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Marriott/Vistana overlay

mjm1

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I shared this in the thread that GregT also started in the Vistana forum, but wanted to share it here as well. I saw this statement from the CEO in the VAC quarterly update:

“Looking ahead to 2020, we have begun focusing on product enhancements for the various brands. Specifically, we are working hard to develop an integrated product form that can be leveraged across the Marriott Western and Sheridan brands enhancing the overall value proposition for our owners and customers. It will take time to finalize and roll out this new product for. However, we are very excited about the potential it will provide and we look forward to updating you in the future as this work evolves.”

Of course no details are available, but they are indeed working on a program. We will have to wait until 2020 for details.

Best regards.

Mike
 

rickandcindy23

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They spelled it Sheridan? What the heck is Sheridan? That is a street in Denver and a town in Wyoming.
 

bizaro86

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SteelerGal

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KACTravels

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Here is the quote from the meeting notes on Motley Fool: "We have begun focusing on product enhancements for the various brands. Specifically, we are working hard to develop an integrated product form that can be leveraged across the Marriott, Westin, and Sheraton brands, enhancing the overall value proposition for our owners and customers. It will take time to finalize and roll out this new product form. However, we are very excited about the potential it will provide, and we look forward to updating you in the future as this work evolves."
 

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Interesting, regarding Buy Backs and Vistana ...
"Around 40% of our legacy MVC owners are still weeks owners, ergo 60% of the legacy MVC owners are points owners. Now keep in mind, since 2010, we've been selling nothing but points. So over time, you would expect that percentage to shift. As -- the exit program, as you've mentioned, people that have owned the product for 10, 15, 20 years, whatever it is, and for whatever reason, because of a life event has decided that they don't want to own it anymore and we buy it back.
And then that happens, then we take that inventory and we put it into our Florida-based land trust, and then we turn around and sell them as points. So just doing that cadence, the percentage will continue to drop over time. When that -- what that number finally becomes and all that is hard to imagine. I would point out also that in the Vistana businesses, they had a very, very modest buyback program, and we've begun to amp that up, as you might imagine."
 

SteelerGal

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Interesting, regarding Buy Backs and Vistana ...
"Around 40% of our legacy MVC owners are still weeks owners, ergo 60% of the legacy MVC owners are points owners. Now keep in mind, since 2010, we've been selling nothing but points. So over time, you would expect that percentage to shift. As -- the exit program, as you've mentioned, people that have owned the product for 10, 15, 20 years, whatever it is, and for whatever reason, because of a life event has decided that they don't want to own it anymore and we buy it back.
And then that happens, then we take that inventory and we put it into our Florida-based land trust, and then we turn around and sell them as points. So just doing that cadence, the percentage will continue to drop over time. When that -- what that number finally becomes and all that is hard to imagine. I would point out also that in the Vistana businesses, they had a very, very modest buyback program, and we've begun to amp that up, as you might imagine."
Yes, they are going to push Westin Flex into Hyper Drive. Currently since you have SOs for internal trading, you buy a home resort and trade in.
 

dioxide45

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Westin has to be more aggressive with buybacks since they have so few properties with ROFR. I think this is why they push turning your weeks back in to buy Flex. Some people have been offered to turn back in 6 or 7 weeks and get the same number of SOs for only about $10,000 in new money.
 

bizaro86

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Westin has to be more aggressive with buybacks since they have so few properties with ROFR. I think this is why they push turning your weeks back in to buy Flex. Some people have been offered to turn back in 6 or 7 weeks and get the same number of SOs for only about $10,000 in new money.

That's interesting. I'd probably be willing to "buy" 5 gold 2 bedroom at wmh/wdw and add $10k to swap that into 300-400k westin flex...

Big risk though is if they wouldn't do it at a good price you'd be stuck...
 

SteelerGal

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That's interesting. I'd probably be willing to "buy" 5 gold 2 bedroom at wmh/wdw and add $10k to swap that into 300-400k westin flex...

Big risk though is if they wouldn't do it at a good price you'd be stuck...
The problem is they are non mandatory but have high MF. I truly wonder why they decided to not make the CA locations non mandatory.
 

bizaro86

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The problem is they are non mandatory but have high MF. I truly wonder why they decided to not make the CA locations non mandatory.

