- Jan 6, 2011
- Reaction score
- Resorts Owned
- Marriott Weeks and DC Points
The way you describe this transaction, it sounds like this may have been a direct purchase from a seller rather than a transaction through a broker who might play games with folding upfront fees or closing costs into the price submitted to ROFR. Is that true? If so, then the $3.30 would appear to be an all-in, "real" price that passed ROFR rather than one of the ones where Marriott saw a different price than what the buyer is actually paying out. Or was this through a broker that may have been putting together a creative transaction structure in order to pass?
Also, I think you said your purchase was for 1000 points, so I'm wondering if MVC is more likely to pass at a lower price on these smaller lots, since the cost to close the transaction is the same as a larger batch?
Interesting point about Marriott possibly passing on smaller points purchases based on the closing costs. On the other side of that coin, Marriott is also getting a larger proportion of 'junk' fee income off of a small points purchase they allow to pass ROFR since they get at least the minimum of $3,000 in fees (regardless of the amount of points purchased). That, in combination with the closing costs they would have to pay, may be enough incentive to let smaller points purchases pass at a lower price per point.