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Join complaints against Starwood

GeneNWendy

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Owner at WSJ - Interested in knowing about your lawsuit

Hi PhillyDan,

I own 2 weeks at the Westin St. John. In the past two years, maintenance fees have doubled. They are probably going to continue to increase. To make a long story short, it appears that WSJ has purposely not performed maintenance on its units over the last few years in order to justify an upgrade in the units. An upgrade was approved, but not by the 2/3 owner approval as stipulated in the by-laws. The board of directors (3 of which are Starwood employees and 2 who are owners but act as puppets to Starwood) went around the by-laws and administratively approved these upgrades. The bottom line is that many owners are abandoning their units and are being locked out by SVO. Furthermore, those fees are being placed on the remaining owners in good standing. Starwood justifies it in that it operates like a condominium and all owners are liable for the operating costs. At the same time, the Westin rents out those vacant units at low prices for their friends and pocket the money. They won't release any financial data. We want to know where the money is going. Unfortunately, without a class-action suit, we are unable to compel them to release their records.

Perhaps your son could see if there is some sort of class-action suit that involves owners at several resorts collectively. The problem us St. John owners face is that we would have to put up to much money to pay attorneys to constantly travel back and forth the St. John and put them up. However, it seems like Starwood is messing with its owners everywhere!! See what he thinks about this.

Regards,
GeneNWendy
 

skpark701

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Hi PhillyDan,

I own 2 weeks at the Westin St. John. In the past two years, maintenance fees have doubled. They are probably going to continue to increase. To make a long story short, it appears that WSJ has purposely not performed maintenance on its units over the last few years in order to justify an upgrade in the units. An upgrade was approved, but not by the 2/3 owner approval as stipulated in the by-laws. The board of directors (3 of which are Starwood employees and 2 who are owners but act as puppets to Starwood) went around the by-laws and administratively approved these upgrades. The bottom line is that many owners are abandoning their units and are being locked out by SVO. Furthermore, those fees are being placed on the remaining owners in good standing. Starwood justifies it in that it operates like a condominium and all owners are liable for the operating costs. At the same time, the Westin rents out those vacant units at low prices for their friends and pocket the money. They won't release any financial data. We want to know where the money is going. Unfortunately, without a class-action suit, we are unable to compel them to release their records.

Perhaps your son could see if there is some sort of class-action suit that involves owners at several resorts collectively. The problem us St. John owners face is that we would have to put up to much money to pay attorneys to constantly travel back and forth the St. John and put them up. However, it seems like Starwood is messing with its owners everywhere!! See what he thinks about this.

Regards,
GeneNWendy

+1

I own a week at Kaanapali Westin and my maintenance fees have been increased substantially and most likely to increase again... It really is frustrating that SVO has control over my week and among other issues....:shrug:
 

SteveCA

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Summary of Westin Kanapali fee hikes

I've been a owner since 2003 (pre-opening) and here is what has hapened to our fees:

In 2004 the annual maintenance fee was $1050. In six years, the fee has more than doubled to $2349 for 2010, representing an average compounded increase of 14 percent per year (versus CPI increases of 3-4 percent annually). The current fees represent an annual amount, assuming 52 weeks of $122,148 per unit ($2349X52 weeks). Our unit has a total square footage of approximately 1400 square feet.

During the same 6-year period of 12/31/2003 to 12/31/09 the Honolulu CPI increased a total of 26 percent. Had the maintenance fee increased at the rate of CPI, the current maintenance fee would be $1323 per year, which is still excessive considering that this fee is for a one-week ownership.

Starwood blames the huge increases on a variety of “external” factors including utility rates, recent property tax increases, etc.

I don't know if this has happened at other resorts, but if it has, please update this thread.
 

DeniseM

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Hi Steve and welcome to TUG! :hi:

Some of the other Starwood resorts have had increases just as high or even higher, and others have had more modest increases.

I don't know of any class-action law suit that is actually in progress, at this point, but this is certainly the place to discuss it.

Currently, the Maui tax hike is has been challenged by the resort, and the taxes are in escrow, pending a hearing.
 

SteveCA

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I too am not aware of any class action lawsuits at this time but what we can do is gather information on this thread so that there is a central database available.

I am aware of the tax appeal in Maui but the problem of ridiculous maintenance fee increases did not start this year. They have been going on for at least 3-4 years now with hikes at double and triple the rate of local inflation. Previously it was blamed on "energy prices" but if you stop and think about it, there is no way one can use that much energy in the space of one week. It's funny how the decrease last year in energy prices did not have any affect in the opposite direction.

What we have is an organization that is doing everything it can "get away" with until someone sues them and exposes the dirty laundry that is surely behind these exhorbinant increases.

