interesting in that lawsuit is that it describes:

1. The Management Agreement would terminate upon the approval of 2/3 of the Board and the approval of 2/3 of the membership. Litigation was not required to terminate the Management Agreement.

2. The [Hyatt Vacation Club Resort] Agreement was subject to termination by the Association pursuant to the terms of C.R.S. § 38-33.3-305, requiring a simple majority vote of the Board. Again, litigation was not required to terminate the Club Agreement.

Not sure what Florida law is like, but a simple majority vote of the Board to terminate HRC is a lot less in requirements than I thought!

---

Colorado Revised Statutes:

38-33.3-305. Termination of contracts and leases of declarant.
(1) The following contracts and leases, if entered into before the executive board elected by the unit owners pursuant to section 38-33.3-303 (7) takes office, may be terminated without penalty by the association, at any time after the executive board elected by the unit owners pursuant to section 38-33.3-303 (7) takes office, upon not less than ninety days’ notice to the other party:
(a) Any management contract, employment contract, or lease of recreational or parking areas or facilities;
(b) Any other contract or lease between the association and a declarant or an affiliate of a declarant; or
(c) Any contract or lease that is not bona fide or was unconscionable to the unit owners at the time entered into under the circumstances then prevailing.
(2) Subsection (1) of this section does not apply to any lease the termination of which would terminate the common interest community or reduce its size, unless the real estate subject to that lease was included in the common interest community for the purpose of avoiding the right of the association to terminate a lease under this section or a proprietary lease.

 

[kwsunset]

Be pissed at me if you want. But, many of my fellow owners aren't doing anything to support me or other owners who aren't appeased with empty platitudes. Push the damned BOD to do their homework and at least present some modeling information they've put together to give us some idea of what they expect to accomplish by dumping Hyatt. Their rationale at this point isn't even rationale. They rushed to put this vote out to the members without a lot of substance, actually, virtually no substance. Again, their comments have pretty much been "Hyatt is bad, Hyatt is price gouging, Hyatt is threatening a substantial increase in management fees, etc.) Ok, so that's their stance. Then they have a responsibility to put together a solid plan to lead SH owners out of the damned mess - not just lip service. TELL owners what their vision is, what they logically think they can accomplish by moving to an independent management company and HOW the BOD is going to protect SH from going the way a lot of other resorts have gone once an independent management company was brought on - down the toilet; give some reasonable expectations what they expect to save in regards to budget if Hyatt is pushed out. They have NOT done that and they're expecting owners to just push the button on "Yes" and go blindly into the night without any light at all to guide them. I'm not doing that.

The board has every right to and should cancel this vote. They rushed to do it and it has blown up in their face - and ours, as owners. Hyatt now knows there is a move to push them out. You think they're not going to do everything in their power to stop it? Of course they are and it's probably going to work, ultimately harming HRC owners the worst. You think I want to get caught up in that mess, where ultimately I have to GIVE my weeks back because they jack up a transfer fee well beyond the current price gouge of $650? Why in the world would I wait until that happens? I don't think Hyatt can move fast enough to gather up weeks to keep full control BUT eventually they will. And now, because of the way this thing was shot out of the gun by the BOD, there might be a big influx of owners trying to sell because they don't want to get caught up in it either. That is only going to accelerate Hyatt's ability to grab up those weeks, shove them in HPP, and force a untenable situation for HRC weeks owners. No, I don't think I'm going to hang on to ride that pony and I won't be the only one.

So, where are we now? The BOD was irresponsible in their rush to push this through and Hyatt now knows what they're up to. Hyatt has deep pockets and the owners don't. The absolute best thing the BOD could do is cancel this damned vote right now. Get some specific information together about how Hyatt/Marriott has failed SH; do some modeling to put together some potential and realistic numbers for cost savings, lay out a vision of what their plans are to bring costs down, get the resort back into the shape it should be in. Then get that out to owners so they have INFORMATION to base a vote on. At least TRY to negotiate with Hyatt and if that fails, then, call for another vote by owners to get rid of Hyatt.

