Maximize Timeshare Ownership
The ultimate resource to understand, maximize and leverage timeshare ownership to travel in luxury accommodations on a reasonable budget.
The ultimate resource to understand, maximize and leverage timeshare ownership to travel in luxury accommodations on a reasonable budget.
Reader Question: What restrictions are there for resale purchasers when buying a Hyatt Residence Club timeshare on the resale market?
Navigating a timeshare purchase on the resale market can be tricky. Prices are not very transparent and there are plenty of timeshare sellers but there are definitely some that you should stay away from due to potential scams or lower quality expertise that may leave you with a purchase or bills that you didn't expect.
I keep promising a full timeshare resale guide and it is in the works but time has been difficult to obtain for the past few weeks but it will be here soon.
If you have read this blog before, you know that I recently purchased a second Hyatt Residence Club timeshare week.
I purchased a resale week since I predominately use my Hyatt Residence Club points for transferring to Interval International. I went through the various ins and outs of my purchase but a reader sent me a question inquiring about the potential restrictions on resale purchases.
If you have been to a timeshare presentation before, the salespeople tend to avoid any questions concerning resale and attempt to change the topic when these items come up. The price discrepancy between buying from the developer and buying resale is massive with potential savings of greater than 90% off developer pricing when buying resale.
Timeshare developers know this so they do a couple of things to persuade people to avoid purchasing resale.
When you purchase a resale timeshare, there could be past due maintenance fees, a loan associated with the week or pending special assessments. If you do know adequately inquire with the timeshare developer or main timeshare program, you could get stuck purchasing a week with a hefty amount of debt. This is why you NEED to obtain an estoppel certificate. You can read about it here.
The other major item that timeshare developers due to resale owners is create additional restrictions on the use of the timeshare. Vistana (Starwood brands) has some of the worst timeshare resale restrictions. If you purchase resale on the vast majority of their timeshare properties, you CANNOT trade internally with other Vistana timeshares. There are a few timeshares properties that DO come with this ability but this is a significant restriction that you need to be aware of before purchasing a Vistana timeshare on the resale market. Here is an overview of that program which details some of these items.
Hyatt Resale Restrictions
To finally get to the point of this post, I wanted to explain the resale restrictions that the Hyatt Residence Club implements to encourage you to purchase directly from the developer. For owners who purchase directly from the Hyatt Residence Club, you can exchange your week into World of Hyatt points where you can use those World of Hyatt points at various hotel properties throughout the world. Here are some details on how that aspect of the program works.
If you purchase resale, YOU DO NOT GET THAT ABILITY. The Hyatt Residence Club blocks resale owners from participating in that program and you cannot exchange your Hyatt Residence Club week or points into World of Hyatt points. You can only use your points to exchange internally to other Hyatt Residence Club properties or exchange through Interval International.
Additional Resale Restrictions on the Hyatt Residence Club
The inability to exchange into World of Hyatt points was the single restriction that the Hyatt Residence Club implemented for resale purchase for a long time. Resale owners still had the ability to exchange into other Hyatt properties at the same rates as developer sold weeks and had the same reservation Windows as developer sold weeks. Essentially, the only difference between a resale owner and a developer owner was the inability to exchange into World of Hyatt points. All other aspects of the program worked exactly the same.
The New Hyatt Portfolio Program
As you may know, Hyatt has recently rolled out a new program called the Hyatt Portfolio program. The program is different in that instead of owning a week which has a set amount of points allocated to that week, you purchase points. The more points you purchase equates into various different levels of ownership which provides better reservation windows or points banking capabilities. The details of the new program are here.
The issue with the new program is that the points, while being able to be resold, are subject to a right of first refusal (like the legacy weeks). However, I have been told but I have not confirmed this, that the points are subject to a set repurchase amount by Hyatt. In that case, Hyatt would be able to repurchase these points at a set price (likely a tremendous discount to the original purchase price) which would prevent the ability for a secondary market to develop since Hyatt would likely just scoop up the cheap points and resell them for top dollars.
