MOW maintenance fees up 16%

[MOXJO7282]

Not sure of the details yet but the new cost is $1483 which is 16% higher than last year according to my numbers. Hopefully there is a 1-time fee that will go away next year.

 

[Fasttr]

A 5% uptick + an OTO hurricane fee of $140 would get you to that ending number.

 

[MOXJO7282]

A 5% uptick + an OTO hurricane fee of $140 would get you to that ending number.

I hope that is what it is.

 

[MOXJO7282]

I also heard Maui is up 4.9%

 

[JIMinNC]

I also heard Maui is up 4.9%

That's fairly typical of all the increases in recent years.

 

[LUVourMarriotts]

Someone in one of the Marriott FB groups posted the assessment is going to be $173/unit.

 

[dioxide45]

Even an increase of 5% is high IMO. Back when MFs were < $1000 a 5% increase wasn't so bad, but now that they are approaching $1500 at the two properties we own, 5% isn't so great. Though a 5% growth in MFs also means a 5% growth in management fee income for Marriott. That looks good to their investors.

 

[bazzap]

Even an increase of 5% is high IMO. Back when MFs were < $1000 a 5% increase wasn't so bad, but now that they are approaching $1500 at the two properties we own, 5% isn't so great. Though a 5% growth in MFs also means a 5% growth in management fee income for Marriott. That looks good to their investors.

Just think what impact this has on all those of us who own 10+ weeks!

 

[Bucky]

Just think what impact this has on all those of us who own 10+ weeks!

LOL. If I could afford to buy 10+ units and then pay the annual MF on them, one of the last things I would be worried about is a 5% increase in those MF!

 

[bazzap]

LOL. If I could afford to buy 10+ units and then pay the annual MF on them, one of the last things I would be worried about is a 5% increase in those MF!

This is probably just a British phrase, but as we say:-
“Look after the pennies and the pounds will look after themselves”

 

[Superchief]

Most of my MVC timeshares so far are increasing about 5%. There is a disturbing trend of higher than inflationary increases for activities over the past 3 years. I think resorts are offering more complimentary activities to inflate their satisfaction scores, since most guests really aren't impacted by these increases. I believe most activities should be funded by cost covering fees to participants and not subsidized by owner like me who don't usually use them. Other high increases this year include housekeeping, front desk & guest services, security, and cable.

 

[dougp26364]

Several years ago I did the math of average 5% increases for one of my Resorts board members and literally got shut down as if I were an idiot. Give it a few more years and we’ll see how it’s going. Fee’s that started out under $800 for us are now rapidly approaching $2,000, if they don’t eclipse that number this year.

 

[MOXJO7282]

At some point there will be a tipping point where ownership becomes of no value and I hope the powers that be understand this because everyone loses that happens. As it is now from what I can see only platinum and some gold weeks are still good to own as unless true off-season owners work magic through II it is cheaper for them to rent.

 

[TXTortoise]

Just brainstorming, but maybe the inflection point is where legacy week MFs become close to the MFs for DPs. I think most legacy week MFs are still significantly less than for DP value at the same resort so it might take a while for that to occur, particularly if DP MF increases grow at the same or greater percentage than legacy weeks.

Looking at the various values for all resorts from Stephen’s spreadsheet might be an interesting exercise.

That’s really Marriotts ultimate objective, right? To have everyone on DPs and no legacy week ownership.

Would seem to be something they have modeled with a 20-30 year horizon as the current legacy owners age out and more weeks are given back or ROFR’d to the Trust.

 

[Fasttr]

Just brainstorming, but maybe the inflection point is where legacy week MFs become close to the MFs for DPs. I think most legacy week MFs are still significantly less than for DP value at the same resort so it might take a while for that to occur, particularly if DP MF increases grow at the same or greater percentage than legacy weeks.

Looking at the various values for all resorts from Stephen’s spreadsheet might be an interesting exercise.

That’s really Marriotts ultimate objective, right? To have everyone on DPs and no legacy week ownership.

Would seem to be something they have modeled with a 20-30 year horizon as the current legacy owners age out and more weeks are given back or ROFR’d to the Trust.

The primary driver of DC Point MF’s is the MF’s of the underlying weeks with some DC administrative expenses and compensation for short night stays added.