If they think Hyatt is a trainwreck, then tell the owners WHY, have the evidence to back it up, and lay out a reasonable plan they've developed that supports dumping Hyatt. They haven't done that and no one can expect owners to just jump on board to get rid of Hyatt because they say so. This has been handled so poorly, it's infuriating. They have placed owners in a TERRIBLE position by stirring a huge pot of crap and throwing it in Hyatt's face, alerting them to the intention of pushing them out and having absolutely nothing to present to owners to show us WHY it's worth leaving Hyatt. How damned irresponsible and stupid!! The more I've mulled it, the angrier I've become. Stick around SH if you want to, ivywag. That's your choice. Not everyone is willing to and that's OUR prerogative.

I agree with you on, how they just sprang it on us, and want us to vote with so little time or information to take a vote. We have been HSH owners for 25 years and have used our unit, maybe half of the time. Loved to travel to new places and trading our unit has made that possible. Never had to worry about getting what we wanted, because we owned at HSH , such a high trader. With having other residence clubs on KW we could easily use a week at HSH and have enough points left over to go to HWP or HBH, for another 3 nights. No we are not HPP just regular owners. I said in an earlier post, that I also know one of the board. Talked to them last fall, and NOTHING was even hinted about leaving Hyatt. Not Happy about that, not that I should have had inside info, just a heads up, with a possibility that it might happen, would have been nice.

 

[kwsunset]

Be pissed at me if you want. But, many of my fellow owners aren't doing anything to support me or other owners who aren't appeased with empty platitudes. Push the damned BOD to do their homework and at least present some modeling information they've put together to give us some idea of what they expect to accomplish by dumping Hyatt. Their rationale at this point isn't even rationale. They rushed to put this vote out to the members without a lot of substance, actually, virtually no substance. Again, their comments have pretty much been "Hyatt is bad, Hyatt is price gouging, Hyatt is threatening a substantial increase in management fees, etc.) Ok, so that's their stance. Then they have a responsibility to put together a solid plan to lead SH owners out of the damned mess - not just lip service. TELL owners what their vision is, what they logically think they can accomplish by moving to an independent management company and HOW the BOD is going to protect SH from going the way a lot of other resorts have gone once an independent management company was brought on - down the toilet; give some reasonable expectations what they expect to save in regards to budget if Hyatt is pushed out. They have NOT done that and they're expecting owners to just push the button on "Yes" and go blindly into the night without any light at all to guide them. I'm not doing that.

The board has every right to and should cancel this vote. They rushed to do it and it has blown up in their face - and ours, as owners. Hyatt now knows there is a move to push them out. You think they're not going to do everything in their power to stop it? Of course they are and it's probably going to work, ultimately harming HRC owners the worst. You think I want to get caught up in that mess, where ultimately I have to GIVE my weeks back because they jack up a transfer fee well beyond the current price gouge of $650? Why in the world would I wait until that happens? I don't think Hyatt can move fast enough to gather up weeks to keep full control BUT eventually they will. And now, because of the way this thing was shot out of the gun by the BOD, there might be a big influx of owners trying to sell because they don't want to get caught up in it either. That is only going to accelerate Hyatt's ability to grab up those weeks, shove them in HPP, and force a untenable situation for HRC weeks owners. No, I don't think I'm going to hang on to ride that pony and I won't be the only one.

So, where are we now? The BOD was irresponsible in their rush to push this through and Hyatt now knows what they're up to. Hyatt has deep pockets and the owners don't. The absolute best thing the BOD could do is cancel this damned vote right now. Get some specific information together about how Hyatt/Marriott has failed SH; do some modeling to put together some potential and realistic numbers for cost savings, lay out a vision of what their plans are to bring costs down, get the resort back into the shape it should be in. Then get that out to owners so they have INFORMATION to base a vote on. At least TRY to negotiate with Hyatt and if that fails, then, call for another vote by owners to get rid of Hyatt.

If they think Hyatt is a trainwreck, then tell the owners WHY, have the evidence to back it up, and lay out a reasonable plan they've developed that supports dumping Hyatt. They haven't done that and no one can expect owners to just jump on board to get rid of Hyatt because they say so. This has been handled so poorly, it's infuriating. They have placed owners in a TERRIBLE position by stirring a huge pot of crap and throwing it in Hyatt's face, alerting them to the intention of pushing them out and having absolutely nothing to present to owners to show us WHY it's worth leaving Hyatt. How damned irresponsible and stupid!! The more I've mulled it, the angrier I've become. Stick around SH if you want to, ivywag. That's your choice. Not everyone is willing to and that's OUR prerogative.

