Status of Alleged New San Diego & South Beach Resorts

[NYFLTRAVELER]

I have not heard/read anything about the supposed development of the alleged new MVCI resorts in San Diego and South (Miami) Beach in many months...... Are these projects still alive? If so, what is the timeline?

 

[Werner Weiss]

I have not heard/read anything about the supposed development of the alleged new MVCI resorts in San Diego and South (Miami) Beach in many months...... Are these projects still alive? If so, what is the timeline?

San Diego is very much alive. Marriott Vacation Worldwide (VAC) announced its acquisition of the Declan Suites hotel as part of its First Quarter 2015 Financial Results (April 30, 2015):

The company completed its acquisition of an operating hotel located in San Diego, California, for approximately $55 million. The company plans to begin converting the hotel to vacation ownership inventory later this year.
​

The Declan Suites hotel at 701 A Street in San Diego continues to operate as a hotel and to take new reservations, but it's now owned by VAC. Ariba now shows "Marriott Vacations Worldwide Corporation doing business as Declan Suites": https://service.ariba.com/Discovery.aw/ad/profile?key=AN01023085216

Looking at the website of the Development Services Department of the City of San Diego reveals applications for a Plumbing Permit, Electrical Permit, Mechanical Permit, Building Permit at that address, dated 08/25/2015. The project is called "Project 441577 - Declan Suite Hotel Renovation," and the scope is summarized like this:

Interior remodel to include: interior demo, ground floor upgrade of floor, walls, ceiling and finishes. 11th floor renovate back of the house offices. 12th-27th floors interior demo & remodel of offices, fit room, kitchen, pool area, bar, lounge, restrooms, gallery, cafe, including renovation of (264 Guestrooms) & refinish 14th floor & facade. Includes plumb, elec, mech work.​

I think it's distinctly possible that there will be a transition period with some of the floors used as hotel suites while other are used as Vacation Club suites, with VAC only conveying as much of the suite inventory into the Trust as is needed to keep the Trust healthy and legal.

None of this answers the question of when we'll be able to stay at this San Diego property in renovated Marriott Vacation Club suites.

Count me as someone who looks forward to using Vacation Club Destinations Points to stay at this San Diego property.

 

[Werner Weiss]

Meanwhile, South Beach remains more of a mystery. Along with San Diego and the Big Island, it was first mentioned during the Marriott Vacations Worldwide (VAC) earnings call on February 26, 2015. Here's what Stephen P. Weisz said about South Beach:

In Miami, we have a commitment to purchase 182-unit property under construction in South Beach, scheduled to be completed in August of this year. We have also signed a letter of intent with a third party, who will purchase the property from the seller upon completion, giving us flexibility to acquire the inventory over the next several years in a more capital-efficient manner. In addition, we are targeting to open a new sales gallery in this market during the first half of next year.​

VAC never announced the actual property. Doing some Googling, it seems that the "182-unit property under construction in South Beach" might be this one:

http://www.witkoff.com/portfolio?property_id=50

The developer's web page describes it as a "181-key 4-star boutique hotel in the South Beach neighborhood of Miami Beach, Florida." That's the right location, the right timing, and essentially the right room count. It also matches Weisz's reference to "Art Deco historic buildings in South Beach."

The current website for the Washington Park Hotel (http://www.washingtonparkhotel.com) appears to be stalled, as if plans have changed. It still says "Opening Early 2015" and there are no details about rooms or an opening date or a way to make reservations. That makes it seem that it won't ever open at the originally-envisioned Washington Park Hotel, but under different management — possibly Marriott Vacation Club.

Miami showed up as an "Announced Project" on the May 15, 2015 Marriott Vacations Worldwide Corporation Investor Day presentation, but only with these limited details.

South Beach, Miami Beach, Florida
Opening Planned 2016
Plans include:

• Local sales gallery with incremental 2016 volume
• 182 timeshare units
• Amenities include a pool bar and on-site restaurant
• Pursuing an asset light structure

We have not yet closed on the commitment to acquire this inventory.
​

My guess is that the South Beach project is moving forward. Until there's news that VAC needs to share with its investors (such as news of the completion of a significant financial transaction involving this property) or that it wants to release (news that will entice people to buy points), we probably won't hear much.

