ROFR metric / Ongoing ROFR Activity

[taterhed]

@Wahoo Good luck! Let us know how it goes (and the seller name) once it closes. Or not.

 

[amy241]

We have submitted a new offer of $10,500 on a Marriott Ko Olina 2/2 oceanview week. What is different this time around is that the estoppel shows Usgae 2018: No and Usgae 2019: No. The seller had already rented out 2019 usage so the MFs for 2019 will be credited back to us at closing. Since Marriott does not have usage next year, I’m thinking they may be more likely to waive on this purchase than to exercise. I will post results when received.

 

[TXTortoise]

Just another variable, but I wonder if Marriott would go higher for weeks like MOC Lahaina and Napili 3BR OF fixed weeks and the similar 2BR OF fixed, just because of rarity, even though points are the same as floating. I’ve seen one or two sales on Redweek for fall season, but no idea if they got ROFR’d. I might ping the broker and see whether they’ll say.

 

[amy241]

Marriott waived ROFR on our recent offer of $10,500 on an Oceanview Ko Olina week with usage beginning 2020.

 

[JIMinNC]

Marriott waived ROFR on our recent offer of $10,500 on an Oceanview Ko Olina week with usage beginning 2020.

Congrats! Glad you got one through.

 

[californiagirl]

I’m also happy for you Amy. I have been following your attempts to buy at Ko Olina. It’s been a crazy ROFR summer! Hope all goes well with the purchase and recording.

 

[Panina]

Marriott waived ROFR on our recent offer of $10,500 on an Oceanview Ko Olina week with usage beginning 2020.

Great new, congratulations. Persistence pays off.

 

[dagger1]

So excited to report that our Waiohai, Island View, EOY passed ROFR at $3500. We heard 6 days from submitting ROFR. I’ve added it to the database.

We made an offer on an EOYO Waiohai the end of August, ROFR request was sent to Marriott 9/7/18. That was 17 days ago and we haven’t heard a word. Marriott has 15 days to exercise ROFR on Waiohai, we are beginning to wonder what’s going on. Looks like this offer will fall through...

 

[TXTortoise]

All mine have gotten a response within two calendar weeks, including one earlier this month. That said, all the ROFR activity may be delaying things. I wonder if anyone has had ROFR waived because they missed their window.

 

[dagger1]

All mine have gotten a response within two calendar weeks, including one earlier this month. That said, all the ROFR activity may be delaying things. I wonder if anyone has had ROFR waived because they missed their window.

Is the 15 day ROFR window composed of 15 total days or 15 business days, does anyone know?

 

[TXTortoise]

15 business days per the folks at AdvantageVacations.com (Syed)

 

[dioxide45]

15 business days per the folks at AdvantageVacations.com (Syed)

Per his website, it doesn't specify business or calendar days. I don't know what the official documents indicate, but I don't think they specify. In that absence, it would lend toward calendar days.

https://advantagevacation.com/marriotts-right-of-first-refusal-terms-and-policy/

 

[amy241]

Per his website, it doesn't specify business or calendar days. I don't know what the official documents indicate, but I don't think they specify. In that absence, it would lend toward calendar days.

https://advantagevacation.com/marriotts-right-of-first-refusal-terms-and-policy/

It is located in the resort’s disclosure statement.

 

[TXTortoise]

Per his website, it doesn't specify business or calendar days. I don't know what the official documents indicate, but I don't think they specify. In that absence, it would lend toward calendar days.

https://advantagevacation.com/marriotts-right-of-first-refusal-terms-and-policy/

Direct email from his staff at closing, FWIW.

 

[dioxide45]

It is located in the resort’s disclosure statement.

I knew that, just didn't take the time to dig through it. Here is what our Grande Vista docs show. Nowhere does it indicate either business or calendar days.

 

[Steve Fatula]

From reading the Grande Vista document shown, I think it's obvious it means calendar days, i.e. 1 month. By not specifying, I would expect any challenge to the amount of time to go in favor of calendar.

 

[TXTortoise]

The Ko' Olina docs state the same thing, for 15 days, which would imply calendar days. I did find it interesting that in the next paragraph addressing rescission they specifically say 'calendar days'.

https://www.sellingtimeshares.net/wp-content/uploads/Olina-Disclosure-Statement-.pdf

