Marriott Right of First Refusal

I purchased it in April of 2013.....

Christopher, you may have bought between 2008 and 2010 when they were letting everything go as they were prepping for the new points program and had lots of people giving up their timeshares. Marriott could not afford all of the maintenance fees as they were financially strapped too so you were lucky. Now they toss all of that inventory into the Trust so that points owners can have access to desirable weeks. A Maui Ocean Club unit will more than likely be kept by Marriott as they will probably exercise their Right of First Refusal. I do agree thouth that one should just go ahead and try to buy and if they get lucky great. If Marriott uses ROFR, so be it. Look elsewhere.

"I purchased it in April of 2013....."

I guess that blows that theory right out of the water......

Well it doesn't blow it out of the water completely because I know that Marriott still let's some of their properties go pass ROFR. Now if you tell me that your MOC is in the new Napili Towers at the Maui Ocean Club then I would be surprised and you would blow my whole theory right out the water.

However, if it is the converted hotel rooms of the Maui Ocean Club, then yes. Those I can see passing ROFR.

In any case, I think $1,000 is a great deal as that is a very desirable location. I am personally a Ko Olina kind of guy. It's a lot calmer than Maui Ocean Club.

christopherl103 wrote:

"I purchased it in April of 2013....."

I guess that blows that theory right out of the water......

Agreed. I guess my point is just go for the re-sale, the worse thing that can happen is that they exercise the ROFR. However everyone was telling me they would based on the price including Marriott and then they did not. And yes they have been exercising the right alot more often lately but its still better to try than pay developer prices. Even if they did exercise the ROFR I would never by from the developer.

With respect to Marriott exercising the ROFR, it is important to note that there are significant differences in Marriott Resorts. Not to pop the bubble, but the seasonal aspect coupled with the location and facility creates immense differences. For example, why would they exercise the ROFR to buy a summer week in Palm Desert at any price?

We also know that Marriott Vacations wants the cost of sales to be 33% or less of their intended sales price (from their earnings release conference call). I expect they would want only the better properties at very low prices, much lower than the 33% benchmark.

We bought two Platinum weeks at Newport Coast, $8,000 each. These weeks, coupled with our other weeks, enhanced our reservation capability plus we "use" them. Were I to buy again, I would look seriously at buying a week at Grand Chateau in Las Vegas on the cheap ($2 to $3,000 or less). They are all Platinum weeks, have lock-off privileges, and trade easily thru Interval. You'd be surprised what you can do with these in trade. Think what you could do with $25,000 in the aftermarket.

Good Morning, I was wanting to see if Marriott exercises their ROFR if you could come back with a higher bid?

Thanks

Nope. you can line up another one and just keep rolling with your broker.

Try on at $25K, if that ROFR's then shoot the next one $28K...or $30 etc....

There are lots of units. Keep in mind, anything you can do to make the deal less attractive to Marriott is in your favor: closing paid by seller, MF's paid by seller etc.... at time of closing. That way, you can 'bump' the sales price up. This is not the greatest time of year for 2015 MF's, since most are paid.

JMHO.

Marriott just exercised FROR on my 1 bedroom Maui Ocean club, every other odd year, garden view at $2500 plus current year maintenance. If anyone is curious about activity.

the maintenance Costs seem really high

Here are revelations;

I own two Marriott Aruba Ocean Club "Gold" annual use weeks. Just spoke to Marriott about selling back to them. They are not "doing this now" but offered me to give back the Deeds and not pay maintenance but have no use of the weeks. Sounds to me that they just refused the properties if I sell. Not true, since they still want the right of first refusal. Then I contacted the Marriott rental department and they said they are not renting 2020 Aruba now but I need to only show Aruba as weeks, not points. My take is this. You go to a sales pitch meeting and they offer you various "deals" only if you do it today. Most of the deals run as high as $30,000. for a week and allegedly to Marriott sales pitchers are worth much more than renting on your own. Do the math and $1,500. maintenance per year for each week plus say $3,000. per year for 10 years is a start of $4,500. per week before special assessments, utility taxes and other fees in the wind. By my math that's a walk into your "villa" door price of $642.86. But, don't ask for a full room cleaning per day like a hotel because that costs more. No free waters, no free breakfast , but many times free construction noises.

Whether you sell back to Marriott or try to sell it another way, Marriott is scooping up as many resales as they can to put them in their Trust inventory. I got this straight from a MVCI salesman at an owner's update meeting.

Call the Marriott buy back unit and the rental unit and get the real lowdown and not from a salesman that will give you pie in the sky. There is a vast difference between the reality of the Marriott buy back and rental units and the illusions of the sales staff. Sorry, but you must trust reality.

Of course, a "salesman" told you Marriott was grabbing them. My actual and recent experience has proven otherwise as I have bought at Newport Coast and Ocean Watch, both high demand locations. In our case, we bought because we use these resorts and it was better than fighting over the few trust units available for points.

It would be good for points owners if the Vacation Club would add weeks at the better properties using the ROFR. It is very difficult to get into some of these properties because the trust doesn't own them and Vacation Club must rely on legacy owners to get the weeks (in exchange for points). I suspect Vacation Club prefers to have points owners spend the points on outsourced vacations.

Wouldn't it be great if Vacation Club disclosed the resort weeks "owned by the trust" each year to all trust point owners.

I haven't really heard many dc owners complain that they were not able to reserve what they wanted in points if they wait listed or booked as soon as the booking window opened. I am an east coast girl so I really haven't really looked into Newport Coast but have heard that July weeks are very difficult for weeks owners to book. I think Ocean Watch is probably slightly easier for points reservations vs weeks as are the HHI reservations.

Aruba isn't part of the trust, I understand that Dutch property law won't allow it to be part of a foreign based trust system.

If Marriott Aruba is not part of the "Trust" and they already went in writing to me that they have a waiting list but they are not taking any back I asked them why do I need a further right of first refusal on my Aruba, non-trust, non returnable to Marriott. They said its their practice. They speak with forked tongue. I bet at an Encore required sales meeting they will tell me to call Marriott as they are buying Aruba timeshares. At"0' buyback and up to $30,000. to get another 2,000 points the Aruba timeshares are worth nothing to Marriott when you step out of the meeting.

As far as Aruba goes, the Trust cannot own units. However, MVCI may be able to offer you a resale combined with a purchase of points.

I believe they are still selling Aruba deeded weeks and they are eligible to be enrolled in the DC when purchased from Marriott. It doesn't matter whether it is eligible for the trust or not. ROFR was written into most Marriott deeds when the original timeshare rules were written. If you sell it is subject to ROFR because if you dig into the offering statement those were the rules the deeds were sold by and you still have to abide by them. Marriott Vacation club can do whatever they want with the deed if the exercise ROFR. They can pay the MF's and rent it on Marriott.com. They can give it to executives to enjoy a vacation, etc.

If I’m selling, I’m selling with no purchase anymore. Offer me lifetime free maintenance and maybe there is an offer worthwhile. Maintenance now costs $275.00 per day.

OK, thanks

Michelle , what type of unit you looking to sell ??