At least there's no reason to believe the project is dead.

Once again, this doesn't answer the question of when we'll be able to stay at a South Beach Marriott Vacation Club property.

 

[mjm1]

We stopped by the Declan Suites during a trip to the San Diego area this summer. The current rooms are only a little over 400 sq ft, so it will be interesting to see how the rooms will be configured. The lobby has a restaurant near by as well as an entrance to a private business club. The restaurant was closed so we didn't eat there. The indoor pool is very small and I can't imagine them expanding it.

As GregT mentioned a while back, the location isn't ideal, but is very close to the freeways and is about .5 miles to Horton Plaza and the Gaslamp District. A little farther to Petco Park for baseball games. They also have the symphony hall on the back side of the building. One downside is the parking. The parking garage is owned by someone else, so guests currently pay $29 per night. I suspect we will need to pay that amount as well, unless Marriott negotiates a discounted rate.

It will be interesting to see how this develops.

Mike

 

[WBP]

Meanwhile, South Beach remains more of a mystery. Along with San Diego and the Big Island, it was first mentioned during the Marriott Vacations Worldwide (VAC) earnings call on February 26, 2015. Here's what Stephen P. Weisz said about South Beach:

In Miami, we have a commitment to purchase 182-unit property under construction in South Beach, scheduled to be completed in August of this year. We have also signed a letter of intent with a third party, who will purchase the property from the seller upon completion, giving us flexibility to acquire the inventory over the next several years in a more capital-efficient manner. In addition, we are targeting to open a new sales gallery in this market during the first half of next year.​

VAC never announced the actual property. Doing some Googling, it seems that the "182-unit property under construction in South Beach" might be this one:

http://www.witkoff.com/portfolio?property_id=50

The developer's web page describes it as a "181-key 4-star boutique hotel in the South Beach neighborhood of Miami Beach, Florida." That's the right location, the right timing, and essentially the right room count. It also matches Weisz's reference to "Art Deco historic buildings in South Beach."

The current website for the Washington Park Hotel (http://www.washingtonparkhotel.com) appears to be stalled, as if plans have changed. It still says "Opening Early 2015" and there are no details about rooms or an opening date or a way to make reservations. That makes it seem that it won't ever open at the originally-envisioned Washington Park Hotel, but under different management — possibly Marriott Vacation Club.

Miami showed up as an "Announced Project" on the May 15, 2015 Marriott Vacations Worldwide Corporation Investor Day presentation, but only with these limited details.

South Beach, Miami Beach, Florida
Opening Planned 2016
Plans include:

• Local sales gallery with incremental 2016 volume
• 182 timeshare units
• Amenities include a pool bar and on-site restaurant
• Pursuing an asset light structure

We have not yet closed on the commitment to acquire this inventory.
​

My guess is that the South Beach project is moving forward. Until there's news that VAC needs to share with its investors (such as news of the completion of a significant financial transaction involving this property) or that it wants to release (news that will entice people to buy points), we probably won't hear much.

At least there's no reason to believe the project is dead.

Once again, this doesn't answer the question of when we'll be able to stay at a South Beach Marriott Vacation Club property.

The future Washington Park Hotel looks to be beside the Miami Beach Police Headquarters at 11th and Washington. Now, that strikes me as a Safe Haven.

 

[Mamianka]

I have not heard/read anything about the supposed development of the alleged new MVCI resorts in San Diego and South (Miami) Beach in many months...... Are these projects still alive? If so, what is the timeline?

Nothing new that I can add to this thread - BUT . . .
New Residence Inn going up here in Kingston NY - not on any Marriott site. Right across the drive from our fairly-new Courtyard. Lots of ARTS thing here, skiers, fishermen, horse-show/jumping folks, Woodstockers - so several chains have put up new places. We are less than 2 hours north of NYC - come on over! Plywood up now - should be closed in before long.

