Hyatt Selected to Manage Aviara Resort [merged]

Here's what's on the Four Seasons Aviara website (hotel side):

Four Seasons will be concluding our management of Four Seasons Resort Aviara effective June 21, 2010. We have been very proud to manage Four Seasons Resort Aviara for the last 13 years. In that time, the Resort has garnered numerous awards and accolades, including being named to Travel and Leisure World’s Best Awards 2003-2010; named as a AAA Five-Diamond Award for ten years running; listed on Conde Nast Traveler's "Gold List" from 1999-2009; and Golf Digest’s “Top 75 Golf Resorts in America” 2010.

If you have a reservation before June 21, 2010, you will not be affected by this change. If you have questions about your reservation, please contact our Worldwide Reservations Office at 1-800-819-5053 or the hotel directly.

This is a good thing. Maybe Hyatt will lower the quality of Aviara just enough so that I can get an exchange into there someday again. I miss that place.

There is another resort I will not name that I really wish Hyatt would take over...

why is this in starwood forum?

FS will still manage the TS right?

Kagehitokiri2 said:

why is this in starwood forum?

FS will still manage the TS right?

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I've moved this to the US western board

This is fascinating news. I wondered when we would finally hear the results of the arbitration between Four Seasons and the owners of the hotel. The management of Four Seasons was adament that their long term management agreement was binding and would prevail, but the arbitration panel obviously didn't agree.

As for the Residence Club, this shouldn't result in any major changes other than perhaps the ability to use the facilities of the hotel...and possibly higher fees as a result of lost synergy and a need to duplicate services. The Residence Club should remain a Four Seasons as it is a separate entity from the hotel and was not directly involved in the dispute.

Steve

Park Hyatt Aviara Resort

So the timeshare will stay Four Seasons, interesting...

http://www.signonsandiego.com/news/2010/apr/20/aviara-and-four-seasons-cut-ties/

This link spells it out a bit more....
"The acrimonious relationship between the Four Seasons hotel management firm and the owner of Carlsbad’s Aviara Resort has ended in divorce after an arbitration panel decided Tuesday that the two companies should terminate their business agreement.

Broadreach Capital Partners, the owner of Aviara, said Four Seasons would be replaced by Park Hyatt, the upscale, contemporary Hyatt brand, as manager of the swanky 329-room resort by June 21. Four Seasons will continue to manage the Aviara’s 132 time-share villas."

Four Seasons Aviara to become Park Hyatt

http://www.signonsandiego.com/news/2010/apr/20/aviara-and-four-seasons-cut-ties/

The residence club will remain under management by the Four Seasons but this an obvious major hurt for the residence club (and its owners )

Four Seasons change in management

It appears that the hotel will be managed by Hyatt starting June 21 but the timeshares will continue to be a Four Seasons item. It is totally unclear what will be the relationship with the hotel, the tennis, the children's camp etc.
Does anybody have a clue?
the secondary issue is what will happen to the value of the timeshares with this uncertainty? Any thoughts out there?

abwinston said:

It appears that the hotel will be managed by Hyatt starting June 21 but the timeshares will continue to be a Four Seasons item. It is totally unclear what will be the relationship with the hotel, the tennis, the children's camp etc.
Does anybody have a clue?
the secondary issue is what will happen to the value of the timeshares with this uncertainty? Any thoughts out there?

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We don't know yet what the relationship will be between the Residence Club and the hotel after Hyatt takes over the hotel. I would guess that Hyatt will want the income that could be generated by Residence Club owners and guests paying to use the hotel facilities. Hyatt may charge more for the hotel privileges...but I suspect that we won't know the specifics for a while. (Of course, nothing has been cheap with Four Seasons, so perhaps the fees for various activities will actually go down. )

As for the value of the timeshare villas, this change is not going to help. At least in the short-term, I suspect that prices will continue to decline. (They were already way down as a result of the economy.)

Long term, who knows? A few possibilities:

1) Things stay pretty much as they are with Four Seasons managing the Residence Club for decades to come.
2) Four Seasons raises the fees significantly because they aren't managing the hotel and therefore can't spread out the costs as effectively.
3) Four Seasons...which has not exactly been pleased with the performance of their weekly timeshare resorts...could decline to extend their management contract with the HOA when it expires.
4) Hyatt could make a pitch to the HOA to take over management of the timeshares and rebrand them as Hyatt Vacation Club.
5) Any combination of the above.

