Starwood to spin off vacation ownership

[fluke]

This will be interesting to see how this all turns out. Particularly how they will develop the reported points system/trust and the remaining properties.

 

[dsmrp]

I agree with your assessment and they are following Marriott to the letter.

I will have to go read up on Marriott's system
Believe SueJ had posted a summary in the other thread re the proposed new trust program. My initial take last year looking at the Mariott sub-form was how convoluted it sounded

Interesting that the Sheraton Kauai could be in points/trust, but Princeville would stay deeded?

They still have to deal with the SVO CCRs for the HOAs (as per contract between Owner and SVO) - regardless of how they deal with agreement between SVO and SVN which can be modified w/o HOA approval. They can even dissolve SVN - this is why there is another 'Vacation Club' (currently defunct) mentioned in our CCRs.

Sorry, what does "CCR" stand for?
I will really need to go back and look at my voluntary SVN contract for that language on 5 year opt out of SVN.

BTW does anyone have Starwood info history about the new head of the SVO spinoff? In the press release it said he was part of the pre-SVO Vistana group. Just curious if anyone has insight into his past business philosophy, notable or infamous management decisions etc.

Thanks All, this has been a very interesting discussion thread, I'm sure more to come later

 

[VacationForever]

Interesting that the Sheraton Kauai could be in points/trust, but Princeville would stay deeded?

Other than Mexico, if you have been owning deeded weeks, you will continue to own the deeded weeks, or if bought through resale. Sheraton Kauai will always be booked using points/trust because we are speculating that they won't sell "new resorts" as weeks anymore. You will still have access to Princeville via points/trust. But Princeville will exist in both. This is model that Marriott has.

 

[cubigbird]

Westin Cancun

I know the Westin Cancun was mentioned in the press release. I assume they are referring to the Westin Resort & Spa at the beginning of the hotel zone and NOT WLR. I also assume based on this, they would turn that hotel into a timeshare?? Do we really need ANOTHER Starwood timeshare in Cancun? The location of that resort isn't all that great, it's sort of out there. I think the Westin Lagunamar is enough and they are about sold out of inventory there, so they can't be referring to availability there. We've stayed at the Westin Resort & Spa, and it's not a bad place, but it doesn't need to be a timeshare.

I am pleased to hear about the Westin Los Cabos.

 

[clotheshorse]

Here's the letter from Starwood
Dear Owner,

As a valued Owner, we wanted to personally reach out to you and share some exciting news. Earlier today, Starwood Vacation Ownership’s parent company, Starwood Hotels & Resorts Worldwide, Inc. (Starwood) announced its plan to spin off its vacation ownership business into a separate publicly traded company. Creating two separate companies will allow SVO opportunities to grow, while continuing to provide outstanding vacation experiences, and Starwood to continue to participate through its franchise and managed hotel business model. To view today’s press release click here. For a list of questions and answers, click here, or visit starwoodvacationnetwork.com/news.

All of the benefits and features of ownership you have come to expect will continue through this transition. We will continue to provide you with the same valuable benefits, award winning Westin and Sheraton branded experiences and access to the industry-leading Starwood Preferred Guest® program that you’ve come to know and expect from us. As a new standalone company, we will be even more focused on developing resorts in new destinations and creating program enhancements to make your vacations even more memorable.

As an owner, you will continue enjoying your timeshare resorts as you always have. Current reservation guidelines and fees, exchange rules, reservation rights, and exchange privileges through Starwood Vacation Network, Interval International, and other current exchange options will all remain the same. In addition, you will continue to enjoy privileged access in the SPG Program. As part of the transaction, SVO will benefit from additional anticipated inventory at Westin Los Cabos, Westin Cancun, Westin Puerto Vallarta, Sheraton Kauai, and Sheraton Steamboat – owned properties Starwood expects to transfer to the new entity for future timeshare development. You can continue to access these hotel properties through the SPG program.

Thank you for your continued dedication and loyalty. This is just the start to a very exciting journey and we couldn’t be happier to embark on it together!

