Received DRI 2009 MF's yet?

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

You missed the point with your diatribe, the point was to mention an increase without specifying a time period is sensationalism.

So how would you like me to put it? That MF's increased 12% to 14% for the last two years and are achieving the status us highest in the industry.

Or is it sensationalism to describe DRI's MF's as being as high as Marriott and higher than Hilton but delivering less to their owners?

Anyway you want to put it, DRI isn't a bargain anymore and it's questionable that quality will ever equal to the cost. If high MF's bothered me, I wouldn't own Marriott. It's not just that MF's with DRI have gone through the roof. It's that DRI delivers less for what they're now charging. If DRI was delivering Marriott quality resorts (or if I believed they ever could), I'd be more inclined to stick with them. In looking at their history it's more likely that they'll follow the path of Westgate than anyone else.

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

dougp, you're not the one I quoted when I said that, go look.

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

dougp, you're not the one I quoted when I said that, go look.

Sorry, I'm not always the brightest light buld in the pack or, I'm egotistical and think everyone is talking to/about me.

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

I know Marriott in Vegas is not sold out. Is Hyatt? One thing to keep in mind, and this was told to me from a salesman in Marriott...IF the Marriott in LV is not yet sold it, there are factors supporting a lower MF, but once the resort sells out the MF rises accordingly, maybe sometime not right away. So maybe if comparing Marriott LV with Polo, check out the MF for Marriott LV in say 5 years after it's sold out - comparing what you get for your MF money at Marriott LV versus Polo.

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

I know Marriott in Vegas is not sold out. Is Hyatt? One thing to keep in mind, and this was told to me from a salesman in Marriott...IF the Marriott in LV is not yet sold it, there are factors supporting a lower MF, but once the resort sells out the MF rises accordingly, maybe sometime not right away. So maybe if comparing Marriott LV with Polo, check out the MF for Marriott LV in say 5 years after it's sold out - comparing what you get for your MF money at Marriott LV versus Polo.

The developer subsidy in 2007 for a Grand Chateau 2 bedroom unit was $122.86. The total MF's after the subsidy was 838.36. If you add the developer subsid back in, the total MF for a 2 bedroom Grand Chateau week would have been $961.22. That included a reserve funding of $120.

The Villa's at Polo Towers MF was $903 less $5 ARDA contribution or $898. BUT, the reserve replacement fund for the Villa's was only $45.

It will be interesting to see what the increase in MF's for Grand Chateau are this coming year. Marriott has never been cheap but I'm hoping that it will be less than 14%. If all of our timeshares start increasing in the double digits year after year I'll be looking to sell more than just DRI in the future.

[T. R. Oglodyte Moderator Find all posts View Profile Close T. R. Oglodyte]

The developer subsidy in 2007 for a Grand Chateau 2 bedroom unit was $122.86. The total MF's after the subsidy was 838.36. If you add the developer subsid back in, the total MF for a 2 bedroom Grand Chateau week would have been $961.22. That included a reserve funding of $120.

The Villa's at Polo Towers MF was $903 less $5 ARDA contribution or $898. BUT, the reserve replacement fund for the Villa's was only $45.

It will be interesting to see what the increase in MF's for Grand Chateau are this coming year. Marriott has never been cheap but I'm hoping that it will be less than 14%. If all of our timeshares start increasing in the double digits year after year I'll be looking to sell more than just DRI in the future.

In 1999 we made our first timeshare purchase - two 1-bedroom units at the Marriott Kauai Beach Club. After we signed on the many dotted lines, I was back in our room reading the documents, one of which was a maintenance fee breakdown. I noted a line item for "developer subsidy", which piqued my curiosity. IIRC, the subsidy worked out to more than $100 per year of fees for each of our units. In followup I never could get a satisfying answer about what that was; in fact I could tell I was asking a question for which they didn't really have a good explanation.

Our fees at the time we purchased would have been around $500 per unit, or $1000 total. That's with the subsidy.

While we were on the island we learned about other timeshares and the resale market. We visited several other places where two-bedroom units had fees of about $600, without any subsidy line item. Then I got to thinking about the grounds at the Marriott KBC, and realized that someone was paying for all of those grounds and facilities and that operating costs had to be substantially higher at the Marriott than other locations.

We rescinded at the Marriott and bought a 2-bedroom resale at Poipu instead. About two years later the Marriott Kauai Beach Club sold out and Marriott stopped the subsidy. Annual fees on those one-bedroom units immediately jumped by about $150 per year per unit - combination of ordinary increase in costs plus the elimination of the subsidy.

At that point the annual fees on those 1-bedroom units was about $1000 per year.

we were very glad that we had our 2-bedroom unit at a property we liked better and for which were paying about $750 (at that time) instead of the $2000 we would have been paying had we not rescinded.

