Svo ROFR?

armlem2 · May 14, 2006

I am wondering does Starwood exercise a ROFR. I just won an auction on Ebay for a 2 bdrm Lock Out at Sheraton Broadway Plantation. I am hoping I can use the info Duke recently shared about getting the original staroptions reassigned to this one (81000), if I buy one from the developer in the future.

If I buy from a mandatory resort and later sell it, would I get to keep the annual staroptions on this one or do they tie them together?

Also I am currently a member of II and wondering does this trade better in II or RCI? Thanks

DeniseM · May 15, 2006

Re: Svo Fror?

Starwood does exercise ROFR sometimes. See this thread for more info. -
http://www.tugbbs.com/forums/showthread.php?t=22609

DeniseM · May 15, 2006

Re: Svo Fror?

armlem2 said:
If I buy from a mandatory resort and later sell it, would I get to keep the annual staroptions on this one or do they tie them together?

If you buy a week from the developer and later sell it, you would most likely take a significant loss, so I don't think that's a workable strategy.

Bill4728 · May 15, 2006

Re: Svo Fror?

If you're asking," by buying a resale resort, then converting it to SVN by buying a developer resort, will the two resort be linked in some way?" IMHO the answer is no, the resorts will not be linked. It should't matter what kind of developer resort you buy manatory or not, but a mandatory resort will have higher resale value. But I agree with Denise:

If you buy a week from the developer and later sell it, you would most likely take a significant loss, so I don't think that's a workable strategy.

This whole thing comes down to a stategy of getting the most options and points for the buck. Buying 80K resale and 40K from the developer and getting the developer to convert the first 80K, means you have 120K options and points even though you only paid developer prices for 40K of the points. That makes buying a non mandatory Starwood resort with lots of options assigned much more attractive then if that resort could never be part of SVN.

Good Luck

duke · May 15, 2006

Re: Svo Fror?

Bill4728 said:
This whole thing comes down to a stategy of getting the most options and points for the buck. Buying 80K resale and 40K from the developer and getting the developer to convert the first 80K, means you have 120K options and points even though you only paid developer prices for 40K of the points. That makes buying a non mandatory Starwood resort with lots of options assigned much more attractive then if that resort could never be part of SVN.

Bill is correct, you could actually buy an annual low season Cancun single for $13,300 and have your resale requalified. However, I also would agree with Denise that you could loose the requalification of your resale if you sold the Developer purchase (although it is not my objective or experience).

Remember, you need to make your own deal with the Developer, have it approved, and document in writing before you make your Developer purchase.

All the best,
Duke

armlem2 · May 15, 2006

Thanks for the great feed back. I too agree it would probably not make sense to sell the developer week. Just thought if I bought from a mandatory and wanted to sell in the future sometime, it would probably make more sense cause of resale value. It is my hope to buy a cheap developer week and try and to get the Broadway reassigned it's staroptions, as both Bill and Duke have suggested. SVO has some very nice properities but because they choose what they give II it is unlike I would be able to trade into harborside, st john etc.

Any opinions as to whether it would trade better in II or RCI?

Or if you think $ 3050 for platinum will be taken by SVO?

Bill4728 · May 15, 2006

Just thought if I bought from a mandatory and wanted to sell in the future sometime, it would probably make more sense cause of resale value.

That is a good idea if the prices are about the same. A resale from a mandatory resort will have a much higher resale when you choose to sell.

SVO has some very nice properities but because they choose what they give II it is unlikely I would be able to trade into harborside, st john etc.

No, that not true, because after requalifing your week, you'd be trading into those resorts via SVN using Star-options not trading with II. The only time you'd trade with II is if you want to trade to a non starwood location.

gjaques · May 17, 2006

I think I should add our personal experience as far as trading our Broadway Plantation.
I have not yet attempted to trade within SVN, but do plan on trying to work that option in the near future.
I have read a number of statements on TUG stating that Starwood determines the week and resort that they deposit for you. My experience has been that I have been able to get a summer Broadway week deposited with both RCI and II, but lately have had to wait until they released summer weeks for deposit which has been about 9-10 months out rather than 12 months our which I would prefer. I have refused to accept any deposit outside of the prime summer demand as that is what we purchased.
I also specifically asked the VC when I deposited a week with II last year about whether or not some other resort would be deposited and was told that they could only deposit from the resort of ownership. Pehaps others on this forum have had a different experience, but that has been our experience.
We have obtained good exchanges from RCI including The Galleon last year. We have not yet actually completed an exchange with II, but am looking to do so.
Greg