It will be interesting to see what happens.

Steve

Hi

This thread >>> has some good background info ...http://www.tugbbs.com/forums/showthread.php?t=97411

In case anyone wants background info

I am curious to know what is happening at some other locations ... if Maritz, Wolff & Co. of St. Louis sold a share of any other FS locations ( Nevis or Toronto ) to Broadreach. Remember that Toronto is FS head office and flagship hotel. Business is built on trust and respect --I would say that this has been crushed by Broadreach and their ability to re-finance at the high point then bitch .... like they are the only ones ...;-)

Greg

GregGH said:

Hi

This thread >>> has some good background info ...http://www.tugbbs.com/forums/showthread.php?t=97411

In case anyone wants background info

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Who needs background info when people can speculate?

(I heard Four Seasons is coming out with a "new program" :hysterical: )

davidvel said:

Who needs background info when people can speculate?

(I heard Four Seasons is coming out with a "new program" :hysterical: )

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You Devil you!!

Cheers!

Steve said:

4) Hyatt could make a pitch to the HOA to take over management of the timeshares and rebrand them as Hyatt Vacation Club.
Steve

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The way Hyatt Vacation Club works would make it very difficult for Hyatt to take over management of a non-Hyatt property. The biggest obstacle (at least if I understand it correctly) would be that all of HVC's managed properties are sold as fixed-week (and I believe unit numbers are also fixed in many cases). FSA has predominantly floating weeks. I'm not sure how you would meld any floating system into Hyatt's system without upsetting a large number of owners.

K2Quick said:

The way Hyatt Vacation Club works would make it very difficult for Hyatt to take over management of a non-Hyatt property. The biggest obstacle (at least if I understand it correctly) would be that all of HVC's managed properties are sold as fixed-week (and I believe unit numbers are also fixed in many cases). FSA has predominantly floating weeks. I'm not sure how you would meld any floating system into Hyatt's system without upsetting a large number of owners.

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I am not sure why HVC owners would be upset?!

Hyatt Residence Clubs are sold as multiple-weeks ownership and I believe some of those weeks are floating time, so there is a precedent for owning float time within the Hyatt system. But even if there weren't and Hyatt sold you an Aviaria week as float time, you would presumably be ok with that or you wouldn't buy.

Hyatt owners with fixed weeks elsewhere can use the club to obtain full or partial weeks at HVC properties on an "as-available" basis. I can't see why one would care if the week you are using within the club is owned as a float or a fixed week.

Who the heck knows what will happen with this, but I think the mechanics of this would be quite workable within the Hyatt Vacation Club system.

Personally, I would be very happy if that happened!

H

heathpack said:

I am not sure why HVC owners would be upset?!

Hyatt Residence Clubs are sold as multiple-weeks ownership and I believe some of those weeks are floating time, so there is a precedent for owning float time within the Hyatt system. But even if there weren't and Hyatt sold you an Aviaria week as float time, you would presumably be ok with that or you wouldn't buy.
H

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I wasn't referring to current HVC owners who would be upset. I was referring to FSA owners who could be upset. With the residence club, I think Hyatt owners are allocated one fixed week in the prime season that most people want to visit along with a week or two of float time in the off-season. But even those owners have fixed weeks.

K2Quick said:

I wasn't referring to current HVC owners who would be upset. I was referring to FSA owners who could be upset. With the residence club, I think Hyatt owners are allocated one fixed week in the prime season that most people want to visit along with a week or two of float time in the off-season. But even those owners have fixed weeks.

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The reason FSA owners would be upset by a Hyatt takeover of the Residence Club would be the loss of the Four Seasons name and the cachet that goes with it. Some would also dislike losing the ability to trade into other non-II affiliated Four Seasons resorts...although that is limited and difficult at best.

I don't think there would be a problem with the structure of the Hyatt Vacation Club, though. As Four Seasons owners have deeded floating weeks, that's what they would own with Hyatt. The floating nature of the weeks cannot be changed. So instead of a resort with all fixed weeks...or a mix of fixed and floating weeks...like other Hyatts, Aviara would be 100% floating. This shouldn't pose much of a problem for Hyatt, however. The Aviara owners would simply have to reserve a week in their home season before exchanging for Hyatt points.

Do I think the HOA would agree to go with Hyatt? No, unless Four Seasons decided not to renew the management agreement. Under that circumstance, I think that Hyatt might have a chance. I personally would prefer to stay with Four Seasons, and I think most owners would as well.

