Bluegreen Corporation Signs Non-Binding Letter of Intent to Sell Company to Diamond R

[timeos2]

Originally Posted by Spence

More and higher fees are coming, you can bet on that. Sunterra went through bankruptcy protection in ~2002 because of too fast expansion but I think that DRI is much better prepared and are much better money managers than that, they also have the advantage of being a privately owned company

Sunterra also got in trouble by having too many different offerings. If DRI /BG comes to pass it had better be a combination and not two separate systems with costs or new fees to move to one or the other. If that occurs the match isn't made in heaven but just another way to milk money from both sets of owners. Ask Wyndham how well Equivest operated as a separate system.

[LindaS]

It reads like everyone expects this to be a bad thing. Aren't there benefits to belonging to a bigger organization? Isn't it good that the new Acquisitions VP at DRI was with BG?

We've just begun to seriously look at purchasing BG. Are all the benefits of BG up in the air now?

[Spence]

Originally Posted by LindaS

It reads like everyone expects this to be a bad thing. Aren't there benefits to belonging to a bigger organization? Isn't it good that the new Acquisitions VP at DRI was with BG?

We've just begun to seriously look at purchasing BG. Are all the benefits of BG up in the air now?

Go to either a BG or DRI presentation TODAY and you will certainly hear how great it is, if the sharks have woken up and even know what their corporate offices did yesterday. It was patently obvious what DRI has been doing over the last 9 months in hirings, they believe that they have hired some of the best personnel available in the industry to run what they are making to be the best timeshare company in the world; their vision, when you think quality timeshare you no longer think Marriott, you think DRI.

[vintner]

Originally Posted by LindaS

It reads like everyone expects this to be a bad thing. Aren't there benefits to belonging to a bigger organization? Isn't it good that the new Acquisitions VP at DRI was with BG?

We've just begun to seriously look at purchasing BG. Are all the benefits of BG up in the air now?

The first issue is-We don't know... We don't know plans, we don't know the up side, we don't know the down side, we don't know cost, and (in my case) not knowing or having changes just makes me more jittery.

I have enjoyed Bluegreen. I have been making plans for future trips. Now I am not sure what will happen with booking a resort (expect I fully expect that anything booked will be valid).

I know nothing about DRI. It may have similarities to BG, or it may be a whole different way of reserving or using the resort. I don’t know maint. fees, any dues, options for membership, what I will be able to reserve or what is restricted.

For me, it is the uncertainty that makes this whole unknown more difficult to plan for and use. All will be answered in a couple months.

[dougp26364]

Originally Posted by Spence

...... they believe that they have hired some of the best personnel available in the industry to run what they are making to be the best timeshare company in the world; their vision, when you think quality timeshare you no longer think Marriott, you think DRI.

If that's it truely their vision then they have a very long ways to go. It's not just about being big, it's about quality.

I have no doubt that Mr. Cloobeck has quality on the mind but, I am also aware that in some cases, 3 star resorts are good enough. So I guess it will come down whether he's after quantity, quality, both or a blending of both. From what I've seen, I believe he's more interested in a blending of quantity and quality (more upper quality resorts than all top quality resorts but fewer of them).

DRI and Bluegreen have some excellent resorts. They also have a few also-rans in the mix IMO. Neither are at the level of the major hotel chains like Hyatt, Disney, Marriott, Starwood or Hilton and they never will be. But, that's just my opinion. I'm not sure I'll ever think of DRI as surpasing in quality over any of the major hotel branded chains. I might think of DRI as larger, just not as better.

My biggest concern is that they're not going after the Marriott idea of quality but rather the Westgate version of the theme. I can see big ego's at play here.

[Spence]

Originally Posted by dougp26364

If that's it truely their vision then they have a very long ways to go. It's not just about being big, it's about quality.

I have no doubt that Mr. Cloobeck has quality on the mind but, I am also aware that in some cases, 3 star resorts are good enough. So I guess it will come down whether he's after quantity, quality, both or a blending of both. From what I've seen, I believe he's more interested in a blending of quantity and quality (more upper quality resorts than all top quality resorts but fewer of them).

