Marriott Aruba Ocean Club Owners Being Ripped Off By Marriott - READ IF AN OWNER

[marksue]

Not sure if anyone listened in on the call yesterday, but Marriott's, timeshare business is hurting. They are dragging down Marriott's earnings and people are wlaking away from signed deals.

I tired to ask questions, but they seemed to have it limited to a certain group. I even used an alias and wasnt allowed to ask questions, which seems they had it all planned out in advnace.

For those intersted on where we are on the special meeting. We are going trough a review of all the names recieved to pull out any duplicates, but it looks like we may be at or very close to the 1133 needed to call a special meeting.

As soon as a review is completed I will let you know.

 

[marksue]

Response to letter to Mr. Marriott

I know many of us received an email today from Dirk Schavemaker which is a response based on the letters sent to Mr. Marriott. I will post the letter here shortly. I will say this, it reads like the emails we got from the AOC board. So if Marriott wants to say that they have not told the board what to say in previous letters, this letter supports the theory that they have.

It is also a disappointment that Mr. Marriott felt he had to pass it aback down to MVCI after the letters stated that MVCI has turned a deaf ear to the owners.

They try to make this letter read as if it was directly related to an individual’s letter to Mr. Marriott, but it does not answer any of the questions I addressed to him in my letter.

Dirk, is the same one who at the owners meeting said, when an owner questioned the increase fee, maybe you should just sell your unit.

Once again an opportunity to sit with owners and come up with a resolution has gone by the wayside.

 

[vincenzi]

Received My E-Mail Today

I know many of us received an email today from Dirk Schavemaker which is a response based on the letters sent to Mr. Marriott. I will post the letter here shortly. I will say this, it reads like the emails we got from the AOC board. So if Marriott wants to say that they have not told the board what to say in previous letters, this letter supports the theory that they have.

It is also a disappointment that Mr. Marriott felt he had to pass it aback down to MVCI after the letters stated that MVCI has turned a deaf ear to the owners.

Yes, I received my e-mail today. Apparently, Mr. Marriott does not want to get involved. I thought I would at least get a written response. Of course, it costs no money to send out mass e-mails. I am truly very disappointed.

 

[marksue]

My reply to the letter which I need to convert from a PDF since i can not do a direct copy.

To All;

I am actually surprised there was a response. I am disappointed that Mr. Marriott passed the owners concern back to MVCI, since the reason to writing to Mr Marriott was the lack of response to the owners by MVCI, and calls to MVCI have been met with refusals to answer our questions. This letter is no different then the past responses from MVCI or the AOC board. I would have loved to say thank you for finally listening to us and doing what is right, instead the effort by the owners continues.

The letter was made to sound as if it addressed my concerns and questions posed to Mr. Marriott. It doesn't even come close to answering my questions.

MVCI and Marriott have yet to step up and take responsibility for selling a defective building to AOC owners. Please explain to me why the building has leaked from day 1. No one has yet been willing to address this question or any other questions raised by many original owners regarding the building defects. Tell us how much it has cost us to maintain the building due to the constant leaks. Why was the building improperly waterproofed such that owners have to pay to waterproof the building. Marriott has never mentioned in the sales presentations that the building was exposed to the elements for 5 years

If you are saying that a roof is not going to last 25 years, why as the life span for the Surf Club stated at 25 years. It is in the same environment as the Ocean Club. Why are we putting on a new roof with only a 10 year warranty. Does this mean in 10 years the owners have to pay for it again? If it is to last 20 years we deserve a 20 year warranty.

I have seen and I have in my possession a copy of the engineers report conducted by the Marriott engineer in which he raises concerns of the building based on its exposure to the elements prior to Marriott's purchase.


We all understand the reason for the increase. We have been told the same story for the last few months. Why we needed to hire 3 people to run the AOC in these tough economic times is beyond me. Marriott is the experts in TS business and they tell us what the reserve fees should be. Yet all of a sudden we are short, and we just hear about it now. Sounds like fees were initially kept low to sell units.

I will also say that the expenses to TS Omar should never have been incurred if the building was not defective and of course this issue has yet to be addressed.

I have suggested on numerous occasions the way to attempt to come up with a resolution is to sit down with a group of owners and work towards a satisfactory resolution, but this has fallen on deaf ears. The current AOC board has lost the support of the owners.

I welcome an open dialogue to address the roof issues. I will also forward a copy of this letter to Mr. Marriott since he has had MVCI address the owners concerns. As always I am open to speaking with you and Marriott representatives.

