Marriott on the prowl?

[dougp26364]

At a sales presentation today at Breckenridge Grand Vacations, the salesman said Marriott had offered BGV a $375,000,000 buyout offer that was turned down.
While I don’t put a great deal of stock into anything a salesman says,it was interesting in that he had nothing to gain with the statement of an offer that was rejected.

It is interesting to think about. Marriott has a presence on Breck, but it’s not really up to MVC standards as a resort IMHO. BGV is nearly sold out, so it’s not as if there’s a lot of inventory for them to assume. Only one of BGV’s resorts is really up to Marriott standards IMHO. It makes no sense to me unless they’re looking for a new group of owners to convert to MVC points. Maybe that and they realize they’re not going to be able to fold the Hyatt Main Street Station resort into their portfolio.

It did get me to wondering if there are other smaller systems MVC is looking to acquire. It sort of scares me a little that they might have made an offer on this resort. As an owners I’m NOT keen on laying MVC maintenance fees. BGV might not be cheap but, they’re not quite Marriott expensive yet.! The d like to keep it that way.

 

[csalter2]

What is BGV? Sorry for my ignorance.

 

[TXTortoise]

What is BGV? Sorry for my ignorance.

Breckenridge Grand Vacations

Breckenridge Real Estate Developer & Property Managers | BGV

Welcome to Breckenridge Grand Vacations (aka BGV), a Colorado based real estate development and property management company.

breckenridgegrandvacations.com

 

[Steve Fatula]

It would be hard to believe it was a recent offer as I doubt mvci is spending money.

 

[dougp26364]

It would be hard to believe it was a recent offer as I doubt mvci is spending money.

It would have been within the last two years since that’s the amount of time between our owners updates. The last owner update we discussed Marriott’s acquisition of the Westin/Sheraton/Hyatt systems.

The problem is, it came from a salesman’s lips. However this particular salesman has been one of those I tend to believe as we have built a decent working relationship. He’s been assigned to us and we only see him when we do an update. Always a pleasure to talk shop with and never high pressure.

If it had been any other salesman I wouldn’t have even posted the comment. I still felt for full disclosure the source needs to be mentioned. Even the most honest and reputable salesman can only tell you what they’ve been told, accurate or not

 

[rthib]

Can't imagine Marriott wanted more property there. It is not a year round location and they already have Colorado Ski resorts. Plus with the legal expenses over Aspen doubt they want to play there. That said, BGV has been dumping property they owned so they may be under some financial distress. Also, while mud weeks are not great to trade into, they still have point value for trust and those weeks are probably still available so Marriott would have more points to sell. They And that is another group of people to get fees from to bring into system.

 

[pedro47]

Hello Doug26364, missed your posts and your photo albums...LOL
I do not feel Marriott's wants or can afford to acquire any more resorts because of Covid-19 virus. Their profit numbers are down. IMHO.

 

[Dean]

I think it's unlikely, could be name dropping for credibility, I've seen that lots of times at other non MVC/Disney properties. But it's certainly possible it could have happened at some point. Remember it'd only be any unsold inventory and management, not ownership of sold inventory.

 

[dioxide45]

I think it's unlikely, could be name dropping for credibility, I've seen that lots of times at other non MVC/Disney properties. But it's certainly possible it could have happened at some point. Remember it'd only be any unsold inventory and management, not ownership of sold inventory.

And of course the additional owners as prospects to sell them DC points. Not sure how they assign any value to that.

 

[Luvtoride]

It is interesting to think about. Marriott has a presence on Breck, but it’s not really up to MVC standards as a resort IMHO.

As an owners I’m NOT keen on laying MVC maintenance fees. BGV might not be cheap but, they’re not quite Marriott expensive yet.! The d like to keep it that way.

Doug, none of us like high Maintenance Fees but You get what you pay for!


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[dougp26364]

Doug, none of us like high Maintenance Fees but You get what you pay for!


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True enough, but Breckenridge is already an expensive place to do business. Because of that, Marriott’s Mountian Valley Lodge’s MF are what I would consider out of proportion compared to other locations. My MF’s are already north of $2,200 for a 2 bedroom unit at Grand Colorado. I don’t need the likes of a system like MVC getting their fingers in the pie. I sure as heck do t want to pay those higher management fees JUST to have the Marriott name on the property.

As it is, if the statement was true (and that’s a big if), MVC’s offer was turned down. The only reason for the post was my curiosity with the idea MVC could already be looking for additional acquisitions to go with their Westin purchase.

Maybe the powers that be are disappointed they’re unable to merge Hyatt’s Main Street Station into the DC. Grand Colorado still has inventory and the developer is already making plans to build another hotel on the mountain. The offer resembles what they did with Grand Chateau, which was originally a DRI property. At the time DRI was getting out of timeshares. BGV is also saying this will be their last timeshare. Maybe the offer was just on the Grand Colorado. BGV resorts don’t NOT exchange internally, even though they offer a sort of points program.

