Good sales offer to help increase ownership status

[bazzap]

So how do you interpret this Bazz? We either get it renewed and carry on as before or any proceeds get divided up, meaning they sell the resort? Can't see them doing this as its popular.

Well, the other reference I found was that
the property goes to the land owner and if the lease is renewed then the usage of the weeks for the owners will still continue
So reading between the lines, I believe the most likely scenario is that the lease would be renewed and the RTU expiration would be extended.
It would be good though to have an official, legal confirmation that this option is a valid one.

 

[DanCali]

Well, the other reference I found was that
the property goes to the land owner and if the lease is renewed then the usage of the weeks for the owners will still continue
So reading between the lines, I believe the most likely scenario is that the lease would be renewed and the RTU expiration would be extended.
It would be good though to have an official, legal confirmation that this option is a valid one.

Does it even matter? The reality is that most weeks at this resort, with the exception of Platinum weeks and perhaps some 3BR Gold weeks (esp seafront), already have resale values between $0-$2500 (asking prices at: https://fabtimeshare.com/marriott-vacation-club-resorts/playa-andaluza/) and a sale would net the seller even less. For Gold weeks that's already 60%-80% less than the purchase price, so, if they are worth zero in 30 years, should we care? It's not like it's any different with Trust points... even if you buy them resale you lose 50% because of the $3/point "nuisance fee," which has tripled in the past 12 years and may or may not go up some more in the next 30.

People on this forum are relatively informed buyers and would make a purchase like this because they want to add points for a variety of reasons and this alternative option offers the equivalent of the points product at lower upfront costs, lower maintenance fees, and may allow the enrollment of other resale weeks for certain purchase amounts. The fact that it might expire in 30 years is neither here nor there to me, especially because the alternative points product is would likely also be worthless in 30 years anyway and would most likely be a greater liability to my heirs.

I'm not saying it's not important to understand, but I don't think it should really affect the decision to purchase. If you are considering adding points, this is likely one of the better alternatives, IMO. Not necessarily this particular deal, but a Spain week (personally, I would go with a more expensive one, but better point/MF ratio) vs. resale points in general.

 

[CPNY]

@travelhacker what do you think?

 

[travelhacker]

@travelhacker what do you think?

Lol. I already PMd for the info. I’m going to reach out.

 

[CPNY]

L

Lol. I already PMd for the info. I’m going to reach out.

et me know what you uncover

 

[bazzap]

Does it even matter? The reality is that most weeks at this resort, with the exception of Platinum weeks and perhaps some 3BR Gold weeks (esp seafront), already have resale values between $0-$2500 (asking prices at: https://fabtimeshare.com/marriott-vacation-club-resorts/playa-andaluza/) and a sale would net the seller even less. For Gold weeks that's already 60%-80% less than the purchase price, so, if they are worth zero in 30 years, should we care? It's not like it's any different with Trust points... even if you buy them resale you lose 50% because of the $3/point "nuisance fee," which has tripled in the past 12 years and may or may not go up some more in the next 30.

People on this forum are relatively informed buyers and would make a purchase like this because they want to add points for a variety of reasons and this alternative option offers the equivalent of the points product at lower upfront costs, lower maintenance fees, and may allow the enrollment of other resale weeks for certain purchase amounts. The fact that it might expire in 30 years is neither here nor there to me, especially because the alternative points product is would likely also be worthless in 30 years anyway and would most likely be a greater liability to my heirs.

I'm not saying it's not important to understand, but I don't think it should really affect the decision to purchase. If you are considering adding points, this is likely one of the better alternatives, IMO. Not necessarily this particular deal, but a Spain week (personally, I would go with a more expensive one, but better point/MF ratio) vs. resale points in general.

It doesn’t really matter from a financial perspective, this is essentially just for understanding as you say.
What may matter to many is that ownership / usage will probably continue beyond the current 2052 RTU expiration date.

