HRA Phase II 2025 PROPOSED Budget

[DanCali]

Not final yet, so I didn't post in the MF thread. Will probably just get rubber stamped...

This is insanity. Club dues excluded, the (proposed) total dues (MF + Vat + Atlantis fees) on the bottom line are about 19% higher than 2024 (which were 17% higher than 2023). This is probably in the range of Ritz Carlton Club fees.

(For what it's worth, the actual MF line, excluding VAT and Atlantis fees are about 23% higher).

This resort always had relatively high MFs, but the relatively nice thing about it was that the annual (percentage) increases were among the lowest in the system - in the range of 2.5% annualized over a period of 8-10 years. Right until MVCI took things over... then it all went nuts.


View attachment 101619

Just posted the actual fees billed in the MF thread.

Looks like the actual increase for the 2BR Deluxe Phase II came in at 8.27%.

Attached 2024 and 2025 Budgets. Bad debt expense went from $0.66 million to $1.68 million, which accounted for about a $95 increase for my unit of the $219 total increase. The rest in the increases totaled $124.

Looks like the main cut relative to the proposed budget was in the reserve fee for the condo association ($3.8 million vs $6.4 million proposed). I guess it's a relief for owners today and possibly kicking the can down the road...

 

[Negma]

We have a 3 bedroom every other year. Here are the last ten years of MFs including what we owe this year.

1,519.14
1,642.58
1,617.84
1,632.42
1,729.24
1,729.24
1,593.54
1,829.72
1,980.70
2,333.90
2,535.93

 

[tschwa2]

Unfortunately, my guess is next year the defaults will more than double again. I see a lot of people on the forums saying that they plan on walking away this year. I see a bunch of verified listings on Redweek for less than the MF's which probably means Staroption rentals (which are against the rules) but Redweek is choosing not to enforce the rules. I see verified listings that are $500 and even $1000 less than MF's. I guess they could be Abound reservations, but I think Abound is still not allowed to rent the Vistana/Westin reservations. Because of the defaults there are enough excess inventory that Vistana is depositing summer and shoulder season reservations, in addition to off season reservations, that never would have been deposited in the past which disincentives ownership with the current level of MF's when one can stay for so much less than owner MF's.

 

[ocdb8r]

Yeah, this feels like a quickly accelerating death spiral. So sad to see at such an in demmand and "premier" resort with a lot to offer.

What is "Deficit Recovery" in the budget line items? There are separate line items for bad debt and collections...I can't think of what Deficit Recovery could be.

Also, what does the Master Declaration line item include?

 

[Hindsite]

I guess they could be Abound reservations, but I think Abound is still not allowed to rent the Vistana/Westin reservations.

I've not seen anything to specifically say Abound club points reservations for Sheraton and Westin can't be rented out.

 

[dioxide45]

Yeah, this feels like a quickly accelerating death spiral. So sad to see at such an in demmand and "premier" resort with a lot to offer.

What is "Deficit Recovery" in the budget line items? There are separate line items for bad debt and collections...I can't think of what Deficit Recovery could be.

Also, what does the Master Declaration line item include?

Deficit Recovery is to recover from the resort operating over budget in the prior year. So they ran at a deficit in 2024. Didn’t collect enough in maintenance fees to cover operations. They likely took a loan from the management company to cover those losses and now have to pay it back through the Deficit Recovery.

 

[dioxide45]

I've not seen anything to specifically say Abound club points reservations for Sheraton and Westin can't be rented out.

The policy is actually about all Abound Club Point reservations. Technically rentals are not permitted. Especially when done commercially. Whatever that means. They just don’t enforce the policy.

 

[ocdb8r]

Deficit Recovery is to recover from the resort operating over budget in the prior year. So they ran at a deficit in 2024. Didn’t collect enough in maintenance fees to cover operations. They likely took a loan from the management company to cover those losses and now have to pay it back through the Deficit Recovery.

I wonder what drove the deficit? If true one-off's (or properly accounting for in the revised budget), theoretically that could come out for the 2026 budget and help a bit. However, I fear it's likely the deficit was due to higher than budgeted bad debt (which is likely to happen again if more people walk away). Very frustrating to be an owner here.