• The TUGBBS forums are completely free and open to the public and exist as the absolute best place for owners to get help and advice about their timeshares for more than 30 years!

    Join Tens of Thousands of other Owners just like you here to get any and all Timeshare questions answered 24 hours a day!
  • TUG started 30 years ago in October 1993 as a group of regular Timeshare owners just like you!

    Read about our 30th anniversary: Happy 30th Birthday TUG!
  • TUG has a YouTube Channel to produce weekly short informative videos on popular Timeshare topics!

    Free memberships for every 50 subscribers!

    Visit TUG on Youtube!
  • TUG has now saved timeshare owners more than $21,000,000 dollars just by finding us in time to rescind a new Timeshare purchase! A truly incredible milestone!

    Read more here: TUG saves owners more than $21 Million dollars
  • Sign up to get the TUG Newsletter for free!

    60,000+ subscribing owners! A weekly recap of the best Timeshare resort reviews and the most popular topics discussed by owners!
  • Our official "end my sales presentation early" T-shirts are available again! Also come with the option for a free membership extension with purchase to offset the cost!

    All T-shirt options here!
  • A few of the most common links here on the forums for newbies and guests!

MF Impact of Reduced Occupancy/Closure?

TXTortoise

TUG Member
Joined
Sep 4, 2005
Messages
1,470
Reaction score
595
Points
473
Location
San Antonio, TX
Resorts Owned
Maui OC Lahaina Fixed (3+)
Kauai Waiohai
Vail Streamside Birch
This got lost in another thread, but I would be interested in thoughts on how the reduced occupancy, or possible temporary closure, at a resort might increase or decrease maintenance fees.

While hotels are at a reported occupancy level of 10%, timeshares have steady income in the form of MFs.

What I don't have is a good understanding of how much of that helps keep staff employed and maintenance ongoing vs the ancillary guest services and related revenue that may be shut down. I've read that most of the onsite services are profit generators for MVC, so one might think the MFs would help keep the current staff employed even if not in their normal job.

Along the same line, MFs guarantee a minimum level of income, that hotels don’t have, and would allow a larger portion of the staff to remain active, even if not in their normal job.

As I write this, I guess one could look at the MF budget line items and see how each might be impact.

I really could do without another 7% increase at Maui OC.
 
Last edited:

StevenTing

TUG Member
Joined
May 7, 2009
Messages
1,555
Reaction score
987
Points
473
I think part of it depends on if workers are salary or hourly. I have to believe a majority of staff are hourly, particularly the cleaning staff. However, maintenance is probably salary and now would be a great time to start working on projects with minimal guest interruption. I wouldn't necessarily expect a decrease in MF but maybe a steady rate the next year.
 

Steve Fatula

TUG Member
Joined
Jun 12, 2017
Messages
3,723
Reaction score
2,719
Points
349
Location
Calera, OK
As I look through one resorts budget, I see some things that should go down, electric, water use, food and activities for example. But things like Bad Debt could well go up. Things like cable tv are likely always going up, whether anyone watches them or not. Housekeeping could go down I suppose and is a major expense. I'd be worried about collections and bad debt though, for me, hard to call.
 

n777lt

TUG Member
Joined
Nov 21, 2007
Messages
362
Reaction score
21
Points
378
Location
MDW
I think part of it depends on if workers are salary or hourly. I have to believe a majority of staff are hourly, particularly the cleaning staff. However, maintenance is probably salary and now would be a great time to start working on projects with minimal guest interruption. I wouldn't necessarily expect a decrease in MF but maybe a steady rate the next year.
Maintenance and "engineers" if not supervisors are most likely hourly employees, per Federal law. If they are not direct Marriott employees, i.e., employed by a third party, what Marriott gets charged for their labor may be a flat fee, but my impression is that at least in the US the staff we see are in fact Marriot employees.
 

TravelTime

TUG Member
Joined
Mar 20, 2018
Messages
8,095
Reaction score
6,461
Points
499
Location
California
Resorts Owned
All Resale: MVC DPs, Marriott Ko Olina, Marriott Marbella, WKOVR-N, Four Seasons Aviara
I think maintenance fees are the least of our problems right now. With everyone losing money, we can only hope MFs stay the same next year.
 

