What happens when you reach RTU date?

[rmclain73]

I own a week at Aruba Surf Club. I know that property is a RTU which does not expire until 2061, but I am just curious as to what happens then? My guess is at that point Marriott will just do away with weeks and force everyone into the points system if they choose to stay a MVC member?

 

[geist1223]

I do not have a Crystal Ball that tells me what the World will be like in 38 years. Assuming Homo Sapiens are still the dominant life force.

 

[Dean]

I own a week at Aruba Surf Club. I know that property is a RTU which does not expire until 2061, but I am just curious as to what happens then? My guess is at that point Marriott will just do away with weeks and force everyone into the points system if they choose to stay a MVC member?

In general it reverts and you no longer own. The RTU is Aruba is a little different than some I've seen where there's a better chance the RTU will be extended than say, DVC. As I understand it, the government in Aruba would have costs if they took the land back. I can get a better and more detailed account from someone there is you truly need it but I own a week there as well and I wouldn't worry about it until down under 10-12 years.

 

[dioxide45]

When the RTU expires, you lose the ownership and I don't think you would receive any residuals based on the value of the land or property. It is just done.

 

[daviator]

When the RTU expires, you lose the ownership and I don't think you would receive any residuals based on the value of the land or property. It is just done.

When they close the sales center there, that will be your clue that your ownership will soon be gone.

But being more serious, I can imagine that MVC won't want to give up the property either, so they will probably be trying to negotiate a new RTU period. Now whether that would have any benefit to current owners, I don't know. They might just start over selling RTU weeks to new owners, or they might throw the usage into the trust and sell more Abound points. I'm not quite sure how they would work though – not sure how they can add RTU to the trust since it isn't owned property. So if any of us are still around in 2061 – I probably won't be – it will be interesting to see what happens.

The other question might be, how badly will the property decline in the last decade or so if there isn't going to be a new RTU period? MVC would have little incentive to do anything more than the most essential of maintenance to fulfill their waning obligations to RTU owners. They might even decide to take the Marriott name off the property so that they didn't need to maintain brand standards.

Have any of the MVC RTU properties ever reached the end of their RTU periods? I don't think it's happened yet, right?

 

[Krteczech]

I was also wondering what will happen when we reach RTU date in 2033. Not any more. Hurricane Irma in 2017 followed by property owners unwillingness/inability to renovate cut our RTU short. No compensation, no explanation.
The Towers at Mullet Bay on Sint Maarten

 

[AlmostRetired]

Tourism is Aruba's main driver in their economy. I believe they will just extend the RTU. Any other answer would be counter to a healthy economy. I do not own there but we have gone almost every year since 2008.

 

[daviator]

Tourism is Aruba's main driver in their economy. I believe they will just extend the RTU. Any other answer would be counter to a healthy economy. I do not own there but we have gone almost every year since 2008.

Aruba might extend the RTU (maybe for a price) – but why would MVC do the same? They'd likely offer RTU owners a wonderful opportunity to purchase an extension of their RTU rights for a five-figure $um. After all, the contracts for existing owners end in 2061. They're unlikely to offer an extension for free.

 

[bazzap]

I contacted Owner Services back in 2015, seeking clarification about RTU resorts and what happens at their end date.
Their response (by email) was
"the property goes to the land owner and if the lease is renewed then the usage of the weeks for the owners will still continue."
I also checked the HOPA for our Playa Andaluza RTU ownership and if I read the "legalese" correctly then at the end of term either
- after discharging any liabilities and management charges, the net proceeds of sale are distributed to existing holiday owners in good standing
or
- the plan is renewed along with the RTU ownership for existing holiday owners in good standing

 

[AlmostRetired]

Aruba might extend the RTU (maybe for a price) – but why would MVC do the same? They'd likely offer RTU owners a wonderful opportunity to purchase an extension of their RTU rights for a five-figure $um. After all, the contracts for existing owners end in 2061. They're unlikely to offer an extension for free.

I believe MVCI has no say in what happens. Let's pick this discussion up in 2060.