Wyndham to create new Vacation Club

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

I just heard Steven Holmes, Chairman and CEO of Wyndham Worldwide, on CNBC this morning.

Cendant just spun off several its businesses today including Wyndham Worldwide.

In the interview, he mentioned that they will be launching a Wyndham Vacation Club shortly. No details were specified. But, I would be surprised if Pahio weren't included in it.

Steve Holmes mentioned RCI, Fairfield and Trendwest.

[timeos2 Senior Member Find all posts View Profile Close timeos2]

How many tiers of faux VIP can we take?

Maybe if we buy $50,000 or more of membership we can get "free" VIP status? Of course to be Gold VIP you'll need $100,000 in retail purchase but, since that only represents 4.5 days at the average 2 bedroom resort high season, it won't be tough to reach.

Unless they plan to bring all the systems into one fair, unified and understandable plan any new system would just be another way to get more $$ from existing owners.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

So that's why Cendant stock is going even further into the tank!

As I said elsewhere, Jenny checked into Fairfield Nashville Sunday. She was told that today is the day they become Wyndham and they won't be affiliated with RCI any more.

We take statements from those low on the totem pole with a grain of salt.

Sounds like something I need to consult the crystal ball about.

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

Sounds like something I need to consult the crystal ball about.

Or just read this thread
http://www.timeshareforums.com/forum...ad.php?t=13983

Jya-Ning

[mshatty Super Moderator Find all posts View Profile Close mshatty]

Mr. Holmes' statement is interesting.

Back in May 2006 when the Fairfield Vacation Owner Association (Trust) held its annual meeting in Las Vegas, Dave Pontius, the "Chief Customer Officer" of Fairfield, made it real clear that he and Fairfield were unsure of when, where and how the marriage with the Wyndham Vacation Group would end up or in what form. He indicated in his speech that there were discussions ongoing with no definitive decisions.

There has been no formal announcement from Fairfield or Wyndham for that matter on this except for Mr. Holmes' statement reported by Boca. I suspect that the situation is still very fluid and complex. It does take time for these situations to work themselves out, especially with all of the different types of moving parts that are in the Wyndham Vacation Group.

Is it impossible or impractical to bring some or all of Fairfield, Trendmark or Worldmark together in a Wyndham club? That's for others to decide; but hold on to your wallets!

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

In the interview, he mentioned that they will be launching a Wyndham Vacation Club shortly. No details were specified. But, I would be surprised if Pahio weren't included in it.

Sounds like if for any reason a person wants to purchase a retail FF or WM or doing conversion, (s)he better wait until either the club is set or they come out says it is not true. So (s)he can make best choice. Otherwise, if you buy retail today, and they come out a new club on top of FF or on top of WM, and ask you some money to convert, would you feel been rip off? Of course, if there is really a new club, it probably will be independent from FF and WM as a third branch, and all three entities has some associate agreement but compete with each other.

Jya-Ning

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

What All's in Wyndham?

I have searched the Internet and have read the official documents that have been filed, but have not found a complete list of all of the brands/companies now under the Wyndham Worldwide umbrella.

Everything I've found, including the official notices sent to stockholders by the official officials, have verbiage such including or [I]and others/I] along with a list of brands most us know about.

Who are the and others?

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

I have searched the Internet and have read the official documents that have been filed, but have not found a complete list of all of the brands/companies now under the Wyndham Worldwide umbrella.

Have you tried their official website, company at a glance?

Jya-Ning

[Republiman Member Find all posts View Profile Close Republiman]

By coincidence, I happened to get a call from someone with a little "insider info".

His understanding is that Wyndham Vacation Club will be right to use points, not deeded. So that instead of constantly having to build resorts forever, 25 years out there will start to be a renewable source of points for Wyndham to re-sell.

Also, not sure how it will help, but my source indicated there will be a Fairfield Resale Office, which will sell resale points. Somehow this will help to prop up the value of resale points?

From what I can see, if Fairfield is going to do something to start to increase the value of resale points, then now may be the start of the closing of the window of "cheap resale points." So maybe now is the time to pick some up?

Will someone smarter than me explain how Fairfield reselling points will prop up the resale value? Will they start to buy up the points that are now being sold on ebay, etc.?

[CC_dad Senior Member Find all posts View Profile Close CC_dad]

Will someone smarter than me explain how Fairfield reselling points will prop up the resale value? Will they start to buy up the points that are now being sold on ebay, etc.?

FF entering the resale market will only prop up resale values at the resorts that are in high demand. The rest of the resorts would still be cheaper. Now if you believe the "rising tide lifts all boats" saying, then their activity might pull up values marginally for other resorts' UDI contracts.

In my humble opinion, FF will only want to buy back resale points at its most popular resorts - Myrtle Beach, Hawaii, Daytona Beach, Bonnet Creek, Las Vegas (and probably a host of others). They might have some interest in purchasing and converting fixed week deeds into UDI points. They would be wise to avoid any resorts where there's no real demand in the market ... high MF resorts that have a low general occupancy level.

