Anyone hear a rumor that Marriott is raising MFs across the board 20%

[tonyg]

Just heard this today.

 

[Pamplemousse]

Just heard this today.

What’s your source?

 

[billymach4]

 

[billymach4]

There is also a separate post thread somewhere here on TUG. Albeit this is for Destination points. Weeks still subject to local resort board decision.

Ocean Pointe weeks got hammered last year.

 

[billymach4]

2024 Maintenance Fees DISCUSSION THREAD

The association meeting is early next month. If they approve the fully funded budget, fees increase to 82.4 cents per point, up 20.5%. If they go with the alternate budget that waives full funding which is what normally happens, it will be 78.74 cents, up 15.1%. The email cites the following...

tugbbs.com

 

[TUGBrian]

2024 Maintenance Fees DISCUSSION THREAD

The association meeting is early next month. If they approve the fully funded budget, fees increase to 82.4 cents per point, up 20.5%. If they go with the alternate budget that waives full funding which is what normally happens, it will be 78.74 cents, up 15.1%. The email cites the following...

tugbbs.com

this thread was in the newsletter three weeks ago as well!

 

[bnoble]

SHOCKING!

As Iago put it in Aladdin: "I think I'll die of Not Surprise."

 

[bazzap]

Resort Weeks budgets will only be reviewed over the coming weeks / months.
Until then noone knows what their Mfs will be.

 

[dioxide45]

Until then noone knows what their Mfs will be.

I suspect the BOD and resort finance person knows, they just won't share it with us yet...

 

[DanCali]

I suspect the BOD and resort finance person knows, they just won't share it with us yet...

I wonder if it's possible that the points MFs increases for 2024 reflect the week increases from 2023 rather than that's about to come in 2024 for weeks. I was already pretty schocked with some of my weeks last year while the points MFs increases were not too back IIRC.

But maybe that's more wishful thinking...

 

[sponger76]

I wonder if it's possible that the points MFs increases for 2024 reflect the week increases from 2023 rather than that's about to come in 2024 for weeks. I was already pretty schocked with some of my weeks last year while the points MFs increases were not too back IIRC.

But maybe that's more wishful thinking...

I was kind of wondering the same thing. But did any of the weeks MFs last year increase by 15 to 20 percent?

 

[aka Julie]

I was kind of wondering the same thing. But did any of the weeks MFs last year increase by 15 to 20 percent?

Shadowridge was up 15.2%. I shudder to think what it will be next year. Leaning towards selling next year.

 

[dioxide45]

I wonder if it's possible that the points MFs increases for 2024 reflect the week increases from 2023 rather than that's about to come in 2024 for weeks. I was already pretty schocked with some of my weeks last year while the points MFs increases were not too back IIRC.

But maybe that's more wishful thinking...

I have thought the same. We will just have to wait and see. Our BOD meeting for our two Marriott properties is in October.

 

[Fasttr]

I wonder if it's possible that the points MFs increases for 2024 reflect the week increases from 2023 rather than that's about to come in 2024 for weeks. I was already pretty schocked with some of my weeks last year while the points MFs increases were not too back IIRC.

But maybe that's more wishful thinking...

I have thought the same. We will just have to wait and see. Our BOD meeting for our two Marriott properties is in October.

This is from the Trust points 2024 MF proposed budget letter…..

For 2024 the enclosed “Proposed Budget” reflects that the MVC Trust Association maintenance fees to be paid to the underlying component associations are projected to have a 14.3% increase over the 2023 MVC Trust Association budget. This amount is reflected in the “Component Expense” line item of the 2024 MVC Trust Association “Proposed Budget” which you will note is approximately 85% of the total budgeted expenses for MVC Trust Association.

 

[goaliedave]

Yes! Just read your post!

 

[bazzap]

I suspect the BOD and resort finance person knows, they just won't share it with us yet...

Perhaps at some resorts where they hold the BOD meetings to agree the budgets earlier in the year than others?
At the resort where I was on the BOD, we didn’t hold this review until November each year and whilst the resort management team would have been finalising their proposed budget in the preceding weeks, we would receive this nearer to the date and often agree changes to it anyway.
It wouldn’t have been known this early though.

 

[AlmostRetired]

The MF for Trust points for 2024 has to be a guestimate until the HOA's meet from the resorts. In years that the guestimate is off, it impacts the following year either with a shortfall or overage. Recently, almost all of the insurance companies offering homeowners insurance in Florida pulled out. This had to increase insurance significantly in 2024. There are 14 Marriott Resorts in Florida. I belong to a Sea Pines HHI FB group because I looking to rent a month in February this year . A common complaint is the doubling and in some cases more on homeowners insurance. There are 9 resorts in South Carolina. I would think that if the trust owns a lot of non platinum units that have a high MF to point ratio resorts in these two states, it might skew the results even more.

I rent points and have been lucky to find reasonable enrolled point owners who are renting points. so I have no bone in this fight. At what point does the MF combined with the cost per point cause the Trust Point value of owning implode. With the 15 to 20% increase in the MF per point, think about how this impacts the value proposition of trust points. Cost aside, If you want to go to the Grande Ocean for a week in the summer, the cost is almost $3500 (4500 points x .77). You are now over the rental price (for a reasonable owner) for a deeded week. You are seeing a lot of rentals on Redweek for midweek where Trust point ownership is significant and access to is easy (see Macro Island for example). Listings are avoiding Friday and Saturday Nights. I do not know about you but when I vacation for less than a week, it almost always includes the weekend, limiting time off from work. The value proposition of using points for Bonvoy Points, cruises, tours and home rental that was never great to begin with just got worse. .

