Wyndham. No longer. In charge [Pahio Resorts going to Grand Pacific?]

[armrecsys]

I just finished an owner's meeting at the Makai Club, and we were informed that Wyndham will no longer manage the following resorts: Makai, Shearwater, Bali Hai Villas , Ka'eo Kai, Kauai Beach Beach Villas. Grand Pacific will take over these resorts. Asked why - With no reply.

Anyone have any more on the change please, do tell.

I for one am Happy, Happy:rofl:

 

[HatTrick]

I just finished a owner. Meeting at the makai. Club and we informed that. Wyndham will no loner mangeing the following resorts. Makai, sharewater, Bali haivillas , ka'eo Kai, kauai. Beach beach villas. Grand pacific. Will tahe over these resorts. The. Why question. Came up. With no reply.

Any have any more on the change please. Do tell.

I for one is. Happyv. Happy:rofl:

Thank you. William. Shatner.

 

[DaveNV]

Really? Wyndham is bailing on Pahio? Interesting! I wonder if Grand Pacific managing will give owners priority access into other GP resorts?

Dave

 

[sjsharkie]

I just finished a owner. Meeting at the makai. Club and we informed that. Wyndham will no loner mangeing the following resorts. Makai, sharewater, Bali haivillas , ka'eo Kai, kauai. Beach beach villas. Grand pacific. Will tahe over these resorts. The. Why question. Came up. With no reply.

Any have any more on the change please. Do tell.

I for one is. Happyv. Happy:rofl:

Does anyone else have confirmation of this. Not that I don't believe the OP, but it came from an owner's meeting.

I'm not familiar with Grand Pacific so not sure whether that is for better or for worse.

-ryan

 

[sjsharkie]

I just checked the Grand Pacific website and there is no news or updates to their list of properties. I suspect it would take some time, but wouldn't they inform current owners of the impending change?

-ryan

 

[presley]

I just checked the Grand Pacific website and there is no news or updates to their list of properties. I suspect it would take some time, but wouldn't they inform current owners of the impending change?

-ryan

GPR is slow to let the cat out of the bag. I find out what they takeover from these forums and then a couple months after I already know, GPR sends me an email telling me about it. That's for me as a GPR owner and not as someone who owns something being taken over by GPR.

They've been asking at every owner's meeting, every newsletter, etc., always asking do we owners know any other resorts that they can take over management at. I'm happy to see that they are taking on some more Hawaii.

I have never stayed at a Wyndham, but I own several GPR. I am very happy with the way things are run at the Grand pacific resorts. I have no qualms about booking any of their other managed properties sight unseen. Their internal exchange company has been great, too.

 

[presley]

The. Why question. Came up. With no reply.

Pure speculation on my part, but I'd guess that the contracts were up and GPR came in with a much lower offer.

 

[DaveNV]

Pure speculation on my part, but I'd guess that the contracts were up and GPR came in with a much lower offer.

When Wyndham took over managing Kauai Beach Villas, the first thing they did was slap a 17% maintenance fee increase on owners. Followed by a 12% increase the next two years. Then they gutted the owner's reserve funds set aside to build a new KBV pool complex, so they could build a fancier one at Bali Hai. They ultimately gave KBV a gently remodeled swimming pool, but no compensation for the redirected funds. As an owner at KBV who endured these abuses, I'd welcome a new management company. Hopefully, they'll get the fees under control and run the place properly, instead of beating up owners.

Dave

 

[DaveNV]

Hmm. I just called Kauai Beach Villas to ask when the changeover would happen. I spoke with one of the office staff, who said Grand Pacific will ONLY be taking over Makai Club, and NOT the rest of the Pahio resorts. She said whoever said that at the Owner's Update was wrong.

I asked if she thought maybe Grand Pacific would take over the others later on, and she said there were no plans to that effect. She said Wyndham will continue to manage everything but the Makai Club.



