Refurbishment coming to Sheraton Desert Oasis

[nodge]

The SDO “Spring 2012” newsletter published today included this news . . .

“We are currently designing a model villa, in preparation for a remodeling project that will take place in 2013 and 2014. The model is scheduled to be finished in May.”

This little nugget gives us plenty to speculate about over the next year, like:

1. Will there be a special assessment? (If so, will it be reasonable or like SVR’s?)

2. Will they allow resale owners of SDO on the books as of a certain date into SVO like they did following the refurbishments to SVR?

3. What will they do with all of those massive Stonehenge-style dining room tables at SDO?

Let the speculation begin . . . .

-nodge

 

[grgs]

Here's some info that Quiet Pine reported last October:

http://tugbbs.com/forums/showpost.php?p=1190613&postcount=22

Glorian

 

[DeniseM]

Keeping my fingers crossed!

SDO is 12 years old and a major refurbishment is planned for 2013-2014. By 2014, it will be a whole new resort. There are $7 to $8 million in reserves and no special assessment is anticipated.

 

[jarta]

"Do you have factual information about this, or are you just speculating?"

I guess it is now clear I was not just speculating yesterday about "there is a looming and much needed renovation coming up for SDO."

http://tugbbs.com/forums/showthread.php?t=165821 ... eom

 

[tschwa2]

At SBP the refurb cost $18 million and MF rose about $250 (for a 2 bedroom unit) the first year after the renovation was announced and had another increase the next year to continue funding the project and to cover the bad debt from those that stopped paying the MF's after the raise in conjunction with the state of the crappy economy. Even if SDO can keep the renovation to the amount in the reserves, the next year's reserves will probably increase minimum $100 because the board can't let you sit with $0 in the reserve fund.

I don't think you will have a special assessment. They will build any increase into the regular MF's. That way there won't be any pressure to extend an invitation to SVN. At least none of the board members at SDO have * next to their names indicating that they are Starwood Associates so maybe it won't be so bad.

-From the SBP 2011 budget report letter in 2010
Your Board of Directors, Resort Team and Management Company collectively worked together to develop the 2011 budget for your Association. The overall 2011 budget reflects an increase of 9.5% from the prior year. The primary driver of the increase is the incremental reserve funding necessary to accomplish the $18 million unit refurbishment project that will occur over the next two years. The refurbishment includes most furnishings, draperies, and upgrades to Bose® stereo systems and flat panel televisions. Please visit the sales gallery during your next visit to view a model of the newly designed villa.

 

[LisaRex]

One of the positives about paying such hefty MFs is that I don't worry so much about SAs. Yes, they can happen, especially at resorts that were bought out by Starwood, but IMO it's a crappy way of doing business.

It'd be like owning a home and having nothing in the bank for basic home repairs and refreshes.

 

[nodge]

With SVO, er . . . the SDO Homeowners’ Association (“SDOHOA”), letting us know that a major refirb is on the way, but not bothering to tell us how much it is going to cost or how it is going to pay for it, the SVO/SDOHOA certainly isn’t doing us SDO owners any favors in terms of keeping SDO resale prices from dropping even further while these issues remain outstanding. Of course, speculation that SVO will allow resale SDO owners into SVN following the refirb could also drive resale prices higher.

One thing is for sure, by publically creating this uncertainty and leaving current SDO owners hanging on its resolution, the SDO Homeowner’s Association hasn’t acted in the current SDO homeowner’s best interests (. . . unless, of course, there will indeed be a massive special assessment and this vague notice is really giving us owners a chance to get out while the getting is still good). For now, it appears they’ve just laid the foundation for the perfect argument for SVO salesmen . . . “Don’t buy resale at SDO, there is a special assessment possibly looming and you still won’t get into SVN after you pay it. Here, buy this place in Cancun from us instead without any special assessments looming AND with full SVN trading privileges into the beautifully refurbished SDO and all other SVN resorts to boot.”

Thanks SVO/SDOHOA!

-nodge

 

[jarta]

nodge, ... "One thing is for sure, by publically creating this uncertainty and leaving current SDO owners hanging on its resolution, the SDO Homeowner’s Association hasn’t acted in the current SDO homeowner’s best interests (. . . unless, of course, there will indeed be a massive special assessment and this vague notice is really giving us owners a chance to get out while the getting is still good)."

Whoa! Once a board decides what will be done to renovate, the process is not complete. You must then start getting bids from various contractors. Until the various bids come back, the HOA has only a vague idea what the 3-year project will cost.

However, if you had taken the time to read read what Quiet Pine, who attended the October annual meeting, posted on October 20, 2011 (See post #2), you would find out what the board then said:

"SDO is 12 years old and a major refurbishment is planned for 2013-2014. By 2014, it will be a whole new resort. There are $7 to $8 million in reserves and no special assessment is anticipated. Part of renovation will be $900,000 for Americans with Disabilities Act requirements for 2012 to avoid liability/lawsuits."