In a long winded answer, the only restriction on purchasing a legacy Hyatt Residence Club timeshare week on the resale market is the inability to exchange into World of Hyatt points. Thats it! Everything else is exactly the same.
In my opinion, saving thousands of dollars makes this restriction completely bearable and in all honesty, the exchange rate for converting into World of Hyatt points is generally poor where even if I could exchange my weeks into World of Hyatt points, I WOULD NEVER DO SO.
The issue with many timeshares is that the rules change and evolve so there is always the risk that new restrictions can be implemented on resale purchases. All timeshares track this item so they will always know where you purchased it and how much you paid.
Existing timeshare owners are the easiest demographic to market the purchase of additional timeshare weeks or points so the big timeshare companies generally do not want to impose harsh restrictions on resale owners but they do want to impose some meaningful restrictions which can allow them to market owners the ability to purchase additional weeks directly from the developer and remarkably remove these "restriction".
There have been plenty of timeshare presentations where I have been given the opportunity to remove my resale designation IF I purchase another week directly from the developer. I have not been persuaded to do so as the inability to convert to World of Hyatt points is not significant enough for me to want to spend tens of thousands of more dollars for a developer week.
What do you think of this restriction? Would this prevent you from buying a timeshare on the resale market?
In my previous post, I explained what specific timeshares that I own and disclosed that I recently completed a resale purchase of a second timeshare at Hyatt Beach House in Key West, Florida.
I now own two weeks at the Hyatt Beach House. It seems strange to say that considering that I have never been to the Hyatt Beach House, have no tremendous desire to go, and did not actually target the Hyatt Beach House to purchase.
As explained in my previous post on my personal timeshare strategy, I bought a second timeshare because we travel a lot and I get tremendous value out of my original Hyatt timeshare week.
Since Hyatt's legacy program (they have switched to an all points systems called the Hyatt Portfolio program) is a hybrid system where you can use your week or exchange into points, I found that using points to exchange through Interval International can provide enormous value. As a result, I did want another Hyatt week but my only worry was the amount of points associated with that week and the amount of annual maintenance fees. With the legacy program being phased out, I wanted to get another legacy week before they became scarce.
The new Hyatt Portfolio Program has some perks but the offered price is extremely expensive. Since it is now a points system, resales point purchases will likely be very rare to find, especially at discounted prices. With this is mind, I do think that it is a great time to purchase a legacy Hyatt week.
Out of coincidence, I ended up with another Hyatt Beach House week. So far, my strategy has panned out and have some great trips already planned for 2019 and even 2020 with a bunch of requests pending.
While I am working on a complete guide to purchase a resale timeshare (I know that it is way overdue), I thought that I would provide you with the time table of what transpired with my purchase of my Hyatt week. As discussed, I ended up purchasing this unit through Sumday Vacations who used Greatway Services for their closings.
8/17/17: Payment was received
8/24/17: Title information received
8/31/17: Documents were signed
9/18/17: Closing documents for GreatWay sent
9/25/17: Closing documents for GreatWay signed
10/12/17: Received Power of Attorney for GreatWay
10/19/17: Right of First Refusal sent to Hyatt
11/9/17: Right of First Refusal decision from Hyatt, (ROFR did not apply)
11/22/17 Deed was sent to the County for Recording
12/20/17: Received recorded deed
12/22/17: Deed sent to Hyatt for the transfer of ownership.
Mid January: Access to Hyatt Residence Club website with the ability to make reservations.
As you can see from the times listed above, it took over 4 months for the purchase and transfer to go through. This was a long time. I have purchased resale timeshares before and this was longer than normal. However, in Sumday Vacation's defense, part of this delay was due to me.
During the purchase transaction, Hurricane Irma came through Florida and almost had a direct hit on Key West, directly where my new potential timeshare was located. Obviously, I was concerned with going through the purchase if (i) the resort was not going to actually be there and (ii) if the resort got extremely damaged which would result in either a special assessment (one time charge for extraordinary damage) or a significant increase in maintenance fees.