There is simply no way you can spend over $100,000 per unit on maintenance unless you are completely remodeling the unit from the ground up. Yet they have been charging that much every year. Keep in mind that the Westin Kaanapali is only 5 years old. Just think what these thieves will try to charge when there is a real need for maintenance as opposed to touch up here and there. The real question is where all that money is going and is it being spent on necessary items as opposed to padding someones pocketbook at our collective expense! Everywhere you look, there is serious potential for major conflicts of interest. You have the proverbial fox guarding the chicken pen.
 

DeniseM

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I agree with you 100%, Steve.

Are you aware that there is a TUG member running for the BOD? He's on the ballot you got in the mail this week - Jeff Hyman.
 

naka4

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My husband and I are in as well. Has anyone actually looked into starting a class action lawsuit? If not, let's do it!
 

rickandcindy23

TUG Review Crew: Elite
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Wyndham Founder; Disney OKW & SSR; Marriott's Willow Ridge and Shadow Ridge,Grand Chateau; Val Chatelle; Hono Koa OF (3); SBR(LOTS), SDO a few; Grand Palms(selling); WKORV-OF ,Westin Desert Willow.
It's good to see new people here, concerned about Starwood, and there have been conversations about a lawsuit amongst members here.
 

Lawlar

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Fight the Good Fight

May I suggest that, in addition to other actions you plan to take, everyone who is unhappy should do the following:

1. File a complaint with the Better Business Bureau. Starwood would not like to see the BBB give it an unfavorable rating. The BBB website would show consumers how many complaints have been filed - that will serve as a warning to prospective buyers that Starwood treats its customers unfairly. Its a cost effective way to voice your complaints.

2. File a complaint with your local attorney general’s office (consumer affairs). Same reasons as # 1. Here is address list: http://www.tugbbs.com/forums/showthread.php?t=102785

3. Whenever you stay at a Starwood resort, look for opportunities to warn prospective TS purchasers of the realities faced by owners (like outrageous MFs that keep increasing and rule changes that diminish the value of TS ownership). I hang out around the pool and Jacuzzi – fertile grounds to warn the uninformed. And I always mention TUG as a valuable resource.

Good luck to all Starwood owners. Fight the Good Fight!
 

SteveCA

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yes I am and plan to vote for him. Unfortunately his bio is very truncated and may not convince non-tugger to vote for him.
 

DeniseM

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Steve - he was only allowed 100 words.
 

SteveCA

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Funny, Mr. Henry has well over 100 words, must be a plant

I guess we should vote against anyone with over 100 word on their bio as they must be Starwood puppets. :doh:
 

SteveCA

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Over the course of my 6 years of staying at the resort, I have saved a number of potential victims from suffering our shared fate and will continue to do so each and every year I visit. BTW, the BBQ area is great for that as well.

May I suggest that, in addition to other actions you plan to take, everyone who is unhappy should do the following:

1. File a complaint with the Better Business Bureau. Starwood would not like to see the BBB give it an unfavorable rating. The BBB website would show consumers how many complaints have been filed - that will serve as a warning to prospective buyers that Starwood treats its customers unfairly. Its a cost effective way to voice your complaints.

2. File a complaint with your local attorney general’s office (consumer affairs). Same reasons as # 1. Here is address list: http://www.tugbbs.com/forums/showthread.php?t=102785

3. Whenever you stay at a Starwood resort, look for opportunities to warn prospective TS purchasers of the realities faced by owners (like outrageous MFs that keep increasing and rule changes that diminish the value of TS ownership). I hang out around the pool and Jacuzzi – fertile grounds to warn the uninformed. And I always mention TUG as a valuable resource.

Good luck to all Starwood owners. Fight the Good Fight!
 

DeniseM

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I guess we should vote against anyone with over 100 word on their bio as they must be Starwood puppets. :doh:

My guess is that Starwood lifted their info. from their Starwood approved applications.

In case you don't know - Starwood accepts, screens, and "approves" candidates - the other two are undoubtably "Starwood approved." Jeff circumvented this procedure by looking up the local law and discovering that Starwood has no right to screen and approve candidates, and they had to put him on the ballot....

Not that he's not totally qualified - Jeff is an attorney as well as being an informed owner.

Probably a little too well informed to pass the Starwood screening process....not to mention his dubious affiliation with TUG! :D
 
Last edited:

SteveCA

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Back in 2003 when I first bought my timeshare, the sales people suggested that I look into becoming a board member because of my concerns about uncontrolled management fees and the inherent conflict of interest that could easily develop between Starwood and owners. I put together a comprehensive bio stating my qualifications and my objective of ensuring the highest quality standards for our resort while keeping costs under tight financial control.