Does mandatory status matter on trade in? That wasn't my impression (and they offered to take my SDO in trade toward a Nanea package the last time I went to a presentation...)
 

bizaro86

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Thanks for the link. Great information such as rebranding of Sheraton, Westin/ Sheraton Sales, Westin Buyback Program, Westin Flex Program, etc. Very interesting.

They said they were NOT rebranding the Sheraton resorts. An analyst asked them about it, and they said no.
 

VacationForever

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The problem is they are non mandatory but have high MF. I truly wonder why they decided to not make the CA locations non mandatory.
It has nothing to do with CA locations or not. It was a matter of timing. Starwood rolled out mandatory designation on new resorts for a short period of time before they pulled it for later built resorts when they realized that mandatory resorts would cause them to lose new business to resale mandatory ownership. They never did retrofit the older CA resorts when they developed the mandatory program.
 

SteelerGal

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It has nothing to do with CA locations or not. It was a matter of timing. Starwood rolled out mandatory designation on new resorts for a short period of time before they pulled it for later built resorts when they realized that mandatory resorts would cause them to lose new business to resale mandatory ownership. They never did retrofit the older CA resorts when they developed the mandatory program.
And they should have corrected it. Marriott Deserts do very well in the area but Westin is like a step child. I envision eventual changes.
 

dioxide45

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Does mandatory status matter on trade in? That wasn't my impression (and they offered to take my SDO in trade toward a Nanea package the last time I went to a presentation...)
I would think they would be more aggressive to try to get back mandatory weeks, only because once the dump them in the Flex trust they become voluntary. They could dry up the supply of resale mandatory weeks over time.
 

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They said they were NOT rebranding the Sheraton resorts. An analyst asked them about it, and they said no.
Correct. Meant to say repositioning. Repositioning to me means they are looking how to revitalize the Brand.
 

VacationForever

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And they should have corrected it. Marriott Deserts do very well in the area but Westin is like a step child. I envision eventual changes.
On the contrary. Starwood - Vistana, now Marriott will find all ways to get rid of the mandatory program if they could but they cannot do so legally.

I do not know what you meant by Marriott Deserts do very well but not Westin.

They are both dime a dozen in the resale market.
 

dioxide45

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On the contrary. Starwood - Vistana, now Marriott will find all ways to get rid of the mandatory program if they could but they cannot do so legally.
The only legal way is to reacquire as many weeks at mandatory resorts as possible and add them to the Flex trusts.
 

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On the contrary. Starwood - Vistana, now Marriott will find all ways to get rid of the mandatory program if they could but they cannot do so legally.

I do not know what you meant by Marriott Deserts do very well but not Westin.

They are both dime a dozen in the resale market.
Marriotts still has a better resale value than both Westin’s and Marriott has 4 properties.
 

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The only legal way is to reacquire as many weeks at mandatory resorts as possible and add them to the Flex trusts.
True. Which means they most likely will aggressively go after WKV and SDO.
 

tschwa2

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There is no rofr at wkv so how will they aggressively go after it?
 

dioxide45

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There is no rofr at wkv so how will they aggressively go after it?
The only way they can is to try to get people to trade their weeks in and have them buy Flex in the transaction. You may think it is far fetched, but people have been known to turn in WKORV and buy Nanea HomeOptions. This may be easy for lower seasons but not so much for the Plat+ weeks.
 

mjm1

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The only way they can is to try to get people to trade their weeks in and have them buy Flex in the transaction. You may think it is far fetched, but people have been known to turn in WKORV and buy Nanea HomeOptions. This may be easy for lower seasons but not so much for the Plat+ weeks.

That’s exactly what they wanted us to do with one of our WKV units, but we declined their offer. I don’t recall the details, but I didn’t want to give up our mandatory unit for the voluntary Westin Flex program. However, I met an owner this week who did make the deal. I didn’t bother getting into the details, but they said they were happy with it. Wait until they decide to sell it if that ever happens. Ouch!

Best regards.

Mike
 
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