"RIGHTO F FIRST REFUSALTPOURCHASE. In the event an Owner desires to sell, convey or lease (or enter into other agreements relating to the use of a Unit if not designated as a "lease") for a term of three (3) years or more in the aggregate (and whether or not consecutive), or othewise transfer ownership of such Owner's Ownership Interest in the Program and for so long as Developer has Ownership Interests to sell in the Program or the Developer or an affiliate of Developer manages the Program, whichever shall he later, Developer shall have the right-of-first-refusal to purchase or lease, as applicable, the Ownership Interest under the same terms and conditions (including financing terms) as may be offered to or by a bona fide third party. Accordingly, each Owner desiring to sell or lease his Ownership Interest must notify Developer in writing of his intent to list, sell or lease his Ownership Interest. The Owner's written notice to the Developer must include the proposed listing, offer price or rental rate and general terms of the proposed listing, sale or lease. Upon receipt of such written notice, the Developer shall have fifteen (15) days within which to notify the Owner in writing as to whether the Developer elects to exercise its right of first refusal set forth herein. If Developer electz_to exercise its right of first refusal, closing shall occur no later than sixty (60) days after Developer notifies the Owner in writing (within such fifteen (15) day period) of its decision to purchase the Ownership Interest. If Developer elects not to exercise its right of first refusal or fails to notify the Owner in writing of Developer's election to exercise its right of first refusal within such fifteen (15) day period, the Owner shall be entitled, for a period of seven (7) months thereafter, to list Owner's Ownership Interest with a third party resale agent or sell the Ownership Interest to a third party for a price equal to or greater than the price offered to Developer without further notice to Developer. In the event, however, that such third-party buyer is an entity other than natural persons or such persons' personal trust (such as a corporation, partnership, limited liability company or partnership or other business entity), the Owner shall then reoffer the Ownership Interest to Developer under the procedure set forth above to provide Developer with the option to exercise its right-of-first- refusal once again.

8. MUTUALRESCISSIOPNROVISION. BoththeDeveloperandanyBuyermaycancelanycontracttobuyan Ownership Interest without penalty by giving the other party written notice within seven (7) calendar days after: (a) signing the contract; or (b) the Buyer receives this Disclosure Statement, whichever is later. The seven (7) day period is called the "mutual rescission period." Each Buyer will be given a form of Notice of Cancellation (Form TS-10 of the Department of Commerce and Consumer Affairs of the State of Hawaii ("DCCA)), together with all pertinent information completed at the time that Buyer signs the Purchase Contract. If a Buyer exercises this right to cancel, then, within fiffeen (15) days, the Developer must return all payments made and the Buyer must return all sales materials received in good condition, except for reasonable wear and tear, or the Developer may deduct their reasonable value (but not more than $25.00)."

 

[csodjd]

ROFR exercised by Marriott. Maui Ocean Club, Napilli. 2-Bedroom Oceanfront, annual. $29,000.

 

[TXTortoise]

ROFR exercised by Marriott. Maui Ocean Club, Napilli. 2-Bedroom Oceanfront, annual. $29,000.

Wow.... Guess my two 2BR OF fixed weeks that were ROFR'd at $20K wouldn't have cleared at $25K either.

That is the highest value week I know of to fail ROFR.

That's $3.88/pt and I guess answers my previous hypothetical as to whether Marriott would go higher on a $/pt ratio for relatively rare high-value weeks.

 

[csodjd]

Wow.... Guess my two 2BR OF fixed weeks that were ROFR'd at $20K wouldn't have cleared at $25K either.

That is the highest value week I know of to fail ROFR.

That's $3.88/pt and I guess answers my previous hypothetical as to whether Marriott would go higher on a $/pt ratio for relatively rare high-value weeks.

I have to admit, I was surprised.

 

[JIMinNC]

Wow.... Guess my two 2BR OF fixed weeks that were ROFR'd at $20K wouldn't have cleared at $25K either.

That is the highest value week I know of to fail ROFR.

That's $3.88/pt and I guess answers my previous hypothetical as to whether Marriott would go higher on a $/pt ratio for relatively rare high-value weeks.

Guess that means the cost of entry for a floating OF annual at Lahaina/Napili is now likely over $30K - unless this was one of those outliers we get sometimes. That's steep.

 

[GregT]

That's interesting to see MM1 weeks being bought back at $29K -- awhile ago I bought a 2BR Week 23 fixed week for $19K and a float week later for $27K -- and then the recent 3BR for $35K. None of those would pass today.

I do suspect prices will come down when they are less active in ROFR in the future, but it may take awhile because $150M is alot of money for Marriott to deploy.

Best,

Greg

 

[csodjd]

I wonder if it's just to buy inventory to have more for their DC points, and to provide more tools for their agents to sell DC points by citing ROFR results when someone (like me) says it's just too much less costly to buy on the secondary market. Basically, it is Marriott buying out the secondary market's existence.

 

[LUVourMarriotts]

Marriott did not exercise ROFR for my purchase of OceanWatch Platinum Oceanside. $11,500, but the way the contract read, the purchase price was $12,000. Equivalent to $2.75/pt at $11,500.

 

[echino]

I am waiting for ROFR on St. Kitts at a very low price. Does it have a higher chance to clear due to it being St. Kitts and therefore not eligible for trust points?