At the time, I had 25 years of financial management experience. My bio and enclosed resume was apparently not what Starwood was looking for so they never responded to my application. I should have known back then to dump my timeshare on the secondary market but stupidly held onto it. They purposely rejected my application because I would have been way too knowledgeable and would not have allowed the Starwood organization to freely conduct its financial affairs without proper board oversight.

My enclosed resume highlighted the following:

Certified Public Accountant previously with Deloitte and Touche with significant audit experience

Corporate Accounting Manager and Assistant Treasurer for a Fortune 500 Pharmaceutical company

Vice President of Finance for a multi-billion dollar publicly traded software company

A long history of optimizing company financial performance while maintaining strict cost controls.

I'm pretty sure the "strict cost controls" was the deal killer. Strict cost controls would prohibit single bid contracts, it would prohibit unfair and inappropriate allocation of expenses between Starwood and owners. It would require open and fair pricing for all the dealings between Starwood and the HOA. The list goes on.
 

Ken555

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Steve,

It's not too late! Every HOA Board needs people with your experience. Now that everyone knows SVN cannot control who is on the ballet, I suggest you try again next year.
 

l2trade

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Steve,

It's not too late! Every HOA Board needs people with your experience. Now that everyone knows SVN cannot control who is on the ballet, I suggest you try again next year.

I strongly 2nd that motion! Steve, please run next year! :cheer:
 

gregb

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Does anyone know the length of office for a Board Member? I expect that it is longer than a single year because in the 3 years I have owned at WKORVN I have not seen any board member elections mentioned on the Proxy.

Greg
 

SteveCA

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Perhaps next year

If I don't dump my investment by next year, I will definitely run. i suspect a big uphill battle though. They will not let an outsider with my background in without a hell of a fight. It is way too risky for them so they will fight it tooth and nail imho.
 

lamarjames

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@ Steve;
You can count on my votes next year also.
As to any class action I would support that completely.
We will be at WKORV this Feb-March and will certainly let people know about the MF's, what has occurred and what I expect to take place in the future.
 

DeniseM

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SteveCA - I believe that WKORV has 2 boards - one for the apartments and one for the facilities they share with WRKOV-N, so it's entirely possible there there will be another election this year, if you are interested.
 

GeneNWendy

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Complaint against WSJ MF's and Starwood's response

This was a complaint by one owner to Starwood about the outrageous maintenance fee increases at the Westin St. John and their response to it. I find it especially interesting how it is used to get around the 2/3 ownership approval requirement stipulated in their own by-laws!! Below the complaint is Starwood's B.S. repsonse to these owners.

GeneNWendy



Initial Letter to Starwood

Subject: Westin St John MF Increases Unconscienable!!!

Dear Aixia Garcia:

This missive is long overdue but I want to express my total displeasure regarding the oversight and mis-management of the Starwood vacation ownership board, the starwood alliance and anyone else that may be responsible for the exorbitant MF cost increases over the last 10 years.

My wife and I fell in love with St John and decided to purchase our (one bedroom villa) timeshares at the Westin St John back in 1999. Contrary to the sales pitch provided when we purchased our weeks, we never were under the misguided impression that the purchase would be a "Great Investment". However, we did believe that in the long run after the initial purchase price was covered, we could expect a lifetime worth of vacations at a reasonable price. This has, painfully, not been the case.

Since we purchased our timeshares our MF's have increase from $450.00/week to over $2400.00/week!!! That's a 530% increase and TOTALLY UNSAT! A couple of years ago the SWDVO board attempted to implement a "one time (over 3 years) refurbishment fee above the cost of the yearly refurbishment fees already billed. This was put out to the owners for a vote and I voted NO!! Because this measure didn't get the requisite percentage of votes the plan had to be scuttled.

This lack of interest was not good enough for the board. In their infinite wisdom, they decided that they would unilaterally implement the refurbishment fees even though approval was not granted by the owners. I am not a lawyer, but I don't believe that this is legal. I can't help but believe that the motive behind this move was to assist in selling the new villas that were and still under construction. It's difficult to sell new timeshares using units with dated decor and artist renderings alone........ I believe that the existing refurbishment fees and a corporate "kick in" should have been enough to support the upgrades. Our villa only rec'd normal wear and tear upgrades should have already been covered.

In addition to the refurbishment increase, it was noted on this years bill that the existing ownership had to cover the costs of those owners that are foreclosing due to the poor economy. This may be true but I believe that the economy coupled with the "Ever Increasing" maintenance fees are pushing most folks in this direction. My family is no stranger to the affects of the poor economy as my wife has been out of work for a year and a half and we're at the breaking point. Because of your actions, wittingly or not, you're setting up a vicious cycle of foreclosures to resales/rentals scenarios. It seems that Starwood just can't lose!!!

