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HOTEL OWNER Will Reflag or Sell 122 Marriott Int'l Properties / Kauai Beach Club Timeshare Co-Location Affected? [MERGED]

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Mowogo

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Kauai Beach Club has an MVCI timeshare section as well as a Marriott hotel section. Kauai Lagoons is its own separate entity, fully MVCI timeshare and unrelated.

I imagine the MVCI timeshare piece of Kauai Beach Club will remain (as it is owned by the owners) but the Marriott hotel portion would not.

The rub is that that are on the same resort campus and I believe share some of the costs associated to the amenities on-site under an umbrella “Marriott” name. Question I think is whether that will change?
I would say it all depends on how long the shared amenities contracts last, and when they expire how much renewal costs.
 

Mowogo

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The cleanest option would be for Marriott Vacations Worldwide to just offer to buy the remaining hotel tower from SPT and convert those to timeshare interests that would just be deeded over to the DC Trust. But given the current economic environment, that might be hard to justify the capital outlay.
Given the current economic environment around travel, I could see a lot of prime resort hotels going toward timeshare conversion since demand for hotels may be slow to recover. There is a market as sales presentations are ongoing, and I could see quite a few resort owners deciding that with a delayed recovery they might be better off turning towers in sprawling resorts into timeshares now to get money coming in. Especially if they did it as a management contract/partnership which is the trend for new HGVC developments.
 

T_R_Oglodyte

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It seems to me that one key issue will be how the common area expenses are allocated between the Marriott timeshare portion of the property and the hotel operation.

Till now, Marriott has essentially sat on both sides of the table in setting the procedures for that allocation. Going forward that could be more adversarial.
 

TheTimeTraveler

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Given the current economic environment around travel, I could see a lot of prime resort hotels going toward timeshare conversion since demand for hotels may be slow to recover. There is a market as sales presentations are ongoing, and I could see quite a few resort owners deciding that with a delayed recovery they might be better off turning towers in sprawling resorts into timeshares now to get money coming in. Especially if they did it as a management contract/partnership which is the trend for new HGVC developments.


It's a good idea, however with the huge marketing costs and the time delays for converting such a project it doesn't make a lot of sense. By the time they are ready to roll out a property as a timeshare the travel surge has returned and the demand for hotel space has resumed.

I think 2022 may be the year that things finally return to normalcy.



.
 

Mowogo

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It's a good idea, however with the huge marketing costs and the time delays for doing such a project it doesn't make a lot of sense. By the time they are ready to roll out a property as a timeshare the travel surge has returned and the demand for hotel space has resumed.

I think 2022 may be the year that things finally return to normalcy.



.
In Hawaii, there is talk that it won’t be until 2024-2025 that travel fully recovers. For Mega resorts, this is an opportunity to right size their inventory. And in many cases renovations were needed anyway.
 

dioxide45

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It seems to me that one key issue will be how the common area expenses are allocated between the Marriott timeshare portion of the property and the hotel operation.

Till now, Marriott has essentially sat on both sides of the table in setting the procedures for that allocation. Going forward that could be more adversarial.
The thing is though, Marriott didn't sit at both sides. The hotels have long been owned by another outside owner. The issue in Kauai, is who owns what. Shared amenities may be owned by both parties. What is the split and how do they allocated expenses. If they have shared ownership, I suspect expenses are allocated based on percentage of ownership or percentage of units owned at the property by each entity.
 

T_R_Oglodyte

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The thing is though, Marriott didn't sit at both sides. The hotels have long been owned by another outside owner. The issue in Kauai, is who owns what. Shared amenities may be owned by both parties. What is the split and how do they allocated expenses. If they have shared ownership, I suspect expenses are allocated based on percentage of ownership or percentage of units owned at the property by each entity.
Yeah - I guess that's so.

I remember in 1999, our first trip to Kauai, when we stayed in the hotel operation on a special promotion. When we were there we were invited on a timeshare tour, with about $150 in resort credits for attending. We did, we were sold on timeshare, and we bought two one-bedroom units. Later we learned there were other timeshares on the island, as well as the existence of the resale market, We did some investigating, decided that what was then the Embassy Resort (now Point at Poipu) was a better fit for us, so we rescinded our Marriott purchase, and began looking for an Embassy resale.

As we were looking around, I was looking at annual fees. and it struck me that given the grounds, landscaping, and facilities, the annual fees at the Marriott ought be greater than they were. So I dug into the financial statements we had been given, and confirmed what I suspected - Marriott was subsidizing the fees. As I recall it was about $300 (total annual fees at that time were about $1000). I figured that was going to go away when sales were completed. Which was another reason to rescind our purchase. And the subsidy did end a year or two later, when sales were complete, and owners got a nasty bump in annual fees.
 