 

[Venter]

When we bought at Mallorca in 2004 we were told once the RTU was up it would be put up for a vote by owners to choose to carry on or terminate. If the decision was termination the resort would be sold and after liabilities was taken care of whatever was left would be divided equally per week owned. I remember reading similar verbage when I checked the documentation.

 

[bazzap]

When we bought at Mallorca in 2004 we were told once the RTU was up it would be put up for a vote by owners to choose to carry on or terminate. If the decision was termination the resort would be sold and after liabilities was taken care of whatever was left would be divided equally per week owned. I remember reading similar verbage when I checked the documentation.

We also bought in Mallorca around that time.
I would be surprised though if any decision on what happens post 2052 is just down to us as RTU owners.
As I understand it, the Son Antem land and property is owned by María José Hidalgo and Sandro Cristoforetti and they would need to agree an extension of the lease before we or MVC can make any decisions ourselves?

 

[Venter]

We also bought in Mallorca around that time.
I would be surprised though if any decision on what happens post 2052 is just down to us as RTU owners.
As I understand it, the Son Antem land and property is owned by María José Hidalgo and Sandro Cristoforetti and they would need to agree an extension of the lease before we or MVC can make any decisions ourselves?

You are correct. I was driving so did not want to take too much time with the reply. What I meant is that the assets will be sold once termination agreement has been agreed between all parties. I guess there is many permutations even including that with the landowners' agreement, Marriott sells the right to use to another entity with assets etc. However, I never really made this a reason or even considered the implications because I suspect Marriott will serve its own interest when the time comes and we will just have to make the best of whatever the outcome may be.

 

[bazzap]

You are correct. I was driving so did not want to take too much time with the reply. What I meant is that the assets will be sold once termination agreement has been agreed between all parties. I guess there is many permutations even including that with the landowners' agreement, Marriott sells the right to use to another entity with assets etc. However, I never really made this a reason or even considered the implications because I suspect Marriott will serve its own interest when the time comes and we will just have to make the best of whatever the outcome may be.

Yes and for us it would be good to believe that we would be in the land of the living and still enjoying our vacations come 2052 anyway.

 

[Dean]

I checked the HOPA for our Playa Andaluza RTU ownership and if I understand all the "legalese" correctly then at the end of term either
- after discharging any liabilities and management charges, the net proceeds of sale are distributed to existing holiday owners in good standing
or
- the plan is renewed along with the RTU ownership for existing holiday owners in good standing

I would not count on any proceeds at the end point.

 

[bazzap]

I would not count on any proceeds at the end point.

I wouldn’t, I might more realistically expect an RTU extension.

 

[TravelTime]

They may have some reasonably priced weeks to buy at 1 week at a time. Earlier this year, they offered me a silver week with a little 900 annualized points at Majorca for around $6900. They offered me a gold week at about 2200 annual points at Marbella for $14,000. It included getting one week enrolled although the week they offered to enroll was a mandatory Vistana week which we all know turned out to have free enrollment. Maybe they have better deals than that right now for 1-2 weeks and enrolling another week due to the promotion.

This deal is incredible though at
4 weeks in Playa Andaluza
Gold season
Price - 26.000€/26.000$/22.000GBP
First year use 2024
9600 points annually

However, that deal does increase MFs a lot per year.

 

[AlmostRetired]

. The rental market is pretty hot this year but if 2023 is not very strong,

Please explain the comment for 2023. What data are you using to base the comment on? I normally do not start seeing bites for my HHI week rentals until January. This year, 2 of 4 are gone within a week of posting on Redweek, at a10% above what I listed on 2022.

 

[timsi]

Please explain the comment for 2023. What data are you using to base the comment on? I normally do not start seeing bites for my HHI week rentals until January. This year, 2 of 4 are gone within a week of posting on Redweek, at a10% above what I listed on 2022.

Did you rent those recently or earlier this year?

 

[goodbadugly]

Just had a good offer, I would be interested if I was trying to get to Presidential or Chairmans but as already there I don't need more weeks.

