Is this typical across all Hyatt Residence properties?

[AJCts411]

Received an interesting email from our BOD at Sunset...

Dear Sunset Harbor Owners
We were recently informed by Hyatt that the Hyatt Residence Club can no longer sell our foreclosed unit/weeks on behalf of our Association since they opted to now sell points (Portfolio Point System). The Board of Directors conducted a search and one of our owners, Don Heisler, is a licensed real estate broker who owns Key West Time Share Sales. Subsequently, we have chosen Mr. Heisler to market these foreclosed deeds for our Association.

It goes on to list all of the foreclosed units available. Notice that "HRC" AKA Marriott, and the reference to Portfolio Points System. Wondering what the ramifications are down the road if association units are virtually "hidden" from prospective buyers at the corporate retail level, the affect on ROFR, and maintenance fees, since we the owners pay for these empty units through maintenance fees, how that might cause an increase or subsidy of Hyatt points. Even more ODD is why wouldn'y the Hyatt PPS want to buy up these units, at a highly desirable location?

 

[Sugarcubesea]

Received an interesting email from our BOD at Sunset...

Dear Sunset Harbor Owners
We were recently informed by Hyatt that the Hyatt Residence Club can no longer sell our foreclosed unit/weeks on behalf of our Association since they opted to now sell points (Portfolio Point System). The Board of Directors conducted a search and one of our owners, Don Heisler, is a licensed real estate broker who owns Key West Time Share Sales. Subsequently, we have chosen Mr. Heisler to market these foreclosed deeds for our Association.

It goes on to list all of the foreclosed units available. Notice that "HRC" AKA Marriott, and the reference to Portfolio Points System. Wondering what the ramifications are down the road if association units are virtually "hidden" from prospective buyers at the corporate retail level, the affect on ROFR, and maintenance fees, since we the owners pay for these empty units through maintenance fees, how that might cause an increase or subsidy of Hyatt points. Even more ODD is why wouldn'y the Hyatt PPS want to buy up these units, at a highly desirable location?

Wow. That is interesting, I wonder if this will affect values for fixed week holders.

 

[Pathways]

Wondering what the ramifications are down the road if association units are virtually "hidden" from prospective buyers at the corporate retail level, the affect on ROFR, and maintenance fees, since we the owners pay for these empty units through maintenance fees, how that might cause an increase or subsidy of Hyatt points.

Not sure what you are asking here, multiple points.

1) Association owned units have never been 'hidden' These are the weeks the active sales staff in Key West has always marketed during their sales tours, along with weeks that owners who wished to sell offered directly to the sales staff. The sales staff has been told by corporate they may no longer sell these weeks, only points. In the points system, all 'weeks' are hidden, as you are no longer buying a specific week, only generic points.

2) This move will help current owners. As long as the weeks are held by the Association, there are NO maintenance fees being paid. Moving the weeks to an active Realtor who will market them will bring new paying owners into the resort. Hyatt sales was pricing these weeks at developer prices for the most part. Don will sell these for the BOD at MARKET price, which should move these weeks quickly as Sunset Harbor is a desirable location almost 52 weeks/yr.

3) No effect on ROFR. When the Hyatt sales staff sold the weeks, there was no ROFR as they were the 'developer' selling the weeks. All of the weeks listed with Don will have to pass ROFR, just like any other purchase. If Hyatt wants the week to add to their points system, they will have to purchase the week under ROFR, and of course, start paying maintenance fees on the week. A win/win for current owners.

Even more ODD is why wouldn'y the Hyatt PPS want to buy up these units, at a highly desirable location?

The new Hyatt point system only needs enough weeks to claim points owners can make reservations at each location. It doesn't have to be 'readily' available. They have no incentive to purchase a lot of weeks unless and until they sell enough points to need additional weeks to feed that failing (IMHO) system. They can easily do that through ROFR when they need to.


Final point - All of the HRC resorts have had issues getting their Assoc. owned units sold as Hyatt wanted to restrict them to the HRC sales staff. That keeps these weeks as non-performing weeks and hurts all the owners. Since Hyatt is no longer selling weeks, and there is no longer direct competition, I hope all the BOD's take the same strong stance and market their weeks directly.

 

[Kal]

It's interesting to note, that all the HSH foreclosed units are generally low quality weeks. There are no prime weeks in the list.

 

[Pathways]

It's interesting to note, that all the HSH foreclosed units are generally low quality weeks. There are no prime weeks in the list.

True, (except for the one Wk 52, the best week of the year) but with the point value changes Hyatt made, 11 of the weeks are 1880 or higher. With the perceived value of HSH, if the weeks are priced right I believe even the 1300/1400 point weeks will sell. 27 weeks paying maintenance fees is close to 50k!

A big plus is the broker of choice. Hyatt has a $650 transfer fee now. Don advertises all of his listings with asking price listed, and that price INCLUDES the transfer fee. How upstanding is that in an industry filled with misdirection and misleading ads.

 

[magicjourney]

May I ask the listing price for the week52?

 

[AJCts411]

May I ask the listing price for the week52?

There where no prices listed, I assume you would have to contact the realtor Don directly. I'm not sure if I should be posting that info here, so if you want that info pm me.