westgate to buy VI Resorts? wow!

[TUGBrian]

Westgate Resorts to triple in size, add Canada and Mexico locations in timeshare company acquisition

The move will increase Westgate’s locations from 22 to 66 and extend its business to western states, Canada’s western province and beach towns in Mexico.

www.orlandosentinel.com

that might be paywalled, here is the press release:

Westgate Resorts Signs Definitive Agreement to Purchase VOS, the exclusive Management and Sales Partner of VI Resorts

/PRNewswire/ -- Westgate Resorts announced today that it has signed a definitive agreement to purchase Bellevue, Washington-based Vacation Ownership Sales...

www.prnewswire.com

As part of the acquisition, Westgate Resorts will assume management of VI Resorts' points-based Vacation Club, which has an expansive portfolio of over 40 domestic and international resorts and destinations. These locations include highly sought after locations around the United States such as the picturesque islands of Hawaii, as well as the sandy beaches of Mexico and throughout Canada. Westgate Resorts will continue to add new Owners to the VI Club through its extensive sales and marketing efforts.



As part of its management agreement, Westgate Resorts has committed to investing over $4 million in marketing, branding and technology improvements to enhance the VI program for its Owners, along with additional benefits.

 

[gravityrules]

More TS consolidation.

 

[dioxide45]

This will be a good selling point that I am sure the Westgate salespeople will try to pull over on unsuspecting owners and tour guests. Just look at all the new properties you can go to! Even though there is probably no cross booking system and if there is, chances of a booking are slim.

 

[vacation911]

This will be a good selling point that I am sure the Westgate salespeople will try to pull over on unsuspecting owners and tour guests. Just look at all the new properties you can go to! Even though there is probably no cross booking system and if there is, chances of a booking are slim.

I winder what this means for VRI resale...Will they face the Westgate treatment now?

 

[pedro47]

I wish VI Resorts would have sold this to Hilton Vacation Club and not Westgate.

 

[northovr]

I clicked on VI resorts and they have one listed in Orlando as Cypress Pointe same address as Hilton Vacation Club Cypress pointe ( sunterra Diamond} confused?

Daniel

 

[pedro47]

There are many VI resort under Hilton Vacation Club name.
This is very confusion ?

 

[sue1947]

As a VI owner, this is horrible news. VI has been an owner friendly independent timeshare. Westgate is anything but.
Some VI resorts consist of ownership of some weeks in larger complexes shared with other timeshares. At Cypress Pt, VI owns a bunch of summer weeks but only a few winter weeks. There was a brief association with Sunterra where the overlap with Diamond happened.

 

[Passepartout]

Makes me sick as my fav resort is VI Torres Mazatlan.

 

[easyrider]

BUMMER. I have a feeling the VI mf is going up.

Bill

 

[dioxide45]

Looking at VI Resorts, it looks like a similar setup as MROP. Would that be a good comparison? Perhaps even Worldmark would be another comparison. They don't necessarily control all the units at a property, but perhaps they do at some or many? Westgate seems like an odd pairing here given they are a traditional weeks based model. Does Westgate want to move into points based trust like VI Resorts is setup? It would seem like Capital Vacations was a better fit, though no better for VI Resorts owners.

 

[easyrider]

I read this on the VI website. I'm thinking it's not really much different than Wyndham taking the place of Trendwest for Worldmark.

Bill

Vacation Ownership Sales (VOS), the Manager and Developer of VI Resorts, signs definitive Agreement with Westgate Resorts​

