DRI in the news again regarding their high pressure sales tactics

[Michael1991]

Why Diamond Resorts International Inc.'s Stock Plunged 11% Today

A New York Times article is shining a light on the darker side of Diamond Resorts International Inc.'s business.

http://www.fool.com/investing/gener...d-resorts-international-incs-stock-plung.aspx

 

[RLS50]

I always wonder when I read articles like this...

Does anybody alive anywhere read a story like this and really believe that timeshare companies, and their management who are veterans in the timeshare industry themselves, don't know exactly what happens at a typical timeshare sales presentation?

Isn't it interesting that the guys running the timeshare companies always act like they are shocked and offended by these (incredibly frequent) allegations and deny this is the norm?

Ask any consumer who has been to one or more timeshare presentations themselves what they experienced. Everybody who has been to even one timeshare presentation knows exactly what takes place and the tactics used.

 

[Iggyearl]

Where is all the cash coming from?

Diamond was down today by 17% to $18.41/share. Between 10/1/14 and 12/31/15, they spent $179.5 million buying back stock. Average price of $28.23/share. They also purchased Gold Key Resorts for $167.5 million. (these numbers can be confirmed by Inside the Gate).

Makes me wonder who is actually paying for all this spending. Certainly not the shareholders.........

I believe they have grand plans for themselves and the industry, but any more news of this sort will certainly put a crimp in their style. And Lord have mercy if any of these reporters ever does a undercover timeshare tour...

 

[TUGBrian]

apparently DRI is attempting to stop the bleeding in the market by sending this letter to all shareholders:

http://www.sec.gov/Archives/edgar/data/1566897/000119312516436185/d127988dex991.htm

 

[artringwald]

I bought DRI shares when they first went public. I got bugged with them when they started changing The Club rules, and tried sneaking optional travel insurance into the maintenance billings, so I sold all my shares. The stock was still going up at the time, but I didn't want a part of it anymore. With the negative publicity, the stock price appears to be head back to it's IPO price.

 

[T_R_Oglodyte]

The place just hasn't been the same since Stephen Cloobeck relinquished direct control.

 

[pedro47]

The place just hasn't been the same since Stephen Cloobeck relinquished direct control.

Point well taken. Maybe they need do to an "Undercover Boss" television special with the new CEO as the undercover boss.

 

[Michael1991]

Ask any consumer who has been to one or more timeshare presentations themselves what they experienced. Everybody who has been to even one timeshare presentation knows exactly what takes place and the tactics used.

I definitely understand your point. For sure there are questionable industry wide practices. But there are depths below depths. I regularly read the Facebook groups for Diamond members and for Wyndham members. The quantity of complaints about sales rep's lies and pressure tactics on the Diamond group is far greater than anything on the Wyndham group.

 

[TUGBrian]

while not scientific...when i browse to the resort pages on facebook and see the "reviews"....its literally a different world when looking at the diamonds/wyndhams...and especially westgates (welks too oddly enough)...where its just complaint after complaint regarding the sales tactics.

something you hardly ever see in the marriotts/hiltons/disneys/etc.

 

[pedro47]

while not scientific...when i browse to the resort pages on facebook and see the "reviews"....its literally a different world when looking at the diamonds/wyndhams...and especially westgates (welks too oddly enough)...where its just complaint after complaint regarding the sales tactics.

something you hardly ever see in the marriotts/hiltons/disneys/etc.

Maybe upper management does not review/read facebook and the other social media complaints regarding their sales tactics.

Maybe their stock holder's and wall street should start reading facebook.

 

[TUGBrian]

oh...im under no illusions that anyone who has worked long enough in the timeshare industry to rise to upper management of a Timeshare developer is somehow "unaware" of what happens during sales presentations.

its absolutely ridiculous to argue anything otherwise.

 

[SmithOp]

I have seen so many DRI booths "pop-ups" lately at events I've attended, the county fair, a 5k/10k charity walk, and a concert venue. They hire attractive young women to hand out magnetic swipe cards to "see if you've won a prize". I'm sure everyone "wins" a 4 day/3 night stay with a mandatory presentation. I also get calls every day since I stayed at a DRI resort and had to give them my cell number. Their aggressiveness knows no boundaries IMO.


Sent from my iPad Mini 4 using Tapatalk

 

[Maple_Leaf]

DRI sales weasels lie about failed takeover attempts

Tahoe Beach and Ski Club deeded owners attending DRI sales presentations in Williamsburg, VA were told DRI owns Tahoe Beach and Ski Resort. Owners attending presentations in Hawaii were told the same thing. Owners attending presentations in Tahoe were told the same thing.

In other words, the lies are institutionalized, and sanctioned from the top using industry best practices protocols. DRI would like to take the whole industry down based on their sanctioned protocols which include lies to consumers attending presentations.

DRI sales weasels spread the same lies about Royal Dunes after they failed to get their henchmen on the Royal Dunes board. They spread lies that Royal Dunes was in bad financial shape and due for a huge special assessment.

 

[harveyhaddixfan]

At Beachwoods, with Gold Key, the management fees were 8% of the total budget. The reserves are ridiculously underfunded. This year the first year that DRI took over, they didn't touch the reserves which are $23 per unit regardless of size from 1 br up to 3 br but they did make sure to increase the management fees from 8% to 12.7%

Don't forget the "corporate allocation" of almost $540k. That plus the management fee is about 25% of the budget. And if it wasn't for the "developer subsidy", we'd be at $968 MF up from $710 instead of the $820 they billed this year. Attached is the budget. It's a joke.