In closing, we're currently in a bind regarding the future of our vacation ownership. At this point we're not sure if we should sell, rent or opt to totally ruin our credit and foreclose? We need to know what the SVO management thinks of the situation? How are you fighting for us to keep the costs down? What are your plans for refunding our, what I believe to be, unlawful MF/refurbishment assessments? Are the corporate officers aware of the situation? How can I contact them myself to express the frustration of the ownership community?

A quick email response to the above issues would be greatly appreciated.

Regards,
Westin St. John Owner




Starwood’s response to these owners

Dear Westin St. John owner,

Thank you for contacting Association Management.

As you are already aware the Westin St. John Board of Directors proposed a refurbishment project. In order to address immediate needs to refurbish the property, two attempts were made to obtain an approving vote of the membership to pass a special assessment to fund the refurbishment. Those votes were not sufficient. Although the majority of those who cast votes were in favor of the assessment to fund a refurbishment project, there were not enough votes cast to reach the requisite level of approval, and therefore the project could not commence at that time. Had the special assessment vote been successful, the funds could have been obtained to move forward with the project at that time. Obtaining the funds through a special assessment is substantially different than obtaining the funds by increasing the budgeted reserves. A special assessment would have created an almost immediate cash flow allowing the project to begin at that time, but required a vote of the owners. Increasing the reserves contribution in the budget means the refurbishment project will not get underway as soon as it could have, but it is the Board that has the authority to adopt the budget without the requirement of an owner vote.

The Board approved to fund the project by increasing the reserves contribution in the budget over the coming years. This will affect the 2009, 2010, and 2011 budgets.

The Board of Directors and the Association reviews and analyzes all avenues to achieve the lowest possible dues increase. Their goal is to bill out fees without sacrificing the level of amenity that you as an owner have come to expect. They must also ensure the resort continues to meet certain brand standards.

Many items in the annual operating budget are not fixed expenses and are outside of the control of the Board of Directors. These items include: utilities, insurance, and supplier cost. In addition, the cost of business in the island has increased which has created a big impact in the amount billed annually.
Unfortunately your Association has been adversely impacted by the current economy. The increase in owner delinquency has created a shortfall in the Association's cash flow. The Board will continue to reinforce collection efforts to recover lost funds. In addition the Board of Directors has implemented cost savings initiatives to minimize any shortfall which includes energy audits, compact-fluorescent bulbs, and a reduction in the maximum hours hourly employees can work. The Board of Directors and the Association will continue to analyze alternate options to stabilize and secure the Association’s finances. A working capital reserve fund is being added to insure that the association doesn’t run out of funds in the future.
Being a condominium, all Owners share the responsibility for ensuring that the Association meets these obligations. As the economy improves and delinquencies eventually decline, allowances will be re-evaluated for a potential reduction. However for now, we must all share in ensuring expenses are fully paid and uncollectible accounts provisioned.
We hope this gives you a better understanding of the situation. If you have any other questions or concerns please feel free to contacting us.
Sincerely,
Aixa Garcia
Correspondence Coordinator
SVO Management Inc.
 

GeneNWendy

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Over $100K per unit is outrageous!!

Hi Steve,

Look at my posting item #327 on Westin St John/merged. With upgrades, maintenance on our 2 bedroom units and pool villas in St. John are coming close to $180,000 per year!!





I too am not aware of any class action lawsuits at this time but what we can do is gather information on this thread so that there is a central database available.

I am aware of the tax appeal in Maui but the problem of ridiculous maintenance fee increases did not start this year. They have been going on for at least 3-4 years now with hikes at double and triple the rate of local inflation. Previously it was blamed on "energy prices" but if you stop and think about it, there is no way one can use that much energy in the space of one week. It's funny how the decrease last year in energy prices did not have any affect in the opposite direction.

What we have is an organization that is doing everything it can "get away" with until someone sues them and exposes the dirty laundry that is surely behind these exhorbinant increases.

There is simply no way you can spend over $100,000 per unit on maintenance unless you are completely remodeling the unit from the ground up. Yet they have been charging that much every year. Keep in mind that the Westin Kaanapali is only 5 years old. Just think what these thieves will try to charge when there is a real need for maintenance as opposed to touch up here and there. The real question is where all that money is going and is it being spent on necessary items as opposed to padding someones pocketbook at our collective expense! Everywhere you look, there is serious potential for major conflicts of interest. You have the proverbial fox guarding the chicken pen.
 
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