I was prepared to go through with the purchase ONLY if the previous owner would be responsible for any special assessments that were issued while they still owned the timeshare. I inquired about this issue and it took some various communications with the parties to determine how this would be handled.
Essentially, it was agreed that any assessments before January 1, 2018 would be the previous owners responsibility and anything thereafter would be mine.
I was definitely concerned about this but did reach out to the Hyatt Residence Club directly and the resort. While the resort did close for a month or so, the damage was fairly minimal and they did not anticipate any major renovations. With that confirmation, I went forward with the purchase understanding the potential risks.
The time table for this particular timeshare resale purchase was longer than normal but I would expect that a typical timeshare resale purchase should take about 60 days. For Hyatt purchases, they have the Right of First Refusal which takes approximately 30 days and the other documents and processes should only take a few weeks.
How long have your timeshare purchases taken?
As I explained in this post, this past year I attempted and succeeded at earning Hyatt Globalist status almost solely to take advantage of the various perks offered for our trip to Maui during Christmas.
Once we checked into the Andaz Maui property, our confirmed suite upgrade that we were promised disappeared and was put in a standard room overlooking a concrete wall.
As I detailed in this post, that stay broke my loyalty to Hyatt and will not likely achieve Globalist status this year.
While I was disheartened by that experience as a "top tier" member of Hyatt, I still have Globalist status for the entire 2018 year. There are definitely some perks associated with this status including getting suite upgrades upon check-in. Of course, you are not guaranteed a suite as it will be entirely up to availability and the front desk representatives desire to actually give you a suite upgrade.
While I am not going out of my way to stay at Hyatt properties, I still enjoy them and I might as well get some perks out of my status while I have it.
I was recently in Santa Rosa, California and had the opportunity to stay at the Hyatt Vineyard Creek Hotel and Spa. I was there on business so there was not much time to do any fun wine tours or explore the hotel so I have not done a review of that hotel. The hotel is undergoing renovations at the moment so breakfast was very poor and served in a conference room and there were areas of the hotel that were closed. While the hotel can be nice, my initial reaction was not overwhelmingly positive and it seemed more of a business hotel.
I reserved a standard room and was upgraded to an Executive King room. The Executive King room was not the largest or highest tier suite but one of the top rooms available.
Here are some photos of the room:
As you can see, the room was definitely more spacious that a typical hotel room and had a nice couch and sitting area. However, your bed was directly in the same room which doesn't make it very conducive to entertaining with other people if that was something that you wanted to do.
Additionally, the couch was not a sleeper sofa so this "suite" would be a disaster for traveling with a family of four.
I have stated this before but the most frustrating thing with getting "free" upgrades at hotels is that they almost NEVER occur when I want them (traveling with family) and generally only happen while traveling alone on business. When I travel on business, having a suite is fine but I would be perfectly comfortable in a standard room without a view.
When I travel with my family, I want as much space as possible so that we can spread out and all get a good nights rest, ideally in our own beds!
Comparison to the Hyatt Wild Oak 2 Bedroom Suite
As I wrote about here, we recently stayed at the Hyatt Wild Oak Ranch in San Antonio Texas. We received a free two night stay in a 2 bedroom suite in their newest building, Cedar Elm.
I thought it would be interesting to compare my suite upgrade at the Hyatt Vineyard Creek and Spa to my 2 bedroom suite at Hyatt Wild Oak Ranch.
An important point in this comparison is that the suite at the Hyatt Vineyard Creek and Spa was not confirmed as it was completely subject to availability while my reservation at the Hyatt Wild Oak Ranch was for a 2 bedroom unit.
It is an important distinction because as I have said before, you simply cannot rely on a suite upgrade when staying at a hotel unless you book it directly and booking a suite directly can be ridiculously expensive. Therefore, you have to just hope that get a suite or pay a expensive premium to reserve one prior to check in.
Many times, even though it appears that suites are available at check-in, in my experience, the front desk agent claims that they are not in order to save those suites for more important guests (higher tier members or other guests who may have paid a higher rate) or simply wants to save those suites for last minute bookings for those people who do not mind paying those rates for suites.