Vacation Ownership Sales (VOS) who has the exclusive sales and marketing rights, of the VI Club product, and is the manager of VI Resorts, announced today that it has signed a definitive agreement with Westgate Resorts.
Westgate Resorts will assume management of VI Resorts' club and will continue to add new owners through its extensive sales and marketing efforts. As part of its management agreement, Westgate Resorts has committed to investing over $4 million in marketing, branding and technology improvements, economies of scale to enhance the VI program for its Owners, along with additional benefits.
“We have enjoyed getting to know the Westgate Resorts leadership team and have visited several of their resort locations. We appreciate the immense capacity that this partnership brings, allowing the VI Club to remain independent,” said Betty Flad, President of the VI Owners Association (VIOA) Board and a VI Resorts owner since 1977.
“We look forward to working with the VI Owners to help enhance your vacation club, and bring exciting new Westgate destinations into the VI Club.” said Westgate Resorts CEO Jim Gissy.
Did the VI Board approve this transaction? Yes, unanimously. This fits in with the strategic goals that the Board has set forth in leading VI - - Owner Satisfaction, Growth and Economic Sustainability. And most importantly, remaining an independent, stand-alone Club.
Why did this change occur? The current developer and manager, along with your elected Board, based upon market conditions, believe a transition to a larger company is beneficial, offering a wider sales and marketing reach to support and grow our club.
Why did you sell VI? VI hasn’t been sold (not a resort, not a condo) - - VI remains an independent stand-alone timeshare club. The developer, sold the assets of his wholly owned company, Vacation Ownership Sales. The primary assets are the agreements: 1) the exclusive sales and marketing of VI Resorts and 2) the management agreement with VI.
What changes does this mean for VI? VI Resorts remains an independent, owner- controlled timeshare association.
What about the properties in VI? All real estate is held in a debt-free trust, without any liens or loans, for the benefit of all VI Owners.
Will I see changes to my ownership? No, your contract, VI points and future reservations remain the same.
Who is the new manager of VI? Westgate Resorts is the new manager of the VI Program – they are the largest privately owned timeshare operation in the world. They bring a robust marketing and sales program that will lead VI and its owners into a new future with more resort options and streamlined costs.
Will Westgate Owners be able to use VI properties? Through their Interval International membership, VI Owners have the ability to exchange to Westgate Resorts locations and Westgate timeshare owners have the ability to exchange for stays at VI Resorts locations, as they always have.
Will I still see the same VI employees on vacation? Yes! VI is committed to continue our ‘Welcome Home’ feeling at our resorts and our employees play a huge role in that!
Will Westgate properties be added to VI Resorts? Yes, as inventory is needed to add to the VI Club, from sales and marketing efforts, it makes great sense to add inventory at Westgate’s top-notch locations.

 

[dioxide45]

Will Westgate properties be added to VI Resorts? Yes, as inventory is needed to add to the VI Club, from sales and marketing efforts, it makes great sense to add inventory at Westgate’s top-notch locations.

So it looks like some of the unsold Westgate inventory may be available in the VI Resorts trust.

 

[easyrider]

So it looks like some of the unsold Westgate inventory may be available in the VI Resorts trust.

I hope it's actually top notch in a decent season. Top notch in a crappy season really isn't top notch, imo.

Bill

 

[DRIless]

I clicked on VI resorts and they have one listed in Orlando as Cypress Pointe same address as Hilton Vacation Club Cypress pointe ( sunterra Diamond} confused?

Daniel

VI once succumbed to ownership/partnership with Sunterra, VI became Sunterra Pacific. VI became unhappy with their partnership severed the relationship but some ownership crossover remains, such as units at Cypress Point Resort and Grand Villas Resort in Orlando. Owners can see many HGV/DRI resorts in VI's Instant Exchange availability listings, more of the remaining crossover.

As a VI owner, this is horrible news. VI has been an owner friendly independent timeshare. Westgate is anything but.
Some VI resorts consist of ownership of some weeks in larger complexes shared with other timeshares. At Cypress Pt, VI owns a bunch of summer weeks but only a few winter weeks. There was a brief association with Sunterra where the overlap with Diamond happened.

I'm not exactly happy to own anything connected to Worstgate in any way, but had no say. Basically someone made money selling out the current membership and management to Worstgate. Only time will tell how we will really be affected.

 

[T_R_Oglodyte]

I clicked on VI resorts and they have one listed in Orlando as Cypress Pointe same address as Hilton Vacation Club Cypress pointe ( sunterra Diamond} confused?

Daniel

Most likely a residual from the time when Sunterra was the management company for VRI VI. During that period, Sunterra was pitching VRI VI owners to upgrade to Club Sunterra. Consequently, when VRI VI dumped Sunterra, there had been some cross-mingling of inventory and something was worked out to deal with that situation. It possible (likely") that VRI VI got a small inventory slice at Cypress Point. BTW - the division of inventory when the split occurred is now why VRI VI resorts show up in the HVC (nee Diamond) Club inventory.

edited to fix company initials.

 

[dioxide45]

Basically someone made money selling out the current membership and management to Worstgate. Only time will tell how we will really be affected.

So who actually owned Vacation Ownership Sales (VOS)? It seems they are independent of VI Resorts as separate entities.

 

[TUGBrian]

marketing has already started as i saw this posted on facebook , id bet just about anything this will be exploited in sales presentations moving forward making it appear to be all under one umbrella.

seemed the official answer was that the only way to book these "cross platform" was to use II. which someone in either system can already do?

 

[easyrider]

seemed the official answer was that the only way to book these "cross platform" was to use II. which someone in either system can already do?

Yes. VI has a relationship with II and RCI. VI also has an in house owner exchange system.

Bill

 

[dioxide45]

Yes. VI has a relationship with II and RCI. VI also has an in house owner exchange system.

Bill

What do you mean in house owner exchange? Isn't it just a points booking system of multiple resorts?

 

[easyrider]

What do you mean in house owner exchange? Isn't it just a points booking system of multiple resorts?