Steve

Aviara Owners Letter

Just received the following email today....

April 24, 2010


Dear Owners,

On April 20, it was announced that Four Seasons will be concluding its
management of the Resort effective June 21, 2010. We have been advised
that, subject to lender approval, Hyatt Hotels & Resorts will assume
management of the hotel under the Park Hyatt brand. As you will recall the
hotel owner, BRCP, and the Four Seasons have been in arbitration for some
time. Please see the attached press release for further information.

While we are disappointed that Four Seasons will no longer manage the
hotel, we will continue to manage Four Seasons Residence Club Aviara with
the same commitment to high standards and service as before.

Four Seasons is currently working with the hotel owner to put in place a
plan that will be implemented over the next two months to allow for a
smooth transition of the hotel operation to Hyatt. In addition, the HOA
Board, along with the Four Seasons management team, will be engaging in
discussions with the hotel owner and new operator regarding the enhancement
and maintenance of existing amenities and shared services. As soon as we
have additional information in this regard, we will update you.

We know you will have many questions, but at the present time, we have
limited information to share other than what is contained in the attached
press release. We will strive to keep you informed as much as possible as
we move through this process.

Thank you for your understanding and patience. As always, please feel free
to contact me or Owner Services if you have any questions or concerns.


Sincerely,


Dean Hyry
Vice President Residential Operations
Four Seasons Hotels & Resorts

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Copy of Press Release that came with the email - http://www.wcax.com/Global/story.asp?S=12344687

Four Seasons Aviara update

I got this e-mail today.
I don't know how it will affect my ownership on Aviara, but thought I need to share this info with other tuggers.
So... four seasons hotel will be Hyatt hotel and residence club aviara will remain under four seasons?

April 24, 2010

Dear Owners, On April 20, it was announced that Four Seasons will be concluding itsmanagement of the Resort effective June 21, 2010. We have been advisedthat, subject to lender approval, Hyatt Hotels & Resorts will assumemanagement of the hotel under the Park Hyatt brand. As you will recall thehotel owner, BRCP, and the Four Seasons have been in arbitration for sometime. Please see the attached press release for further information. While we are disappointed that Four Seasons will no longer manage thehotel, we will continue to manage Four Seasons Residence Club Aviara withthe same commitment to high standards and service as before. Four Seasons is currently working with the hotel owner to put in place aplan that will be implemented over the next two months to allow for asmooth transition of the hotel operation to Hyatt. In addition, the HOABoard, along with the Four Seasons management team, will be engaging indiscussions with the hotel owner and new operator regarding the enhancementand maintenance of existing amenities and shared services. As soon as wehave additional information in this regard, we will update you. We know you will have many questions, but at the present time, we havelimited information to share other than what is contained in the attachedpress release. We will strive to keep you informed as much as possible aswe move through this process. Thank you for your understanding and patience. As always, please feel freeto contact me or Owner Services if you have any questions or concerns. Sincerely,
Dean Hyry
Vice President Residential OperationsFour Seasons Hotels & Resorts

Questions ...

Broadreach Capital owns Dolce and wanted them to manage the property ... was Hyatt forced upon then by arbitration ?

BRCP states on web site that 20 acres of developable land at Aviara. In 1997 when the tennis court agreement was signed( yep - pulled out the legal stuff- and skimmed a bit ) there were 40 units ( more built since then ) "will ultimately be comprised of approximately 240 dwelling units" ... wonder what plans they have in store ... the pads for additional units are kept trimmed but one wonders what kind of market there is for more? If you where BRCP - what else would you add ?

Greg

Steve said:

The reason FSA owners would be upset by a Hyatt takeover of the Residence Club would be the loss of the Four Seasons name and the cachet that goes with it. Some would also dislike losing the ability to trade into other non-II affiliated Four Seasons resorts...although that is limited and difficult at best.

I don't think there would be a problem with the structure of the Hyatt Vacation Club, though. As Four Seasons owners have deeded floating weeks, that's what they would own with Hyatt. The floating nature of the weeks cannot be changed. So instead of a resort with all fixed weeks...or a mix of fixed and floating weeks...like other Hyatts, Aviara would be 100% floating. This shouldn't pose much of a problem for Hyatt, however. The Aviara owners would simply have to reserve a week in their home season before exchanging for Hyatt points.