Also, everyone keeps talking about Aspen isn't that resort on a different kind of ownership? Not single weeks.?

 

[sjsharkie]

Also, everyone keeps talking about Aspen isn't that resort on a different kind of ownership? Not single weeks.?

Different. Aspen had single week owners, but also had fractional ownerships and bundled ownerships. See here:

Sunset Harbor to vote on terminating Hyatt management contract

Wouldn't it be nice if MCV responded in a similar manner during their 6/22 dog show.

tugbbs.com

 

[alameda94501]

What are the allegations in the lawsuit?

I've attached the allegations.

 

[RM@SH]

Be pissed at me if you want. But, many of my fellow owners aren't doing anything to support me or other owners who aren't appeased with empty platitudes. Push the damned BOD to do their homework and at least present some modeling information they've put together to give us some idea of what they expect to accomplish by dumping Hyatt. Their rationale at this point isn't even rationale. They rushed to put this vote out to the members without a lot of substance, actually, virtually no substance. Again, their comments have pretty much been "Hyatt is bad, Hyatt is price gouging, Hyatt is threatening a substantial increase in management fees, etc.) Ok, so that's their stance. Then they have a responsibility to put together a solid plan to lead SH owners out of the damned mess - not just lip service. TELL owners what their vision is, what they logically think they can accomplish by moving to an independent management company and HOW the BOD is going to protect SH from going the way a lot of other resorts have gone once an independent management company was brought on - down the toilet; give some reasonable expectations what they expect to save in regards to budget if Hyatt is pushed out. They have NOT done that and they're expecting owners to just push the button on "Yes" and go blindly into the night without any light at all to guide them. I'm not doing that.

The board has every right to and should cancel this vote. They rushed to do it and it has blown up in their face - and ours, as owners. Hyatt now knows there is a move to push them out. You think they're not going to do everything in their power to stop it? Of course they are and it's probably going to work, ultimately harming HRC owners the worst. You think I want to get caught up in that mess, where ultimately I have to GIVE my weeks back because they jack up a transfer fee well beyond the current price gouge of $650? Why in the world would I wait until that happens? I don't think Hyatt can move fast enough to gather up weeks to keep full control BUT eventually they will. And now, because of the way this thing was shot out of the gun by the BOD, there might be a big influx of owners trying to sell because they don't want to get caught up in it either. That is only going to accelerate Hyatt's ability to grab up those weeks, shove them in HPP, and force a untenable situation for HRC weeks owners. No, I don't think I'm going to hang on to ride that pony and I won't be the only one.

So, where are we now? The BOD was irresponsible in their rush to push this through and Hyatt now knows what they're up to. Hyatt has deep pockets and the owners don't. The absolute best thing the BOD could do is cancel this damned vote right now. Get some specific information together about how Hyatt/Marriott has failed SH; do some modeling to put together some potential and realistic numbers for cost savings, lay out a vision of what their plans are to bring costs down, get the resort back into the shape it should be in. Then get that out to owners so they have INFORMATION to base a vote on. At least TRY to negotiate with Hyatt and if that fails, then, call for another vote by owners to get rid of Hyatt.

If they think Hyatt is a trainwreck, then tell the owners WHY, have the evidence to back it up, and lay out a reasonable plan they've developed that supports dumping Hyatt. They haven't done that and no one can expect owners to just jump on board to get rid of Hyatt because they say so. This has been handled so poorly, it's infuriating. They have placed owners in a TERRIBLE position by stirring a huge pot of crap and throwing it in Hyatt's face, alerting them to the intention of pushing them out and having absolutely nothing to present to owners to show us WHY it's worth leaving Hyatt. How damned irresponsible and stupid!! The more I've mulled it, the angrier I've become. Stick around SH if you want to, ivywag. That's your choice. Not everyone is willing to and that's OUR prerogative.

