2026 Flex MF billings just released

[kozykritter]

Sheraton Flex increase from .0219 per option in 2025 to .02201 per option for 2026, representing a 0.5% increase or 1/2 of 1%. I'll take nearly flat increases any day.

 

[daviator]

Westin Flex bills have not been released. I hope that increase is equally benign.

 

[sponger76]

Westin Flex bills have not been released. I hope that increase is equally benign.

Same for Aventuras, which I hope are also in the same range for increases.

 

[iowaguy09]

Why do they still include the old SPG logo at the bottom of the letter, and refer to the program and Starwood in the disclaimer?

Vistana Signature Experiences is the exclusive provider of vacation ownership for the Sheraton and Westin brands under license from Starwood Hotels & Resorts Worldwide, Inc., and its affiliates and is an authorized partner of the SPG program.

 

[sponger76]

Why do they still include the old SPG logo at the bottom of the letter, and refer to the program and Starwood in the disclaimer?

Vistana Signature Experiences is the exclusive provider of vacation ownership for the Sheraton and Westin brands under license from Starwood Hotels & Resorts Worldwide, Inc., and its affiliates and is an authorized partner of the SPG program.

Lack of proofing due to laziness.

 

[cubigbird]

Sheraton Flex increase from .0219 per option in 2025 to .02201 per option for 2026, representing a 0.5% increase or 1/2 of 1%. I'll take nearly flat increases any day.

They’re walking a fine line. Owners are not happy with the recent multiple year double digit increases. MVC and their BODs know that another huge increase could result in delinquency hemorrhaging further. Fiscal constraint is necessary. Hopefully this trend continues as we eventually see weeks MF announcements.

 

[daviator]

They’re walking a fine line. Owners are not happy with the recent multiple year double digit increases. MVC and their BODs know that another huge increase could result in delinquency hemorrhaging further. Fiscal constraint is necessary. Hopefully this trend continues as we eventually see weeks MF announcements.

Flex MFs are a derivative of the underlying weeks MFs. So flat Flex MFs have to mean that the weeks MFs owned by the Flex trust will average out to essentially the same flat change so long as the makeup of the trust stays the same..

I was never sure whether the Flex MFs were calculated based on last year's weeks billings – the ones that billed last November – or on estimates of what this year's bills will be. Since last year's bills were NOT flat from the prior year, I guess that means that the Flex billings are based on early estimates of what they expect later in the current year. So 2025 weeks bills should indeed be pretty flat, at least for the properties in the Sheraton Flex trust.

 

[echino]

Flex MFs are a derivative of the underlying weeks MFs. So flat Flex MFs have to mean that the weeks MFs owned by the Flex trust will average out to essentially the same flat change.

Not necessarily. It would be true if the composition of the underlying weeks in the Flex trust does not change. But if Flex trust composition changed towards more high season weeks / less low season weeks, or more high points weeks locations / less low points weeks locations, then the Flex fees could be flat, while underlying weeks fees could increase more.

But still it's likely the indication of a lower fees increases for the underlying weeks. Which indirectly proves that weeks fees are not as much based on actual expenses for resort upkeep, but more a function of the developer's wish to control the fees in a manner that maximizes the developer's profits. When delinquencies are low, it's in the best financial interest of the developer to increase the fees as much as possible to profit on the management fees (which are a percentage of the fees). But now when the delinquencies are creeping up, it may be more beneficial for the developer to flatten out the increases a bit.

Fees are based on the budget (forecast) prepared by the developer and then rubber-stamped by the board which is also controlled by the developer. At least at the US resorts. Don't get an illusion that owners (or a board) somehow have a say in determining the fees. It's 100% developer.

 

[daviator]

Not necessarily. It would be true if the composition of the underlying weeks in the Flex trust does not change. But if Flex trust composition changed towards more high season weeks / less low season weeks, or more high points weeks locations / less low points weeks locations, then the Flex fees could be flat, while underlying weeks fees could increase more.

But still it's likely the indication of a lower fees increases for the underlying weeks. Which indirectly proves that weeks fees are not as much based on actual expenses for resort upkeep, but more a function of the developer's wish to control the fees in a manner that maximizes the developer's profits. When delinquencies are low, it's in the best financial interest of the developer to increase the fees as much as possible to profit on the management fees (which are a percentage of the fees). But now when the delinquencies are creeping up, it may be more beneficial for the developer to flatten out the increases a bit.

Fees are based on the budget (forecast) prepared by the developer and then rubber-stamped by the board which is also controlled by the developer. At least at the US resorts. Don't get an illusion that owners (or a board) somehow have a say in determining the fees. It's 100% developer.

True. But I'm thinking that the composition of the Flex trusts is pretty stable; I don't think (somebody correct me if I'm wrong) that MVC is continuing to add to these trusts. I think any reclaimed inventory is going into the Abound trust instead.

I will correct my post to make that clear, good catch.

And yes, I totally agree that HOA budgets are controlled by MVC. A "volunteer" board which only meets 4x/year is not deeply involved in preparing and vetting the financials. And in many/most cases, the board's treasurer is a MVC employee, as are many or most of the board members. The other board members seem to be there to give the board perceived legitimacy, but at most properties they don't control enough votes to go against MVC.

 

[dioxide45]

True. But I'm thinking that the composition of the Flex trusts is pretty stable; I don't think (somebody correct me if I'm wrong) that MVC is continuing to add to these trusts. I think any reclaimed inventory is going into the Abound trust instead.

I will correct my post to make that clear, good catch.

And yes, I totally agree that HOA budgets are controlled by MVC. A "volunteer" board which only meets 4x/year is not deeply involved in preparing and vetting the financials. And in many/most cases, the board's treasurer is a MVC employee, as are many or most of the board members. The other board members seem to be there to give the board perceived legitimacy, but at most properties they don't control enough votes to go against MVC.

The only new deeds going in to Sheraton Flex appear to be Vistana's Beach Club. For whatever reason Marriott Vacations doesn't seem to want to add these to the Abound MVC Trust.