$900K for ADA compliance probably in 2012. The rest in 2013 and 2014. How much for the rest? That will be decided later (when the bids come in). ... eom

 

[levatino]

isn't this news about old news?

 

[jarta]

"isn't this news about old news?"

Of course the SDO renovation is old news. What's new is the unsupported allegation that the SDO board, by announcing a renovation over the next 3 years without disclosing the costs in minute detail before the contracts are let and adding no special assessment will be necessary, is not acting in the best interest of the SDO owners. In my opinion, that's just mean-spirited BS. ... eom

 

[DeniseM]

In my opinion, that's just mean-spirited BS. ... eom

Oh, the irony!

 

[jerseygirl]

Those who cannot remember the past are condemned to repeat it ....

With SVR, a HUGE special assessment .... very unpopular, lots of delinquencies, online criticism, etc.

With SBP and HRA .... hmmmmmmmm, let's not call it a special assessment. We'll just drastically increase the maintenance fees ... that's the ticket.

With WSJ ........ gee, I can't even remember whether it was version #1 or version #2.

Oh, and wait .... we need to be sure and blame the earlier management for not collecting enough reserves to handle necessary repairs and refurbishments. Hopefully no one will remember that we've been managing these resorts for 10 years .........

*******************************************************

Doesn't matter what they call it, you'll be paying for it! We heard the same song and dance about the reserves when the SBP refurbishment came about .... but, somehow, there wasn't enough ...

Just hope it's a small amount ......... SDO has been well managed in the past, that's a good sign.

 

[jarta]

jersey girl, ... A prediction that no special assessment is contemplated does not mean that all renovations need to be or will be funded by reserves. It is up to the discretion of the resort board to decide whether a particular item of the renovation is funded by tapping the reserve fund or a "pay as you go" increase in the MF.

The SDO HOA board undoubtedly has a reserve fund study that maps out the useful life of the components of the resort which should be used to match assessments for the reserve fund to the timing of the expenditures which will eventually become necessary. However, there is a tendency by HOAs to disregard reserve fund studies by assuming the useful life set out in the study is too compressed. Making that assumption keeps annual MF low - but, if the reserve fund study is correct and the HOA board is wrong - the reserve fund will be underfunded and, at times, necessary maintenance will be deferred in the hope that a couple more years of collections of reserve fund MF will cover everything. That strategy is futile.

I have no idea whether deferred maintenance exists at SDO. I hope not. But, unlike others here, I do not allege that a special assessment is being disguised or that the HOA board is acting against the best interest of the owners by doing the renovation.

However, you are correct. It doesn't matter what the renovation expense is called. The owners will have to pay for it.

It does not seem that the SDO HOA board is dominated by Starwood employees. In fact, it appears that none of the board members are Starwood employees. ... eom

 

[alohakevin]

"isn't this news about old news?"

Of course the SDO renovation is old news. What's new is the unsupported allegation that the SDO board, by announcing a renovation over the next 3 years without disclosing the costs in minute detail before the contracts are let and adding no special assessment will be necessary, is not acting in the best interest of the SDO owners. In my opinion, that's just mean-spirited BS. ... eom

You don't let a project based on bids otherwise what control do you have over the final cost. How about starting with a budget and determine what can be done inside the budget.

 

[holoholo]

What do the following statements have in common?

The sky is falling.
The earth is flat.
Paul is dead.
Elvis is alive.
The Sheraton Desert Oasis HOA will impose a special assessment to pay for the upcoming $18 million refurbishments.

 

[holoholo]

1. The sky is falling.
2. The earth is flat.
3. Paul is dead.
4. Elvis is alive.
5. The Sheraton Desert Oasis HOA will impose a special assessment to pay for the upcoming $18 million refurbishments.

All five statements above have been PROVEN to be false. The SDO reserves are adequately funded because the SDO board carefully reviews future expenses (through the year 2041) and how much reserve funding will be necessary to defer these costs. A reserve review/update is performed on an annual basis. A reserve study not only tells you what your future expenses will be but also tells you your current percent funded. “Percent funded” is the ratio of what an association has set aside for reserves vs. the total depreciation of all their components. “Percent funded” is one of the most important numbers to look at when reviewing an association’s reserve study. At this moment, SDO is over 60% funded. It is generally agreed by industry professionals that anything below 30% reserves funding is at HIGH RISK for special assessments. SDO will NOT require a special assessment to pay for the upcoming $18 million refurbishments.

Regarding the question about the SDO board members, they include an attorney(Vice President of Regulatory Compliance), engineer (Professional Project Manager), another attorney(Chief Compliance Officer), retired CEO, and a retired travel/hospitality professional. And I just might be one of them.

 

[LisaRex]

Regarding the question about the SDO board members, they include an attorney(Vice President of Regulatory Compliance), engineer (Professional Project Manager), another attorney(Chief Compliance Officer), retired CEO, and a retired travel/hospitality professional. And I just might be one of them.