Yes, I understand that this might have to be moved to another spot.

Mamianka

 

[Fasttr]

SeaDoc just posted at VPE that the South Beach project has been cancelled by MVC due to non performance by the Sellers.

 

[dioxide45]

SeaDoc just posted at VPE that the South Beach project has been cancelled by MVC due to non performance by the Sellers.

It seems that this property along with the Big Island are the two that would have been the mist likely to fall through. San Diego, at least MVCI owns the property. They just need to convert it. I don't know if MVCI has closed on the BI property yet. South Beach seemed to be a way for MVCI to sell inventory with zero risk. Not sure what the sellers were planning, perhaps they think they can do better without MVCI selling units for them.

 

[GregT]

Marriott South Beach -- canceled?

All,

SeaDoc posted on VPE that the Marriott timeshare at South Beach has been postponed due to Seller not fulfilling the conditions of the sale agreement.

I can't find anything on the internet, has anyone else heard this?

Best,

Greg

 

[davidvel]

All,

SeaDoc posted on VPE that the Marriott timeshare at South Beach has been postponed due to Seller not fulfilling the conditions of the sale agreement.

I can't find anything on the internet, has anyone else heard this?

Best,

Greg

SeaDoc is a pretty good source. . .

 

[Werner Weiss]

As I noted in post #3 of this thread, Stephen Weisz announced the following on Feb. 26, 2015:

"In Miami, we have a commitment to purchase 182-unit property under construction in South Beach, scheduled to be completed in August of this year. We have also signed a letter of intent with a third party, who will purchase the property from the seller upon completion, giving us flexibility to acquire the inventory over the next several years in a more capital-efficient manner."​

August has long passed. I'm not aware of any news about the property. Marriott Vacations Worldwide has been silent on its website. I don't see anything else about the property under Newsroom or Investor Relations.

This suggests that the construction was not completed in August, and that the purchase did not proceed.

At some point, I would expect news about whether this resort has been "cancelled" or "postponed" (both terms have been used in this thread). In either case, it seems this project is NOT proceeding on the schedule announced in February.

I hope the project is not completely dead. It would be a good addition to the Marriott Vacation Club portfolio.

 

[JEPASVC]

All,

SeaDoc posted on VPE ...

What is VPE ?

 

[SueDonJ]

What is VPE ?

VacationPointExchange.com - developed after Marriott introduced the Destination Club, used by TUGgers and other Marriott owners/members to facilitate DC Points rentals.

 

[dioxide45]

As I noted in post #3 of this thread, Stephen Weisz announced the following on Feb. 26, 2015:

"In Miami, we have a commitment to purchase 182-unit property under construction in South Beach, scheduled to be completed in August of this year. We have also signed a letter of intent with a third party, who will purchase the property from the seller upon completion, giving us flexibility to acquire the inventory over the next several years in a more capital-efficient manner."​

August has long passed. I'm not aware of any news about the property. Marriott Vacations Worldwide has been silent on its website. I don't see anything else about the property under Newsroom or Investor Relations.

This suggests that the construction was not completed in August, and that the purchase did not proceed.

At some point, I would expect news about whether this resort has been "cancelled" or "postponed" (both terms have been used in this thread). In either case, it seems this project is NOT proceeding on the schedule announced in February.

I hope the project is not completely dead. It would be a good addition to the Marriott Vacation Club portfolio.

I don't think we will see a press release or anything that official about the cancellation of the sale and agreement. I suspect it will be mentioned in the quarterly earnings call, perhaps based on a question presented.

 

[Werner Weiss]

I don't think we will see a press release or anything that official about the cancellation of the sale and agreement. I suspect it will be mentioned in the quarterly earnings call, perhaps based on a question presented.

I agree. Because the South Beach strategy was disclosed to investors, any significant changes to it will eventually be disclosed through investor communications of one sort or another.

There's no reason for Marriott Vacations Worldwide to use PR Newswire to "spread the word" to the media.