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

[QUOTE=dougp26364;270028]Have you considered selling back to DRI? Based on your level of aggitation, it might be better on your blood pressure.

I have received an offer of $9,000 for both my Villa's and Suite's week less $900 in closing costs for both ($4,000 suite's and $5,000 Villa's minus $450 each closing cost's plus any additional incidentals).

What property are you selling back to them?
Did they contact you or vice versa?

I already contacted them. They advised me to sell on Ebay or Yahoo OR deed my DEEDED property back to them AND pay the closing fees. If you have any suggestions, please advise!

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

[QUOTE=opkansas;270783]

Have you considered selling back to DRI? Based on your level of aggitation, it might be better on your blood pressure.

I have received an offer of $9,000 for both my Villa's and Suite's week less $900 in closing costs for both ($4,000 suite's and $5,000 Villa's minus $450 each closing cost's plus any additional incidentals).

What property are you selling back to them?
Did they contact you or vice versa?

I already contacted them. They advised me to sell on Ebay or Yahoo OR deed my DEEDED property back to them AND pay the closing fees. If you have any suggestions, please advise!

We own at Polo Towers. I contacted them but I did not contact customer service. CS and sales doesn't have a clue.

I have seen postings where DRI has made offers on Polo Towers and Kaanapali but haven't seen anything posted about any other resorts. I have seen some post they were contacted by DRI and others that have contacted DRI. I believe the contact is devbuyback@diamondresorts.com .

While I notified them Thursday I would accept their offer, I haven't heard back from them yet. If I don't hear from them Monday I'll call the number I have at home to make certain they understand I'm willing to sell my units back at their offer price.

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

Without modifiers, one would assume % increase to be an annual figure and your figures are nowhere near right for an annual figure. If you want to be sensational, my Powhatan MFs have gone up nearly 300% since I bought.

Modifier we are talking two years! I'm sorry I missed the approximate 40% increase in value in my paycheck and real estate in the last two years. Dollars are dollars I'm not comparing it to the 80s I comparing it to two years ago! Tell me what other systems saw a similar increase in fees over the last two years. I think it is alarming I also think it is a bad business model more people will not pay their bills creating a bigger weight for the rest of us to carry.

1150/832 = 1.38 Powhatan 4 bedroom

1130/767 = 1.47 Greenspring 4 bedroom

I'm just curious what magical modifier did I forget to mention

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

Modifier we are talking two years! I'm sorry I missed the approximate 40% increase in value in my paycheck and real estate in the last two years. Dollars are dollars I'm not comparing it to the 80s I comparing it to two years ago! Tell me what other systems saw a similar increase in fees over the last two years. I think it is alarming I also think it is a bad business model more people will not pay their bills creating a bigger weight for the rest of us to carry.

1150/832 = 1.38 Powhatan 4 bedroom

1130/767 = 1.47 Greenspring 4 bedroom

1150/425 = 2.71 Powhatan 4 bedroom
DRI is actively foreclosing on delinquencies as a means of getting cheap inventory to sell at retail.

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

1150/425 = 2.71 Powhatan 4 bedroom
DRI is actively foreclosing on delinquencies as a means of getting cheap inventory to sell at retail.

DRI is a smart company (with the buyback of delinquent accts to use to sell full retail), but they do have to also be lean in how they use their dollars and also not to p. off loyal (new and old) paying customers with things such as Doug repeatedly reminds us of - jacked up MF's but not receiving comparable goods compared to the likes of Marriotts, Hiltons, etc.

customers are NOT stupid. We talk. It just takes a few Marriott owners to whisper in a prospective DRI customer's ears, and the DRI customer WILL GET UP and walk across the street (will at Polo, it's "walk around back"). With the show and awe he will receive at the Marriott TS presentation he will experience soon after, he will spread the word to his friends, family and co-workers. This is how DRI will sink itself, if it does. I hope NOT, though. I am betting our DRI conversion (bought Polo direct from developer over 12 yrs ago) was not a waste of money.

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

Closing on deeded owners is not easy, closing on trust ownership on the other hand is trivial. We already have dead weight at Powhatan, I'm betting on more. The units become more difficult to sell when someone can almost stay at the resort for just slightly more than MFs.

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

I'm still an owner but I can a see a future where this ownership has little value to me, I would not have said that two years ago. Lately I've been thinking about putting my investment into property that has a real association that is owner controlled. I believe that the Trust violates the spirit of the HOA law, it is simply using the trusts to control HOA to hike fees.

