That’s a good question. I don’t see why not. It will be interesting to see. I’d assume they want some sort of ownership in the account. I gather they want us to deposit vistana units to be able to use the exchange. We will know come October
I feel that Marriott owners are blissfully unaware of anything outside of Marriott. Since there is no Marriott on St John, they think it’s just another STT. Since the Marriott is on STT, Why bother staying on St. John? WSJ beats MFC any day.
While Marriott Vacations makes significant revenue from rentals, they make a bigger return on investment when they sell points. Renting carries risk, where once inventory sold the risk is low.
150 million dollars in rental revenue last quarter has to come from somewhere though, and I do not think Marriott has any incentive to rush to put in the trust the prime VOIS like the Westin Maui that they ROFR, as long as those can be rented for a very nice profit. Have they put any in the Abound trust yet?
Is some of the rental income from the resort hotels the acquired with ILG? They still own the Sheraton Kauai resort hotel side and it wasn’t until last month that they sold the Westin Puerto Vallarta. Would the revenue from those hotels be rental income? I have no idea!
They rented over 550,000 keys (nights) last quarter and the number excludes those occupied through the use of plus points and preview stays. I am not sure how many rooms the two resorts have but they are probably a drop in the bucket. We will see the third quarter; it may be even higher since it includes the summer vacation.
I did say it was significant revenue, but if you compare the margins and total revenue on rentals vs retail contracts, retail timeshare contracts win out. Why sell timeshare at all if running a hotel operation makes them more money?
They do this for Ritz properties. They release at 13 months and then again at 6 months. I don't think there is a release at 12 months.
You can check this spreadsheet with amounts owners reported after sales presentations and see if there is a value for your ownership. There has been no official info given out and likely we won't get any until Abound launches in late October.
tugbbs.com
I have heard that too, and it always makes me laugh, because (in my opinion) Marriott has an inferior product and there is nothing to be snobbish about. It's like bragging that you refuse to eat at any restaurant except Denny's because it's the best.
+1 -- although I think Marriott is a lot better than Denny's.
In general I agree and we are not far apart. I was just saying that if Marriott acquires two different VOIs through foreclosure, ROFR or buy back, and must only transfer one to the Abound trust, it makes sense to transfer first the one that brings them less profit (lower season, not a prime resort, high maintenance fees relative to the value etc), if they can rent the other one for a nice profit. Everything else being equal, they would rather transfer to the trust Princeville than Maui. Marriott only needs to transfer to the Abound trust the number of points they anticipate selling in the next few months. They can always transfer more if the trust is running low. I agree with you, they do not want to keep on their books too much either, so they probably keep what they think they can rent profitably and well above their cost of capital. You would expect they perfected this to a science over the years.
Marriott is also able to rent out unsold trust inventory. So they can just as easily convey the week to the trust and still rent out high demand inventory.
But isn't the trust a blend of resorts and seasons so the rental revenue and profit would be a reflection of the mix? On the other hand, if they are selective and keep Maui and other highly profitable deeds on their books, I assume they make more money.
They said it with pride, they weren’t putting Marriott owners down. They were portraying that “the Marriott clientele prides themselves on being Marriott snobs, they expect a certain level of resort”. I found it odd