NO Access to trusts pool by enrolled owners (Marriott's response - post #447)

[hotcoffee]

. . . While it is true that whatever inventory at those resorts is transferred to the trust is made available to Points Owners first (you can think of it as analogous to a home resort priority), it is anticipated that all resorts and all seasons will be available to both Enrolled Owners and Points Owners. . . .

One thing the internal memo is not addressing is the amount of unsold weeks in the Trust that are beyond reach of most if not all of the early points purchasers. Some of the Hawaiian inventory, for example, will probably never be reserved by any of the early Trust owners (at least, for the first couple of years) because few will have enough points to reserve it.

The internal memo clearly hints that available Trust weeks could end up in the exchange inventory. When a Trust owner owning 4000 points does an exchange, he frees up 4000 points of Trust inventory that can be moved into the exchange inventory if needed. That fact establishes the reality that freed-up points can end up in the exchange inventory.

. . . In addition, unsold inventory is the property of Marriott Vacation Club®, . . .

It has been noted more than once that the Trust does not contain all of the unsold weeks currently in the possession of Marriott.

 

[dioxide45]

There is one thing that seems apparent here now that I didn't anticipate in my cookies, jars, marbles and mom post. My post anticipated that once a trust owner deposited points in to the exchange jar, those points would be available for exchange and those points would provide direct ability to reserve trust resorts. That doesn't seem to be the case. Marriott seems to be only depositing trust inventory, actual weeks, banks of time from the trust in to the exchange pool. This is far less flexible for legacy owners over what I anticipated.

 

[puckmanfl]

good evening

Dioxide...

I don't believe this to be true. When i did the test drive, cashed my 2 waiohais for points and took the 3 bedroom Kauai Lagoons and kept the "change" my VOA asked me if I wanted to stay extend my stay by a few days. If it was just "weeks" deposited into the Exchange, my legacy points could not have snagged a 2-3 day extension on a 7 day stay!!!

I think your analogy of cookies , marbles and milk was "bang on"

 

[dioxide45]

good evening

Dioxide...

I don't believe this to be true. When i did the test drive, cashed my 2 waiohais for points and took the 3 bedroom Kauai Lagoons and kept the "change" my VOA asked me if I wanted to stay extend my stay by a few days. If it was just "weeks" deposited into the Exchange, my legacy points could not have snagged a 2-3 day extension on a 7 day stay!!!

I think your analogy of cookies , marbles and milk was "bang on"

If those extra days were actually in the exchange pool as time, your legacy weeks could have snagged the extra days. It could also be that Marriott is depositing a Platinum week. In HI this is any week, but at other resorts, the trust could perhaps deposit a gold week (equal to the points deposited). This would limit what the legacy points users can reserve to only a gold week and perhaps not platinum at that resort. I am not convinced that legacy owners have unfettered access to trust inventory when trust points are deposited.

 

[GaryDouglas]

The trust has 42MM points, they have maybe sold 2MM max. There is lots of inventory there. I am willing to bet that the trust has bulk deposited plenty of points in to the exchange company for enrolled members. No one will have any issues Monday trying to book trust inventory.

A MOC sales person stated this last week that 20% of the 42MM points have been sold. That would be 8.4MM points or ~$77.28MM. Both my daughter and son-in-law agree that is what they both heard. I haven't been following all related threads so don't know if this is news or if it has been verified.

 

[Fredm]

A MOC sales person stated this last week that 20% of the 42MM points have been sold. That would be 8.4MM points or ~$7.728MM. Both my daughter and son-in-law agree that is what they both heard. I haven't been following all related threads so don't know if this is news or if it has been verified.

The next quarterly report (Oct. 6) would give us a good indication.

But, 8.4mm x 9.20 = 77.28mm. Your a decimal place off.
Or, an annual run rate of ~390mm. That's possible.

If true, Marriott will have sold all its trust inventory by the end of 2011.
Is the 42mm points the real number? If it is, we can expect Marriott to be exercising ROFR like crazy in about a year.

 

[windje2000]

The next quarterly report (Oct. 6) would give us a good indication.

But, 8.4mm x 9.20 = 77.28mm. Your a decimal place off.
Or, an annual run rate of ~390mm. That's possible.

If true, Marriott will have sold all its trust inventory by the end of 2011.
Is the 42mm points the real number? If it is, we can expect Marriott to be exercising ROFR like crazy in about a year.

From page 35 of the 2009 Marriott Annual Report

Timeshare segment contract sales decreased by $411 million (38 percent), compared to 2008, to $665 million from $1,076 million.

The corresponding figure for 2007 was $1,400 MM.

That run rate estimate of $390MM (assuming the accuracy of all inputs to that estimate) would appear to be well below the 2009 actual of $665MM.

Note that 95% of revenue of the Marriott timeshare segment is MVCI.

I believe 42MM has been sourced from the land trust documents. I don't believe it represents all of the unsold Marriott inventory.

 

[GregT]

I believe 42MM has been sourced from the land trust documents. I don't believe it represents all of the unsold Marriott inventory.

The 42M points was the points values of the properties put into the trust in March 2010 -- when the trust was established. Marriott continued to sell properties (that were outside of the Trust) between March and June 2010, so we have no idea how many properties were unsold Marriott properties (and available to be added to the Trust).

But the 42M is definitely what the trust STARTED with.

All the best,

Greg