Do I think the HOA would agree to go with Hyatt? No, unless Four Seasons decided not to renew the management agreement. Under that circumstance, I think that Hyatt might have a chance. I personally would prefer to stay with Four Seasons, and I think most owners would as well.

Steve

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Not to be contrary, but I, for one, would welcome Hyatt Vacation Club to take over management of the Aviara Residence Club property. It would provide much more flexibility with regard to internal trading and might even lower maintenance fees, given that daily maid service would likely be eliminated. As both a Four Seasons Residence Club owner and a Hyatt Vacation Club owner, I find the Hyatt program offers much more flexibility. If I remember correctly, Hyatt Vacation Club was considering building in Newport Beach, CA. Wouldn't this be a terrific way for Hyatt Vacation Club to have a presence in Southern California? With a different pricing structure, HVC might even want to attempt completion of the originally planned buildout of 240 units.

In my conversation with the Director of Residence's for Aviara, he assured me that they are working to maintain the level of service that we have come to expect from Four Seasons and that they don't have any intention of changing management or abandoning Aviara residence club mgmt. I'm pretty sure we would all welcome lower annual maintenance fees but in my experience, association fees rarely if ever go down. They are generally not bound by gravity. Most of us that bought into the Residence Club concept did so because of the "Four Seasons Experience" which includes tremendous attention to detail "sweating the small stuff." I would not have bought were another company managing the resort and I think that is generally the case for the majority of owners who bought "Four Seasons." Eliminating daily maid service would be a HUGE turn-off for me and most of my friends who own at FSA. In my humble opinion, that would signal a huge drop in service level. Hyatt taking over the hotel as a result of the arbitration ultimately results in a devaluation of our ownership but after my conversation with the FSA Director of Residences for Aviara, I am content, for now, to wait and see how they address the melding of resort amenities with residence club privileges. The fact that he took the time to call me at close to 10pm on Wed. night because he wanted to get back to me in person before heading home for the evening, after what we know was a terribly trying day for him, is demonstrative of the level of personalized customer service that we, as Four Seasons owners come to expect and enjoy. I may not have loved all his answers to my questions, but the fact that he took the time to get back to me personally is testament to the Four Seasons experience that we all enjoy. So, for now, we wait and see and I'm sure that there will be some stress in late June and into July but I'm hoping that by the end of July (if not sooner) we all have a sense of what this really means. And, for what it's worth, when I called the Four Seasons reservation line on Tuesday night and inquired about Aviara, after speaking with a superviser, the woman I spoke with assured me that usage of the resort amenities will remain unchanged. Let's see what unfolds but I certainly hope that doesn't include a decline or elimination of service.

jonlevey, thanks for sharing your conversation

I also purposely bought because of the "Four Seasons Experience". I'm not happy about the hotel situation and definitely would be upset if Four Seasons no longer managed the Residence Club. I would not have purchased Aviara if it was managed by any other brand.

From the Aviara Residence Club Owner's Association Minutes of the Annual Meeting of the Members (11/2/09)

Under the section titled "Meeting Called to Order"
Mr Clemens, a Director and President of the Association, introduced himself and advised that he would be acting as Chairman for the meeting. Mr Clemens then called the meeting to order.


Under the section titled "Introduction & Discussion of Dana Dunwoody-Sheppard Mullin

Mr Clemens introduced the Association's counsel during the arbitration proceedings, Dana Dunwoody from Sheppard Mullin Richter & Hampton. Mr Clemens stated that Mr Dunwoody would be presenting a brief overview of the Association's role in the arbitration proceedings and would be available for questions following this presentation.

Mr Dunwoody gave an overview of the upcoming arbitration proceedings and clarified what would not be discussed at this time.

Mr Dunwoody then asked for the owner's participation in responding to the following questions by raising their hands.

(1) How many of you purchased here at Aviara because it was a Four Seasons brand product?
- 70 out of 70 owners raised their hands (100%)

(2) How many of you feel the value of your investment would decrease if Four Seasons no longer managed the hotel?
- 70 out of 70 owners raised their hands (100%)

(3) How many of you would have still purchased here if Four Seasons was not affiliated?
- 5 out of 70 owners raised their hands (7%)

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The value of FSA timeshares have plummeted since the announcement of the change of guard. Gold weeks were selling on Ebay for between $5000 to $7000 prior to the announcement. After the announcement, the maximum bids were $2700.