The 2 Bedroom Suite
Here are some photos of the 2 bedroom suite. As you can see, the 2 bedroom suite comes with 2 bedrooms, one bedroom with a King size bed and one bedroom with 2 full beds. The suite also comes with 2 full bathrooms, both with tubs and showers, and has a full size kitchen, living room and dining area, large outdoor patio and a washer and dryer.
As you can see, the 2 bedroom unit is absolutely massive especially when compared to the "suite" at the Hyatt Vineyard Creek and Spa.
I should note that even if this was a one bedroom unit, the layout is generally the same with the only exception being that the second bedroom and second bathroom would not be available. The other amenities, living room, dining room, patio, kitchen, laundry facilities, etc. would still be part of the one bedroom.
In my opinion, the difference between a timeshare unit and a hotel suite is astronomical with the timeshare unit being far superior. The amount of space in a timeshare unit compared to a hotel suite is drastically different. There are other items to consider when comparing timeshares vs hotels but when you only consider space, timeshares seem to be a clear winner.
What are your thoughts on timeshares vs. hotels?
As I posted about here, I received an offer for a free two night stay at the Hyatt Wild Oak Ranch in San Antonio, Texas.
I believe that I was targeted for this offer since I am a Hyatt owner and live in the immediate vicinity of San Antonio.
The Hyatt Wild Oak Ranch is one of my families favorite resorts. It is one of the material reasons that I actually first bought a Hyatt timeshare. We tend to visit the resort at least 2-3 times per year.
We have been coming to the Hyatt Wild Oak Ranch since about 2007. In all that time, they had grandiose plans to build out the property with additional buildings, more amenities, another large pool area and additional restaurant facilities. Since 2007, while there have been some changes, the resort has mostly stayed the same.
It appears that the Hyatt Wild Oak Ranch has finally made progress on its expansion and just completed a brand new building on property called Cedar Elm.
The likely reason for the offer was to allow existing owners to see the new building and potentially up sell them to the new Hyatt Portfolio program.
As you might expect, a timeshare presentation is required in order to get your two nights free. In a separate post, I'll give you a review of that experience but I can tell you now that I am not looking forward to yet another timeshare presentation. If you read this blog regularly, I have been doing a lot of these tours in order to give my readers better insight into the timeshare industry.
We checked into the resort without issue and was fortunately placed in the new building. We received a two bedroom unit which is absolutely huge. It is an absolute pleasure to have some much space and have my family of four each have their own bed.
The new two bedroom units are fairly similar to the older units but has some nice updates. The TV's are large and new, (there are 3 TV's in the unit), the appliances are new and of high quality and the furnishings, while still a bit rustic for my taste, are very comfortable.
Here are a bunch of photos that I took of the room. Scroll through them all to see the entire unit!
As you can see, the room is huge and well appointed. I would not say that there is a tremendous difference between the new units and the older units but if you do stay, definitely request to be in the Cedar Elm building.
Stay tuned for additional post on the Hyatt Wild Oak Ranch and my thoughts on the timeshare presentation!
Have you ever stayed at the Hyatt Wild Oak Ranch?
Free Two Night Stay at the Hyatt Wild Oak Ranch in San Antonio Texas (Targeted to Existing Hyatt Owners living in Texas)
Last week, I received a surprising phone call from a representative of the Hyatt Wild Oak Ranch. They indicated that they were offering a free 2 night stay at the Hyatt Wild Oak Ranch in San Antonio for the month of January and February in exchange for taking a tour of the newly constructed building on premises and learning more about the Hyatt Portfolio program.
Many of these timeshare offers usually require some upfront free such as one of their current offers that was found on my facebook feed which is for a studio unit at a rate of $130 per night.
In contrast, this offer is completely free and the offer is for any size unit! Many of these offers are very restrictive in that they only allow a certain size unit or block out weekend nights. However, I was able to book this offer in a 2 bedroom unit for a Friday and Saturday night stay.
