Just recently it was announced that Diamond had sold its interest in the Garden Lago Resort, Alcudia Mallorca. The new management company that has taken over is the ONA Group, who also run the former Sunterra / Diamond resort Cala de Mar in Cala Egos and also the Cala Pi resort in Llucmajor.
Diamond did not own the resort, they were purely the management company charged with operating it. This is the same for all the resorts that come under the Diamond Brand. Many of the original owners at Garden Lago purchased fixed weeks, then were converted to the points system under Sunterra and then Diamond. Under this system they are members of Diamond Resorts International and have no rights at Garden Lago.
So what does this mean for members?
While Diamond ran the resort, members had the right to use with full member benefits that Diamond offered. Now the only way to stay at this resort as a Diamond points member is to use the exchange programme, either through Interval International or RCI. Unfortunately this will not include the full Diamond member benefits.
For one family this has come as a rather big blow, their story was posted on Tripadvisor just recently. They state that they had been on holiday in Mallorca and attended a presentation at Garden Lago, and liked what they saw, they then purchased the Discover Diamond Package.
After visiting the resort on several occasions, they decided to purchase the full Diamond Points system, as they told the sales staff, it was on the basis that they only wanted to use Garden lago. They were not interested in other resorts that Diamond had to offer, Mallorca held some special holiday memories for them, and as stated before they loved the resort itself.
Now that Diamond no longer has a presence on Mallorca and especially at Garden Lago, they believe that their contract with Diamond has been altered significantly. Unfortunately, this is the problem with the points system, members do not have any rights at the resort in which they made the purchase. So, the only way their points membership will get them the full benefits, is to use another resort managed by Diamond.
This is one example of why the Spanish Supreme Court declared the points system illegal, the other is that it is subject to availability, your holiday at a particular resort is not guaranteed.
For this family it will also now incur considerable expense, when it was managed by Diamond they would use the Diamond booking system. Now they will need to pay Interval International or RCI membership, including the exchange fees.
As reported elsewhere, Diamond have had a fall in their net income of around 28%, normally Diamond are buyers, it may be this fall that has prompted the sale. Could this be just the first, are there more planned? Are Diamond offloading some of their European Collection and is it linked with the acquisition by Apollo?
These questions may not be answered yet, but time will tell. As the news comes in Inside Timeshare will bring it to you.
If you have any questions about this or any timeshare matter, contact Inside Timeshare for free and impartial advice.