Norcal5

TUG Member
Joined
May 31, 2017
Messages
211
Reaction score
84
Points
139
I think they will increase considerably due to collections and bad debt. The last bill to be paid is a timeshare maintenance fee, and the remaining owners will need to cover the non-payers.
 

Big Matt

TUG Review Crew: Veteran
TUG Member
Joined
Jun 6, 2005
Messages
6,164
Reaction score
1,625
Points
599
Location
Northern Virginia
I think part of it depends on if workers are salary or hourly. I have to believe a majority of staff are hourly, particularly the cleaning staff. However, maintenance is probably salary and now would be a great time to start working on projects with minimal guest interruption. I wouldn't necessarily expect a decrease in MF but maybe a steady rate the next year.
Marriott generally uses outsourced companies for cleaning/maid service.
 

Big Matt

TUG Review Crew: Veteran
TUG Member
Joined
Jun 6, 2005
Messages
6,164
Reaction score
1,625
Points
599
Location
Northern Virginia
Each BOD can decide what to do with the budget. My guess is that they try to keep the MFs low, but other nice to have things may suffer. I just hope the places I own don't dip into the reserve fund or we are looking at special assessments later. No free lunch.
 

ski_sierra

TUG Member
Joined
Mar 17, 2019
Messages
517
Reaction score
329
Points
173
Location
SF Bay Area
Resorts Owned
Too many
I'd be really curious to see what happens. My hypothesis is Marriott does not have the incentive to reduce or manage MF as higher MFs lead to higher management fees. It takes work to reduce costs and I'm not sure they will spend the energy to do that. We will get the facts in a couple of years.
 

Dean

TUG Review Crew
TUG Member
Joined
Jun 7, 2005
Messages
10,127
Reaction score
3,764
Points
698
This got lost in another thread, but I would be interested in thoughts on how the reduced occupancy, or possible temporary closure, at a resort might increase or decrease maintenance fees.

While hotels are at a reported occupancy level of 10%, timeshares have steady income in the form of MFs.

What I don't have is a good understanding of how much of that helps keep staff employed and maintenance ongoing vs the ancillary guest services and related revenue that may be shut down. I've read that most of the onsite services are profit generators for MVC, so one might think the MFs would help keep the current staff employed even if not in their normal job.

Along the same line, MFs guarantee a minimum level of income, that hotels don’t have, and would allow a larger portion of the staff to remain active, even if not in their normal job.

As I write this, I guess one could look at the MF budget line items and see how each might be impact.

I really could do without another 7% increase at Maui OC.
I doubt it'll have a big impact unless there's a rash of defaults. Just like in 08/09 fees kept going up even though everything else went down. Of course the added cleaning and security procedures could increase staffing costs.
 

hcarman

TUG Review Crew: Veteran
TUG Member
Joined
Jan 30, 2010
Messages
758
Reaction score
165
Points
253
Location
Tamarac, FL
After the hurricanes our property went up to cover additional expenses. But they continued with a refurb later that year. Seems like under extenuating circumstances when people are hurting financially they should push those refurbs an extra year. Marriott is on top of that stuff and a year shouldn’t hurt. In the long run it might save on bad debt/defaults if they stabilize fees during these years at the expense of waiting an extra year for a project.
 

Steve Fatula

TUG Member
Joined
Jun 12, 2017
Messages
3,723
Reaction score
2,719
Points
349
Location
Calera, OK
After the hurricanes our property went up to cover additional expenses. But they continued with a refurb later that year. Seems like under extenuating circumstances when people are hurting financially they should push those refurbs an extra year. Marriott is on top of that stuff and a year shouldn’t hurt. In the long run it might save on bad debt/defaults if they stabilize fees during these years at the expense of waiting an extra year for a project.

You can provide that feedback to your owners association for your resort or the management association for the resort. I think it's not a bad idea at all. You should be able to find that info on mvci.com for your resort.
 

Saintsfanfl

TUG Member
Joined
Mar 7, 2012
Messages
8,849
Reaction score
633
Points
399
Location
Central Florida
You can provide that feedback to your owners association for your resort or the management association for the resort. I think it's not a bad idea at all. You should be able to find that info on mvci.com for your resort.

+1. It isn't up to Marriott. They have "brand" guidelines but it is ultimately up to the HOA and there may not be anything quick enough to make a decision that counters what was already decided and voted on.
 
Top