The total cost: $0.00! No resort fees, no deposits, no credit card.
While I will have to attend another timeshare presentation, (you are welcome yet again) hopefully I can find out some more good information on the Portfolio program that I can share with my readers.
As I mentioned, this offer appears targeted to current Hyatt owners who live in or around San Antonio. This may apply to those existing Hyatt owners who live in the State of Texas. However, if you could potentially use this offer, I would simply call the Hyatt Wild Oak Ranch and see if they can accommodate.
They have a new building and appear anxious to get new owners acclimated to the Portfolio Program so even if you were not targeted, you may be able to take advantage of this offer.
Here is their direct phone number: 210-647-9500
Wild Oak Ranch
If you have not been to the Hyatt Wild Oak Ranch, it is a spectacular property. The rooms are fantastic, they have tons of activities going on, they have water slides, a lazy river, fire pits and more.
While January / February will be slightly chilly, it is a great property and there should be enough activities in and around the resort to keep you busy for two days. Also, the Hyatt Regency Hill Country Resort, a full service hotel, is about a 2 minute drive from this property and guests at Hyatt Wild Oak can use those facilities.
Overall, this is a great offer and definitely worth 1 1/2 hours of my time to see the new buildings. I am curious to see if they are the same or better than the existing units. The existing units are very nice so we will see how much of an improvement, if any, the new units will be.
Have you been to the Hyatt Wild Oak Ranch?
If you can use this offer, please post below on your success or failure! It will be helpful to see whether this offer is really targeted or open to anyone who can use it.
Hyatt Residence Club Owners: Opportunity to Book Properties Using New Portfolio Points (Daily Nights Available)
If the timeshare world could not get any more complicated, Hyatt is in the process of rolling out a new Hyatt program called the Hyatt Residence Club Portfolio Program.
Here is an overview of the new program.
The new Portfolio Program is different than the legacy program in that it has become an all points based system. Instead of purchasing a week, you purchase points where you can redeem those points for night stays.
I will do a detailed post on the differences soon but one of the key differences and huge benefit of this program is that ability to book properties for as many nights as you want rather than being handcuffed by the legacy program of only allowing you to book 2, 3, 4 or 7 night stays.
The tremendous benefit of this new program is that the nightly rates are reasonable with the exception of Saturday night.
The exchange grids for the new program are included here but for the purpose of this post, here is the exchange grid for Aspen Colorado.
As you can see, the amount of points vary by dates and whether it is a Sunday through Friday night, Saturday night or 7 night stay.
For example, if you want to stay in Aspen for January 7 through February 3 in a Studio, it would cost you 70 points per night for Sunday through Friday and 260 points for Saturday night. The Saturday night stay costs about 4 times the amount of points.
Therefore, if you elect to stay Sunday through Friday, it would cost you only 420 points (70 x 6 = 420) or 680 for the week or as many days as you want where you can simply add the point requirements together based on the day of the week.
Essentially, this new system will have tremendous value if you can avoid staying Saturday nights.
Access to the New System
I think it is fair to say that the new system has some benefits as well as drawbacks but current owners who do not purchase Portfolio points will not have the ability to book under this new system.
However, one of my readers (thank you Cindy!) alerted me to a potential anomaly which may or may not be permanent.
It appears that current owners who have not purchased into the Portfolio program are given the option to book properties using Portfolio points ONLY when using LCUP points.
LCUP points are limited club use points and only allow you to book 60 days out. These are very restricted points as opposed to CUP or Club Use Points that allow you to book 12 months or more (maybe) in advance.
As you can see from this screenshot, even though I am not a Portfolio Program member, I am given the opportunity to reserve a one night stay in Aspen for only 75 points.
Out of curiosity, the same one night stay booking directly with Hyatt would cost $579 before taxes and fees which look to add another $93.26 to this reservation for a total of $672.26.
I do not know whether the ability to book Portfolio Program properties with LCUP legacy points is intentional, an error or simply a way to introduce legacy owners to the Portfolio Program by getting rid of last minute inventory. Remember, LCUP points only allow you to reserve 60 days out.