Best Regards,
Steve Williams
Stephen G. Williams
Chief Operating Officer
Starwood Vacation Ownership

When did you get this? I own two Westin properties and haven't seen it, maybe it is in my spam.

 

[TrojanRickus]

When did you get this? I own two Westin properties and haven't seen it, maybe it is in my spam.

I received it this afternoon. You might be right and it probably is in your spam.

 

[YYJMSP]

I received it this afternoon. You might be right and it probably is in your spam.

I got 4 of them over the last hour...

 

[TrojanRickus]

Starwood Letter

Does anyone own Marriott and cares to share how the program has affected their ownership? I know it might be apples & oranges but I am just curious. If this is off topic, please delete post.

 

[dsmrp]

I know the Westin Cancun was mentioned in the press release. I assume they are referring to the Westin Resort & Spa at the beginning of the hotel zone and NOT WLR. I also assume based on this, they would turn that hotel into a timeshare?? Do we really need ANOTHER Starwood timeshare in Cancun? The location of that resort isn't all that great, it's sort of out there. I think the Westin Lagunamar is enough and they are about sold out of inventory there, so they can't be referring to availability there. We've stayed at the Westin Resort & Spa, and it's not a bad place, but it doesn't need to be a timeshare.

I am pleased to hear about the Westin Los Cabos.

The 5 hotels initially to be converted are in sub-tropical areas (4) or ski area (1), where people & families would want to have more space to spread out and spend more than a few days. Likely Starwood's conversion criteria also looks for hotels which are less profitable. While a NYC timeshare would be appealing to a good many owners, they would have no reason to convert a NYC hotel into a timeshare, as I can imagine they can charge higher nightly rates and get them.

Would have been appealing to me if they were going to include Aruba, or Cape Cod, Yellowstone/Jackson Hole Wyoming, ...

 

[SueDonJ]

Does anyone own Marriott and cares to share how the program has affected their ownership? I know it might be apples & oranges but I am just curious. If this is off topic, please delete post.

The spin-off of Marriott timeshares from Marriott, Int'l to Marriott Vacations Worldwide hasn't really had a direct effect on owners/members as far as routine operations. It's not all that important except to the Marriott owners/members who also own stock and in that respect, MVW (symbol VAC) is doing much better than expected. Their strategy was announced as Starwood's has been, as being "asset light" and that's certainly been the case - we haven't seen any new developments or announcements of new developments, and the build-out of resorts which hadn't been fully completed before the spin-off has been slow. But the economic downturn and recovery have probably been more relevant factors than the spin-off.

MVW's switch to a Points product from a Weeks product has been much more of a difference-maker than the spin-off, and I'd expect the same with Starwood. We Marriott owners/members could probably write books for you on that but it's probably better for us to wait for Starwood to come out with more details and then, we can correlate what we know with what Starwood has to say.

There are other Marriott TUGgers who have the minds and the expertise to dissect the spin-off much better and more professionally than me - if you want their perspectives just give a holler on the Marriott forum and link this thread.

Good luck to you all - it's not easy working through all these changes.

 

[lizap]

There seems to be a lot of speculation that Starwood is moving to a Marriott-like system. The key word is speculation...

 

[PamMo]

Does anyone own Marriott and cares to share how the program has affected their ownership? I know it might be apples & oranges but I am just curious. If this is off topic, please delete post.

I own a few Marriott weeks and it didn't change how we use our weeks at all. Everything works the same as before the spin off. I bought where our family wants to vacation, though, so I rarely trade our weeks.

I'm curious what Cabo resort will be part of SVN? The Grand Regina section is the prime property at the resort in Cabo, with upscale finishes, fittings, and furnishings. We've stayed there and it's very nice. Our kids really liked the plunge pool on the balcony. The Club Regina section is a Raintree property, and it is nice, but definitely a step below Grand Regina. The hotel is...well, a hotel. All of the resort took a huge hit when Hurricane Odile devastated Los Cabos last fall. The hotel isn't scheduled to reopen until September 30, 2015. I would love to see Grand Regina available with StarOptions. The only downside is that it is in the corridor - a long way from Cabo San Lucas and San Jose del Cabo. You definitely need to rent a car if you stay there.

