Marriott and ROFR

[sideshowbob72 Junior Member Find all posts View Profile Close sideshowbob72]

My wife and I are investigating purchasing a Marriott timeshare in Hawaii (we like the Waiohai) in the near future on the resale market.

As a way of supporting the value of their timeshares, does Marriott excercise their ROFR often? More often than a typical resort chain?

Any idea what kind of % discount from the retail price can be realized without triggering the ROFR?

Thanks,

Bob

[Art Member Find all posts View Profile Close Art]

Bob

Probably 40 to 60%, depending on the resort.

It also depends on much demand Marriott has for those weeks, how much inventory Marriott has of those weeks, how many owners have listed those weeks with Marriott to sell, how many weeks Marriott can buy back from owners, and on how someone in MVCI happens to feel the day he/she looks at the specific ROFR

In other words, cut the a deal that meets your needs and hope for the best.

If deed recording data are available in the area you want to buy, you might also look at the price Marriott is paying for buybacks from owners. Presumably, if MVCI is willing to pay X $ to an owner for a buyback, a higher price might not be as appealing to them on ROFR.

Art

[sideshowbob72 Junior Member Find all posts View Profile Close sideshowbob72]

Art,

Does Marriott have a program to buy back timeshares from the owners before they go on the resale market (at a significant discount I'm sure)? And, if so, it is available to all owners or just those who bought directly from Marriott?

Bob

[rockedge Junior Member Find all posts View Profile Close rockedge]

I bought an oceanview waiohai for 24k and passedofr. They are selling for about 41k from marriott, you do the math.

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

As MAW is still in active sales, the eye of the ROFR folks is likely a bit more keen, but only MVCI knows their margins and the details of the supply/demand matrix in that marketplace.

You may find, if/as the timeshare market softens (I've been seeing signs for the last year), MVCI may become a bit more aggressive, both to bolster market price, as well as to cherry-pick easy profits.

Pat

[m61376 Senior Member Find all posts View Profile Close m61376]

For most resorts I'd agree that 40-60% is the norm. However, in some high demand areas (Hawaii, Aruba, Plat. ski weeks, etc.) discounts are closer to a third off with ROFR actively exercised at the 40% or so mark. I've recently read of ROFR more in the 30% mark at at least one locale, but that likely has to do with supply/demand at the moment.

The best advice is to negotiate the best deal you can and, as long as you aren't paying anything upfront to purchase (other than refundable escrow deposit), try to get past ROFR. What passes or is nabbed one day may have different results another, so those who have been around a lot longer (like DaveM, etc.) always advise to make your best deal and don't set your offer based on fear of ROFR. If it gets nabbed, you'll survive (from personal experience it is frustrating, I know); its the only way to get your best price. If your offer is based on ROFR fear, you will likely overpay. That said, of course it makes sense to know the market; if your offer hovers around the ROFR line and it goes through then you know you did well.

Good luck in your hunt

[Art Member Find all posts View Profile Close Art]

Bob

In my limited experience, it appears that MVCI is selective in which resorts and seasons it buys back. Certainly, a key item in a sold out resort is whether Marriott has an active and successful resale market. If Marriott doesn't believe they can quickly turn a nice profit, they are less likely to exercise ROFR. Off-season weeks are a good example of this.

I've seen discussions on TUG, but I do not know if purchasing directly from Marriott is pre-requisite for being able to sell it back to Marriott. Maybe someone with direct experience, i.e., not what a salesman said, can answer that question. I did have the feeling when I called about a buy-back of a week, I had the feeling that the agent was checking the record of my purchase.

Art

[mlc Junior Member Find all posts View Profile Close mlc]

For most resorts I'd agree that 40-60% is the norm. However, in some high demand areas (Hawaii, Aruba, Plat. ski weeks, etc.) discounts are closer to a third off with ROFR actively exercised at the 40% or so mark. I've recently read of ROFR more in the 30% mark at at least one locale, but that likely has to do with supply/demand at the moment.

The best advice is to negotiate the best deal you can and, as long as you aren't paying anything upfront to purchase (other than refundable escrow deposit), try to get past ROFR. What passes or is nabbed one day may have different results another, so those who have been around a lot longer (like DaveM, etc.) always advise to make your best deal and don't set your offer based on fear of ROFR. If it gets nabbed, you'll survive (from personal experience it is frustrating, I know); its the only way to get your best price. If your offer is based on ROFR fear, you will likely overpay. That said, of course it makes sense to know the market; if your offer hovers around the ROFR line and it goes through then you know you did well.

Good luck in your hunt

I could not have said it any better. Excellent advice

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

Marriott ROFR

Marriott provides a list of locations that do not exercise the ROFR.
Does anyone have a list of the least dollar amount individual Marriott locations accept before exercising the ROFR?
If not we should start one.

[taffy19 Gold Contributor Find all posts View Profile Close taffy19]

TUGger dioxide45 started a list on her own for resorts that passed or didn't pass the ROFR with the Marriott and it is being updated constantly so you may want to check this list out. Her thread is here and the list is:

ROFR

A lot of information about the Marriott can be found here and also what resorts do not have the ROFR clause in the contract.

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

Thank You

Great Help on my first post!

[eglon999 Member Find all posts View Profile Close eglon999]

TUGger dioxide45 started a list on her own for resorts that passed or didn't pass the ROFR with the Marriott and it is being updated constantly so you may want to check this list out. Her thread is here and the list is:

ROFR

A lot of information about the Marriott can be found here and also what resorts do not have the ROFR clause in the contract.

Thank you for posting this link. After reviewing the sales posted for the resale Marriott that I am trying to purchase, I don't know if the price I am paying will pass the ROFR. Per the escrow company rep, the ROFR was submitted to Marriott on May 7th and she said they take 15 days to respond. I've sent two subsequent e-mail messages and she says that she has not heard back from Marriott.

[Bill4728 Super Moderator Find all posts View Profile Close Bill4728]

There have been recent reports that Marriott isn't using ROFR at as high of level as they have in the past. So the great deal you got may get past ROFR.

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

There have been a few reports of ROFR going down to the 30 day window too. I only follow it at our resort and saw some pretty impressive prices get by it recently. While it doesn't bode well for supporting our developer purchases, resale buyers are smiling

Pat

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

Thank you for posting this link. After reviewing the sales posted for the resale Marriott that I am trying to purchase, I don't know if the price I am paying will pass the ROFR. Per the escrow company rep, the ROFR was submitted to Marriott on May 7th and she said they take 15 days to respond. I've sent two subsequent e-mail messages and she says that she has not heard back from Marriott.

That is actually GOOD news...they MUST respond in 30 days or else forfeit their ROFR - so just a few more days and it will be yours.
Hopefully the escrow company has proof Marriott received the fax or email that day...I would wait until you are past the 30 days by 5 and then contact the escrow company.