I could see MVC wanting to acquire some inventory at a ski in/ski out resort, especially at a resort that’s near their own standards already. Grand Colorado is literally at the base of the Rocky Mountain Super Chair. It would be a strong addition to the MVC family.

 

[SeaDoc]

At a sales presentation today at Breckenridge Grand Vacations, the salesman said Marriott had offered BGV a $375,000,000 buyout offer that was turned down.
While I don’t put a great deal of stock into anything a salesman says,it was interesting in that he had nothing to gain with the statement of an offer that was rejected.

It is interesting to think about. Marriott has a presence on Breck, but it’s not really up to MVC standards as a resort IMHO. BGV is nearly sold out, so it’s not as if there’s a lot of inventory for them to assume. Only one of BGV’s resorts is really up to Marriott standards IMHO. It makes no sense to me unless they’re looking for a new group of owners to convert to MVC points. Maybe that and they realize they’re not going to be able to fold the Hyatt Main Street Station resort into their portfolio.

It did get me to wondering if there are other smaller systems MVC is looking to acquire. It sort of scares me a little that they might have made an offer on this resort. As an owners I’m NOT keen on laying MVC maintenance fees. BGV might not be cheap but, they’re not quite Marriott expensive yet.! The d like to keep it that way.

What was the hook? Seems like a ploy to add to your portfolio to take advantage of all these new acquisitions!!?? What was the intent of sharing a failed acquisition attempt. Makes little sense to me... seasonal occupancy properties are not attractive, given the current state of affairs.


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[dougp26364]

What was the hook? Seems like a ploy to add to your portfolio to take advantage of all these new acquisitions!!?? What was the intent of sharing a failed acquisition attempt. Makes little sense to me... seasonal occupancy properties are not attractive, given the current state of affairs.


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There was no hook. It’s the only reason I posted to begin with. This particular salesman is attached to us. He’s well aware I’m chairman level with MVC, we own the nicest unit he has to offer and that we actually own a larger unit than we need at this property. Of course he has to make an offer, which was to move from a 2 bedroom to 3 bedroom, but it was a half hearted, “I have to show you something” deal.

The conversation had moved to the point of killing time and what’s up within the timeshare industry as a whole. It was never brought up in terms of buy because......

Yes given the current state of affairs it might seem odd, but the offer was likely made prior to the current state of affairs. I didn’t ask as it was just general talk and, how much real info do most salesmen get anyway?

while we’re on the current state of affairs thought, that’s the same thinking one uses when they sell stocks AFTER the market has crashed rather than buying when the market is low. Now would actually be a good time to acquire if you see distressed properties at bargain prices. This “state of affairs” won’t last as long as the media sells it.

 

[Dean]

There was no hook. It’s the only reason I posted to begin with. This particular salesman is attached to us. He’s well aware I’m chairman level with MVC, we own the nicest unit he has to offer and that we actually own a larger unit than we need at this property. Of course he has to make an offer, which was to move from a 2 bedroom to 3 bedroom, but it was a half hearted, “I have to show you something” deal.

The conversation had moved to the point of killing time and what’s up within the timeshare industry as a whole. It was never brought up in terms of buy because......

Yes given the current state of affairs, but the offer was likely made prior to the current state of affairs.

while we’re on the current state of affairs thought, that’s the same thinking one uses when they sell stocks AFTER the market has crashed rather than buying when the market is low. Now would actually be a good time to acquire if you see distressed properties at bargain prices. This “state of affairs” won’t last as long as the media sells it.

One thing I've learned over the years is that the rumor mill within sales circles is actually more active than among members. So even if the person believed it to be true, it might or might not be. Ultimately it really doesn't matter since they didn't move forward. That's one of the interesting discussions with DVC and Marriott, the resorts that might have been.

 

[rickandcindy23]

Welk recently acquired Eagle Point in Vail, and ordinary little timeshare, but I think it's because they are building their own resort in the area, so management is already going to be in place.

 

[Cobra1950]

Talked with Marriott Corporate repurchasing yesterday re what they are paying for Park City Summittwatch Week 51 and they advised they are buying NOTHING! This is for a week we paid $39,000 in 1999! More than likely Marriot Vacation Club is for sale, Wall Street says they need money big time they seem to have been wayyy over extended.

 

[rthib]

Talked with Marriott Corporate repurchasing yesterday re what they are paying for Park City Summittwatch Week 51 and they advised they are buying NOTHING! This is for a week we paid $39,000 in 1999! More than likely Marriot Vacation Club is for sale, Wall Street says they need money big time they seem to have been wayyy over extended.