DRI and Bluegreen have some excellent resorts. They also have a few also-rans in the mix IMO. Neither are at the level of the major hotel chains like Hyatt, Disney, Marriott, Starwood or Hilton and they never will be. But, that's just my opinion. I'm not sure I'll ever think of DRI as surpasing in quality over any of the major hotel branded chains. I might think of DRI as larger, just not as better.

Nothing like this can be done overnight. DRI has a long row to hoe (yes I chopped cotton as a kid in SC) and to improve the DRI managed resorts will cost who? It will cost the owners not DRI. DRI obviously feels that BG is worth twice as much to them than Wall Street valued BG. Where do they get value, in management fees and greater membership to sell their improved product to. Some resorts that DRI has in THE Club will not be able to be improved with the right towels, sheets, and duvets; DRI does not manage even half of the resorts they list in THE Club. There will always be a 'mix' but watch it, anything they have control over will be improving, paid for by you the DRI owners of course.

[dougp26364]

Originally Posted by Spence

Nothing like this can be done overnight. DRI has a long row to hoe (yes I chopped cotton as a kid in SC) and to improve the DRI managed resorts will cost who? It will cost the owners not DRI. DRI obviously feels that BG is worth twice as much to them than Wall Street valued BG. Where do they get value, in management fees and greater membership to sell their improved product to. Some resorts that DRI has in THE Club will not be able to be improved with the right towels, sheets, and duvets; DRI does not manage even half of the resorts they list in THE Club. There will always be a 'mix' but watch it, anything they have control over will be improving, paid for by you the DRI owners of course.

Owning two weeks at Polo Towers I understand this completely. Especially after a SA of over $1,000 brought the resort only back up to the standard set when it was first built. However, that is still not #1 quality.

What bothers me to this point is that they hit owners with the SA to bring the resort back to OEM quality but, they still only collect a fraction of what should, IMO, be put into reserves. My MF's for the two bedroom Villa's unit was $903 last year. On the other hand, the MF for our 3 bedroom Marriott Grand Chateau was in the $1,100 range. There is a wide disparity between the quality, service and amenities of both resorts yet there isn't that much difference between the MF's.

Yes DRI will build it's empire with the pocket books of it's owners. I'm just afaid that I'll be getting Westgate style quality and service rather than the Marriott, Hilton, Disney, Hyatt or Starwood version. After 10 years of watching DRI manage it's resorts, I'm more a believer it will be closer to Westgate than anything else.

[Holly]

That vision might actually be a good thing. I wouldn't mind paying more if all of the resorts were of that quality.

Originally Posted by Spence

Go to either a BG or DRI presentation TODAY and you will certainly hear how great it is, if the sharks have woken up and even know what their corporate offices did yesterday. It was patently obvious what DRI has been doing over the last 9 months in hirings, they believe that they have hired some of the best personnel available in the industry to run what they are making to be the best timeshare company in the world; their vision, when you think quality timeshare you no longer think Marriott, you think DRI.

[Aashlee]

With this DRI development, at least we can shut up the sharks at our owners' update when they try to upsell us. We don't know what we'd be buying into, so we're not buying. And, if there are higher maintenance fees involved (which is probably going to happen to pay off Sunterra's debt), maybe we can't afford to buy any more anyway.

We own at Marriott, too. We never have had the roller coaster ride with Marriott that we do with Bluegreen. I really like my Bluegreen resorts, and I don't want to give them up. My motivation is to stay more than go, but if DRI gets too greedy and this gets to be too much trouble, I'm outta here.

[Spence]

Originally Posted by Aashlee

And, if there are higher maintenance fees involved (which is probably going to happen to pay off Sunterra's debt), maybe we can't afford to buy any more anyway.

Sunterra doesn't exist, Sunterra has no debt. All obligations were taken over by private company DRI and you don't know what their financing is, that's the joy of a private company.