 

[ilene13]

email

I did not receive the email you are talking about.
ilene

 

[marksue]

Ilene,

Please send me your email address and i will send the letter. It is a PDF so i am having aproblem psoting it here. Not sure if I can have an attachement here for someone to open.

I did send a reply back to MR Marriott as did others. Someone also sent a letter to a reporter at the Washington Post regarding this issue.

Here is soemthing else that might be of interest.

1986 was a year in which big changes for Aruba took place in different areas: the Status Aparte went into effect for the island, the Lago refinery shut down, which meant that Aruba lost one third of its revenues and unemployment rose to 20 percent at one go. Aruba had to change its tack as to its main economic activities and that had to be tourism: several hotel projects were developed, with varying success. In Oranjestad, a shallow next to the Wilhelminapark was raised and developed by American Bob Swain. The Swain Wharf consisted of a shopping mall and a hotel. Businessman Eduardo de Veer was granted permission to build a hotel next to the premises he owned on the waterfront in down town Oranjestad. However, that meant that the old police station had to be demolished. The hotel was built by Venezuelan contractors and finally managed by the Sonesta Group. As ‘beach property’, an open spot in the reef, next to the start of the airstrip of the airport was developed: the Sonesta Island connected by shuttle boats to the lobby of the hotel.


Some other projects ended in disaster: development and construction were started with government guarantees but mismanagement, unreliable contractors and bankruptcies caused the cease of the completion of some hotels: a hotel south of the Concorde Hotel, that was called Eagle Beach Hotel during construction and was to be named Ramada Renaissance or Aruba Royal Resort after completion, that had not been half completed, had to be torn down partially. The tower that was almost finished was auctioned off and was finally taken over by the Divi Corporation. It is now part of the Divi Aruba Phoenix Resort. There were more serious problems for two hotels under construction north of Holiday Inn, which were to be named Plantation Bay and Beta Hotel respectively. Before construction was completed, they ran out of money, the Italian contractors had left without notice and the unfinished buildings were left empty for years, like modern time ruins. The government was even considering blowing up the skeletons when hotel magnate Marriott took care of them. In the course of the nineties, the Marriott Aruba Resort (the former Plantation Bay) was finished, followed by the Marriott Vacation Club (the former Beta Hotel). In 2007, the enormous Marriott Surf Club completed the triptych. That was how one of the darkest pages of the history of tourism in Aruba ended. For the island and for the government of Aruba however, the misery was not over yet.: the companies that had begun developing these and some other never started projects with government guarantees, summoned the country of Aruba and its government in court in the United States and in Italy and won their claims. Tens of millions of dollars were at stake, guaranteed by the government at that time. The government had to comply and the financial obligations that were the consequence of this were an enormous burdon on the state budget, which still causes an increasing deficit on the state balance.

Another phenomenon that brought a bad name for the Aruban timeshare industry was the financing through “bonds issues” (emission of shares). Project developers like Swain Wharf and Paradise Villas sold “bonds” against interest percentages of 12 and14%. They guaranteed that that they would pay them back by selling their timeshare project. This worked well for some time and bonds were popular because of their yield. However, things went wrong when Swain Wharf went bankrupt and a lot of people lost their savings. Swain Wharf was taken over by Meta Corporation but the timeshare owners retained their rights, based upon the principle that property sold does not annul the rent agreement. Paradise Villas owners met a similar fate: they had to make extra investments to secure their timeshare. Bonds issues also went sour at Tierra del Sol and La Cabana Villas. At Tierra del Sol owners of bonds lost their investments again when Sun Development went bankrupt and at La Cabana Villas, their dept in bonds was converted into weeks of timeshare.

 

[marksue]

Here is the letter from Dirk

Thanks to one of our fellow owners, he was able to convert the document.

