Worried about DRI Acquisition

[peeay_carter]

My bf and I bought a TS through Gold Key last summer. Having read through numerous review on how AWFUL DRI is I'm worried that this timeshare purchase may not end up being as great as we thought? Any GK owners out there to provide some insight on their previous experiences with the company? Anyone have any success with DRI? Or...should I look for an out?

 

[Bill4728]

About DRI taking over your resort system:

They took over two of mine Monarch Grand (MGV) and just last month Club Intrawest (CI) .

This is what happened when they took over MGV.
- After about 1 year, they converted the MGV reservation system to their reservation system It could have gone much better than it did but they gave very little info to the MGV owners about the new system.
- They change the way Interval International (II) deposits were done. This was a BIG plus IMHO. I was able to get much better trades for less pts than before
- They say you "really need to attend an onwer update" This update is filled with half thruths They'll say thing like "your old ownership is worthless and unless you upgrade to a full DRI ownership you'll never be able to go to the resorts you want to use." The truth is you'll still be able to use your old ownership in exactly the same way you use it before BUT you will not be able to to use your ownership to access the other DRI resorts

- Your MFs will go up ( YES they will!)

- One thing they did to MGV owners after the hurricane hit Cabo in Sept of 2014 they told everyone at "owner updates" that there would be a huge special accessment (SA) of MGV owners to handle the damage. I thought that DRI might do this SA so that is the big reason we got out of MGV & DRI. Turned out the SA never happened.

So you can stay a Gold Key owner and your MFs will go up and other than that nothing should change much. OR you can give back your ownership to DRI for a $250 fee and be done with them here is a link to deeding back your TS to DRI http://tugbbs.com/forums/showthread.php?t=224859

Hope this helps

 

[peeay_carter]

Thanks, Bill!

New to the whole timeshare business but I'm guessing MFs = monthly fees? or maintenance fees? And how much did they go up or does it vary?

 

[artringwald]

The majority of the negative DRI posts have to do with their sales people and the presentations. Our home resort was a Sunterra resort when DRI bought them out. The maintenance fees did go up considerably, but the upkeep of the property also improved a great deal.

 

[artringwald]

Thanks, Bill!

New to the whole timeshare business but I'm guessing MFs = monthly fees? or maintenance fees? And how much did they go up or does it vary?

Since 2007, it went from about $1200/year to the $1600 we just paid. Sunterra had neglected the property in order to keep the MFs (annual maintenance fees) down and make sales easier. DRI had to do some catching up.

Another complaint about DRI is that they get control of the HOA board, and approval increases in payments to the management company, which is also DRI. Rather a conflict of interest, but seems to be common among HOA boards (Home Owners Association).

 

[peeay_carter]

Thanks! that helps a lot. I just paid my first maintenance fee this money so now we have a better idea what to expect.

 

[tschwa2]

I also think a lot of the negative comments about DRI are about the management costs -which has nothing to do with the actual maintenance. For Beachwoods the management type fees essentially doubled from last year. The reserve for replacements is a disgusting $23.00 same as last year. They didn't want to raise MF too much in this one year so rather than start to get a healthy reserve in place their priority was increasing management fees over $100.

DRI has higher management fees than Starwood or Marriott.

At Beachwoods 20% of the 2016 operating budget goes to paying DRI the privilege to Manage the resort. That doesn't count front office, owner relations or any actual expenses paid directly to any resort employees. In comparison in 2015 the reserves represented 5% of the total budget. Since the total budget went up and the reserves remained the same the reserves in 2016 represent about 3.5% of the budget.

 

[dwojo]

DRI does raise fees a bit more than they should and will high pressure you to buy into their points system. Do not buy in until you understand what you have now. You can trade through Interval to go other places. What resort,week/s you own and the size of the unit will limit you trade ability, but I have not had much trouble trading my Ocean Beach Club for just about anywhere I want to go.
I own DRI points and a week at Ocean Beach Club and they raised my OCB maint. fees a little more than needed this year but not unreasonably so.