Well, welcome aboard, whoever you are!

 

[jarta]

holoholo, ... The Chicken Littles here on TUG have no idea how a HOA board functions or what a reserve study is. Thank you for bringing some sanity to this thread. ... eom

 

[DeniseM]

Well, welcome aboard, whoever you are!

Hi Lisa - In a previous thread Holoholo wrote that he is on the board at SDO.

AND - he is indeed welcome here - it's great to have his input!

 

[DeniseM]

holoholo, ... The Chicken Littles here on TUG have no idea how a HOA board functions or what a reserve study is. Thank you for bringing some sanity to this thread. ... eom

Do you talk to people in this condescending manner in your real life?

And what a contrast to this warning - strongly implying that the fees at SDO were going up. Sure sounds like "the sky is falling," to me!

It is true the ongoing cost of the annual MF at SDO - so far - is one of the least in the SVO system. However, there is a looming and much needed renovation coming up for SDO. ... eom

looming

Appear as a shadowy form, esp. one that is large or threatening: "vehicles loomed out of the darkness".

(of an event regarded as ominous or threatening) Seem about to happen: "there is a crisis looming".​

 

[jarta]

DenieseM, ... Your record on supporting false and mean-spirited BS about how Starwood and HOAs run the resorts permeates this forum you moderate. Look at the first post on this thread by you buddy,nodge, as an example. ... eom

 

[DeniseM]

DenieseM, ... Your record on supporting false and mean-spirited BS about how Starwood and HOAs run the resorts permeates this forum you moderate. Look at the first post on this thread by you buddy,nodge, as an example. ... eom

jarta - TUG is for owners to discuss timesharing. It's not the Glee Club for Starwood. I don't see that changing any time soon. Since it makes you so miserable, I simply don't understand why you continue to hang around with people that you don't like.

Honestly - you do Starwood more harm than good here. Even when you post accurate information, you are so hostile to everyone else, that no one wants to hear it.

 

[jarta]

DeniseM, ... You are hostile to me. But, everybody is not. It's just wishful thinking on your part.

When was the last time you saw a negative post about Starwood by a 5 Star Elite on TUG. Ever wonder why you don't? Are they all Starwood shills? ... eom

 

[Ken555]

All five statements above have been PROVEN to be false. The SDO reserves are adequately funded because the SDO board carefully reviews future expenses (through the year 2041) and how much reserve funding will be necessary to defer these costs. A reserve review/update is performed on an annual basis. A reserve study not only tells you what your future expenses will be but also tells you your current percent funded. “Percent funded” is the ratio of what an association has set aside for reserves vs. the total depreciation of all their components. “Percent funded” is one of the most important numbers to look at when reviewing an association’s reserve study. At this moment, SDO is over 60% funded. It is generally agreed by industry professionals that anything below 30% reserves funding is at HIGH RISK for special assessments. SDO will NOT require a special assessment to pay for the upcoming $18 million refurbishments.

Regarding the question about the SDO board members, they include an attorney(Vice President of Regulatory Compliance), engineer (Professional Project Manager), another attorney(Chief Compliance Officer), retired CEO, and a retired travel/hospitality professional. And I just might be one of them.

Thanks for posting. Is the reseve study available online?

I'm not sure if reserve studies for timeshares are different than other communities. For my residential HOA our reserve has been above 70% yet we had to have a special assessment. Not all reserve studies seem to be accurate, yet are a great start of a real conversation on specific items requiring replacement or refurbishment. I would be very interested in seeing the reserve studies for the SVN timeshare properties.

 

[DeniseM]

When was the last time you saw a negative post about Starwood by a 5 Star Elite on TUG. Ever wonder why you don't?

I don't wonder at all. In my many years on TUG, I have noticed that the more money an owner has "invested" in a particular timeshare, they more defensive they are when the management pulls a bone head move. It makes sense: If you spend a lot of money on something, it's painful to look at the flaws afterwards. If you admit there are flaws, then you'd have to consider whether the thousands and thousands of dollars you spent was really a good investment.

There are Elite Owners on TUG who are true experts and make the most out of their ownership. There are also Elite Owners that really don't know what to do with what they have. So just the fact that someone is an Elite Owner certainly doesn't make them an authority on Starwood.

When Starwood came out with the Elite Owner program, many owners were fascinated with the program. Believe it or not, "I" even strongly considered Elite Ownership! But Starwood has made so many anti-owner moves since then, that many of the owners who were considering working toward Elite Ownership, wrote it off, and were glad that they didn't jump on the bandwagon.

So when you constantly tell us how great it is to be an Elite Owner, many of us are thinking, "I'm so glad I didn't drink the Kool-aid!"

BTW - I am friends with several Elite Owners on TUG - they are Starwood experts, and I respect the fact that they know how to maximize their ownership, and at the same time, they are able look at Starwood management with a critical eye.