Thank you for taking the time out of your busy schedule to share your concerns. Mr. Marriott has reviewed your letter and asked me to respond on his behalf.
With regards to the replacement of the roof of the main building, Marriott Vacation Club International contracted with a nationally recognized and respected roof engineer/expert to advise the Board on the replacement of the roof. Independently, the Board also contracted with structural and mechanical engineers as well as an environmental expert to cross-check and verify that the installation, condition of existing structure and any environmental concerns meet stringent approval standards. As a result, the Board determined that the proposed course of action to replace the roof was necessary, and in the best interest of the Aruba Ocean Club.
Below, please find additional explanation for the dramatic increase in the Maintenance Fees in Aruba, highlighting the major financial impacts experienced in 2008.
Main drivers for the 2009 Budget:
• Utilities: As mentioned above, electricity rates increased by more than 43%, and water rates increased by more than 22% in 2008. Although electricity and water consumption have been reduced by 5.6% and 1.3%, respectively, rate increases far exceeded the impact of the reduction in consumption. In 2009, the utility rates are budgeted to increase 15.5% for electricity and 14.9% for water.
• Housekeeping: An increase in contract labor rates of almost 12% combined with laundry utility surcharges have resulted in an increase of more than 26% in housekeeping costs. In 2009, reduced tidy revenues (due to lower occupancy resulting from the planned refurbishment), and a 3.1% increase in hourly labor rates are the key drivers to the housekeeping budget increase.
• Activities: Our pool towel service has also seen more than a 16% increase in costs as a result of utilities surcharges for 2008. In addition, palapas revenues decreased in 2008, resulting from a general desire by Aruba Ocean Club ownership to stop renting palapas to Aruba Surf Club owners and guest.
• Administration: As mentioned above, Aruba Ocean Club added dedicated General Manager, Administrative Assistant and Director of Finance positions to the leadership team in 2008. The resort now carries 100% of the resulting expenses from these roles versus 25% Admin expenses shared with Aruba Surf Club in previous years.
• Utility and Storm Deficit Recovery: This one-time expense offsets the 2008 year-end operating fund shortfall, driven by unforeseen utility cost increases, as well as from some water intrusion related expenses due to Hurricane Omar.
• Reserves: The increase in the Residential Reserve Fund contributions are needed to offset recent increases in local sales tax, Aruba service tax, customs duties, overseas shipping and international construction costs. These cost factors increased by almost 50% during the past 3 years, relative to prior years. Additional funding of the Reserve is necessary to maintain the resort at current high level of standards we all expect.
Furthermore, the resort is now 9 years
old, and it will be necessary to replace villa furniture, appliances and to refurbish our building facade. While the Association has and will continue to work with MVCI to ensure all construction and product warranties are honored by the developer and manufacturer, the combination of high occupancy, a tropical climate, trade winds and salt air have unfortunately resulted in a reduction of the normal life expectancy of some specific assets. The following assets have recently been replaced and/or are currently under review for replacement:
o Replacement of the Main Building flat roof is scheduled to be completed no later than the end of the second week of December 2008. Upon completion of this work, all roofs will have a manufacturer's and installer's warranty that protects the roof integrity for the next decade. MVCI is paying more than 48% of the total roof replacement cost, including the prorated value related to the 5-year period the concrete skeleton and roof of the current AOC building sat idle and MVCI's 12.2% share resulting from its ownership of the commercial areas in the AOC building.
o We have replaced all but 10 of our failed windows at no cost. While the manufacturer has provided replacement windows under their warranty, MVCI has paid for all shipping, tax and installation costs for these replacement windows.
o In 2008, we upgraded our corridor HVAC system to capture and recycle lost, conditioned air from villa bathroom exhaust fans, which will reduce future energy consumption.
o In 2008, the main pool and pump rooms were completely refurbished, including new pumps, filtration, pool and rock resurfacing.
o The villa and facade refurbishment is scheduled to begin in July of 2009 and is expected to be completed by December 2009. The main lobby and corridors will have a completely new look, while all villa interiors, including bathrooms, will be updated. The Ocean Club will essentially be new inside and out. Most importantly, your vacation investment will be enhanced and protected for the long term.
Marriott Vacation Club International, our Management Company, is working side by side with your Board of Directors to ensure we continue to provide the vacation experience at Aruba Ocean Club each of us expects, while providing the best short-term and long-term value for each individual owner. In their efforts to assist the Association, Marriott has committed in excess of $2,000,000 in financial support during the next two years, which effectively reduces total 2009 and 2010 maintenance fees by approximately $180 per week.
In light of these major impacts, let me reassure you that hyper-escalation of the Maintenance Fee's for our owners is not beneficial to the Association or to Marriott. Going forward, it is our role to work with the Association to find long-term solutions that may mitigate the seemingly uncontrollable rise of utility increase impacts.
Thank you again for taking the time to share your concerns. Your input and observations are always welcome and very important to us. Should you have any additional questions or concerns on this matter, please call my office at 800 936 6824.

 

[qlaval]

JW Marriott was at the Marriott Stellaris yesterday....

