Amazing. Marriott Just Lost 122 Properties In North America (Including a Major Hawaii Resort)

1. OK. I have no idea why IHG refused to pay SVC the monies they were owed. Nor have I any idea why Marriott would refuse to due so. (This presumes that SVC is correct in that they are owed “x” amount of money by these respective hotel chains. BUT…it makes me wonder WHY two large, multinational hotel chains would just *ignore* a bill that is owed…my suspicious mind says there has to be more to the story.

   Sonesta is not the world’s largest hotel chain, but going from 84 to 285 overnight (even though Sonesta won’t be managing the properties) is still a large “chunk” to swallow!

2. Is this a done deal? I understand it as still not being final

   • SVC has announed it as a done deal and based on how the IHG situation appears to have panned out, I’d be surprised to see a u-turn by either side here.

3. In regard to the Marriott Beach Club in Kauai. The majority of the property is timeshare. One wing is a hotel. It is that one wing that will be effected. There are shared common areas, so this will be a very complicated to separate out.

   • Thanks very much for the information Linda, that’s very useful to know. It will be interesting to watch and see how the issues surrounding the common areas play out.

   • I am so distressed by this news as a 20 year deeded owner of 3 weeks at the Kauai Beach Club. VERY anxious to hear from Marriott on this!

4. Let me propose something for consideration. First of all Marriott could have easily made the payment or gotten a restraining order to keep the properties while the matter was settled in court. Given COVID I wouldn’t be surprised if there was Force Majeur language that could have been invoked to invalidate SVC’s claim. Also, these are almost all mid-level properties and the Hawaii hotel (as has been noted) involves a time share and has some complications related to that.

   Also, Marriott still has hotels that are closed and the overall occupancy is well below normal. In addition, they probably have TOO MANY hotels after bringing in all the SPG properties. Therefore, I wouldn’t be surprised if Marriott was glad to let these go which would relieve them of any future financial obligations and allow them to focus on the remaining properties. It isn’t a black eye that SVC took these hotels and Marriott will do just fine.

   BTW, I am lifetime Titanium with a long history w Marriott and have no doubts about their financial standing or my ability to find a Marriott property next time I want one.

5. Something tells me it was a “we promise this much profit” and failed to deliver (thank you covid) rather than a “we made the money but refuse to share it”. SVC is probably using this as a “get out of future contract years” opportunity and a as a way to show “growth” in an otherwise dismal year. It’s a stock boost marketing tactic and a way to save on flag fees through 2033 when I believe the contract was originally set to expire. They saw stocks jump by $8 after the IHG announcement. Likely the same after the Marriott finalization.
   Also, Svc will inherit the staffs of those hotels. The only thing svc has to do is replace anyone they don’t like, or that leaves because they want to stay with MAR. Considering how few openings MAR (or any brand) will have at this time, many employees will not be tempted to depart like they would in normal circumstances. The in-house paperwork will change a little bit, but not so much that SVC won’t be able to handle it unless they are a terrible management company. If they do their homework, they’ll be just fine.
   Business travel is going to be terrible for at least 3 years… and these brands aren’t the golden child of MAR business travel, they are the budget brands… Both business travelers and Marriott will survive.

6. What is this going to have on all the time shares in this island ? If you own one you have nothing and are paying maintenance fees for nothing , this must be why they are turning them over to collection agencies ??? What’s the fax on that ? Pay or not to pay ☠️

7. We have been Marriott Kauai Beach Club timeshare owners since it opened in 1995 so out understanding of the property hopefully carries some validity…

   Yes, each timeshare unit is a deeded property deeded by the week (eg, each unit has 52 owners). It is my understanding that the Timeshare units are leased from the hotel. The proportion is on the neighborhood if 2/3 timeshare occupancy, 1/3 hotel occupancy with the hotel owning all the public area (pool, bars, restaurant, public spaces).

   It will be interesting to see how that plays out since as a timeshare owner, we bought Marriott quality!

   Please advise as to how I can receive notice of response from you!

8. This is going to reduce our options with Marriott.

9. I dont believe this one bit, that’s not the way their contracts work, the owners would owe money to the management company… not the other way around lol. This article is most likely a publicity stunt by one of the other companies mentioned.

   • You clearly know very little about the hotel industry and you clearly didn’t bother to do any research before posting here…but thanks for commenting nevertheless.

   • The management company pays to use the time share owned units as inventory, if and only if, the onwers of each unit agrees to this. So YES, Marriott would pay the unit owners a portion of the daily, weekly or monthly revenue recieved from the booking.

10. We just stayed at the Marriott Kauai Resort in the hotel wing for 2 weeks on 11/1/20. I believe they just re-opened on October 15. A desk clerk said they were only at 25% capacity. Restaurants/bars still closed. We saw very few staff. Disappointed the landscaping has been ignored. Pool was open but improvements needed, and it was chilly! Just an eery feeling around there. We have stayed there many times over the years. It was one of my favorite resorts.

11. […] the situation Marriott has faced with at least one owner of the properties it manages (Marriott lost 122 properties in North America back in October), in this instance it doesn’t appear as if the property is leaving the Marriott portfolio […]

12. Please keep me appraised on the Kauai Beach Club as I am an every other even year owner there. & also own points @ Kauai Lagoons Marriott timeshare adjacent to the Beach Club. If management changes @ Beach Club hotel portion of property can one still use Bonvoy points to Reserve rooms there?

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