In any event, the ability to book one night stays and the ability to book six night stays without a Saturday night can given you tremendous amount of value in the new Portfolio Program.
In terms of whether you should book using the legacy LCUP points or using the Portfolio Program, it will simply depend on the desired length of stay and which program / points gives you the best value.
A big thank you to Cindy who alerted me to this update! I encourage all readers to reach out if you have specific questions or comments! It helps me generate content that you want to read and gives you answers (I hope) for your questions.
World of Hyatt Status: As a World of Hyatt Member, what perks will you receive at Hyatt Residence Club Properties?
As a follow up to my post on Marriott Elite Status, I wanted to explore the various perks associated with Hyatt's World of Hyatt program and what to expect at its portfolio of Hyatt Residence Club Properties.
As you may know, Hyatt completely overhauled its Hyatt Gold Passport program in early 2017 and revised the program to be the World of Hyatt.
The World of Hyatt program changed a lot and there has been a decent amount of ridicule for the logo (see below) as well as their chosen name designations for the level of status.
Instead of the general way that most programs name various tiers by using names of precious metals or valuables, (ie. bronze, gold, diamond, sapphire, platinum, etc.), Hyatt chose to create levels using the names Member, Discoverist, Explorist and Globalist.
Without knowing the program, just by their names, you would not know the difference in tier levels. Fortunately, despite their awful names, they have provided a decent chart that shows you the various benefits that one would receive based on the tier level.
As I discussed in my other post, achieving top tier status, Globalist, can come with various meaningful and significant perks. As I explained in that post, simply being a top tier Globalist will save me about $3,600 for a ten night stay.
Hyatt Residence Club
The Hyatt Residence Club is the timeshare portion of Hyatt's brand. While they share the Hyatt name, the Hyatt Residence Club properties operate significantly different than its hotel counterparts.
Benefits at the Hyatt Residence Club
As I explained in my previous post as well as shown by the chart above, having hotel status can be very worthwhile, depending on where and how often you travel.
Those with Hyatt status (Discoverist, Explorist, and Globalist), there are definitely a few great perks. Let's go through them one by one and see what applies to Hyatt Residence Club Properties.
Fortunately, even if you stay at a Hyatt Residence Club property, you can still earn World of Hyatt points. You will earn 5 points for every dollar that you spend. For those with status, you will receive a bonus of 10%, 20% or 30% with 30% being reserved for Globalist members.
Waiver of Resort Fee
One of the perks of using timeshares is that most properties do not charge resort fees. Some properties, even if they do charge resort fees for those individuals who book the timeshare resort directly, will not charge resort fees for those owners that either own with the brand or exchange through Interval International or RCI.
Unfortunately, if you use your World of Hyatt points or free night stays at a Hyatt Residence Club property, you WILL be required to pay any resort fees. Hyatt Residence Club properties are excluded from this standard perk. Disappointing for sure.
Suite Free Night Awards
For those who achieve top tier Globalist status, you will receive four suite upgrade awards to use at various properties, If you choose to book a stay at a Hyatt Residence Club property using cash or points and book directly, you WILL NOT be able to use those certificates to upgrade into a suite.
All Hyatt Residence Club properties do not have club lounges. Therefore, regardless of your status, there is no opportunity to use any club lounges.
For those properties like the Park Hyatt Beaver Creek Resort and Spa which is a hotel and a timeshare property, unfortunately, you will not receive access at the Club Lounge if you book at the timeshare portion of the property.
Points and Cash Awards
Points and cash awards can be a great deal but unfortunately, are not valid at Hyatt Residence Club properties.
Nope! Unfortunately, regardless of your status, you will not receive any complimentary upgrades at Hyatt Residence Club properties. You will receive the specific room and room type that you booked! Your status will not help you here.
Upgraded Internet Access
Hyatt Residence Club properties do not offer this service so it is not available to anybody. I have personally never had an issue with internet at a Hyatt Residence Club property.