Stock is way up and they have a huge cash reserve. They are preserving cash now and not buying because they are not selling. Are you sure you are not confusing talk of Marriott vs MVCI?

 

[dioxide45]

Stock is way up and they have a huge cash reserve. They are preserving cash now and not buying because they are not selling. Are you sure you are not confusing talk of Marriott vs MVCI?

The did also take on a lot of debt with the ILG acquisition. I think they can weather the storm though.

 

[dioxide45]

Talked with Marriott Corporate repurchasing yesterday re what they are paying for Park City Summittwatch Week 51 and they advised they are buying NOTHING! This is for a week we paid $39,000 in 1999! More than likely Marriot Vacation Club is for sale, Wall Street says they need money big time they seem to have been wayyy over extended.

Sadly, I bet this was even the case before COVID. A few years ago MCV simply stopped making offers for buybacks. Even for higher valued weeks. If you want to make some cash, I am sure your week has value on the external market. I would suggest going with a broker as they can likely get you the best price for a week like yours.

 

[dougp26364]

OK, got it, not buying now, but no one said the offer was made yesterday, last week or even within the last few months.

my point was simply that MVC might not be satisfied with the ILG acquisition or finished attempting to acquire additional properties or systems. Considering that they’re having some difficulty integrating ILG I was a little surprised that they might have made an offer at all.

 

[Robert D]

Welk recently acquired Eagle Point in Vail, and ordinary little timeshare, but I think it's because they are building their own resort in the area, so management is already going to be in place.

Actually Welk just took over management of Eagle Point in Vail, they didn't buy any of the units. A couple years ago they bought a lot of weeks in Falcon Point for their vacation club members to use but Eagle Point didn't meet their quality standards. Welk opened a new resort in Breckenridge. I've heard it's nice but no where near the mountain. I'm puzzled as to why they would have built a big new resort that's not ski in / ski out in Breck, which is a second tier ski resort to Vail. BGV is a good operator and they know the Breck market better than anyone. You'll never see them build a new resort that's not on the mountain.

 

[Mroze]

Stock is way up and they have a huge cash reserve. They are preserving cash now and not buying because they are not selling. Are you sure you are not confusing talk of Marriott vs MVCI?

You are right about the stock.
VAC is up from $36.80 [Mar 18th, 2020] to north of $100 [Fri, Jun 5th, 2020].
That's an appreciation of almost 200% in a little over 2 months.

 

[Marathoner]

I'm puzzled as to why they would have built a big new resort that's not ski in / ski out in Breck, which is a second tier ski resort to Vail. BGV is a good operator and they know the Breck market better than anyone. You'll never see them build a new resort that's not on the mountain.

Breck is a top tier destination ski resort in its own right and better than Vail with regards to its expert skiing. It's not correct to say that it is second tier to Vail. As for building off-mountain, it simply comes down to money. There are no available ski-in/out tracts of land for sale at Breck. BGV was both lucky and patient to have the opportunity to acquire the land which the Grand Colorado is built upon. Without the community ties that BGV has, Welk really has no chance for a ski-in/out plot of land at Breck.

 

[Shankilicious]

Breck is a top tier destination ski resort in its own right and better than Vail with regards to its expert skiing. It's not correct to say that it is second tier to Vail. As for building off-mountain, it simply comes down to money. There are no available ski-in/out tracts of land for sale at Breck. BGV was both lucky and patient to have the opportunity to acquire the land which the Grand Colorado is built upon. Without the community ties that BGV has, Welk really has no chance to for a ski-in/out plot of land at Breck.

Welk keeps talking about big plans for Breck. While they're not on the mountain, there are some hills nearby and they may plan on adding a snow tube park or something of the sort. And definitely adding more buildings. They have added two huge buildings in Branson in the last 2 years and own several more acres and could quadruple the size of that resort. They're also renovating Palm Springs and added a new section to Escondido several years ago. It'll be interesting to see how Welk does after Covid and this $3.5M settlement they agreed to pay.

 

[Marathoner]

Below is a list of the top 10 ski resorts by annual skier visits in 2018.

The 10 Most Popular Ski Resorts in The United States

#10. Okemo Mountain Resort, VT
Skier Visits: 614,000
#9. Snowmass, CO
Skier Visits: 732,251
#8. Northstar, CA
Skier Visits: 737,000
#7. Heavenly Mountian Resort, CA/NV
Skier Visits: 890,750
#6. Beaver Creek, CO
Skier Visits: 919,000
#5. Steamboat Springs, Colorado
Skier Visits: 923,576
#4. Keystone, Colorado
Skier Visits: 1,036,000
#3. Mammoth Mountain, California
Skier Visits: 1,128,500
#2. Breckenridge, Colorado
Skier Visits: 1,600,750
#1. Vail, Colorado
Skier Visits: 1,634,250