Original Message:
Re: Marriott Aruba Surf Club - Lawsuit by Association against owners (by Tim G.):
As much as I'd like to believe that Marriott would advise the Board against doing this, I think they might actually be OK with it.
Through various bits, this is what I have pieced together. Much of it is opinion, not necessarily fact. All of it comes down to having to react to a lawsuit by an owner and who is going to take the fall.
There is a person who owns 50-ish Platinum Plus weeks and has been redeeming them all for President’s Day week, and then renting out the weeks. This has rubbed other owners who also are trying to stay that week, but nothing is ever available. They complain to Marriott. Marriott tries to curtail the owner. The owner sues Marriott for not fulfilling his ownership. I'm on the owner's side, he bought the weeks, he should use them. And I agree with earlier posts, whether he uses them or rents them, it doesn't affect the inventory availability for other owners.
Marriott really doesn’t want to get involved, since even part of their sales pitch is that you can rent your weeks out. But they have to do something to deal with the complaints.
So Marriott turns to the Association and says this owner is violating the CCR’s (as vague as "commercial activity" can be undefined). Since it is Association rules, the Association is responsible for enforcing them, and the legal costs to do so. The Association opens itself up to counter suits and legal costs. Marriott stands on the sideline, pretending to look the other way.
The issue is with the volume (size and sound). With 33,000 owners just at that property, plus countless others worldwide at other properties, plus owners of just points, there will always be a problem of supply and demand for a holiday week at ANY property. And it doesn't take many owners to get pissed off and complain for Marriott to have to do a little something, and it appears their response is "take it up with the Association".
In all reality, rentals to non-members are great for Marriott. Every person is a sales opportunity. Marriott is not mad and losing money over these rentals, they never had them to start with. They make their money selling ownership and managing properties. Take for example their ownership of 200+ units at Grand Residence in Lake Tahoe. That is roughly worth 7 million points (low estimate). They sell those points at $12+ dollars and that's an easy $84 million, plus annual maintenance fees!
The legal fight is not worth Marriott's time, money and bad press (risk of future sales). Thus they are playing to Association to deal with it.