I cannot agree with you more!!! Unfortunately, we have a very small representation of owners on this chat and a couple that only care to voice the BOD direction and remain ignorant of other possibilities. I would hope that common sense would drive the other owners to agree 100% with you until such time we have more information but it is beginning to appear that many do not mind voting totally blind. I have attempted contact with the BOD with no response as to any options other than Hyatt is terrible and what they have at Aspen is the greatest thing since sliced bread. All 100% speculation with noting to back it up. I cannot vote yes without knowing what we are voting for. The only board member that I know and trust is the only one to have voted NO. I have absolutely no idea who the others are. Appears to be one or maybe two board members driving this vote. No idea what the ulterior motives are but do know that there appears to be some dissention in the board over this forced vote. 1 NO vote, 1 board member resigned and 1 board member has relinquished responsibility for this process. Leaves potentially 2 board members that are behind this. Without transparency, everyone must vote NO until we are provided the information to make an educated vote.

 

[BAT]

Given what we now know, Robert Weismann the primary advisor to the Sunset Harbor board, being sued by the Aspen board, one board member voting no and now being vilified by the board, D Heisler, the real estate board member, heading up the break away effort as V. President in charge of Member Services ( conflict of interest?), one board member resigning the week of the vote and then reinstated at the executive board meeting (legally?), the board president indicating privately that he is not fully in support of this effort, this entire effort is deeply flawed. The board should terminate the vote immediately and enter into serious talks with MVW to resolve the issues at Sunset Harbor . A message has been sent and now is the time to move on!

 

[AJCts411]

Why are non week owners of Sunset Harbor pushing so hard for a no vote? The Weismann suit reads like a lawyer wanting to get paid even though he (lawyers) lost litigation. How does this apply to Sunset? Why would a real estate board member on the BOD have a conflict of interest? Are sellers of owned weeks forced to use his realty services? In what way has the BOD engaged the services of Weismann? Can the Sunset BOD commit the huge use amounts of dollars being contested in the Weismann suit with out a vote? Seems Aspen had a vote and funds were approved.

 

[Kal]

Given what we now know, Robert Weismann the primary advisor to the Sunset Harbor board, being sued by the Aspen board, one board member voting no and now being vilified by the board, D Heisler, the real estate board member, heading up the break away effort as V. President in charge of Member Services ( conflict of interest?), one board member resigning the week of the vote and then reinstated at the executive board meeting (legally?), the board president indicating privately that he is not fully in support of this effort, this entire effort is deeply flawed. The board should terminate the vote immediately and enter into serious talks with MVW to resolve the issues at Sunset Harbor . A message has been sent and now is the time to move on!

Sounds like words from a BOD member. Wonder who that might be??

 

[Kal]

I cannot agree with you more!!! Unfortunately, we have a very small representation of owners on this chat and a couple that only care to voice the BOD direction and remain ignorant of other possibilities. I would hope that common sense would drive the other owners to agree 100% with you until such time we have more information but it is beginning to appear that many do not mind voting totally blind. I have attempted contact with the BOD with no response as to any options other than Hyatt is terrible and what they have at Aspen is the greatest thing since sliced bread. All 100% speculation with noting to back it up. I cannot vote yes without knowing what we are voting for. The only board member that I know and trust is the only one to have voted NO. I have absolutely no idea who the others are. Appears to be one or maybe two board members driving this vote. No idea what the ulterior motives are but do know that there appears to be some dissention in the board over this forced vote. 1 NO vote, 1 board member resigned and 1 board member has relinquished responsibility for this process. Leaves potentially 2 board members that are behind this. Without transparency, everyone must vote NO until we are provided the information to make an educated vote.

Ah yes! I love the smell of conspiracy in the morning.

 

[BAT]

Why are non week owners of Sunset Harbor pushing so hard for a no vote? The Weismann suit reads like a lawyer wanting to get paid even though he (lawyers) lost litigation. How does this apply to Sunset? Why would a real estate board member on the BOD have a conflict of interest? Are sellers of owned weeks forced to use his realty services? In what way has the BOD engaged the services of Weismann? Can the Sunset BOD commit the huge use amounts of dollars being contested in the Weismann suit with out a vote? Seems Aspen had a vote and funds were approved.

A board member being in the real estate business by itself is not a conflict of interest. However, when you vote as a board member and then have your own real estate company sell and rent Hyatt Sunset Harbor weeks is very questionable. That has been going on for years! Now, at the very least, what is his new position going to lead towards moving forward if this vote is successful? That is a fair question that should be answered!