VI owners can place a timeshare other than VI to get VI points. Below is how it reads. It cost $159. I've placed timeshares in and used my points to grab a couple. Mostly I use the DEO to acquire more points for a longer VI trip. VI also has a hot weeks for cash for last minute trips. VI also has featured resorts that you can use by calling VI. I've never used this feature.

Bill

Direct Exchange Option (DEO)​

This Program has been created to allow current VI Owners who are also owners with other timeshare resorts to "deposit" their time at another resort into the VI Inventory Management "Instant Exchange" system and receive points in the VI system.

 

[gravityrules]

Most likely a residual from the time when Sunterra was the management company for VRI. During that period, Sunterra was pitching VRI owners to upgrade to Club Sunterra. Consequently, when VRI dumped Sunterra, there had been some cross-mingling of inventory and something was worked out to deal with that situation. It possible (likely") that VRI got a small inventory slice at Cypress Point. BTW - the division of inventory when the split occurred is now why VRI resorts show up in the HVC (nee Diamond) Club inventory.

'VI' not 'VRI'.

 

[gravityrules]

Looking at VI Resorts, it looks like a similar setup as MROP. Would that be a good comparison? Perhaps even Worldmark would be another comparison. They don't necessarily control all the units at a property, but perhaps they do at some or many? Westgate seems like an odd pairing here given they are a traditional weeks based model. Does Westgate want to move into points based trust like VI Resorts is setup? It would seem like Capital Vacations was a better fit, though no better for VI Resorts owners.

Similarities between MROP and VI:

Both are set up as trusts that hold the property deeds, as a member you have right to use the trust owned properties but you do not have a deed.

Both are multiple resort but don't necessarily own the entire resort/location.

Both have been in existence for a long time. Didn't research this but suspect much of their inventory is in older legacy resorts.

Their inventory has a similar weighting towards Western locations.

But there are differences:

MROP is a weeks based system (even though there are membership types with point overlays such as RCI points, CIG points, former Resorts West points, etc)
VI is a points based system

I suspect total VI inventory and membership is quite a bit higher than MROP.


If the developer is now Westgate and if they own any unsold inventory, how long will VI's board remain independent?
There has to be something in this deal for Westgate beyond just running the VI program and being able to advertise 'more locations' which don't really seem to be more available to existing Westgate owners than before.

Is this just giving Westgate sales another system to sell? Maybe a superset of VI resorts that include select WG resorts as well, but only for new developer sales. Can you really sell a system full of legacy resorts? I suppose so, that's what Capital Vacations is doing.

 

[easyrider]

Similarities between MROP and VI:

Both are set up as trusts that hold the property deeds, as a member you have right to use the trust owned properties but you do not have a deed.

Both are multiple resort but don't necessarily own the entire resort/location.

Both have been in existence for a long time. Didn't research this but suspect much of their inventory is in older legacy resorts.

Their inventory has a similar weighting towards Western locations.

But there are differences:

MROP is a weeks based system (even though there are membership types with point overlays such as RCI points, CIG points, former Resorts West points, etc)
VI is a points based system

I suspect total VI inventory and membership is quite a bit higher than MROP.


If the developer is now Westgate and if they own any unsold inventory, how long will VI's board remain independent?
There has to be something in this deal for Westgate beyond just running the VI program and being able to advertise 'more locations' which don't really seem to be more available to existing Westgate owners than before.

Is this just giving Westgate sales another system to sell? Maybe a superset of VI resorts that include select WG resorts as well, but only for new developer sales. Can you really sell a system full of legacy resorts? I suppose so, that's what Capital Vacations is doing.

The only VI that has ever tried to sell us anything was in Mazatlan. I haven't been to all of them and I've never seen a salesperson at any of the locations we have used except Mazatlan.

I was talking with some people at the pool at the Palm Springs resort called the Oasis who told me they booked their two bed unit through Hotels.com. Their cost was close to $400 a night. They thought it was VI inventory. The mf on a two bed unit is about $162 a night.

Bill

 

[DRIless]

The only VI that has ever tried to sell us anything was in Mazatlan. I haven't been to all of them and I've never seen a salesperson at any of the locations we have used except Mazatlan.

I was talking with some people at the pool at the Palm Springs resort called the Oasis who told me they booked their two bed unit through Hotels.com. Their cost was close to $400 a night. They thought it was VI inventory. The mf on a two bed unit is about $162 a night.

Bill

Torres Mazatlan was a battleground when VI ended the Sunterra Agreement, fences went up between parts of the property, it was ugly.

Vallarta Torres is another VI resort that has a sales team. Owners are invited by their 'representative' to a very casual breakfast in their nice little open air restaurant by the pool and, in my experience, only mention the word sales if you initiate it. I wonder how that will change with Worstgate.