Dave

 

[sjsharkie]

Hmm. I just called Kauai Beach Villas to ask when the changeover would happen. I spoke with one of the office staff, who said Grand Pacific will ONLY be taking over Makai Club, and NOT the rest of the Pahio resorts. She said whoever said that at the Owner's Update was wrong.

I asked if she thought maybe Grand Pacific would take over the others later on, and she said there were no plans to that effect. She said Wyndham will continue to manage everything but the Makai Club.



Dave

Thanks, Dave for clarifying.

-ryan

 

[DaveNV]

Thanks, Dave for clarifying.

-ryan

You're welcome. Darn it anyway. I'd like it if GP took over. They do a great job with some of my favorite resorts in Southern California.

Dave

 

[sjsharkie]

You're welcome. Darn it anyway. I'd like it if GP took over. They do a great job with some of my favorite resorts in Southern California.

Dave

If you can figure out how to get on the board slate, you'd have my vote.

-ryan

 

[DeniseM]

What happens to people who bought at the Makai Club for Wyndham points?

 

[DaveNV]

What happens to people who bought at the Makai Club for Wyndham points?

No idea. I think some Makai Club owners need to start making some phone calls.

Dave

 

[slip]

I wonder why it's only the Makai Club?

 

[ronparise]

Denise

There are several resorts, where there are Wyndham points owners, but that Wyndham doesnt manage. Fairfield Harbor and Star Island are two that come to mind. Also some affiliate resorts like Angel Fire

Remember points are only symbolic of ownership. The owners still own their weeks, and their weeks are still in the Fairshare Trust, and their points can still be used to make reservations at other properties that are in the trust

 

[ronparise]

I wonder why it's only the Makai Club?

These resorts all have their own boards. This one must have voted to go with a different manager

 

[jacknsara]

I wonder why it's only the Makai Club?

Aloha,
Pahio did not develop Makai Club. Many years ago - before Wyndham bought the Pahio development as well as the management contract for the Pahio timeshares, Makai Club & its prior management fell on hard times. I don't immediately recall the details. It appeared to be a real positive for the Makai owners when Pahio took over the management. Fees went up. Conditions were improved. All Pahio had there was the management contract.

Short of a major Wyndham divestiture, Pahio will always be part of Wyndham. Wyndham owns (might be the wrong word - I'm not a lawyer) the underlying units for all the Bali Hai points club memberships sold since it took over. While I have no specific information on current percentage of owners at the other Pahio resorts who have converted to the points system, by recall its around 20% at KBV. It appears to me that Wyndham is gradually taking over control of KBV. The following paragraph is from page 12 of the 2012 year auditor's report for KBV (it confirms in writing what I heard at an owners meeting - which is run by the resort manager and is not a sales meeting):

The Association has entered into an inventory foreclosure agreement with Wyndham Vacation Resorts, Inc. (“WVR”). Under the terms of the agreement the Association agrees to promptly assign and WVR agrees to accept all ownership rights associated with all delinquent inventory that has been returned to the Association through foreclosure proceedings, deed in lieu of foreclosure or other take-back proceeding. In consideration for the assignment of title WVR shall pay the Association all reasonable attorney fees and other costs borne by the Association in connection with the foreclosure or take-back proceeding for the delinquent inventory, all closing costs in connection with the conveyance of title, excluding past due assessments, and any outstanding refurbishment special assessments. The aggregate consideration to be paid by WVR is not to exceed $1,000 per week foreclosed or taken-back. The agreement automatically renews for successive one-year periods until terminated. As of December 31, 2012, WVR owed the Association $131,333 for maintenance fees and is shown as due from WVR.

I have a variety of opinions about this. On the positive side, we now have an exit strategy for our estate should our children not want the KBV units and the after market price is negative (costs to unload).

Jack

 

[DaveNV]

WVR agrees to accept all ownership rights associated with all delinquent inventory that has been returned to the Association through foreclosure proceedings, deed in lieu of foreclosure or other take-back proceeding.

