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ROFR for Starwood may increase

SDO has no ROFR. I am sure there are a few others but I am not sure. Someone with more knowledge will probably chime in.

Fredm responded at the same time with better info
 
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Fred,

Thanks for the correct info. I am surprised they don't have ROFR at WKV. I was confusing the buybacks for upgrades there.

Kathleen
 
fluke said:
Doesn't the Bay Villas section at WSJ also have ROFR?
Click to expand...

As David said, VGV does not. But, I cannot say with certainty that Bay Villas does not.
Likewise with Riverfront. I don't know. I have not read the governing documents for either of them.

Maybe an owner who has read the documents can chime in.

With these two possible exceptions, my prior post is accurate.
 
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I just heard that they exercised ROFR on WKORV-N ocean view 2br lock-off every year for 15K.
 
Westin5Star said:
Thanks. I know of two recent sales for 2BR OF gold for $10,500 each at the Surf. I have an II request in right now for next June but I am also looking to buy. Maybe I will just have to go to Aruba twice next year. I sure wish Starwood would surprise us all and build a TS there.
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Unless laws change it is highly unlikely, since Aruba now has a moratorium on future timeshare developments. Of course, that could change tomorrow.

Unbelievable prices, btw. Just a few years ago the rock-bottom best prices on those units (the 2BR OF and the 3BR OV were about the same price) was 18K. Then when the economy really tanked about 16k was a lowball price, and now 2-3 years later you're getting new lows. Sign of the times, I guess, but given the rental rates for these units from Marriott, these resale prices are very appealing.
 
ROFR Exercised

Earlier this week, Starwood exercised their ROFR on a WMH 2BR Annual Platinum at a price of $4,000 plus around $525 in closing costs.
 
Downhill1 said:
Earlier this week, Starwood exercised their ROFR on a WMH 2BR Annual Platinum at a price of $4,000 plus around $525 in closing costs.
Click to expand...

No surprise there.

My saga continues. Starwood exercised a WMH Platinum this week at $6,500.
 
Fredm said:
And............ ROFR today on WKORV OFD at $30,000.
Click to expand...

Thanks for this info.
Looks like prices for OFD are on the increase - good news for me (on paper...) - better for those that reportedly paid ~$25K
 
DavidnRobin said:
Thanks for this info.
Looks like prices for OFD are on the increase - good news for me (on paper...) - better for those that reportedly paid ~$25K
Click to expand...

Yep!

Given Starwood's stated intention to not build new resorts, churning deeds is the primary source of sales inventory going forward.

Hard to say where the cut-off price point will be for ROFR generally (my upper limit guess is 35-40% of the retail sale price). Currently it appears to be closer to 25-30%.
But, OF units may be an exception, as the gross margin can still be considerable above 40%.

For now Starwood seems able to get the inventory it needs at the lower percentages.
 
Fredm said:
...Given Starwood's stated intention to not build new resorts, churning deeds is the primary source of sales inventory going forward ....
Click to expand...

But is there enough turnover to make this a viable, primary source of revenue? (See my conspiracy post on the "early deposits" thread. Marriott had a "single channel" conversion to dump their bad weeks ... Starwood messed up this opportunity by creating "two channels). Makes it much trickier! :D ).
 
jerseygirl said:
But is there enough turnover to make this a viable, primary source of revenue? (See my conspiracy post on the "early deposits" thread. Marriott had a "single channel" conversion to dump their bad weeks ... Starwood messed up this opportunity by creating "two channels). Makes it much trickier! :D ).
Click to expand...

It's enough for now. Starwood is not intent on growing top line timeshare sales revenue. They have so stated. But, it does account for why they are being very aggressive with ROFR. They are not just sniping the very low resales. But,are in fact pushing prices up. They DO need the inventory to maintain its flat top line revenue target. It also supports my rather ambitious thinking of how much Starwood may be willing to pay to exercise ROFR at some point in the future. 40% of the retail sale price approximates what it costs to build, without having to risk the capital associated with building.
(ROFR enables them to modulate its inventory investment closely with sales productivity. Or, shut it down if necessary).
Of course, this can change if the economic climate improves dramatically. But, they are more likely to take an asset-lite approach if it does. This means partnerships with other systems, or, expanding ops management of small/independent systems. Starwood has indicated a lukewarm interest in this approach, but only if it is compatible with their standards.


RE: your conspiracy theory, I think you are reaching too far.
Here is what I think:
Precisely because Starwood is no longer building, and is almost sold out of everything it has built, it must seed I.I. with inventory from somewhere. Unlike the Marriott legacy system, Starwood controls the flow to I.I. for everything.
The I.I. affiliation agreement possibly contains a minimum inventory mix for each resort that cannot be met with standing unsold inventory. So, Starwood is using its predictive model to cut inventory loose. I would think doing so early enables them to manage SVN with more predictability.
 
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Fred, ... Stop it! You are causing too much seller's remorse. lol! Salty
 
Fred,
Do you know if Starwood has ROFR at all of the newer resorts like WDW, WRF or WLM?
Thanks.
 
Wow! I guess an OFC is not in my future. Good for those of us who paid retail though.
 
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