The enrolled week owner has the greatest overall value proposition of anyone and it continues to get better. The price for platinum weeks on Redweek have gone up a lot in places like the GO and GC the last 18 months. I thought it was an anomaly, but maybe it is a trend back to the value of owning a week.

 

[mbstn6254]

Does anyone remember the main pitch for buying into MVC was the purchase of points will inflation proof your vacations and that an MVC membership is the equivalent of putting your money into a 401V? (a reference and takeoff of a retirement fund called the 401K) All I know is what started out costing me $2,300 a year is now up to about $3,100 a year, if what I read about the increases are true. That's about a 3.8% compounded increase each year. And while I know the MVC apologists will tell me that is less than the rate of inflation this year (but not much less), it is far and above the rate of inflation for the years I have been an MVC member. Not exactly inflation proof. When I consider the loss of almost $45,000 from the purchase of the points, and the inability to reserve many of the resorts, it makes a membership just about the stupidest thing I could have done with $45,000. Fool me once, shame on you. Never again. Caveat Emptor.

 

[rickandcindy23]

Shadowridge was up 15.2%. I shudder to think what it will be next year. Leaning towards selling next year.

I was also shocked, having just acquired my weeks at Shadow Ridge, and I am also leaning toward selling a few of them.

 

[bnoble]

The standard of "inflation" for a timeshare is not "everything you might buy." It is instead, "what it costs to rent this thing." For most "regular" people (i.e. non-TUGgers), what it costs does not include private rentals from an owner, because that is a completely different risk profile--if they even know the option exists.

Instead, the measure of inflation against which most owners will compare their ownerships is the rental rate Marriott is able to obtain.

That's cold comfort for most of us, because we realize there are many different ways to get from Point A to Point Vacation, and some are cheaper than others. But it also means that most people will not necessarily be running for the exits in a way we might think.

 

[Dean]

The standard of "inflation" for a timeshare is not "everything you might buy." It is instead, "what it costs to rent this thing." For most "regular" people (i.e. non-TUGgers), what it costs does not include private rentals from an owner, because that is a completely different risk profile--if they even know the option exists.

Instead, the measure of inflation against which most owners will compare their ownerships is the rental rate Marriott is able to obtain.

That's cold comfort for most of us, because we realize there are many different ways to get from Point A to Point Vacation, and some are cheaper than others. But it also means that most people will not necessarily be running for the exits in a way we might think.

Owning a timeshare is a commitment that comes with obligations. There are times when it costs more to own than rent, sometimes a lot more. That's true of basically any bronze and most silver weeks and a number of Gold weeks as well. Costs ongoing are related to the cost of management and upkeep whether the timeshare is usable for a given year or not like Covid, Hurricanes or Maui Fires. If we make good choices it should save us money over time but for most it doesn't.

 

[dannybaker]

Just heard this today.

Inflation some time takes a year or two to catch up and I’ve noticed prices everywhere seem to be going up. Rents and mortgages are at an all time high. Cars are outrageous and don’t seem to be going down. So I’m not surprised that timeshare maintenance fees are going up. We own several Marriott units in Florida and insurance and energy prices are blasting off.

 

[Bucky]

Inflation some time takes a year or two to catch up and I’ve noticed prices everywhere seem to be going up. Rents and mortgages are at an all time high.……

LOL. Not even close. We bought a home in CA in the early 80’s and paid 10.5% and thought nothing of it. Mortgage rates topped out at over 18% during that time frame.

My personal feelings are that any increases this year will be because of inflation and more mportantly because of the high cost of insurance. I know for a fact many many people have been hit hard by insurance increases. We own a townhouse in Myrtle Beach and got hit with a $700 special assessment to cover the insurance renewal fee that wasn’t planned for in the budget. Our increase was actually one of the low ones I’ve read about. I imagine the FL timeshares will take a heavy hit also.

 

[dougp26364]

LOL. Not even close. We bought a home in CA in the early 80’s and paid 10.5% and thought nothing of it. Mortgage rates topped out at over 18% during that time frame.

My personal feelings are that any increases this year will be because of inflation and more mportantly because of the high cost of insurance. I know for a fact many many people have been hit hard by insurance increases. We own a townhouse in Myrtle Beach and got hit with a $700 special assessment to cover the insurance renewal fee that wasn’t planned for in the budget. Our increase was actually one of the low ones I’ve read about. I imagine the FL timeshares will take a heavy hit also.

I recall those days in the 80’s. The smart people invested heavily in long term CD’s and collected interest rates between 12 and 15% for upwards of 5 years after the rates came back down. A few I knew mistakenly retired early, thinking the rates would stay that high forever and they could virtually live off the interest.

The sad part is we’ve seen this show before. In the late 70’s early 80’s it was considered an anomaly that would never be repeated. If you don’t learn from history, you’re bound to repeat it. Perhaps this time around I’m better positioned to take advantage of the situation.

 

[JIMinNC]

LOL. Not even close. We bought a home in CA in the early 80’s and paid 10.5% and thought nothing of it. Mortgage rates topped out at over 18% during that time frame.

My personal feelings are that any increases this year will be because of inflation and more mportantly because of the high cost of insurance. I know for a fact many many people have been hit hard by insurance increases. We own a townhouse in Myrtle Beach and got hit with a $700 special assessment to cover the insurance renewal fee that wasn’t planned for in the budget. Our increase was actually one of the low ones I’ve read about. I imagine the FL timeshares will take a heavy hit also.

We own a 2BR condo in an oceanfront complex on Hilton Head Island in Palmetto Dunes. The cost of the HOA common insurance policy on the buildings more than doubled year over year. Our share of the insurance assessment for 2022 was $2000. This year it was $4200. Our friends who live full time in Indigo Run are paying over $15,000 this year for property insurance on their home.