He was there checking out the properties and announcing the construction of a five star luxury Ritz Carlton Resort north of the Marriott Resort on Hadicurari Beach....

 

[m61376]

JW Marriott was at the Marriott Stellaris yesterday....

He was there checking out the properties and announcing the construction of a five star luxury Ritz Carlton Resort north of the Marriott Resort on Hadicurari Beach....

Are they really going to erect a Ritz Carlton there? I know this was discussed some time ago, but in this economy with the hotels less than half full during prime season, I am a bit shocked that they plan to go ahead with this. Any news releases about this?

Guess we'll have to walk a bit further north to watch the kite and wind surfers.

 

[billymach4]

Hadicurari Beach

Hadicurari Beach

Say that 5 times fast!!!

:rofl: :rofl: :rofl:

 

[modoaruba]

Buyers' market if you got the bucks and the ability to hold out till a turn around.

 

[qlaval]

Ritz Carlton Will Invest A Record US$200 Million On Aruban Property

February 18th 2009, Aruba.

ORANJESTAD-The government has surprized many on the island on Wednesday by announcing the
construction of a five star luxury Ritz Carlton Resort. The present and past governments have for
15 years tried to attract a prestigious five star resort brand such as the Ritz Carlton in Aruba, with
not much success.

With great pride Prime Minister Nelson Oduber announced that the parties involved in the
negotiation of the proposed Ritz Carlton project have reached an agreement, and construction of
the resort will start shortly. The Prime Minister admitted that the road to bring Ritz Carlton to
Aruba was long and difficult, but was pleased with the final outcome.

Aruba's tourism industry has long matured, and it is now time to elevate the quality of the tourism
product to a higher level, by attracting the luxury market and that of high excellence. Contrary to
past hotel projects, it is agreed that the Ritz Carlton hotel will not receive tax holiday from the
government, nor will the government stand guaranteed for the project. This project will not cost
Aruba tax payers money, but will provide money to the government and locals once the resort is
operational.

The hotel will be constructed north of the Marriott Resort on Hadicurari Beach, and it will be named
Aruba Ritz Carlton Resort Spa & Casino. Ritz Carlton Aruba will consist out of 320 rooms of high
quality design consistent with the standards of Ritz Carlton. The construction of the five star hotel
property is priced at US$200 million. Aruba Investment Bank is the biggest financial stakeholder in
the project.

While many hotel projects in the Caribbean are being cancelled because of the present global
financial and economic crisis, the construction of Ritz Carlton in Aruba is a sign of confidence in the
tourism product and the economy of the island. The construction of the hotel is welcome news for
the construction sector, it will provide 425 construction jobs. Ritz Carlton Aruba will employ 500
people once the hotel is operational. An additional 550 indirect jobs will be created because of
additional tourists. Oduber says there is no need to attract much foreign labor, as 900 students
complete their studies each year on the island.

Oduber emphasized that attracting an additional five star hotel on the island does not imply that
Aruba is a five star tourism destination, but it is a step forward in achieving that goal. "We have
to continue to improve our tourism product, through educating and motivating employees working
in the sector, and hotels should improve and upgrade their facilities." The government will continue
to push for the relocation of the container terminal from Oranjestad to Barcadera, and soon
announce the start of revitalizing the main street of Oranjestad.

The yellow stipple line indicates the construction lot for Ritz Carlton
Aruba, the red stipple line the rearranged road towards Westpunt.

 

[m61376]

Wow...in this economy. I guess they just feel that Aruba has such a loyal following.

 

[marksue]

Initially the Ritz was supposed to be vacation shares where you buy 3 months at a time. Guess they realize that TS is not the way to go.

 

[qlaval]

In ArubaToday:

PALM BEACH – The island of Aruba held the honor of welcoming Mr. Bill Marriott to the island yesterday. He started his visit at the Aruba Marriott Resort & Stellaris Casino with a site inspection lead by the resort’s General Manager Rick Zeolla and his executive team. Mr. Marriott enjoyed a full property tour during including Marriott’s Aruba Ocean Club, Marriott’s Aruba Surf Club and the Aruba Marriott Resort & Stellaris Casino. Both guests and Marriott associates took the opportunity to take pictures with him during his short stay. Mr. Marriott and his delegation took this opportunity to celebrate the 10 year anniversary of Marriott’s Aruba Ocean Club in Champion’s Sports Bar and the completion of the $50 million dollar face lift.
“We have completely reinvented our lobby and reception area, creating a public space that provides for intimate conversations and casual lounging with seating areas that overlook our pool deck and the Caribbean Sea beyond it,” Zeolla says. “Once you check-in, be warned, you might never want to leave your room - as all 411 of our guest rooms and suites have been entirely made over with brand new furnishings, luxurious bedding, marble sinks, rain-style shower heads, flat screen televisions, and modern technology,” he continued.