Late checkouts can be a very valuable perk depending on your departure schedule but regardless of your status, no late checkouts are provided for Hyatt Residence Club Properties.
Bottled water has been offered more frequently as a way to show guests that their resort fee is actually beneficial. Pay $25 or more per day and receive a free bottle of water daily. Insulting to your intelligence. The resort fee is ridiculous but do not even expect free water at your stay at Hyatt Residence Club properties. Not included!
Best Room Available
One of the best perks of having hotel status is getting complimentary upgrades. Unfortunately, this perk does not transfer over to Hyatt Residence Club Properties. You get what you book, regardless of status.
Guaranteed Room Availability
For some travelers who have to book at the last second, having guaranteed availability is an important perk. Unfortunately, Hyatt Residence Club's do not offer this either.
Guest of Honor Benefits
A fairly new benefit for Hyatt was its Guest of Honor benefits. If you held top tier status, you can make an award reservation for friends or family and they can receive all of your perks. In this case, don't make it at a Hyatt Residence Club property since they will not receive any of those nice perks.
Many Hyatt Residence Club properties offer free parking but those that don't, even those with top tier status with Hyatt will still have to pay. Free parking is NOT a perk that transfers over to Hyatt Residence Clubs.
Having gone through this entire list of various perks of achieving status with Hyatt, the ONLY perk that applies to Hyatt Residence Club properties is the ability to receive more points for your spend at the property - either 10%, 20% or 30%.
As discussed before, timeshares and hotels are both run and operated differently. They have different perks associated with them. By having status with Hyatt hotels, it does not provide you with any real benefits at Hyatt Residence Club properties.
Despite this, I still highly prefer timeshare properties mostly due to space, comfort, and full kitchen facilities. Most timeshares, unlike their hotel counterparts, do not nickel and dime their guests for every little things and generally include free parking for everyone as well as do not charge resort fees for actual timeshare owners.
If you are accustomed to the various perks associated with the hotels, it is important to realize that these perks do not transfer over to Hyatt Residence Club properties.
Have you ever received perks at Hyatt Residence Club properties? Make sure to leave comments below.
Timeshare maintenance fees are one of the most unenjoyable aspects of owning a timeshare. These fees generally increase year over year. To most people, these fees may make timeshare ownership either unaffordable or undesirable.
While I do not like paying maintenance fees, I am able to maximize my timeshare week to get multiple weeks of vacation using just one timeshare. Therefore, even though I pay about $1250 in maintenance fees, I am able to get about 4 weeks of vacation and with exchange fees, pay about $400-$500 per week which makes it not only affordable, but a deal and many times, an absolute steal!
As with many things, if you understand what goes into the maintenance fees, you may have a better understanding of why they charge you what they charge you.
In my previous post, I showed you what one of my Hyatt Residence Club weeks maintenance fee bills look like. In addition to that bill, I received a few more details on what expenses are included in the maintenance fee.
In the following, I have uploaded a copy of the 2018 budget for the Hyatt Beach Club resort in Key West, Florida. This has all the details on the expenses likely to be incurred by resort in 2018, broken down on a per unit / per week basis.
2018 Budget and Maintenance Fee for Hyatt Residence Club:
I will not go through all the line items but it is interesting to see the actual categories and expenses of the resort and how it is broken down per unit.
For the Hyatt Residence Club Beach House, the maintenance fees have increased about 1.7% from last year. Considering inflation is about 2.5%, a 1.7% increase does not appear too unreasonable especially considering the various items that goes into these calculations.
As I explained in my previous post, the Hyatt Residence Club has reserve category for unanticipated expenses or those expenses that cost a lot of money that need to be replaced every so often.
In the chart below, the major capital expenditures are listed that includes the estimated useful life of the various components of the resort as well as the amount currently funded.
As you can see from the above chart, the Hyatt Residence Club Beach House has a certain amount of large items that will eventually need replacing.
Instead of waiting for these items to break down or fail to collect funds, they collect funds annually and keep them in reserve so that they may be replaced without having to do a special assessment or drastically increase maintenance fees during one year.