 

[presley]

I am staying at a Club Intrawest right now. I have talked with some owners who must own a lot because they stay for several weeks here and points chart is really high. I know that the MFs are already extremely high for CI owners. Because of that, and that the properties tend to have reviews that make them sound like they don't need any repairs, I didn't think Diamond would be raising fees.

However, after being here and seeing how clean and well kept the whole property is, maybe they will when they do a operations cost analysis. There are 4 pool areas here and they are all clean and very warm. Yes, I put my hand in every pool and every spa. It's in the 60's F and the pool is not cool. It costs a lot of money to keep pools and spas that clean and heated. So, maybe the fees will go up.

 

[travelplus]

To put this into perspective we bought a resale week at Villa Mirage in Scottsdale in a 2 bedroom lockoff and split it and trade into RCI. We can usually pull 27 for the Studio and 30 for the 1 bedroom and then trade it to stay at other places.

We never had any problems with Diamond and they really do maintain their resorts wel. Our MFs at Villa Mirage are $980 and I found a week at Sedona Summitt in a 2 bedroom Lock Off for $1,300 all in with a $960 MF.

I studied the points program of Wyndham, Diamond and Marriott and would not transfer into the program as the MFs are higher. If Diamond let us in for a good price then perhaps but those points seem to change value and you are deeded into a Trust as opposed to a Deed.

What you may consider doing is wait at least a year or so to see how Diamond treats you and to see if any of your fees increase. If you are not satisfied you could decide to rent your week or there may be some clause for you to get out of your contract if you don't like your new management.

Diamond keeps up the standards and our Marriott week which we are going to sell has MFs for $1,700.

 

[DanZale2000]

I am staying at a Club Intrawest right now. I have talked with some owners who must own a lot because they stay for several weeks here and points chart is really high. I know that the MFs are already extremely high for CI owners. Because of that, and that the properties tend to have reviews that make them sound like they don't need any repairs, I didn't think Diamond would be raising fees.

I was thinking the same until I looked at some numbers.

I took a set of DRI resorts that are somewhat comparable to CI resorts.[*] I found the points needed for a 2 bedroom unit during June, July and August. Then I multiplied the points by $0.17, which is about the average fee per point in the US Collection. Thus, the average money cost in terms of fees for a 2 bedroom across these seven resorts is $2,036.

I then made a similar calculation for five CI resorts. The CI price per point is $6.15 and thus, the average money cost for a 2 bedroom is $1,680.

DRI = $2,036
CI = $1,680

Because this result was unexpected, I repeated it for 1 bedroom units at the same locations and seasons. DRI cost $1,392 while CI cost $1,265. Not quit as large of a gap, but DRI is still higher.

Finally, DRI claims that 15,000 points will get a member, on average, two weeks in a one bedroom unit. The US Collection fees for that number of points is $2,751. CI members say that 400 points will get you two weeks in a one bedroom unit, which costs $2,460.

These data lead me to think that CI fees might increase after DRI gets ownership. Like I said, I really didn't expect that result.

[*] The DRI resorts are: Tahoe Vacation Resort, Polo Towers Suites, Cabo Azul, The Point at Poipu, Ka'anapali Beach Club, Sedona Summit, San Luis Bay Inn.

The CI resorts are: Whistler, Tremblant, Sandestin, Palm Desert, Blue Mountain.

 

[nuwermj]

I studied the points program of Wyndham, Diamond and Marriott and would not transfer into the program as the MFs are higher. If Diamond let us in for a good price then perhaps but those points seem to change value and you are deeded into a Trust as opposed to a Deed.

Travelplus,

You might have an option to get DRI points without surrendering your deed.

There are at least three forms of ownership at a DRI managed resort:

1) Traditional Deeded: A traditional owner with a deeded week at a resort that adheres to the booking rules outlined by their contract such as specific week, season (yellow, red), usage type (float, fixed), or unit type.

