* Just realized you wrote this in August.
I really hope you are correct. My feeling is that taxes are down in Vegas and Clark County and property tax assessment and insurance will rise more than inflation this year. I think we will see 8-10% increases in Vegas properties. I hope I am wrong. I am staying at Elara from 1-9 October if you wish to collect on that adult beverage. Haha
My understanding is that the insurance is location based, not spread across all properties (though I could be wrong about that). If I’m not mistaken, there have not been any floods, fires, or storms in Vegas that would trigger an insurance payout. .. oh, I guess there is an insurance in blackjack, right? But… there are no casinos in any of the Vegas properties either. I think we are good. Hopefully my humor is coming through. I understand your concerns. I share your concerns, which is why I looked at the history of maintenance fee increases at different locations.
Sadly I am using the last of my points this year on the 9 day trip to Vegas. Maybe next year.
The stock price is holding steady about $43/share. Obviously the CEO holds many many shares and wants a fast increase in share price. That is another reason we will probably see M/F increases and Fees increases for 2026. I just think our Vegas deeds will see 8-10% increases because of local tax and insurance increases. Hope I am wrong because I am looking at adding a 1Bed Grand deed to my portfolio next year.
Lodging stocks have not had a great year in general - Hilton Hotels probably has done the best with Vegas casino companies the worst. HGV stock is up for the year. I don't think they can raise maintenance fees to boost profits, but other fees they have been and will likely continue to do so. I'd be surprised to see a 8-10% increase in MF in Vegas, but I guess we'll find out soon.
While I tend to agree with you, the big worry is that HGV will raise their management fees to the HOA's. It's what happened to Diamond before HGV came into the picture. It looks like whomever wrote the charter for Intrawest/Embarc did a fantastic job in keeping the system whole and functioning for the owners, not the investors. I love the percentage cap on the management fees.
The HOA board doesn't drive the budget. It is the manager (Hilton) that prepares it and has to justify the increases (if any) to the board and go through the list of expected expenditures for the year in order to justify the budget. Stocks have nothing to do with what the expenditures will be. Doesn't your HOA send documentation concerning where/how the money will be spent in the future year along with the fee notices to all members/owners? I know ours does.
The management fee Hilton charges the HOA is included in the maintenance fee, but my point was responding to the earlier post by someone else who thought because the stock hadn't done that well this year that HGV would be more likely to raise fees. My point was public company Boards primarily view performance on a relative basis, not absolute basis, and on a relative basis HGV has had a decent year.
Depends on the timeshare. Embarc has actually had less defaults per year since covid than before, including in 2024. What prevents defaults is having a way to dispose/sell when you don't want the timeshare any more or a way to reduce the number of points you have to make it more affordable. Our Embarc FB group is certainly contributing to the low numbers, as it has several memberships a week that exchange hands (between members, it's an Embarc member-only group). Selling/transferring is also quick and cheap as there is no deed (no notary required etc), just a sales & transfer form to complete by both parties, and a $250usd fee to move the points to the other or new member. The simplicity and low cost make it "easier" (no collection harassment) & quicker than defaulting. And in most cases, some money comes back to the seller.
HGV stock dropped about 4% today. I got my M/F notice last year from Tuscany Orlando on 4 October. We will see soon.
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