Paying maintenance fees for your timeshare is not very enjoyable but it is necessary to maintain the resorts and keep people wanting to come back year after year. Depending on how you use your timeshare, paying maintenance fees does not have to be painful especially if you understand the fees and are able to maximize your usage.
I personally think of my maintenance fees as a prepayment for my vacations.
While I do not like paying maintenance fees, it does make me feel better to fully understand how the resort compiled the maintenance fees each year and to make sure that there are not unreasonable items included in these figures.
Are the details helpful to you? Does disclosing the details help you better understand timeshare ownership?
Make sure to comment below!
Generally, most timeshares generate their annual maintenance fee bills towards the end of the year. As the year gets closer to the end, many timeshare owners are beginning to receive their maintenance fee bills.
Since timeshares are not very transparent, I thought that I would show my readers what my Hyatt timeshare maintenance fee bill looks at and what makes up the fee.
Here is my statement for my Hyatt Residence Club Beach House maintenance fee for week 47. Fort his particular week, I receive 2,000 Hyatt Residence Club Points.
While the scan is less than ideal, you can see that my maintenance fee for 2018 is $1265.03 which includes a voluntary contribution to ARDA which is the American Resort Development Association.
Here is the breakdown on how they came up with the total maintenance fee for 2018.
2017 Property Taxes: $16.40
2018 Maintenance Fees: $794.14
2018 Reserves: $341.49
2018 HRC Dues: $153.00
Voluntary ARDA Contribution: $5.000
The Meaning of these Categories:
2017 Property Taxes: This appears to be my portion of the 2017 Property Taxes. The Hyatt Beach House paid property taxes for 2017 and likely assessed each individual owner their pro rata portion of taxes based on owning 1 week for one (1) two (2) bedroom unit.
2018 Maintenance Fees: This amount is the bulk of the fee which covers all operational costs of the resort. This likely covers upkeep, staffing, utilities, and the various other items required to run the day to day operations of the resort. I will be posted a look at the 2018 budget that has more details on how this fee was compiled.
2018 Reserves: Like most businesses, the ongoing monetary needs of the resort can be estimated but there are always items that come up that were either unplanned or cost more than estimated. These reserves are additional funds that are kept by the resort for unexpected expenses and for those expensive items that will eventually need replacing. This includes major items such as buildings, elevators, roofs, HVAC and other expensive items. Instead of having to go out to the owners for additional funding, the resort includes a reserve amount for these unexpected costs.
2018 HRC Dues: These HRC dues are for use of the Hyatt Residence Club name, reservation systems and management services. Most resorts are not owned by Hyatt but are rather branded with the Hyatt name and are operated by Hyatt management services. These dues cover those services and fees.
Voluntary ARDA Contribution: According to ARDA's website:
The American Resort Development Association (ARDA) is the Washington, DC - based trade association representing the vacation ownership and resort development industries (timeshares). With nearly 600 corporate members and 5,000-plus engaged associates, ARDA members hail from privately held firms to publicly traded corporations with extensive experience in shared ownership interests in leisure real estate. Developers, exchange companies, vacation clubs, resellers, and timeshare owner associations (HOAs), resort management companies, industry vendors, suppliers, and consultants - as well as owners, through the ARDA-Resort Owners' Coalition (ARDA-ROC) - all experience ARDA.
The voluntary $5.00 contribution apparently goes to ARDA to assist with ongoing legislation that attempts to help the timeshare business and timeshare owners. I have posted some information that has been generated by ARDA which is helpful. $5.00 is a nominal amount but you can easily elect to opt-out of this contribution.
The timeshare industry is not very transparent so a lot of information is simply not able to be found unless you own a particular timeshare. My goal is to make timeshare ownership more transparent so that you can decide whether timeshare ownership makes sense for you and your travel style.
I do not own all timeshare brands so it would be helpful to share other bills that you receive so that readers can see how different timeshares and brands bill their maintenance fees. Please send your bills to email@example.com so that I can post additional bills to show readers what to look for and how different brands differ on their bills and amounts.