2) Assigned Deeded: A deeded week that is assigned to THE Club. The owner still owns the deed to the property; however, they have assigned their usage in exchanged for an agreed allotment of points to use in THE Club.

3) Trust Points: An owner who owns points in an DRI Collection. They do not have a deed. Their usage is permanently in that Collection and in THE Club if they do not have a regional membership.

Traditional deed owners who join Diamond's THE Club can do so via (2) or (3). Diamond is currently offering option (2) to Tempus owners (Dunes Village in Myrtle Beach and Mystic Dunes in Orlando) and to Gold Key owners. In other words, to get Diamond points you can surrender your deed in exchange for pure trust points (option 3); or assign your deed's use rights to the Club in exchange for Club points (option 2).

The following is an example of the annual fees for an existing owner in group (2). This information was posted here in the TUG forum:

This owner has a deed to a three bedroom unit in Orlando at a DRI managed resort. The owner has an "assigned deed." In order to make this assignment and thereby join The Club, Diamond Sales required that he purchase 3,000 trust points. The assigned deed is valued at 19,000 DRI points. Combined the owner has 22,000 points.

Here is the invoice for 2016:

3,000 Collection points:
US Point Standard Assessment 455.34 ($0.15178 x 3000)
US Base Standard 225.00

22,000 Club points:
The Club Base Standard 275.00
The Club Point Standard 180.50 (19,000 x 0.0095)
The Club Point Collection Assessment 15.00 (3,000 x 0.005)

[edit: next three lines originally posted but are wrong]
19,000 Deeded points:
HOA fee 1,109.00

Total: $2,259.84

[Correction]
19,000 Deeded points (2 weeks):
HOA fee 1,109.00 x 2

Total: $3,368.84
[end correction]
------------------------

Someone who surrenders their deed in exchange for pure trust points -- option (3) above -- and obtained 22,000 trust points in the "US Collection" would have an assessment like this:

US Standard Assessment $225.00
US Point Std Assessment $3,339.16 (22,000 x $0.15178)
The Club Base Collection Assessment $175.00
The Club Point Collection Assessment $110.00 (22,000 x $0.005)

Total: $3,849.16

 

[johnrsrq]

Travelplus,

You might have an option to get DRI points without surrendering your deed.

There are at least three forms of ownership at a DRI managed resort:

1) Traditional Deeded: A traditional owner with a deeded week at a resort that adheres to the booking rules outlined by their contract such as specific week, season (yellow, red), usage type (float, fixed), or unit type.

2) Assigned Deeded: A deeded week that is assigned to THE Club. The owner still owns the deed to the property; however, they have assigned their usage in exchanged for an agreed allotment of points to use in THE Club.

3) Trust Points: An owner who owns points in an DRI Collection. They do not have a deed. Their usage is permanently in that Collection and in THE Club if they do not have a regional membership.

Traditional deed owners who join Diamond's THE Club can do so via (2) or (3). Diamond is currently offering option (2) to Tempus owners (Dunes Village in Myrtle Beach and Mystic Dunes in Orlando) and to Gold Key owners. In other words, to get Diamond points you can surrender your deed in exchange for pure trust points (option 3); or assign your deed's use rights to the Club in exchange for Club points (option 2).

The following is an example of the annual fees for an existing owner in group (2). This information was posted here in the TUG forum:

This owner has a deed to a three bedroom unit in Orlando at a DRI managed resort. The owner has an "assigned deed." In order to make this assignment and thereby join The Club, Diamond Sales required that he purchase 3,000 trust points. The assigned deed is valued at 19,000 DRI points. Combined the owner has 22,000 points.