Right now I finding out how many votes are trust controlled at the Virginia properties which determines the makeup of the board. Then I'm contacting congressional leaders in Virginia I believe that the Trusts they sale should have voting rights at exactly one resort and nothing more and hence they would vote for themselves and the board should be made up of people with no ties to the industry except being owners.

The question really focus on whether you believe it is more important for the trust owners to have a diluted say in all resorts since they have a MFs associated with the collection or is it more important to separate the various HOAs from the developer Diamond. Well I think you can guess how I feel about this deal. The question is am I the only one?

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

DRI is a smart company (with the buyback of delinquent accts to use to sell full retail), but they do have to also be lean in how they use their dollars and also not to p. off loyal (new and old) paying customers with things such as Doug repeatedly reminds us of - jacked up MF's but not receiving comparable goods compared to the likes of Marriotts, Hiltons, etc.

customers are NOT stupid. We talk. It just takes a few Marriott owners to whisper in a prospective DRI customer's ears, and the DRI customer WILL GET UP and walk across the street (will at Polo, it's "walk around back"). With the show and awe he will receive at the Marriott TS presentation he will experience soon after, he will spread the word to his friends, family and co-workers. This is how DRI will sink itself, if it does. I hope NOT, though. I am betting our DRI conversion (bought Polo direct from developer over 12 yrs ago) was not a waste of money.

DRI will sink itself by following the same pattern as Sunterra used. Expansion beyond their reach. Judging by the fact they required and extension of exclusive negotiating rights, the fall in the price of Bluegreen stock and the market for affordable financing, it seems foolish for DRI to continue to persue the buyout of another large timeshare company. Espcially when they are still reasonably unsettled with the acquisition of Sunterra.

If S. Cloobeck becomes bored again as he did with DRI several years ago, the company will once again flounder. That's the other way DRI will sink, just like it had been doing before S. Cloobeck decided to jump back into the deep end.

After a couple of years, there's still to many questions, the company still isn't showing strong signs of settling into the business of running the timeshares they own, they're still looking to aquire rather than build and fee's are going up faster than any other system I know. In my mind, this is not the direction I saw DRI going when it bought out Sunterra and not a direction I'm willing to continue to follow. It's appears to be the same path that the failed Sunterra followed but, with higher fee's.

I'm sure things may settle down eventually but, if DRI over extends it's reach with financing the Bluegreen (or any other acquisition), things could get ugly quickly and stay that way for many years to come. I'll take my loses now and cut and run.

Polo Towers was my first and second timeshare purchase. We bought the units to use but, for the last few years we haven't used them. The cost has gone up substantially to maintain my ownership, my needs for the units has decreased substantially and I still don't trust DRI to lead the company where I would expect it to go for the price I've paid. DRI has a decent buyback program. That combined with the other factors mentioned have led me to the point where I'm ready to sell out.

I wish everyone who is staying the best of luck with DRI and hope things turn out better than I envision. It's just that after 10 years I've had enough of the promises and the cost, when compared to other systems such as Marriott and Hilton, has become to high.

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

Powhatan Developer Control

I called the other day and found that 26% of all the unit-weeks are in the trust at Powhatan that doesn't guarantee control at the resort, but it's a big voting block that could be used in the future. However this resort is still under Developer control while reading the law on the books 55-386 I'm not sure how they can get away with not finishing the resort, and giving the owners at the resort a chance to elect a HOA that would control the resort instead of the Developer. Am I missing something?

Virgnia Law § 55-386. Developer's obligation to complete.

A. The developer shall complete all promised and incomplete units and common elements being offered and described in the time-share instrument and the public offering statement. The developer shall be excused for the period or periods of delay in the completion of such promised units and common elements when delayed, hindered, or prevented from doing so by causes beyond the developer's control which shall include: (i) labor disputes not caused by the developer; (ii) riots; (iii) civil commotion or insurrection; (iv) war or warlike operations; (v) governmental restrictions, regulations or control; (vi) inability to obtain any materials or services; (vii) fire or other casualties; (viii) acts of God; or (ix) forces not under the control or supervision of the developer.

B. The developer shall file with the Board a payment and performance bond in the sum equal to 100 percent of the estimated cost of completing all promised and incomplete units and common elements comprising the time-share project described in the time-share instrument and the public offering statement. Such bond shall be conditioned upon the completion of such units and common elements in conformity with the plans and specifications for such improvements. The bond shall be with a surety company authorized to do business in the Commonwealth. The Board may accept cash or an irrevocable letter of credit in lieu of the bond required by this section. The Board shall be the sole determiner of the form, amount, content, obligee and conditions of the letter of credit. Should it become necessary for the Board to call upon the letter of credit in order to assure completion of the improvements, the Board shall have the authority to petition a court of competent jurisdiction to appoint a receiver to administer such completion.