The delegation inspected the new upgrades including the new Tradewinds Club, which is 59 room VIP section of the resort which is "hotel within a hotel" nestled on the top floor. They strolled through the amazing new Ruth Chris Steakhouse and the astonishing La Vista Restaurant boasting the most amazing view on the island of Aruba’s sugar white beach and turquoise waters.
Mr. Marriott’s visit to the property ended with an executive lunch with the Aruba’s Prime Minister Nelson Oduber, Minister of Tourism and Transportation Edison Briesen, Aruba Hotel and Tourism Authority CEO Rob Smith, Mr. Walter Stipa of Desarrollos Hotelco S.A. and the hotel operator The Ritz-Carlton Hotel Company L.L.C together with nearly 2 dozen Marriott & Renaissance executives. As a grand finale to the tour, Mr. Marriott was presented a gift from 22 of Aruba’s most aspiring young artists. The students of local artist Miriam De’Lisle gave Mr. Marriott a painting that each of them added to entitled “Aruba’s Playground for all Generations”.

I wonder if they spoke about the OC maintenance fee....

 

[tlwmkw]

Sounds like Mr. Marriott is very tight with the politicos in Aruba. Not surprising since tourism is such an important industry there. With a new Ritz-Carlton Marriott is betting on Aruba in a big way despite the high expenses of operating there.

In the article above it says they already had the renovation at the AOC but I thought they were just starting it and that's why the large assessment- which is correct?

 

[m61376]

I believe they completed the roof and the windows, but the villa renovations are starting in a few months, unless I am mistaken.

 

[Retired to Travel]

In the article above it says they already had the renovation at the AOC but I thought they were just starting it and that's why the large assessment- which is correct?

The Stellaris Hotel and lobby have been renovated, but not the Ocean Club yet (only the roof repair, as I understand it, is complete.)

 

[ecwinch]

I think the sentence should have read

"Mr. Marriott and his delegation took this opportunity to celebrate the 10 year anniversary of Marriott’s Aruba Ocean Club in Champion’s Sports Bar and the completion of the $50 million dollar face lift at the Aruba Marriott Resort & Stellaris Casino."

As the other poster mentioned, it was the Aruba Marriott Resort that got the $50 million facelift.

 

[qlaval]

I think the sentence should have read

"Mr. Marriott and his delegation took this opportunity to celebrate the 10 year anniversary of Marriott’s Aruba Ocean Club in Champion’s Sports Bar and the completion of the $50 million dollar face lift at the Aruba Marriott Resort & Stellaris Casino."

As the other poster mentioned, it was the Aruba Marriott Resort that got the $50 million facelift.

Exactly...

 

[lovearuba]

The title

I think the title should read, "Dishonest Mr. Marriott plans to invest more money in Aruba to take advantage of yet more timeshare owners".

 

[m61376]

Do you feel that opening a Ritz on the other side of the property is a detriment? On the other hand, I would think that it would upgrade the general area.

 

[lovearuba]

ritz

What beach will they use? There is no beach on the other side of the street. If you go to Aruba you want to be at the beach.

 

[m61376]

What beach will they use? There is no beach on the other side of the street. If you go to Aruba you want to be at the beach.

They aren't going to be on the other side of the street. They are building beachfront North of the Marriott hotel, displacing the windsurfers.

 

[ecwinch]

I think the title should read, "Dishonest Mr. Marriott plans to invest more money in Aruba to take advantage of yet more timeshare owners".

I think you are right - that was probably the whole purpose for his visit. His agenda probably read:

10:00 Arrive on MVCI funded jet
10:00-11:00 Review plans to keep Ocean Club defects secret
11:00-12:00 Coach Ocean Club BOD on what to say
12:00-2:00 Lunch w/ Aruba politicos to grease the wheels
2:00-3:00 Discuss plans to take advantage of Surf Club and future timeshare owners
3:00-3:30 Token visit to Aruba Resort as coverup
3:30-4:00 Drinks at Champions Sports bar
4:00 Depart

It is the attention to detail that sets the great businessmen apart.

- Just trying to add some balance.