 

[vacationtime1]

A board member being in the real estate business by itself is not a conflict of interest. However, when you vote as a board member and then have your own real estate company sell and rent Hyatt Sunset Harbor weeks is very questionable. That has been going on for years! Now, at the very least, what is his new position going to lead towards moving forward if this vote is successful? That is a fair question that should be answered!

The premise here seems to be that someone with a financial interest in what the HOA Board does should be disqualified from serving on that Board. If so, anyone who owns a unit shouldn't be on the Board either.

There is no claim that anyone wishing to sell or rent a unit must use his brokerage. So what makes this person's participation into a "very questionable" conflict of interest?

 

[BAT]

The premise here seems to be that someone with a financial interest in what the HOA Board does should be disqualified from serving on that Board. If so, anyone who owns a unit shouldn't be on the Board either.

There is no claim that anyone wishing to sell or rent a unit must use his brokerage. So what makes this person's participation into a "very questionable" conflict of interest?

Rookie mistake

 

[Kal]

The premise here seems to be that someone with a financial interest in what the HOA Board does should be disqualified from serving on that Board. If so, anyone who owns a unit shouldn't be on the Board either.

There is no claim that anyone wishing to sell or rent a unit must use his brokerage. So what makes this person's participation into a "very questionable" conflict of interest?

The poster doesn't even have the facts correct. And doesn't even realize he provided a service to the resort to get rid of the long list of foreclosure units, at a profit to the BOD. Renting units???? Sure, again no factual basis.

 

[jabberwocky]

A board member being in the real estate business by itself is not a conflict of interest. However, when you vote as a board member and then have your own real estate company sell and rent Hyatt Sunset Harbor weeks is very questionable. That has been going on for years! Now, at the very least, what is his new position going to lead towards moving forward if this vote is successful? That is a fair question that should be answered!

Please make your allegation as clear as possible. What impropriety are you alleging?

If you want to argue in favor of a no vote, by all means do so; however, you should do so with facts and real arguments. Smearing the reputation of another individual (who I don’t think is here to defend themselves) in order to breed fear, uncertainty and doubt in the outcome of a yes vote is pretty low IMO.

Quite frankly, I’m surprised the mods are letting you use this platform to make allegations like this.

 

[HenryT]

One other consideration for those who post percentages regarding owner occupancy. These numbers are (IMO) misleading in that you reserve your unit whether YOU are using it ...or whether you are RENTING it. Time after time sitting around the SH pool, I've heard people (owners) saying they're staying multiple weeks because they rented from other owners. Now some might suggest that is still owner usage, but I believe it falsifies the stats IMO. Those owners who booked, then rented it out, probably wanted the $ instead of trading and traveling elsewhere, but in the future, perhaps they OR their kids who inherit the timeshares might wish to have options. I know my kids like going to all my different locations and wouldn't want to be harnessed to any single one

What you said doesn't make sense. Whether an owner occupies their unit or rents it out, it's still being used by the owner and not used to exchange into another Hyatt property.

Because of the high maintenance fees at SH, owners get more value out of renting their units for a profit vs exchanging it for a Hyatt property with lower maintenance fees. Sure, occasionally a SH owner may exchange for another Hyatt unit but that is not the norm. I would never exchange my SH unit for another Hyatt unit (except for Maui). I will rent it out if I am not going to use it.

I can rent my SH unit, take the rental proceeds and rent most other Hyatt properties from an owner with the funds and have money left over.

I have a lower maintenance fee Hyatt ( Pinon Point) for exchanging to other Hyatt timeshares.

 

[HenryT]

Without a clear management plan by the SH board that all owners can understand along with the estimated management fees, how can any owner vote yes. I don’t know any owner that likes their management fees and most all feel that they are too much but at least owners know what they are. Again, there’s too many unanswered questions with respect to this entire proposed break away.

The SH Board can't provide details on the management plan or fees until they have the approval to move forward with the departure from Hyatt.

You don't know what Hyatt's fees will be next year either. What you do know is that the some Hyatt fees will go away and that the management fee percentage paid to the new management company will probably be lower than the fee percentage paid to Hyatt.

You don't have to be a rocket scientist to know that Hyatt SH fees are extremely high. All you have to do is compare their maintenance fees with the fees at comparable nearby independent timeshares (Galleon, The Banyan Resort, Coconut Beach Resort).

The board explained very well what their process for identifying a new management company would be once they had approval to move forward.

