What happens when DRI takes over a resort?

Some of my fellow owners at the Lake Tahoe Beach and Ski Club (South Lake Tahoe) are all up in arms about DRI buying up all the units with unpaid taxes. They spread horror stories of the doom to come if DRI takes the resort over.

I'm fairly ambivalent about the whole matter ... I feel that our Board created (and continues to create) a mess by not giving members a clean way to deed back their units. Our current management is VRI, so I'm not sure exactly what would make Diamond a bigger boogie man. The major complaint is that Diamond would jack up our maintenance fees.

So, I guess I'd like to know what others have experienced when Diamond took over one of their resorts. Did maintenance fees jump? Did service go down? Did you lose or gain trading power? Were you ultimately happy or unhappy with the changes?

Thanks for your opinions!

well

bjones9942 said:

Some of my fellow owners at the Lake Tahoe Beach and Ski Club (South Lake Tahoe) are all up in arms about DRI buying up all the units with unpaid taxes. They spread horror stories of the doom to come if DRI takes the resort over.

I'm fairly ambivalent about the whole matter ... I feel that our Board created (and continues to create) a mess by not giving members a clean way to deed back their units. Our current management is VRI, so I'm not sure exactly what would make Diamond a bigger boogie man. The major complaint is that Diamond would jack up our maintenance fees.

So, I guess I'd like to know what others have experienced when Diamond took over one of their resorts. Did maintenance fees jump? Did service go down? Did you lose or gain trading power? Were you ultimately happy or unhappy with the changes?

Thanks for your opinions!

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Hi there! I don't have any factual info for you but there is a Facebook page for Diamond owners....nothing at all to do with the actual company so it is NOT biased at all....its the Diamond Members FB page...maybe join that as there will be lots of info for you there

Thanks for the pointer! I'll look there and welcome more comments here!

Oh ... the group is private/closed. I requested access anyway

DRI has a standard for resorts they manage. If a resort they assume the management contract of a resort that is beneath their standards, they will bring it up to DRI standards over a three to five year period. DRI doesn't pay out of their pockets for the upgrades, owners do. So if the resort requires a lot of work then expect significant increases in MF's. If not you're still likely to see milder increases as DRI's management fees tend to run to the high side for timeshare management companies. You'll also see a sales push to get existing owners to convert their units to a DRI trust based ownership. As sales presentations go it's typical and causes a lot of fear and negative comments. Quality among DRI managed resorts is fairly consistent. You know about what to expect unless it's an affiliated resort that's not actually managed by DRI.

We've owned with DRI since 1998 and joined THE Club after they bought out Sunterra. Their MF's rival Marriott but they're not quite there in quality. Their internal reservation system is one of the better ones and is relatively easy to navigate. Their membership dues are possibly the highest in the industry and,,IMHO, are high enough that anyone with less than 15,000 points really needs to think about the value of joining.

With DRI it's their way...........period. Owners are only along for the ride. I don't find that different from many other management companies. DRI is just a little more forward about it than the others.

If you don't want your fees to go up about 30 %, fight hard against them becoming the management company

However they may have bought enough units out votes the apathetic owners that just turn over their proxy to the BOD or don't vote at all to get themselves awarded the contract

Rent_Share said:

If you don't want your fees to go up about 30 %, fight hard against them becoming the management company

However they may have bought enough units out votes the apathetic owners that just turn over their proxy to the BOD or don't vote at all to get themselves awarded the contract

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I think the issue is more apathetic HOA's that leave their resorts vulnerable to predatory management companies looking for another acquisition.

I can speak as an owner of two resorts where DRI has become involved. I started to use the verb 'overtaken' but I guess there are some that would say 'rescued' -- no matter word choice. Yes, Maintenance Fees went up significantly. I think an 'assessment' would have been a better way to handle if indeed we are paying for 'past sins' of prior mgt.

When DRI took over Sunterra our maintenance fees went up significantly and we we're hit with a small special asessment, but over the next few years the quality of the resorts improved quite a lot.

Maintenance Fees Go Up

Maintenance fees without a doubt will go up. In fact, you will be downright mad at first. I certainly was. However, maybe that why the company I belonged to went bankrupt. They did not have enough money.

DRI does improve resorts it own. However, there are other advantages with the Club. One of the things I do like is that there are so many resorts and I don't have to always pay exchange fees. They have so many resorts all over the world. Plus, in places like Europe, I don't have to stay in a hotel and pay in Euros or pounds because my maintenance fees are in dollars. That can be additional savings.

So there is a tradeoff as with most things.

If you are happy with what you have, stick with it and you don't have to convert to DRI's Club. You can do what you have always done as indicated in your initial contract.

I bought at Riviera Beach and Spa right after DRI bought it but they hadn't started management yet. So I visited twice before they started changing things and twice after. So far (and they're not done yet) there have been significant service improvements, a few improvements to the resort. And no MF increase. There is a big sales presence on-site now too. I expect some MF increases but I'm fine with that. I like the place and think DRI is making good improvements for the most part.

I have personally stayed at the Lake Tahoe Beach and Ski Club about 1 1/2 years ago for a week and I can tell you it is NOT DRI quality. So, if the intent is to bring them up to DRI level, then you WILL see a nice increase on MF's.

Thanks for the comments!

Winger - Tahoe Beach & Ski is currently in the midst of a remodel. I don't think it's bringing them to DRI quality, but there are jetted tubs in the master baths and granite counter tops in the kitchen. Since this was my first use year, I'm not sure what they looked like before (reviews just said 'needed updating' and 'tired').

There were three basic reasons I bought at this location. 1. Beachfront - not many of the timeshares are. 2. VRI - they have locations I would like to trade into if I decide to trade (so does DRI). 3. South Lake Tahoe - I like the area.

I bought an EOY, so a big jump in MF's only hurts 1/2 at a time After one stay, I can already think of a few changes I'd be willing to pay higher MF's for (dividers on the balcony's so the people that live on theirs can't see directly into your living room all day long would be nice).

Thanks again for the comments!