 

[gnorth16]

The Westin Los Cabos was in shambles when we drove by in December and from what heard, it was going to re-open June 1, but that has been pushed back to September 30, 2015.

As for location, not my cup of tea being on the corridor, but I would still stay there because it's the Westin brand.

http://www.starwoodhotels.com/westi...uncements.html?propertyID=1087&language=en_US

 

[nokaoi9]

Any thoughts on how this will impact mandatory resorts with StarOptions? Will there be points and StarOptions?

Marriott offered those who bought direct and resale to purchase into the "new system" to ensure you would have access to all future resorts that would be in the trust. Those who bought direct from Marriott paid $595-$695, compared to the $1595-$1995 (I believe this was the amount) for resale owners. The two prices are for single and multiple weeks. I would imagine that Starwood would offer a similar buy in option.

I think the biggest gripe for Marriott owners is that Marriott skims owners on weeks they own. For instance, I own at Ko Olina and am offered 4025 points per year for my 2BR unit, yet the cheapest week I can get (if I elected points rather than using my week) is 4050, and as high as 5550.

With Marriott, if you enroll in the club, your Interval International membership is mandatory and is $175 per year. One advantage if you plan to trade is you no longer pay an exchange fee when you trade for a Marriott week. The downside (in my opinion) to this is that it has drastically reduced the number of good trades one was able to get.

Interesting to see how this plays out.

 

[DavidnRobin]

"As part of the transaction, SVO will benefit from additional anticipated inventory at Westin Los Cabos, Westin Cancun, Westin Puerto Vallarta, Sheraton Kauai, and Sheraton Steamboat – owned properties Starwood expects to transfer to the new entity for future timeshare development. You can continue to access these hotel properties through the SPG program."

Very telling. They are focusing on converting existing SPG hotels. This can only be positive for those interested in exchanging into other locations than the current (at a premium of course).
SVO needs to seriously expand to survive, and also change their model away from straight-up deeds where MFs are the same between seasons. This will help prevent results for those low-season low-demand resorts.

IMO and speculation.

 

[VacationForever]

It is not clear to me whether the new system is points (new) based or StarOptions based. It appears to me that the "trust" with the 5 Sheraton properties is still based on StarOptions. Since selling trust is a recent development, it seems to indicate that StarOptions is well and alive in the new system. If so, folks with mandatory SVN resorts or StarOptions through developer purchased/retro should be able to trade into these "new" properties.

 

[vistana101]

Wow, after all these years, the timeshare conversion of the Sheraton in Kauai might actually be coming to fruition-crazy!!

Also, anyone have an idea where all these articles/press releases get the number of 22 resorts from? I thought we were at 19.

 

[YYJMSP]

Also, anyone have an idea where all these articles/press releases get the number of 22 resorts from? I thought we were at 19.

Hmm, just counted on the web site, and, yup, only 19...

Maybe you have to be Double Five Star Premium Ultra Platinum Elite to see the other 3?

Ahhh, (insert light bulb here), perhaps these are the three upcoming properties (not Venus, Mars, and Pluto as I speculated) that were mentioned in another post/thread.

 

[islandguy]

Notice they didn't mention Maui in the press release expanding the timeshare locations. Something to think about as the vacant land next to Westin Ka'anapali Ocean Resort and Villas is discussed by sales and this board as a potential addition of timeshare in Maui.

 

[xbanker]

Why not Big Island or Oahu?

With already having a presence in Kauai, I wish they would have increased coverage by adding either/both the Sheraton Kona Resort or the Sheraton Princess or Waikiki properties.

 

[pathways25]

With already having a presence in Kauai, I wish they would have increased coverage by adding either/both the Sheraton Kona Resort or the Sheraton Princess or Waikiki properties.

I think the key issue is that Starwood doesn't own those hotels.

Starwood wants to go asset light and this is the perfect opportunity for them to unload the properties they're handing to the SVO spinoff.

 

[sjsharkie]

Any thoughts on how this will impact mandatory resorts with StarOptions? Will there be points and StarOptions?