Jack

I seem to recall hearing the delinquency/foreclosure rate at KBV was about 12%. That was a couple of years ago.

Dave

 

[slip]

Thanks for the info. It's really a big change and hopefully it works out for
All the owners.

I always thought of them all linked with Pahio and then Wyndham but like Ron
Said they would have their own boards.

It reminds me of the Pono Kai leaving Bluegreen and so far so good with that
Change.

 

[jacknsara]

I seem to recall hearing the delinquency/foreclosure rate at KBV was about 12%. That was a couple of years ago.

Dave

Aloha Dave,
I have the same memory. But that is/was the delinquency rate. The 20% included former KBV weeks owners who had voluntarily converted to Wyndham points.
Since voting rates are low (until/unless things become egregious) I figure Wyndham is already in effective control provided they don't trigger a revolt. In a handful of years, Wyndham is likely to own almost all the 1B1B units (I haven't seen one sell for even $1 on ebay in a very long time) as well as many of the other units. Within two handfuls, I expect Wyndham to control more than 50% of the units.
Jack

 

[jacknsara]

. . .I always thought of them all linked with Pahio and then Wyndham but like Ron Said they would ave their own boards.
. . .

Aloha slip,
I believe both statements are true.
My memory is that Bali Hai, Shearwater, Ka'Eo Kai and Kauai Beach Villas are linked along with the PAHIO name within their legal documents. I haven't read them in years. My recall is that it appeared that Wyndham discovered (or came to understand) that after they purchased because initial announcements were that names were going to change to Wyndham at (name of resort). Ultimately, they had no choice but to retain Pahio in the name.
Each does have a separate set of finances and controlling boards. Together, I imagine they could revolt. The likelihood of that short of egregious management is very low. Other than the high maintenance fees (which might very well be in line for Hawaii), I think they are doing a reasonable job managing the resort.
Jack

 

[armrecsys]

Grand pacfic take over

Hmm. I just called Kauai Beach Villas to ask when the changeover would happen. I spoke with one of the office staff, who said Grand Pacific will ONLY be taking over Makai Club, and NOT the rest of the Pahio resorts. She said whoever said that at the Owner's Update was wrong.

I asked if she thought maybe Grand Pacific would take over the others later on, and she said there were no plans to that effect. She said Wyndham will continue to manage everything but the Makai Club.



Dave

I was at that meeting. With two personal , one from. Grand. Pacfic and one. From. Our. Personnel. If they. Miss spoke. I wil. Continues to ask. Why. But. I am glad. That. Grand pacfic is taking over the. Makai. Club.

 

[DeniseM]

I was at that meeting. With two personal , one from. Grand. Pacfic and one. From. Our. Personnel. If they. Miss spoke. I wil. Continues to ask. Why. But. I am glad. That. Grand pacfic is taking over the. Makai. Club.

A gentle suggestion: Take a minute to edit your post for readability.

 

[tfalk]

Pahio did not develop Makai Club. Many years ago - before Wyndham bought the Pahio development as well as the management contract for the Pahio timeshares, Makai Club & its prior management fell on hard times. I don't immediately recall the details. It appeared to be a real positive for the Makai owners when Pahio took over the management. Fees went up. Conditions were improved. All Pahio had there was the management contract.

That pretty much agrees with my memory as well. Makai Club was definately not developed by Pahio... In fact, we stayed at the Makai Club in 1986, our first time in Princeville. The units were OK but tiny and we decided to look at the other options which led us to KaEoKai...

Personally, I'd be happy to see Wyndham take a hike... We got shifted from KaEoKai to Bali Hai 2 years ago because the units we had reserved were 'under renovation' at the time... 2 years later, it looks like most of the units that were 'under renovation' 2 years ago STILL have not been renovated. I really need to take a look at the owners documents when I get a chance - they should have MORE than sufficient funds available to renovate the entire place after we've been paying replacement reserves for 25+ years.