4 weeks in Playa Andaluza
Gold season
Price - 26.000€/26.000$/22.000GBP
First year use 2024
9600 points annually
Gift 3000 DP

If interests anyone else then drop me a PM and will pass on the contact details for my rep.

Isn't it great how MVC continues to devalue earlier owners? Instead of adding value to add new owners they just lower the price. We all know where that ends up!

 

[DanCali]

Isn't it great how MVC continues to devalue earlier owners? Instead of adding value to add new owners they just lower the price. We all know where that ends up!

This actually devalues and shortsells their own points product. We think in terms of resale, but if you can buy the equivalent of points for $2.7 (this example), or $4, or even $8 (like an offer we got that involved resale weeks enrollment as well, thus reducing the cost per point), why would you ever buy for $15+? Especially if the MFs are also much lower.

It's one thing to compete with resale products, which they can make more expensive with "junk fees" - but here they are literally offering savvy owners a much more viable option.

 

[timsi]

In Europe they have a 15 day cool off period so I assume it is much harder for Marriott to sell than in the US. I am not surprised they have to give much better deals there.

 

[Gemini Chica]

In Europe they have a 15 day cool off period so I assume it is much harder for Marriott to sell than in the US. I am not surprised they have to give much better deals there.

Yes and many people take advantage of this!

 

[AlmostRetired]

Did you rent those recently or earlier this year?

The rentals were signed in the last 40 days. I will see what happens with the two remaining weeks. the price on those two weeks are about 10% higher. Specific to HHI, I think there might be an impact on how many times families eat out, but not on rental prices. Maybe wishful thinking.

 

[timsi]

The rentals were signed in the last 40 days. I will see what happens with the two remaining weeks. the price on those two weeks are about 10% higher. Specific to HHI, I think there might be an impact on how many times families eat out, but not on rental prices. Maybe wishful thinking.

I reread my comment. I said that the rental market may not be as strong if the economy slows down. We will see. The revenge travel will probably be over in 2023 and specifically to timeshares, the points banked during Covid should be used by then so I suspect there will be more inventory available.

 

[Steve Fatula]

that’s a fantastic deal. the salesperson on Satursay said I’d never find anything less than $8 a point now in a bundle. This isn’t even a bundle and it’s still less than $3 a point.

Yeah, agreed. It crushed my just over $4/pt deal a few years back at Playa. Here and there, they seem to have some killer deals in Spain for some reason, esp considering it's direct from Marriott.

 

[DanCali]

Yeah, agreed. It crushed my just over $4/pt deal a few years back at Playa. Here and there, they seem to have some killer deals in Spain for some reason, esp considering it's direct from Marriott.

Cost per point really shouldn't be the only metric. Your deal at Playa is probably much better than $0.55 MF/point. And that's an ongoing cost which to me is a lot more important if I plan to keep the purchase for 15-20 years.

Our week + resale enrollment deal also came out at about $4.3/point, but the MFs are around $0.35/point... I'd take that deal again anyday vs this offer at $2.7/point with the MFs that are over 50% more expensive. It may take 8-10 years to break even compared to the lower upfront cost, but it hurts a lot less every year.

 

[Steve Fatula]

Cost per point really shouldn't be the only metric. Y

Of course, it's only one part. Agreed. The total package is what matters. If one paid $8 per point though, it might have low MF but may still not be a good deal either. It all just depends on all the numbers.

 

[goodbadugly]

This actually devalues and shortsells their own points product. We think in terms of resale, but if you can buy the equivalent of points for $2.7 (this example), or $4, or even $8 (like an offer we got that involved resale weeks enrollment as well, thus reducing the cost per point), why would you ever buy for $15+? Especially if the MFs are also much lower.

It's one thing to compete with resale products, which they can make more expensive with "junk fees" - but here they are literally offering savvy owners a much more viable option.

They have realized they don't make much money on the selling of points. The real money is in maintenance fees and over charging for third party cruises and tours. For example Collette Tours cost 40% more if you use your MVC points than if you buy directly from Collette.