HRC to acquire Welk Resorts [MERGED]

[Mongoose]

Hi - I'd be interested in reading your other post - what other forum is it in please? Or could you provide a link?
Thanks!

I wonder what will happen to all the small holdings Welk has purchased in other resorts like Arroyo Robel?

 

[Shankilicious]

I wonder what will happen to all the small holdings Welk has purchased in other resorts like Arroyo Robel?

Good question. It's all up in the air now

Sent from my SM-G960U using Tapatalk

 

[dioxide45]

I wonder what will happen to all the small holdings Welk has purchased in other resorts like Arroyo Robel?

If they still own deeded units, nothing really should change. I suspect most of those deeded units are in their trust under the points program. Should be no issue for them to continue to use them for that purpose.

 

[nuwermj]

If they still own deeded units, nothing really should change. I suspect most of those deeded units are in their trust under the points program. Should be no issue for them to continue to use them for that purpose.

I agree. Points against these deeds have been sold. If the new owner divests these resorts, something else will need to replace them so as to cover the points. There is no reason to divest those deeds and incur the cost of replacement.

 

[seagila]

In the other timeshares forum. I made a huge post explaining as much about Welk as possible.
Welk is 99% points. Very few deeded/fixed weeks exist and they've been offering a premium to fixed week owners to convert them to points. MFs are similar so I'm curious/anxious/annoyed at this acquisition.....

Hi - I'd be interested in reading your other post - what other forum is it in please? Or could you provide a link?
Thanks!

I think you're looking for this thread -

Welk / Hyatt / World of Hyatt Information

So I hope this gets stickied as it it darn near all the information there is on Welk Resorts. Desrciption from the Welk website: "Whether you prefer relaxing with a glass of wine on your villa’s private patio or a round of afternoon golf, Welk Resorts offers something for every kind of...

tugbbs.com

 

[RunCat]

I agree. Points against these deeds have been sold. If the new owner divests these resorts, something else will need to replace them so as to cover the points. There is no reason to divest those deeds and incur the cost of replacement.

With the large inventory that is still owned by the developer, I was wondering if these units could be removed from the system via a reduction in inventory. Albeit, I'm not sure what the advantage would be in doing so except to maintain the Hyatt brand. I have stayed in many of those units and they are not comparable to most of the Welk brand so they will likely fall short for Hyatt owners.

 

[Kal]

With the large inventory that is still owned by the developer, I was wondering if these units could be removed from the system via a reduction in inventory. Albeit, I'm not sure what the advantage would be in doing so except to maintain the Hyatt brand. I have stayed in many of those units and they are not comparable to most of the Welk brand so they will likely fall short for Hyatt owners.

Typically with Hyatt, unsold inventory is transferred to the Hyatt Portfolio Program. Each unit would have a point value assigned.

 

[RunCat]

Typically with Hyatt, unsold inventory is transferred to the Hyatt Portfolio Program. Each unit would have a point value assigned.

Thank you for that information. Looking at these resorts specifically, https://thecollection.welkresorts.com, where Welk has limited ownership, I'm not sure if they are a good fit for the Hyatt brand.

 

[Mongoose]

Thank you for that information. Looking at these resorts specifically, https://thecollection.welkresorts.com, where Welk has limited ownership, I'm not sure if they are a good fit for the Hyatt brand.

Its a great option. They could probably be added as some type of affiliate resort. But typically Welk only had a small number of room nights per location. I wouldn't see them being branded Hyatt.

 

[SHG]

You guys seem to be confusing the Welk affiliate resorts with the Welk owned resorts. If you read the acquisition details, it clearly points out that the only resorts included are the ones shown in the link below....

Welk Resorts | Luxury Resorts

 

[dioxide45]

Also, unsold Welk inventory is in their points system trust. No easy way to just move that over to Hyatt.

 

[nuwermj]

You guys seem to be confusing the Welk affiliate resorts with the Welk owned resorts. If you read the acquisition details, it clearly points out that the only resorts included are the ones shown in the link below....

This is not correct. Resorts, per se, were not sold. Welk sold the developer rights, the management contracts, unsold inventory, and their loan portfolio. Maybe some land. But the Welk Platinum Owners Association was not owned by Welk, Inc. and was not sold. This Owner's Association owns the deeds that Welk point members can reserve. The Owners Association does, indeed, own deeds at the "Collection" resorts-- except for the Disney resorts. The three Disney resorts in the Collection are affiliates, the others are full ownership. Although the Owners Association owns these deeds, Welk (now Mariott) does not hold the management contracts nor the developer rights at these resorts. One can find all the details about what is owned in the Public Offering

https://welkresorts-prod.azureedge.net/sites/default/files/2020-02/public-report.pdf

Here is a statement by the HOA of The Cliffs at Princeville, at Kauai, which is an example of one the Collection resorts:

"I am pleased to report that, after much hard work and effort, the bulk sale of the equivalent of 105 every year intervals to the Welk Resort Group was completed in late 2017. In addition to the funds that the CRVOA received from the actual sale of the intervals, this means that we will also receive over $100,000 in additional maintenance fees in 2018 and that we did not receive in 2017. We expect that this will keep us financially stable for many years to come. Special thanks to Rosarie Kelekoma for going above and beyond the call of duty to make this sale a reality. We are excited to have the Welk Resort Group as part of The Cliffs Resort ohana and are all very excited to have them as owners at our resort."

 

[Ernie McClellan]

This is not correct. Resorts, per se, were not sold. Welk sold the developer rights, the management contracts, unsold inventory, and their loan portfolio. Maybe some land. But the Welk Platinum Owners Association was not owned by Welk, Inc. and was not sold. This Owner's Association owns the deeds that Welk point members can reserve. The Owners Association does, indeed, own deeds at the "Collection" resorts-- except for the Disney resorts. The three Disney resorts in the Collection are affiliates, the others are full ownership. Although the Owners Association owns these deeds, Welk (now Mariott) does not hold the management contracts nor the developer rights at these resorts. One can find all the details about what is owned in the Public Offering

https://welkresorts-prod.azureedge.net/sites/default/files/2020-02/public-report.pdf

Here is a statement by the HOA of The Cliffs at Princeville, at Kauai, which is an example of one the Collection resorts:

"I am pleased to report that, after much hard work and effort, the bulk sale of the equivalent of 105 every year intervals to the Welk Resort Group was completed in late 2017. In addition to the funds that the CRVOA received from the actual sale of the intervals, this means that we will also receive over $100,000 in additional maintenance fees in 2018 and that we did not receive in 2017. We expect that this will keep us financially stable for many years to come. Special thanks to Rosarie Kelekoma for going above and beyond the call of duty to make this sale a reality. We are excited to have the Welk Resort Group as part of The Cliffs Resort ohana and are all very excited to have them as owners at our resort."

Thanks for the CA disclosure on Welk. That document does a great job of really laying out the Welk system. Especially the "Collection" resorts. I had no idea Welk actually owned deeded weeks at those resorts.