Diamond Resorts - resale values ?

[JRS]

I guess this is directed to folks that have been with DRI for awhile. A recent thread which I responded to was authored by someone who thought they were doing a good job, however everyone agrees that the m/f reflect the renovations - which arent cheap. Others have likened it to Marriott in quality. My question is this - looking at it from a financial perspective - would it then be reasonable to expect an owner's investment (resale price) to be similar to a Marriott property ? Examples would be good ......

 

[ctscribe]

Probably trying to help finance Blue Green Resort Buyout /Takeover.


Dave

 

[Bill4728]

I'm not a DRI owner but

Everthing I've read has said DRI is doing a good job managing their resorts. (So I'm not sure why your commenting about the MFs?)

BUT everthing I've read is also saying that DRI is doing everthing possible to make resales of weeks or points at thier resorts as unattractive as possible ( which has driven down the price owners are getting when they sell or try to sell)

They are doing this by selling two products to their owners.
One, a deeded week at one of their resorts ( or points in a trust of several of their resorts)
two, membership in their "Club" which allows members to use their points at all the DRI resorts.

BUT if you buy resale you can only sell the week you own ( or points in the trust) YOU CAN'T SELL THE "CLUB" MEMBERSHIP!

Therefore resell DRI week or points are selling for a 90% (or more) discount off the developer prices.

 

[JoeMid]

I guess this is directed to folks that have been with DRI for awhile. A recent thread which I responded to was authored by someone who thought they were doing a good job, however everyone agrees that the m/f reflect the renovations - which arent cheap. Others have likened it to Marriott in quality. My question is this - looking at it from a financial perspective - would it then be reasonable to expect an owner's investment (resale price) to be similar to a Marriott property ? Examples would be good ......

No. DRI is doing everything in their power to drive the price of resale down by making resale re-entry into THE Club as nebulous and difficult as possible. They are actively buying up all cheap resales and converting the weeks to points in THE Club and selling them like new, same with points they buy in the Trust. TS4Ms has lots of discussion on this.

 

[dougp26364]

Resale values have not improved and probably will not improve.

Marriott exercises right of first refusal on their contracts. Sunterra did not build that into their sales contracts. In order for someone to actually buy a resale week at Marriott, they must pay more than the developer is willing to pay to buy it back. Therefore the bids and offers for Marriott weeks are higher.

I've owned with DRI for 10 years. DRI is not, has not and is not attempting to achieve Marriott standards at all of it's resorts.

Presently DRI offers a buy back program for some of their resorts. I've contacted them and decided that enough is enough and have agreed to sell my units back to the developer. It's not the MF's alone. It's that they've achieved or exceeded Marriott and Hilton without their resorts being of either Marriott or Hilton quality. Their track record over the past 10 years indicates to me that this is not likely to happen in the future. Improvements have been made to soft goods and to furnishings and kitchen appliance (as least in the deluxe units) but, the developer has a track record of not improving the overall resort (amenities) for me to ignore and mismanaging MF's so as to have to charge owners SA's to bring a resort back up to standards.

Basically, if I'm going to pay Marriott like MF's, I'm going to own Marriott quality and have Marriott resale values. I'm not convinced that DRI will provide this in the future.

 

[winger]

..Basically, if I'm going to pay Marriott like MF's, I'm going to own Marriott quality and have Marriott resale values. I'm not convinced that DRI will provide this in the future.

I wonder if DRI's priority is expansion then improvement on existing resorts. You can only do so much with one pt of money. Then later as the resort size reaches a certain size which DRI feels is 'sufficient', then they refocus $$$ into upgrading resorts (soft and hard good, ammenities, etc.) ???

 

[JoeMid]

I've owned with DRI for 10 years. DRI is not, has not and is not attempting to achieve Marriott standards at all of it's resorts.

You seem to harp on this I've been a DRI owner for 10 years when for 8.5 of those years DRI consisted of Polo Towers. I really don't see how you can say that DRI is not attempting to achieve Marriott standards at all of it's resorts unless you say that based on an example of one resort BEFORE they were trying to establish their worldwide 'brand.'

 

[krmlaw]

I bought at Polynesian Isles in 2007 for only $400 on Ebay. My MF have gone down since then. I bought a 2 bedroom over 4th of July week. So I got me reasale very cheap.

 

[winger]

You seem to harp on this I've been a DRI owner for 10 years when for 8.5 of those years DRI consisted of Polo Towers. I really don't see how you can say that DRI is not attempting to achieve Marriott standards at all of it's resorts unless you say that based on an example of one resort BEFORE they were trying to establish their worldwide 'brand.'

But don't forget, Polo Towers is DRI's CEO's home resort, his family's baby, the original deal (let's not even consider Jockey Club, please). Any reasonable person would believe one would take very good care of his 'own' resort first, it's like family. Using how how the Polo has been run could be indicative of how the new CEO would run the new DRI.

Again, there is no guarantee past performance guarantees future performance.

 

[winger]

I bought at Polynesian Isles in 2007 for only $400 on Ebay. My MF have gone down since then. I bought a 2 bedroom over 4th of July week. So I got me reasale very cheap.

what's your MF gone from (to what) ? and what part of the MF is to replenish the reserve fund?

 

[krmlaw]

Just got a letter, we were over $800. Now we are in the low $700s, $721 for 2009 I think. Not sure about your other question ...

 

[logansmommy]

No. DRI is doing everything in their power to drive the price of resale down by making resale re-entry into THE Club as nebulous and difficult as possible. They are actively buying up all cheap resales and converting the weeks to points in THE Club and selling them like new, same with points they buy in the Trust. TS4Ms has lots of discussion on this.

Hi, I am a complete newbie here and am trying desperately to sell the timeshare at Polo Towers we inheirted (along with the loan) when my MIL passed away 2 years ago. You say DR is actively buying up cheap reales- do you know how/where they are doing this? We are just looking to make what is left on the loan or close to it, but had been told when we called 2 years ago they don't rebuy. We have since listed it on ebay and craisglist and even got suckered into paying $600-$700 to twoo stes that resell with no luck.

Any advice is appreciated-

Anne

 

[Bill4728]

Presently DRI offers a buy back program for some of their resorts. I've contacted them and decided that enough is enough and have agreed to sell my units back to the developer.

Hi, I am a complete newbie here and am trying desperately to sell the timeshare at Polo Towers we inheirted (along with the loan) when my MIL passed away 2 years ago. You say DR is actively buying up cheap reales- do you know how/where they are doing this? We are just looking to make what is left on the loan or close to it, but had been told when we called 2 years ago they don't rebuy. We have since listed it on ebay and craisglist and even got suckered into paying $600-$700 to twoo stes that resell with no luck.

Any advice is appreciated-

Anne

Have you contacted DRI recently?? As you can see in Doug's quote, DRI is now buying back some weeks at a couple of their resorts.

Second, Read the How to sell your TS thread at the top of the Buying and selling board. LINK

Lastly, Welcome to TUG hope that you find advise that will be helpful to you.