Even if FF paid double the current rate to say .04 per point for a buy back, they would still make money after subtracting commissions, etc if they can sell at .15 per point before volume discounts. And then there's an opportunity for the enormous interest rates 9 percent to 15 percent or more, depending on the contract size.

I'd be thrilled if FF ever figured out that it's cheaper to stimulate demand by propping up the resale market ala Disney and Marriott with their Right of First Refusal. There would be no risk of cost construction cost overruns, but they would still have the dreaded marketing costs. FF has to find a better way to convert prospects into owners. Their current marketing model is woefully inefficient and ineffective. It like pouring good money after bad.

It must be cheaper to buy back resale points than to continue to develop in saturated markets. Time will tell if their desire to build all the TS units and a Wyndham Hotel at Bonnet Creek and TS near the Rio in Vegas will dilute the demand for reservations at the other resorts.

[gophish Super Moderator Find all posts View Profile Close gophish]

Depending on where you bought FF has Right of First Refusal clauses in many of its sales and therefore could if it wanted to buy the points back and this would serve to prop up the price of resale points somewhat after a while.

For our points based at Kona Hawaiian Resort FF has Right of First Refusal if we decide to sell our points.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

I have now. Thanks.

Have you tried their official website, company at a glance?

Jya-Ning

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

This start to be off-topics And I really have no idea what I was talking about. Maybe it should be split to new topic and put into like FF group?

By coincidence, I happened to get a call from someone with a little "insider info".

His understanding is that Wyndham Vacation Club will be right to use points, not deeded. So that instead of constantly having to build resorts forever, 25 years out there will start to be a renewable source of points for Wyndham to re-sell.

I don't have a crytal ball or insider. But this info is interesting because about 3 month ago, I read similar things in Yahoo group. I could not sure which member said that, but I think it probably is from the ones I think is very careful and responsible on his info.

However, for the next few years, they will add units at BC-Orlando and GD-LV, so both area will have over thousands inventories, and they have few hundrend in DC and Dell, and several other places. Currently, the owner is around 300k (over) in the point side, so if every year, it adds 10% owners, it will be 30k new weeks (avg 1 week since new weeks has more points), and if you take into consideration the converted owner, I believe they have inventories for at least next 3 years. ANd don't forget, TS still is very small part in the whole travel lodge industrial. It is not like they have explore every place that can build TS.

I have no idea what they plan to do. But as any company will do, it should try to do their best to explore all the possibilities. So RTU is one of the possibilities. However, consider a good portion of their sales is from the existing customers, I will tend to believe this is at explore stage, and may never materialize. But if they think the market will accept, they will try to sell it that way.

Also, not sure how it will help, but my source indicated there will be a Fairfield Resale Office, which will sell resale points. Somehow this will help to prop up the value of resale points?

From what I can see, if Fairfield is going to do something to start to increase the value of resale points, then now may be the start of the closing of the window of "cheap resale points." So maybe now is the time to pick some up?

They used to have a century 21 office that sells the resale points. They probablem is, it is resale points, and it counts as VIP. Since it is official FF office, no matter what you look, the point is FF VIP points. I could not remember, but I think that office no longer sell maybe at the beginning from 2004.

I can not predict future, if you found I do, then after a while, you will realize I probably will make mistake on my prediction 99% of the time. But the results may be close to 50% rights.

IMHO, if you buy TS and try to sell them, the best way to not to accumlate inventory unless you are very sure (that means your insider must be very strong in FF's position). You make money because of the volumne. The price of resell means very little. Since I don't see TS as business, so I could fall on that 99% wrong time on this one.

However, if you buy TS for personal use, how many week can get really get? How much do you think by them buy and selling resell points, your point value will increase? How long do yout think they will really do it, does it really worth to buy a few and pay MF in hope it will increase in value?

I believe century 21's asking price is about 40% of retail price. That if they can get, is close to double or triple today's price, but if you just hold the TS, and has to rent them try to cover the MF, in the end, it probably just 40% of profits (just pure guess). Not to mention you may not get it, and the asking price is higher in the old days before internet (or eBay) become so popluar.

2nd question is, if they do actively purchase in the resell market, should it help the resell market? They problem is, it is assume they are actively purchase in the resell market. They could have people default on the loan, they could work with POA (FF call its HOA POA) to get all the units default on MF and/or SA. They constantly do equity trading (although this part will not help them since they now need to sell the week as new week). So the market may not have any idea they are doing it. Today, they have inventories, we just may not see them dump it because they could use them as the 20% they hold for trust.

Unless they start to tell the resell agent they will excerise their ROFR (which they have very limit number of resorts in hand, but I do see they put on all their new contract), it will not help resell market, and I don't know, but I don't see them in any way try to help resell market.

Jya-Ning