Marriott ROFR on Grande Vista

Marriott just exercised their ROFR on my 2/2 lock-off EOY Even, first year use of 2016 for $2850. Conditions were buyer would pay all closing costs and 2015 MFs.:whoopie:
They had previously offered @2200 net so this seems good to me. Should I worry that they will they try to get me to pay closing costs and MFs?

Note: Post moved from the "Marriott is BUYING BACK ..." thread, where the OP posted this in Nov re this same week:

"I just received an offer for my Grande Vista EOY even for net $2200. But they were withholding 10% as a non-resident and half of the MFs had to be paid. That would mean I would receive approx. $1440. Not an attractive offer at all. Had no idea of need to pay MFs before they would buy back?:ignore:"

NEGreyhound said:

Marriott just exercised their ROFR on my 2/2 lock-off EOY Even, first year use of 2016 for $2850. Conditions were buyer would pay all closing costs and 2015 MFs.:whoopie:
They had previously offered @2200 net so this seems good to me. Should I worry that they will they try to get me to pay closing costs and MFs?

Note: Post moved from the "Marriott is BUYING BACK ..." thread, where the OP posted this in Nov re this same week:

"I just received an offer for my Grande Vista EOY even for net $2200. But they were withholding 10% as a non-resident and half of the MFs had to be paid. That would mean I would receive approx. $1440. Not an attractive offer at all. Had no idea of need to pay MFs before they would buy back?:ignore:"

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This is not a bad deal for you because they are paying your 2015 maintenance fees (which go with your 2014 usage and are your responsibility), so you have to add this value to the offer price to determine what you are really getting for the week. If they exercised ROFR on this, they must pay what the contract provides, so they can't try to make you pay closing costs and the 2015 MFs.

Hi

Which season was your GV, platinum or gold ?

buyback

Platinum with no 10% hold back, 2015 MFs and closing costs paid by buyer (Marriott)

Thanks

That is a good deal. Are there any thoughts or speculation as to why Marriott would be so keen and at such a strong price ?

greenfrog said:

Thanks

That is a good deal. Are there any thoughts or speculation as to why Marriott would be so keen and at such a strong price ?

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That week is worth ~3,000 Trust Points when deposited to the Trust, and those points can be sold for $30K+. So a purchase price below $3K will give Marriott a very profitable sale (of points) down the road.

I believe the day of cheap platinum and high-quality goods via resale are gone, unless the seller is in bankruptcy. I believe Marriott is avoiding ROFR exercise on those

Best,

Greg

GregT said:

That week is worth ~3,000 Trust Points when deposited to the Trust, and those points can be sold for $30K+. So a purchase price below $3K will give Marriott a very profitable sale (of points) down the road.

I believe the day of cheap platinum and high-quality goods via resale are gone, unless the seller is in bankruptcy. I believe Marriott is avoiding ROFR exercise on those

Best,

Greg

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It's an every other year so it is worth appx 1500 trust points.

GregT said:

That week is worth ~3,000 Trust Points when deposited to the Trust, and those points can be sold for $30K+. So a purchase price below $3K will give Marriott a very profitable sale (of points) down the road.

I believe the day of cheap platinum and high-quality goods via resale are gone, unless the seller is in bankruptcy. I believe Marriott is avoiding ROFR exercise on those

Best,

Greg

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In all seriousness, wait until the next recession. MVC will be squeezed by the new sale market collapsing, and won't have the cash flow to excercise ROFR. Just like 2009...

Of course. as the Waco Kid said, "When?"

capjak said:

It's an every other year so it is worth appx 1500 trust points.

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Got it - missed that.

So it's 1,500 points with retail value of $15k or so, and Marriott is paying $2,850 plus some fees. That is close to the 22-23% ROFR metric and is still below it, so the ROFR is consistent with others we have seen.

It will be interesting to see what will happen in next downturn (but I would rather not know anytime soon!)

Best,

Greg

Can you just clarify.....do you believe that MGV weeks are now worth more money than they were say 2 years ago?

JMSH said:

Can you just clarify.....do you believe that MGV weeks are now worth more money than they were say 2 years ago?

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I guess I would answer a little differently. I think the value of many Marriott timeshare weeks has increased from having very little value (under $1,000) to now having modest value (under $5,000).

I believe this is not because of the intrinsic value of having a vacation week at that property has increased, but rather because the weeks are worth more to Marriott (in the form of recycled Trust Points) than the underlying vacation week is to some resale purchaser. And Marriott is now a buyer, whereas two years ago they were not, and it was a true market price between willing seller and willing buyer -- for that week.

However, I believe that there are weeks where the actual vacation week merits a premium over the modest values noted (like Maui Ocean Club), and for this property particularly, prices are continuing to draft downward as MFs increase. I think a 2BR OF in Lahaina/Napili was selling for more than $30K two years ago, but they are now selling in the higher $20's.

So, I think it depends on the week, and whether or not Marriott becomes a buyer purely for Trust Point purposes.

Best,

Greg