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Considering 1st Marriott Timeshare Purchase

LOL, wrong place, same headache...

Under our points-based business model, we are able to supply many sales offices with new inventory from a small number of resort locations, which provides us with greater efficiency in the use of our capital. As a result, our risk associated with construction delays is concentrated in fewer locations than it has been in the past. Additionally, selling vacation ownership interests in a system of resorts under a points-based business model increases the risk of temporary inventory depletion. We sell vacation ownership interests denominated in points from a single trust entity in each of our North America, Asia Pacific and Luxury business segments. Thus, the primary source of inventory for each segment is concentrated in its corresponding trust. To avoid the risk of temporary inventory depletion, we employ a strategy of seeking to maintain a six- to nine-month surplus supply of inventory available to sell. Even in the unlikely event that this surplus is not sufficient, we believe that the actual risk of temporary inventory depletion is relatively minor, as there are other mitigation strategies that could be employed to prevent such an occurrence, such as accelerating completion of resorts under construction, acquiring vacation ownership interests on the secondary market, or reducing sales pace by adjusting prices or sales incentives.

Owners generally can offer their vacation ownership interests for resale on the secondary market, which can create pricing pressure on the sale of developer inventory. However, owners who purchase vacation ownership interests on the secondary market typically do not receive all of the same benefits as owners who purchase products directly from us. When an owner purchases a vacation ownership interest directly from us, the owner receives certain entitlements that are tied to the underlying vacation ownership interest, as well as benefits that are incidental to the purchase of the vacation ownership interest. While a purchaser on the secondary market will receive all of the entitlements that are tied to the underlying vacation ownership interest, the purchaser will not



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receive certain incidental benefits. For example, owners who purchase our products on the secondary market are not entitled to trade their usage rights for Marriott Rewards Points. Owners of our points-based products who do not purchase from us do not have access to the internal exchange component of the product and therefore would only be able to use the inventory that underlies the vacation ownership interests they purchased. Additionally, most of our vacation ownership interests provide us with a right of first refusal on secondary market sales. We monitor sales that occur in the secondary market and exercise our right of first refusal when it is advantageous for us to do so, whether due to pricing, desire for the particular inventory, or other factors.
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Thank you again, EVERYONE, for your responses so far. I can’t tell you enough how helpful you’ve been.

In summary, sounds like if we buy resale via external open market, we will not be able to enroll and use the Destination Club point program. That also goes for buying resale directly from Marriott - cannot enroll in the DC Point Program. One of the major disadvantages I see here is that this new DC point program might start taking a lot of the Marriott properties away from Internal International, and thus not being able to trade to another Marriott. On the other hand, my desire to split out the purchased “resale” week into partial week/days for vacations at my home resort, or via trade on II, can still occur. Also, if I read all this correctly, I have the option to not only trade via II, but also RCI and other services. Please let me know if I got any of this wrong.

@foreverloves – thanks again for starting out the thread responses with all that info.

@J.D. - You say you own at both Newport Coast Villas and Shadow Ridge. Ironically, the same one's we've been considering. What did you decide to purchase at both - gold, silver, platinum, floating, fixed, etc....? And did you say you bought resale without necessarily the intent to trade via Interval International?

@camachinist – Thank you for the info on your ownership at NCV. Information was helpful. Did I read correctly that you own both a platinum and a gold at NCV? Is that primarily to use one week and trade one week? Do you own elsewhere as well?

Thanks again everyone.
 
Fram- There are only a few resorts that can trade through RCI as well as II. All Marriotts trade through II. You can also trade through independents (Redweek, SFX, etc.), privately through the Tug marketplace and ownertrades.com, and/or as suggested above, by reserving a week where you own, renting it out privately and then using the $$'s to rent where you want to go from someone else.

Membership in II also gives you access to Getaways- low cost, usually off season weeks that can be really great deals, esp. if you have some flexibility with travel dates. Getaways are often less than annual MF's, so they can be a great bargain and is a nice perk of ownership.
 
Thanks "m61376". I remember hearing about that and forgot all about it. Great!! :)
 
@camachinist – Thank you for the info on your ownership at NCV. Information was helpful. Did I read correctly that you own both a platinum and a gold at NCV? Is that primarily to use one week and trade one week? Do you own elsewhere as well?
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Yes, I own in both seasons. Back when we bought, it was called, LOL, the 'California Pack'. NCV is the only resort I own at.

When exchanging, I exchange the Gold week; otherwise I occupy or rent the weeks. Historically, I've rent-swapped the most. Cash is accepted everywhere :)
 
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