Marriott offered those who bought direct and resale to purchase into the "new system" to ensure you would have access to all future resorts that would be in the trust. Those who bought direct from Marriott paid $595-$695, compared to the $1595-$1995 (I believe this was the amount) for resale owners. The two prices are for single and multiple weeks. I would imagine that Starwood would offer a similar buy in option.

I think the biggest gripe for Marriott owners is that Marriott skims owners on weeks they own. For instance, I own at Ko Olina and am offered 4025 points per year for my 2BR unit, yet the cheapest week I can get (if I elected points rather than using my week) is 4050, and as high as 5550.

With Marriott, if you enroll in the club, your Interval International membership is mandatory and is $175 per year. One advantage if you plan to trade is you no longer pay an exchange fee when you trade for a Marriott week. The downside (in my opinion) to this is that it has drastically reduced the number of good trades one was able to get.

Interesting to see how this plays out.

The difference is that Marriott's program was new and didn't replace a similar internal exchange program when it came out. Since Starwood already has a club program, I doubt it would change significantly at the outset. They already have hiked the club dues quite a bit, and none of that goes to a II club membership provided to members so I suspect much more of it goes straight to the bottom line (versus Marriott).

Again, all conjecture.

-ryan

 

[SueDonJ]

The spin-off of Marriott timeshares from Marriott, Int'l to Marriott Vacations Worldwide hasn't really had a direct effect on owners/members as far as routine operations. ...

(Talking to myself again. )

I've been thinking about all the conjecture, and some hysteria, that we Marriott TUGgers sifted through when our spin-off was announced. There was quite a bit of doom-and-gloom with many long-time Marriott owners predicting everything from our Weeks losing their trading power in II, to our timeshare resorts re-branding or closing due to a massive number of owners walking away from a worthless product, to both MI and MVW being subjected to lawsuits that they were sure to lose. None of those drastic ends have been met. Since it's been officially announced that Starwood is spinning off their timeshare segments, maybe you'll appreciate a rundown of what I meant by us not seeing a change in routine operations.

- The new company has "Marriott" in its name with former Marriott, Int'l executives and family members serving on the MVW executive board and in other executive positions. MI did not "leave us high and dry" as there's a long-term contractual agreement in place that protects the brand image for both companies. The Licensing Fee that MVW pays to MI has not had a measurable effect on our MF's.

- Our affiliation with MI's customer loyalty program, Marriott Rewards, is continuing with virtually no change. Our timeshare stays still get credit for Elite Nights on which status tiers are based, we get Points for spending and incentives which we're able to use throughout the entire Marriott portfolio, we get some continuing discounts for cash stays at the MI hotels/resorts, and the "Marriott Vacation Club" brand is still prominently featured in the MI portfolio.

- Our ownership/membership accounts were not re-branded or changed in any way. MVW sub-contracted some IT services related to operations from MI but in this the fifth year of MVW's operation, they've announced that IT services are now all in-house.

I'm sure there's more but that's a good start. Like I said, Marriott's switch to a Points system resulted in far more speculation, distrust and changes to our ownerships than the spin-off did. Looking back, the spin-off has been barely a blip. It's the shareholders who have seen tangible results which have been positive from the start.

 

[LisaRex]

To add some levity here, did anyone see this sentence in their news release:

Will Create Premier Upper Upscale Timeshare Company

I don't know. I'm a tad disappointed that they aren't striving to become the Premier Deluxe High-Falutin' Upper-End Upper Upscale Timeshare Company!

 

[DavidnRobin]

To add some levity here, did anyone see this sentence in their news release:

Will Create Premier Upper Upscale Timeshare Company

I don't know. I'm a tad disappointed that they aren't striving to become the Premier Deluxe High-Falutin' Upper-End Upper Upscale Timeshare Company!

I did, and thought the same thing - what Marketing-speak.

But in Corp-speak, regardless of where/how SVO/SVN adds to their profit - this is a positive change. SVO/SVN needs to grow (IMO) and as we have discussed - change their model as not to screw low-season/poor-resorts Owners causing them to default and put the burden on the HOA.

…IMO

SueDonJ - thanks for your insight