"The lady doth protest too much, methinks" (Shakespeare).

 

[ScoopKona]

"The lady doth protest too much, methinks" (Shakespeare).

Amazing how all the new users here have the EXACT SAME OPINION. Almost like someone is spamming the "register as a new user" button. Well, robots gonna robot.

 

[Lingber]

Removing my comment. Too much discord already.

Sent from my iPhone using Tapatalk

 

[JanT]

To my knowledge they haven't even done any background work to develop that information - they have no details to share even if they could. What they could have done was done some research, developed some modeling to indicate potential savings, and put that out. Their argument that they couldn't go out and get any information from management companies because the membership hadn't agreed to push Hyatt out, holds absolutely no water. No, no reputable management company was going to give a quote without an official RFP, BUT, some casual inquiries and research could have netted them enough information to get an approximate idea on what the cost and/or savings would be. You're right - it's not rocket science. The BOD rushed into this for whatever reason and we're in a Hell of a mess now because of it.

No, we don't know what Hyatt's fees will be next year. And yes, if Hyatt is successfully pushed out, some of the Hyatt fees will go away. How much of those? There is no way to know what a new management company's fees will be and whether they will be cheaper than Hyatt or not. There is no way to know that, especially since the BOD hasn't presented any evidence to that effect. Your argument that the management fee percentage paid to a new management company will "probably be lower than the fee percentage paid to Hyatt" is purely speculation. "Probably" is a big word to gamble on.

But, I can almost certainly guarantee that any potential cost savings (and that's all it is until more information is gathered - potential) will immediately be wiped out and more by the cost of insurance. The cost of insurance outside of the Hyatt umbrella will be exorbitant - well beyond what Hyatt pays. They have the ability to amortize insurance over all Hyatt hotels and timeshare properties, insuring that no one property bears the full burden. SH as an independently managed property isn't going to be able to obtain insurance at the rate Hyatt is getting - not even close. So, any cost savings from reduction in management fees (if there even is one) will disappear and in my opinion there's big potential for fees increasing in order to cover the substantial increase in insurance costs. At some point in time, Key West is going to take a huge hit by a hurricane, almost certainly causing catastrophic damage to the island. SH is going to need catastropic insurance coverage and that takes a lot of money. Just think about that. All those little annoying fees that on the surface seem to be some of the driver to get rid of Hyatt are going to be nothing compared to what owners might have to cough up in special assessment should Hyatt be pushed out and SH no longer has the benefits covered by Hyatt's management.

Look, I think the real reason behind this move to push Hyatt out is to keep them from acquiring any more weeks at SH and eventually having a stranglehold on the resort ownership. The more Hyatt acquires, the more weeks they dump into HPP which without a doubt is a negative for weeks owners. The current BOD (and many others) believe that pushing Hyatt out is the only way to keep Hyatt from acquiring any more weeks.

Since Hyatt is aware of this move to get rid of them, perhaps there is room for negotiations with them. Maybe not. But, if the BOD doesn't even try, we'll never know. And right now, we're sitting on a ticking time bomb - Hyatt knows what the BOD is trying to accomplish and they're going to move at lightening speed to put a stop to it.

There may be benefits to leaving Hyatt but I think they are far outweighed by the uncertainties of a new independent management company and the exorbitant cost of insurance that will have to procured outside of the Hyatt umbrella. At this point, the board needs to cancel the vote, get some information together, meet and negotiate with Hyatt to try to resolve the issues at hand. If Hyatt isn't going to budge then the owners will have a difficult decision to make. BUT, at least they will have enough information to make an educated vote. As it stands now, it's like whizzing into the wind.

The SH Board can't provide details on the management plan or fees until they have the approval to move forward with the departure from Hyatt.

You don't know what Hyatt's fees will be next year either. What you do know is that the some Hyatt fees will go away and that the management fee percentage paid to the new management company will probably be lower than the fee percentage paid to Hyatt.

You don't have to be a rocket scientist to know that Hyatt SH fees are extremely high. All you have to do is compare their maintenance fees with the fees at comparable nearby independent timeshares (Galleon, The Banyan Resort, Coconut Beach Resort).

The board explained very well what their process for identifying a new management company would be once they had approval to move forward.

"The lady doth protest too much, methinks" (Shakespeare).