Here is the invoice for 2016:

3,000 Collection points:
US Point Standard Assessment 455.34 ($0.15178 x 3000)
US Base Standard 225.00

22,000 Club points:
The Club Base Standard 275.00
The Club Point Standard 180.50 (19,000 x 0.0095)
The Club Point Collection Assessment 15.00 (3,000 x 0.005)

19,000 Deeded points:
HOA fee 1,109.00

Total: $2,259.84
------------------------

Someone who surrenders their deed in exchange for pure trust points -- option (3) above -- and obtained 22,000 trust points in the "US Collection" would have an assessment like this:

US Standard Assessment $225.00
US Point Std Assessment $3,339.16 (22,000 x $0.15178)
The Club Base Collection Assessment $175.00
The Club Point Collection Assessment $110.00 (22,000 x $0.005)

Total: $3,849.16

Neat and concise-

option (2) looks like my bill (as i shared in Tug forum) however, in order to get to the 19,000 assigned points, I had two deeded weeks assigned. Therefore the bill was $1,109 X 2 (weeks) or $2,218 .for homeowners assn.

option (2) total for me is $3,368.84

 

[nuwermj]

... in order to get to the 19,000 assigned points, I had two deeded weeks assigned. Therefore the bill was $1,109 X 2 (weeks) or $2,218 .for homeowners assn.

option (2) total for me is $3,368.84

Ug. Big mistake on my part. So, very sorry. Thanks for the correction.

 

[Preid]

DRII new owner meeting yesterday

My wife and I attended an owner "conversion" meeting with DRI yesterday.

I am a deeded owner the was originally Barrier Island Station at Kitty Hawk. About 15 months ago BIS was sold to Gold Key Resorts. This past fall Gold Key was purchased by DRI.

At yesterday's meeting with DRI I was offered to "buy" into The CLUB: 6,000 pts for the low price of less than $4.00/ PPP. And, I would have to pay annual maintenance fees of $1,400+ AND would continue to have to pay my MFS for my deeded property of $1,000. The way I viewed it was that I was going to pay for my deeded property, which more than likely will be added to the DRI US Trust, and pay the DRI MFS for "there" US Trust. Seems like a I'm paying for part of the same place twice. Or would the DRI MFS be even higher if I didn't have deeded property? Anyone know.

The sales person told me that about 25% of the Gold key owners chose NOT to convert.

When I asked why he thought that was the case he said they were "dinosaur" owners who enjoyed going to Virginia Beach or the Outer Banks, NC for the past 15 or 20 years because it was in driving distance and didn't plan on going to other resorts.

At the end of 2 hours, I too professed to being "one of those dinosaur" owners and looked forward to driving to Kitty Hawk NC every year which we had done since we our married daughters were little and now do with our grandkids.

I also informed him that one year ago we purchased a week through Hilton Vacation so that we could go to other places so I didn't see a reason to become a member of The CLUB especially since I still work fulltime and my wife gets to travel with me two or three times a year on international business trips.

Lol. He said he could see the validity of about one-third of my reasoning - But what about leaving this great opportunity to "my heirs?" Ha, ha, ha, ha.
At that point we signed the last paper - "No".

I'm not sure what happens now other than a 8% increase in MFs. I'm assuming that I can still deposit my week with RCI or II but too much more.

 

[Michael1991]

The sales person told me that about 25% of the Gold key owners chose NOT to convert.

If this implies that 75% of Gold Key owners have converted, then it is an out right lie. It's way to soon for that many conversions.

At yesterday's meeting with DRI I was offered to "buy" into The CLUB: 6,000 pts for the low price of less than $4.00/ PPP. And, I would have to pay annual maintenance fees of $1,400+ AND would continue to have to pay my MFS for my deeded property of $1,000. The way I viewed it was that I was going to pay for my deeded property, which more than likely will be added to the DRI US Trust, and pay the DRI MFS for "there" US Trust. Seems like a I'm paying for part of the same place twice. Or would the DRI MFS be even higher if I didn't have deeded property? Anyone know.

This sounds odd to me. Usually the deal is that you buy some trust points and you get some number of points for your deed. You retain ownership of the deed but its usage rights are assigned to the DRI Club in exchange for the points.

