VRI to Capital Vacations, now seeing assessment with warning things are about to get ugly [Hawaiian Sun Holidays/Sweetwater at Waikiki]

[jackio]

We received a letter from Hawaiian Sun Holidays Owners Association, explaining that a special assessment of $950/unit for annual owners is needed to meet its financial obligations. The owners will have to vote for or against the assessment.

Hawaiian Sun Holidays and its sister timeshare, Sweetwater at Waikiki, are housed in the Waikiki Banyan Hotel. Hotel amenities are available to the owners, and the units are leasehold until 2035. I suspect Sweetwater owners received the same notice.

The association has explained that the Banyan has levied a significant increase in maintenance fees to them, and also has plans for special assessments in 2025 and 2026.

The letter says:

The next two years will be a challenging period. Rising costs and necessary updates to the property will require patience and commitment from all of us. However, this will result in positive upgrades to the Banyan. Even with the anticipated increases, our timeshare offers significantly better value to comparable rentals and accommodations.

A ballot was included. Under the box for “Don’t Approve”, is the following:

I/We do not approve of the special assessment and understand that if this vote is not approved, the Hawaiian Sun Holidays Timeshare Owners Association will default on its obligation as an apartment owner in the Waikiki Banyan which very likely will end the timeshare plan as we know it.

Points to consider:

The maintenance fee charged by the Banyan increased 25% in 2025, and a similar increase is anticipated for 2026.

While the special assessment and fee increases are slated for updates to the Banyan, they do not cover any updates to the timeshare units, which, while clean and comfortable, are very dated.

There will only be 9 years left on the leasehold. Is it worth it to fund the upgrades to the hotel with that short time remaining?

Is is almost guaranteed that the Banyan will take the units back? If so, maybe it’s worth it?

Capital Vacations is now managing the resort, taking over for VRI. Capital’s reputation is scary in itself.

Suggestions or comments? Thank you.

 

[FunnyFarm]

MROP owns units in Hawiian Sun and Sweetwater.
I wonder if they will drop their interests. They have reduced some inventory in the past couple years.

 

[jackio]

MROP owns units in Hawiian Sun and Sweetwater.
I wonder if they will drop their interests. They have reduced some inventory in the past couple years.

Does Capital Vacations now own MROP?

 

[jackio]

I had this posted in the Hawaii forum, but if anyone has any comments, please chime in!
Thank you.

Hawaiian Sun Holidays/Sweetwater at Waikiki owners? Special Assessment concerns

We received a letter from Hawaiian Sun Holidays Owners Association, explaining that a special assessment of $950/unit for annual owners is needed to meet its financial obligations. The owners will have to vote for or against the assessment. Hawaiian Sun Holidays and its sister timeshare...

tugbbs.com

 

[SueDonJ]

Moderator Note: The TUG Rules don't allow duplicate posts; threads merged and placed at OP's request.

 

[jackio]

Moderator Note: The TUG Rules don't allow duplicate posts; threads merged and placed at OP's request.

Thank you.

 

[bnoble]

I would be inclined to vote no; if the timeshare wraps up a few years early, that's really no skin off my nose.

How reasonable are the fees, in absolute terms vs. similar properties? If it is a very good deal, then maybe I would vote yes. But even then.

 

[jackio]

I would be inclined to vote no; if the timeshare wraps up a few years early, that's really no skin off my nose.

How reasonable are the fees, in absolute terms vs. similar properties? If it is a very good deal, then maybe I would vote yes. But even then.

Hard to compare. The MF was $925 for 2025, and includes free parking for one car. Much cheaper than renting any hotel. Even renters at the Banyan hotel pay for parking.
The location is great, but the units are really dated and need major upgrades. That won’t happen with the short time left. I expect the MF to have a hefty increase for 2026.

I am wondering if, in fact, the Banyan will terminate the agreement. That would be fine with me. We were trying to give the unit away, because the trip from NY is getting to be a lot. But now I can’t pursue that in good conscience.

 

[dioxide45]

Does Capital Vacations now own MROP?

Capital Vacations now owns VRI who was the manager of MROP.

 

[b2bailey]

I stayed at Waikiki Banyan (timeshare unit but don't remember which group)
a year ago. I made the mistake of googling pictures that turned out to be one of the Aston Hotel rooms. A world of difference.

If the Special Assessment was made to refurbish room interiors, that would be a good investment. If it specifically excludes such improvements, I would guess another will soon be on the way for that purpose. The historical low maintenance fees are an indication the units have not been maintained properly.

 

[jackio]

An owner who was at the last annual meeting learned that less than half of the owner weeks are current, and that the resort rents its extra weeks out with an occupancy rate of appx 80%. With the current rec deck renovations underway, revenue from rentals is anticipated to be reduced as well.. Apparently, many of these weeks were exchanged to Capital Vacations for a cash bail out to help cover last year's expenses. Capital keeps the rental income from these weeks, less further contributions towards some of the housekeeping expenses.

It was calculated that there are enough delinquent weeks to sell as many as 12-15 units. There could be legal complications in arranging a sale of some portion of the units.

If calculations are correct, the sale of a substantial number of those units could add to making the HOA solvent and able to meet its financial obligations for the remainder of the lease.

(This information communicated to me by the owner who attended the meeting).

 

[Saskalta]

This is a complicated situation.. the down side is that we will only have 9 years left after the current building improvements.. To have additional special assessments for the units themselves, would only provide us value for the remaining length of time on our units until 2035..

There is value in the units even without the land lease.. selling some would be my hope.. but if we cant do that, is it enough to warrant more and bigger special assessments over the next two years?

The big question is that if we can sell some of the unneeded units, we might be smiling... if we can't sell units, what really are our options? I doubt there is a straight forward answer. The board of directors will need to put some options together? Hopefully? No easy answer on this one!

 

[jwbwing]

We did vote no and mailed it in right after we got it in the mail. At the meeting members asked if one of solutions was to shut down and disolve HSH. We were told that it is on the table. Capital Management added that many Timeshares are shut down when ownership is down to 45% and that HSH is down to 40%. The biggest issues are expenses that our board has no input or control of. We have property tax, ground lease, Waikiki Banyan Condo fees, and Waikiki Banyan 2025 special assesment. We tried to do some math. WE think these added $130 to each weekly interval in 2015 and now in 2025 it is $590 to each interval week. Not sure if that is accurate but that is what we came up with. Next year 2026 is expected to be just as high. We own 7 weeks here and have enjoyed our time there. Will miss it if it fails.