CLUB WYNDHAM ACCESS POINTS,,what are they..

[markb53]

On the bright side, this moves unproductive inventory that generates no revenue (or, what rental income the HOA can generate) to an owner willing to pay full MFs. Older resorts don't (and won't) have sales teams to move that inventory in other ways. There are a few resorts that try this---I stayed in a non-Wyndham in Sedona that has resales advertised to guests---but they are few and far between.

I have been offered a foreclosure twice at sale presentations. The first time was at Wyndham Flagstaff. My sales person was the sales manager. She explained to me that Wyndham helped the HOA by taking care of the foreclosure process. After the foreclosure was complete, there was a waiting period because Wyndham didn't want to put foreclosed inventory into the system all at once, they wanted to put it in a little at a time. During this waiting period Wyndham Flagstaff is one of a few Wyndham's that are allowed sell the foreclosed units. Of course as part of a retail purchase. If they don't sell it. and Wyndham is ready to put it into CWA they pay the HOA $1.00 and start picking up the Maintenance fees for that unit.
Probably the best deal I've been offered for a foreclosure at a sales presentation was a Wyndham Ocean Ridge in Edisto Island SC. If I bought the smallest CWA Contract he could sell me, at full price: 29,000 points for $7000.00. He could sell me a 200,000 point foreclosed Ocean Boulevard contract for $10,000. Obviously, not that great a deal compared to some resales I have seen but full rack rate for 229,000 would be a little north of $57,000.

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[JudyS]

Can Club Wyndham Access Points be purchased resale, or only from the developer?

How do MFs per CWA point compare to MFs for other types of Wyndham points?

Thanks in advance!

 

[ronparise]

yes they can be bought and sold on the secondary market

because the maintenance fees are a weighted average of the fees of all the deeds in the trust, the fees are about average. the number is about $5.50/1000 points,

Ive been told by the president of the Trust at one of the annual meetings that they try to manage the maintenance fees by taking in deeds with a lower maintenance fees to balance the deeds they get that have higher fees. So the story that Mark was told about waiting to put foreclosures into the trust makes sense.

 

[vacationhopeful]

.....I've been told by the president of the Trust at one of the annual meetings that they try to manage the maintenance fees by taking in deeds with a lower maintenance fees to balance the deeds they get that have higher fees. So the story that Mark was told about waiting to put foreclosures into the trust makes sense.

And I have been told Wyndham requests the Fixed Weeks when the inventory of units/weeks being sold is LOW in the CWA trust ... a "Just In Time" needed supply of inventory ... balancing out the points SOLD and the point HELD by the trust.

And as foreclosed points (CWA) and "returned" points (Ovations or traded in points) rise, Wyndham is NOT decreasing the units HELD by the individual HOAs. HOAs are NOT allowed to sell them in a secondary "direct" market. Converted F/W points revert to the underlying week ... first with the HOA then having to foreclose.

Also, as MORE new resorts come online - CWA wants THOSE deeds added to the trust as they are selling also the "newest" locations. Wyndham management wants to "proclaim" the resort selling well in the stockholder's reports and MARKETING reports .. they just might NOT be explaining to CWA verses the general public.

And NOT continuing to SELL CWP points at the resorts ... keeps the resorts with a "trapped" customer base.

Another open option with CWA (the vacation club) ... they could sell THAT whole entity to an outside company. So CWA could get rebranded as "China World's Adventures" .. just a name change with a copy of the "split" reservation system. And they could start selling the onsite management of resorts, too. Or CWP vacation club .. China World's Paradise?

 

[markb53]

yes they can be bought and sold on the secondary market

because the maintenance fees are a weighted average of the fees of all the deeds in the trust, the fees are about average. the number is about $5.50/1000 points,

Ive been told by the president of the Trust at one of the annual meetings that they try to manage the maintenance fees by taking in deeds with a lower maintenance fees to balance the deeds they get that have higher fees. So the story that Mark was told about waiting to put foreclosures into the trust makes sense.

That is exactly what the sales manager told me at Flagstaff. The foreclosure I was being offered (with an addition retail purchase with a Wyndham Sedona home resort) was a Flagstaff summer converted fixed week with quite low maintenance fee. She said that the way Wyndham keeps the CWA maintenance fee at a lower, is to sit on especially low MF contracts until the trust needs the units. She said the agreement with the trust specifies the ratio between number of CWA points sold and and amount of CWA inventory in existence. This way Wyndham can play the just in time inventory game. And when the trust ratio gets out of whack they can bundle up a few foreclosures with varying maintenance fee and drop them into CWA as needed. Thus also keeping the average MF in the trust at an good level. Which is good for the trust but it is also good for Wyndham sales. It's just not so good for the HOA who is stuck with foreclosed inventory waiting for Wyndham to put it in the trust and start paying its share on the Maintenance Fee.


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[ronparise]

And I have been told Wyndham requests the Fixed Weeks when the inventory of units/weeks being sold is LOW in the CWA trust ... a "Just In Time" needed supply of inventory ... balancing out the points SOLD and the point HELD by the trust.

And as foreclosed points (CWA) and "returned" points (Ovations or traded in points) rise, Wyndham is NOT decreasing the units HELD by the individual HOAs. HOAs are NOT allowed to sell them in a secondary "direct" market. Converted F/W points revert to the underlying week ... first with the HOA then having to foreclose.

Also, as MORE new resorts come online - CWA wants THOSE deeds added to the trust as they are selling also the "newest" locations. Wyndham management wants to "proclaim" the resort selling well in the stockholder's reports and MARKETING reports .. they just might NOT be explaining to CWA verses the general public.

And NOT continuing to SELL CWP points at the resorts ... keeps the resorts with a "trapped" customer base.

Another open option with CWA (the vacation club) ... they could sell THAT whole entity to an outside company. So CWA could get rebranded as "China World's Adventures" .. just a name change with a copy of the "split" reservation system. And they could start selling the onsite management of resorts, too. Or CWP vacation club .. China World's Paradise?

"Just in time" is the way they bring new resorts into the system. In the old days Wyndham bought the land, and developed the property and built the buildings and then sold the the points> Bonnet Creek is an example. the process ties up a ton of Corporate money until they get everything sold

Now its just in time. An agreement is made with a developer, who buys the land, and builds the project out. Wyndham buys the condos one at a time as the sales force needs them> I think Desert Blue is the first of these projects. The project was started like Bonnet Creek but they closed down construction during the recession. and then it was sold to a developer (Guigenheim) that finished the project. Wyndham is buying it back on a just in time schedule
I think Clearwater is the most recent deal. There the land was bought and the project was conceived by a developer> but construction began, only after the made the Just in time deal with Wyndham. Very little if any Wyndham money will be spent until Wyndham takes possession of the first units, And they wont take the second group until the first is paid for (by the new points buyers)

Im sure they do the same thing with foreclosed units. I know at Avenue Plaza the foreclosed units are put into Worldmark. Just in time. The fixed week owners there suffer the consequences of the unpaid maintenance fees until the hoa "sells" them to Wyndham Those HOA controlled units are rented to owners, and to the general public, until Wyndham takes them for Worldmark (and no doubt CWA)