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Why does Starwood have a 2-tier system?

nanette0269

TUG Member
Joined
Aug 7, 2007
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Location
Bradenton, FL
I'm sure that this has been discussed many times before, but I couldn't find it anywhere. I'm just curious what everyone's thoughts are on this. Since the voluntary resorts (for resale) are just voluntary for Starwood to add onto their SVN system, it seems like the power is in their hands. But, what benefit do they have by doing this?

* Is it to control inventory in the SVN...ie ensure that all properties/locations are balanced equally and not have 10:1 ratios of Vistana Resort to Hawaii locations?
* Or, is it to develop a more premiere resort system which caters to the upscale resorts, and the ones that are not mandatory will eventually be the red-headed stepchildren of Starwood?
* Do you think they plan on selling (or giving up the management) of the voluntary resorts in the future?

What other reasons could they have for doing this?
 
There has been a lot of discussion about this. The general feeling is that Starwood is trying to support developer purchases of the many resorts by making resale purchases less attractive to a buyer. "Buy a voluntary resort resell and you don't get membership in SVN. So, you'd better buy direct from Starwood"

None of the reasons you gave have been discussed at all.
* Is it to control inventory in the SVN...ie ensure that all properties/locations are balanced equally and not have 10:1 ratios of Vistana Resort to Hawaii locations? The newest resort in Orlando Sheraton Vistina Villages was mandatory (until this newest Amelia phase) so that isn't the reason.

* Or, is it to develop a more premiere resort system which caters to the upscale resorts, and the ones that are not mandatory will eventually be the red-headed stepchildren of Starwood? The newest resorts Cancun & Priceville are voluntary, so NO.

* Do you think they plan on selling (or giving up the management) of the voluntary resorts in the future? The newest resorts Cancun & Priceville are voluntary, so NO.

PS It has been reported that all new Starwood resorts will be voluntary in the future.
 
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