 

[TXTortoise]

Understood, which makes it a somewhat more intriguing exercise. Dioxide just needs to let us know how many weeks in each season, for each resort, are in the trust.

If all weeks from all resorts were in the trust, what would the DP MF be.

Are DP MFs high on a per point basis, compared to legacy, because of the mix in the trust?

 

[dioxide45]

Dioxide just needs to let us know how many weeks in each season, for each resort, are in the trust.

I wish I could do that, I stopped tracking the individual weeks in the trust a while ago. So there are a few years of conveyances that I don't have captured.

 

[tschwa2]

Understood, which makes it a somewhat more intriguing exercise. Dioxide just needs to let us know how many weeks in each season, for each resort, are in the trust.

If all weeks from all resorts were in the trust, what would the DP MF be.

Are DP MFs high on a per point basis, compared to legacy, because of the mix in the trust?

DP MF's are high compared to platinum legacy owners points cost. It is low compared to bronze, silver and even gold at certain resorts that don't get a lot of points.

Owners of these types of weeks (pre 2010) either never enrolled or are only recently enrolling because it is now free but even when enrolled aren't necessary converting to points and are using there weeks as weeks were they get better bang for their buck but can still rent from those with cheaper points.

 

[brianfox]

I don't understand all of this maintenance fee increase talk. My Marriott sales guy told me that by buying I would be "locking in the cost of my vacation", because hotel room prices would continually go up over the years. Hmmm... Come to think of it, he never mentioned the same possibility of maintenance fees going up.

I'm sure it just slipped his mind.

 

[NTP66]

I also heard Maui is up 4.9%

4.85%, to be precise (just paid). The increase is lower than last year's (4.92%), so I can't complain.

 

[MOXJO7282]

4.85%, to be precise (just paid). The increase is lower than last year's (4.92%), so I can't complain.

Yes and agreed not horrible but still not palatable. If they could keep it to 3% I can be OK with that and manage it but 5% every year hurts.

Looks like the Grande Ocean is up 5.61% this year. At less than $1500 for a week I still think a very good value but if it is going to go up every year when does it become not worth it and the whole system goes under.

 

[Bucky]

Looks like the Grande Ocean is up 5.61% this year. At less than $1500 for a week I still think a very good value but if it is going to go up every year when does it become not worth it and the whole system goes under.

Basically when we cry uncle because we just can’t afford it anymore. But, in reality MOW is still a great deal for anyone that can afford a week at the beach every year. For what I pay in MF there is absolutely no resort in MB with the same amenities that offers more bang for the buck. I’ve rented many weeks at different locals in MB over the years and in all cases they were of a lesser quality at a higher rental price than what my MF are. Every timeshares MF’s go up every year. Unfortunately everything goes up every year. One of these years I’m going to cry uncle and just give mine away at a rock bottom price to the next generation who will enevitably think they got a great deal because they won’t be on a fixed income.

 

[NTP66]

Yes and agreed not horrible but still not palatable. If they could keep it to 3% I can be OK with that and manage it but 5% every year hurts.

Looks like the Grande Ocean is up 5.61% this year. At less than $1500 for a week I still think a very good value but if it is going to go up every year when does it become not worth it and the whole system goes under.

I liken it to college tuition. It has to go down at some point, right? There’s going to be a point where people simply can’t/won’t afford the fees.

 

[suenmike32]

2 Bedroom Gold
$1164.65 operating fee
$318.51 replacement reserve
Total $1483.16

I don't have access to last years. I just received this new one in the mail

 

[bogey21]

. For what I pay in MF there is absolutely no resort in MB with the same amenities that offers more bang for the buck. I’ve rented many weeks at different locals in MB over the years and in all cases they were of a lesser quality at a higher rental price than what my MF are.

It all comes down to what you want. I have gone both ways on this. When I bought my Week in Myrtle Beach all I was looking for was location and low MFs. I found it with a Peppertree by the Sea Week in North Myrtle Beach. My MF was less than $500 and the sliding glass door in my first floor unit opened right onto a great wide beach. If what you want is quality, MOW wins hands down but I paid less than $1,000 for my Peppertree Week. But then I went 100% in the other direction and paid $25,000 for our Monarch Crown Suite Week on HHI where our MFs were set at double that of a regular Monarch Week...

George