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Received an email from our appointed owners representative, the President of the KBC Owners Association, late last week. Buried deep within this email was the first "official" advice we personally have received from anyone vaguely associated with MVCI that the hotel section of the property had been rebranded. MVCI's silence has been deafening for almost 3 months. All very well, Marriott Hotel's default shouldn't affect the ownership and occupancy rights of our Beach Club timeshare villas, however, the President's email did say "talks are presently taking place with Sonesta and MVC to ensure that the services you are accustomed to will continue to carry on into the future". Almost 3 months down the line from default and subsequent termination, this speaks volumes regarding the question of service and facilities available to owners in the future and bearing in mind that the land owner and its 34% owned Sonesta Hotels don't owe us a cent in consideration (in fact I would imagine MVCI is negotiating from a position of disadvantage given the circumstances), I wonder how we as owners will fare in the immediate future and the long term in regards to the use of the facilities we take for granted and importantly the facilities that attracted us to the property in the first place. We will wait to see. Another point, maintenance fees are due this month, I wonder how folks that don't or can't pay will go, will they be able to just ignore written demands, default and walk away from their financial obligations without consequence, I somehow doubt it........(as seen, if you don't pay your "rent", the landlord will evict!).
 

dioxide45

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Received an email from our appointed owners representative, the President of the KBC Owners Association, late last week. Buried deep within this email was the first "official" advice we personally have received from anyone vaguely associated with MVCI that the hotel section of the property had been rebranded. MVCI's silence has been deafening for almost 3 months. All very well, Marriott Hotel's default shouldn't affect the ownership and occupancy rights of our Beach Club timeshare villas, however, the President's email did say "talks are presently taking place with Sonesta and MVC to ensure that the services you are accustomed to will continue to carry on into the future". Almost 3 months down the line from default and subsequent termination, this speaks volumes regarding the question of service and facilities available to owners in the future and bearing in mind that the land owner and its 34% owned Sonesta Hotels don't owe us a cent in consideration (in fact I would imagine MVCI is negotiating from a position of disadvantage given the circumstances), I wonder how we as owners will fare in the immediate future and the long term in regards to the use of the facilities we take for granted and importantly the facilities that attracted us to the property in the first place. We will wait to see. Another point, maintenance fees are due this month, I wonder how folks that don't or can't pay will go, will they be able to just ignore written demands, default and walk away from their financial obligations without consequence, I somehow doubt it........(as seen, if you don't pay your "rent", the landlord will evict!).
There will always be consequences to default. In the case of MVCI properties. Marriott Vacation CLub acts on behalf of the HOA to file a lien against your deed. Then failure to become current will then result in foreclosure. The end results would be the HOA owning the week unless it is sold to someone else at foreclosure sale. In the past, MVC had agreements with many HOAs to take these weeks back from the HOAs, but many of those agreements were suspended at the outset of COVID.
 

Ozziechick

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There will always be consequences to default. In the case of MVCI properties. Marriott Vacation CLub acts on behalf of the HOA to file a lien against your deed. Then failure to become current will then result in foreclosure. The end results would be the HOA owning the week unless it is sold to someone else at foreclosure sale. In the past, MVC had agreements with many HOAs to take these weeks back from the HOAs, but many of those agreements were suspended at the outset of COVID.
Agree with you, there certainly would be consequences to any owner's default. Tongue in cheek I was wondering out loud what the consequences would be to an owner on failure to pay their financial obligations to MVCI vs. Marriott Hotel's failure to pay theirs to the property owner in October 2020. Really not my business or concern. What is though, is that we are being required to pay our maintenance fees this month, which payment includes (amongst other things) the owners share of expenses for the maintenance of the resort facilities/amenities we expect use of and our share of the expenses for the provision of services we expect to receive in 2021 although both don't appear to be guaranteed at this stage. At a meeting some time ago, we were told by an onsite hotel executive and an MVCI representative present that the expense split was something like 47% owners 53% hotel (I'm going from memory on these figures though) and that interestingly the oceanfront towers solely housing MCVI villas (Wai-ale-ale and Kilohana) were independent of the property as far as land/structure ownership goes, meaning that the vacation club owners owned the bricks and mortar, but I am starting to doubt anything we have ever been told over the years and I haven't read through our deeds recently. The problems associated with a co-occupied site....it will be interesting to see how this all plays out especially the results of the "talks" between MVCI and the Sonesta Hotel Group.
 