The fees for 6,000 trust points are $1370, including Club Dues. If you get an additional, say 6,000, points for your deed, then you'd have 12,000 points total and you'd pay about $2400 in annual fees.

 

[T_R_Oglodyte]

Travelplus,

You might have an option to get DRI points without surrendering your deed.

There are at least three forms of ownership at a DRI managed resort:

…

2) Assigned Deeded: A deeded week that is assigned to THE Club. The owner still owns the deed to the property; however, they have assigned their usage in exchanged for an agreed allotment of points to use in THE Club.

3) Trust Points: An owner who owns points in an DRI Collection. They do not have a deed. Their usage is permanently in that Collection and in THE Club if they do not have a regional membership.

Neat and concise-

option (2) looks like my bill (as i shared in Tug forum) however, in order to get to the 19,000 assigned points, I had two deeded weeks assigned. Therefore the bill was $1,109 X 2 (weeks) or $2,218 .for homeowners assn.

option (2) total for me is $3,368.84

One thing to bear in mind with option 2 is that the fees that you pay are the maintenance fees that come with your deed plus the annual club maintenance fee.

With option 3, your fees are the sum of:

1. the trust assessments ($/point)

2. the annual trust maintenance fee (flat rate charged to all accounts)

3. annual club maintenance fee.

The annual trust maintenance fee is not insignificant. And since it is flat rate it really hammers small points accounts.

If your deed is at a resort where the deed fees are less than the fees charged for the points you would get by moving the deed to the trust, there isn't much reason to put your deed into the trust as it will cost you more for the same thing.

One rationale - which the sales people push hard - is that by putting your deed in the trust you dilute the impact of special assessments. If the resort you own at has a special assessment and you have a deed, you get socked for the full amount, whereas if your deed is in the trust it gets spread across the entire trust ownership. Of course, the flip side of that is that if you own a deed at Resort A and Resort B is part of the collection and has a special assessment, then as a deeded owner at Resort A you're not on the hook.

Always seemed to me that was just about a push, and it didn't make sense to me to pay that annual trust maintenance fee as "insurance" against getting socked with a full assessment. (And I write that as someone paying full freight for the water intrusion assessment at Poipu.)

Each owner should decide if the value of spreading the special assessment risk is worth the amount of the annual trust maintenance fee. I couldn't see it.

******

As regards the Club fee I offset that against what I would pay for exchanges through II. If you are in the Club you are enrolled in II as part of Club membership. So right away you can offset the II annual membership against the Club fee. Then, you can make reservations in any resort in the club without paying a fee. So that is like getting exchanges to selected properties without paying an exchange fee. Plus getting greater selection and availability in the resorts at the same time. So with DRI having a number of resorts in areas that interest us, that is a considerable benefit.

Finally, if you do make exchanges within II, DRI points are pretty strong traders. You can seen pretty much all of the inventory that is available, and you can score almost anything with what is essentially the points requirements for generic one- and two-bedroom DRI units.

In the end it was pretty easy for me to fully offset the Club fee against what it would cost us to be involved with an exchange company, for the traveling that we do.

YMMV.

 

[pedro47]

To. T R O! Thanks for sharing your information. Good explanation.

 

[tashamen]

I know that the MFs are already extremely high for CI owners. Because of that, and that the properties tend to have reviews that make them sound like they don't need any repairs, I didn't think Diamond would be raising fees.

However, after being here and seeing how clean and well kept the whole property is, maybe they will when they do a operations cost analysis. There are 4 pool areas here and they are all clean and very warm. Yes, I put my hand in every pool and every spa. It's in the 60's F and the pool is not cool. It costs a lot of money to keep pools and spas that clean and heated. So, maybe the fees will go up.

Personally I think that CI MFs are not high at all, especially for the quality. They even declined for us US based members this year.

But based on DanZale's analysis above I too am concerned that CI MFs may increase substantially.