An interesting Travel Proposal

Yesterday I went to a promotional breakfast in our hotel in Puerto Vallarta.
Normally I give these things a wide berth but on this occasion my Wife and I decided to attend.

Basically the deal is this ........
We give Company (group) Z, $35,000K
In return they give us access to more than 10,000 hotels worldwide plus Cruises and Airlines for a total of 90 weeks for up to 30 years or compressed into as little as 8.5 years.
Plus they give us access to the Hotel in which we are staying for a number of weeks per year.

A variation on 'Time Share'?

A sample of pricing is that we could stay in a one bed suite in our 5 star hotel in PV for $399 per week. That is a 550 per night suite for 399 per week.

Now, if we assign our Sheraton PV hotel rights back to Company/Group Z in order for them to on-sell to new people they will pay us $7,000 per year for the next 6 years.

So let us summarise what we know.

... we pay 35,000 up front.
... over the next 6 years we receive 42,000 in return
... plus we have 90 weeks global access to suites costing 550 per night for 399 per week, not to mention air fares for as little as one dollar and 75% discounted cruises.

The business card I was offered showed no LLC just a common name and a phone number in Laredo TX.

"Ponzi' you are thinking. Well so was I, except that two entire 23 story blocks of our hotel (Sheraton franchise) are devoted to time-share of some form or other and this scheme works from a desk within the Hotel Lobby.

Naturally I asked for a copy of the contract and the underpinning insurance policy (Lloyds no less, but which Lloyds)

I might add that no one else showed any interest in the documents, they were busily engaged in checking out the hotel locations on offer.

My request was treated by saying that I could read the docs in their Office only.
I further mentioned that at 35K my Attorney would need to see the docs and they thought that this may be possible.... rather odd, but no guarantees that it would happen.

I then reminded them of my initial statement that 'if this wasn't a clean and complete presentation in all respects we would walk and that is where things have been left.

Just wondered if anyone has come across this sort of deal in their travels.

regards
f9

 

I really couldn't get past this part:

 

telephone #?

 

Run the other way.

 

Naturally it came at the end of the presentation.

The other curious thing is you could join up as an LLC, Trust or Foundation, in which case you could on sell the 90 weeks for a profit.

Already accordingly to me the 90 weeks hotel suites and the 42K cash back adds up to $330,000 without the air travel.

The Presenters didn't seem to care if you on-sold the weeks, leaving us more certain that they are only chasing the front end of the deal.
However they are linked into 'Hotel Systems International' which appears to be a large travel organisation.

regards
f9

 

I once bought a lifetime membership in a health club. Guess what happened next?

 

Setting aside many other very important issues, this is like committing to a lifetime membership at your local gym when you are only renting an apartment in the area. Or throwing some gift certificates in the drawer and unable to find them while the months, and then years slip by. Actuaries plan out these types of prepayment deals. Guess what? The house always wins, and you are not the house. Odds are really, REALLY bad for the consumer. But of course it is easy to pitch the deals as very attractive without necessarily being outright dishonest.

I wouldn't give it another thought. Hope the breakfast was good.

 

Phone number?

 

Give it a shot you only live one lifeee.

 

I agree with you, except that 35K usually jolts your memory as to where you left the certificate.

Also there is the underpinning insurance with Lloyds of somewhere but not necessarily London.

regards
f9