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Here is a news article from "beat of hawaii". The article said that in addition to all 457 Marriott employees being laid of "The last time Sonesta referred to the property was in an earnings call two months ago. At that point, Sonesta’s president said, “We’ve been doing the design work for the Kauai Marriott, which will transition to Sonesta…We’ll be renovating that hotel in the second half of next year.”
Kauai Marriott Troubles at Quarantine Hotel: 457 Employees Terminated (beatofhawaii.com)
 

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Has a Marriott Kauai timeshare owner been able to exchange a 2021 week for a vacation through Interval with a travel date later than April 30th??
I tried to check an all destinations search thru Interval in the month of June 2021, and the system forced a date limitation to search between January and March 31.
I wonder if it is just my account or if it has something to do with the property changes. If you try an exchange pls post your results here or send a me a PM. Thanks!
 

vacationtime1

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Has a Marriott Kauai timeshare owner been able to exchange a 2021 week for a vacation through Interval with a travel date later than April 30th??
I tried to check an all destinations search thru Interval in the month of June 2021, and the system forced a date limitation to search between January and March 31.
I wonder if it is just my account or if it has something to do with the property changes. If you try an exchange pls post your results here or send a me a PM. Thanks!

I have a KBC week deposited in Interval -- my 2020 reservation that I could not / would not use. The Interval search tool allows me to search through 12/6/22 and recently offered me some December 2021 weeks at MKO which I declined. I haven't seen anything for 2022 yet.
 

TravelAmore

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I have a KBC week deposited in Interval -- my 2020 reservation that I could not / would not use. The Interval search tool allows me to search through 12/6/22 and recently offered me some December 2021 weeks at MKO which I declined. I haven't seen anything for 2022 yet.

Thank you for reporting, Vacationtime1 :)
Since my 2020 reservation was in March, I was only allowed an Interval AC in exchange.
Now I want to exchange my 2021 week for travel elsewhere in May or June 2021. For some reason when I enter search dates for June 2021, I receive a dialog message indicating I must change my search date to one within January-March 31, 2021.


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TheTimeTraveler

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Thank you for reporting, Vacationtime1 :)
Since my 2020 reservation was in March, I was only allowed an Interval AC in exchange.
Now I want to exchange my 2021 week for travel elsewhere in May or June 2021. For some reason when I enter search dates for June 2021, I receive a dialog message indicating I must change my search date to one within January-March 31, 2021.


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I would advise that you telephone Interval International on Monday morning and ask for their explanation......


.
 

judell

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Is the marriott waikoloa changing hands?? I read somewhere they are not renewing their management contract. Is that true? Thanks

[Post moved into this existing thread; duplicate posts in other threads have been deleted.] <-- SueDonJ
 
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dioxide45

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Is the marriott waikoloa changing hands?? I read somewhere they are not renewing their management contract. Is that true? Thanks
YOu may be thinking of the Marriott in Lihue. The Marriott Kauai Beach Club Hotel. It will no longer be a Marriott. There are still timeshare units co-located with the hotel property that will continue to be Marriott Vacation CLub timeshare units.
 

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Hi I am checking in The Marriott timeshare in July, first I was told that the checking was the same. When I called they said they don’t known where the checking is going to be.
I am closing on a week there. Hope I was not wrong to buy at this time.
 

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I have II trade at MKW in July, and II sent me the following email:

Please be advised that due to a change in management, check-in for the Marriott Kaua’i Beach Club will be at the adjacent hotel property – Royal Sonesta Kaua‘i Resort Lihue (formerly known as Kaua’i Marriott Resort).

This is effective March 24, 2021.
 

dioxide45

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I have II trade at MKW in July, and II sent me the following email:

Please be advised that due to a change in management, check-in for the Marriott Kaua’i Beach Club will be at the adjacent hotel property – Royal Sonesta Kaua‘i Resort Lihue (formerly known as Kaua’i Marriott Resort).

This is effective March 24, 2021.
So it sounds like you still check in at the same place as before, it just has a different name. They could instead have people check in at Kalanipu'u (Kauai Lagoons)
 

zentraveler

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I have II trade at MKW in July, and II sent me the following email:

Please be advised that due to a change in management, check-in for the Marriott Kaua’i Beach Club will be at the adjacent hotel property – Royal Sonesta Kaua‘i Resort Lihue (formerly known as Kaua’i Marriott Resort).

This is effective March 24, 2021.

Anyone know why the name/management change?
 

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Thanks; I think I do remember seeing but now re-reading it I realize I didn't know what "On failure to meet 80% termination threshold for cumulative owner’s priority returns" means.
Marriott was required to make payments regardless of hotel income so they defaulted.
But Sonesta has been doing this to a bunch of hotels to convert to their brand, My guess is Marriott figured that the cost to maintain the flag on one wing of the property was not worth it. They have other flagged properties on island. And remember Marriott is not MVCI, so impact to vacation club was probably not even considered.

Looked around and don’t see any changes but property is still pretty empty so hard to tell.
 
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