Understanding the Cost of a Holiday Inn Timeshare

Quick answer

• The initial purchase price for a Holiday Inn Club Vacations timeshare can range from thousands to tens of thousands of dollars, depending on the unit size, location, and season.
• Beyond the purchase price, expect ongoing annual fees (often called maintenance fees or club dues) that can range from several hundred to over a thousand dollars per year.
• Financing costs can add significantly to the total price if you don’t pay cash.
• Exchange fees, travel costs, and potential upgrade fees are also part of the overall expense.
• It’s crucial to factor in the resale value, which is often significantly lower than the purchase price.
• Always get a complete breakdown of all current and projected costs before signing any contract.

Who this is for

• Individuals and families considering purchasing a timeshare, specifically with Holiday Inn Club Vacations.
• Those who have been approached by a timeshare sales representative and want to understand the financial implications.
• Vacationers who enjoy staying at Holiday Inn properties and are exploring ways to make their travel more predictable and potentially cost-effective.

What to check first (before you act)

Goal and timeline

Before diving into the specifics of a Holiday Inn timeshare, clarify what you hope to achieve. Are you looking for guaranteed lodging at specific times of the year, or do you want flexibility to travel anywhere? How often do you realistically plan to use the timeshare in the next 5, 10, or 20 years? Understanding your vacation habits and long-term goals will help determine if a timeshare aligns with your needs. A timeshare is a long-term commitment, so ensure your goals match the product’s lifespan.

Current cash flow

Analyze your current income and expenses. Can you comfortably afford the upfront purchase price, ongoing annual fees, and potential travel expenses without straining your budget? It’s essential to have a clear picture of your disposable income. A timeshare purchase should not jeopardize your ability to meet essential financial obligations or save for other important goals like retirement or education.

Emergency fund or safety buffer

Before committing to a timeshare, ensure you have a robust emergency fund. This fund should cover 3-6 months of essential living expenses. Timeshare ownership comes with fixed annual costs that must be paid regardless of your financial situation. Having an emergency fund ensures that unexpected job loss, medical bills, or other emergencies don’t force you to default on your timeshare obligations.

Debt and interest rates

Review any outstanding debts you have, such as credit card balances, personal loans, or mortgages. High-interest debt should generally be prioritized for repayment before making a large purchase like a timeshare. If you plan to finance the timeshare, understand the interest rate and how it impacts the total cost over time.

Credit impact

Purchasing a timeshare, especially if financed, may involve a credit check. A new loan or financing agreement could impact your credit score. Understand how the purchase and any associated financing will affect your credit report and overall creditworthiness.

Step-by-step (simple workflow)

1. Attend a sales presentation: This is often the entry point for learning about specific Holiday Inn timeshare offerings.

• What “good” looks like: You receive clear, comprehensive information about available properties, unit types, points systems, and pricing without undue pressure.
• Common mistake and how to avoid it: Feeling pressured into signing immediately. Avoid this by setting a firm limit on the time you’ll spend and committing to reviewing all information thoroughly later.

2. Request a full cost breakdown: Ask for a detailed document outlining all initial purchase costs, financing terms (if applicable), and annual fees.

• What “good” looks like: You receive a written document that clearly itemizes the purchase price, closing costs, taxes, and projected annual maintenance fees for at least the next 5-10 years.
• Common mistake and how to avoid it: Relying on verbal assurances. Always get everything in writing to ensure accuracy and prevent misunderstandings.

3. Understand the points system (if applicable): Holiday Inn Club Vacations often uses a points-based system for booking. Learn how points are earned, how they are redeemed, and how their value can fluctuate.

• What “good” looks like: You understand how many points are needed for different seasons, unit sizes, and locations, and how your annual dues translate into points.
• Common mistake and how to avoid it: Assuming points are always redeemable for desired dates or locations. Availability can be limited, especially during peak seasons.

4. Calculate total ownership costs: Add the purchase price (plus interest if financed), closing costs, and estimated annual fees for the expected duration of your ownership.

• What “good” looks like: You have a realistic total figure that accounts for all expenses over 10-20 years, not just the initial price.
• Common mistake and how to avoid it: Only considering the upfront purchase price. This ignores the substantial ongoing costs that make timeshares expensive over time.

5. Research resale market value: Investigate what similar timeshare interests are selling for on the resale market.

• What “good” looks like: You find realistic resale prices that are often a fraction of the original purchase price, indicating a potential loss on investment.
• Common mistake and how to avoid it: Believing the sales pitch that your timeshare will hold its value or appreciate. Most timeshares depreciate significantly.

6. Factor in travel and exchange fees: Consider the cost of getting to your chosen destination and any fees associated with exchanging your week or points for a different resort if needed.

• What “good” looks like: You have budgeted for flights, gas, car rentals, and potential exchange network fees, recognizing these are separate from ownership costs.
• Common mistake and how to avoid it: Overlooking the cost of travel itself, assuming the timeshare covers all vacation expenses.

7. Review the contract thoroughly: Read every word of the purchase agreement. Pay close attention to cancellation policies, usage rights, and any clauses regarding future fee increases.

• What “good” looks like: You understand all terms and conditions and feel confident about the commitment you are making.
• Common mistake and how to avoid it: Not reading the fine print. This can lead to unforeseen obligations or restrictions.

8. Seek independent advice (optional but recommended): Consult with a financial advisor or a timeshare exit specialist (not affiliated with the developer) to get an unbiased perspective.

• What “good” looks like: You receive objective advice that helps you make an informed decision based on your personal financial situation.
• Common mistake and how to avoid it: Relying solely on the developer’s sales team for financial advice.

9. Make a decision: Based on all the gathered information, decide whether the Holiday Inn timeshare aligns with your financial goals and vacation lifestyle.

• What “good” looks like: You feel confident and comfortable with your decision, whether it’s to purchase or to walk away.
• Common mistake and how to avoid it: Making an emotional decision based on the vacation experience presented during the sales tour, rather than a rational financial assessment.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Not understanding total cost of ownership	Significant financial strain, inability to afford annual fees, potential default.	Obtain a full cost breakdown and calculate total expenses over 10-20 years, including purchase price, fees, and financing interest.
Ignoring resale value	Realizing a substantial financial loss when attempting to sell, inability to recoup initial investment.	Research the resale market for similar properties to understand realistic selling prices, which are typically much lower than purchase prices.
Overlooking ongoing annual fees	Being surprised by recurring costs, which can increase over time and become a significant financial burden.	Get a clear, written projection of annual maintenance fees and understand the factors that can cause them to increase.
Financing without understanding terms	Paying significantly more due to high interest rates, potentially trapping you in debt for years.	Compare developer financing with other loan options and calculate the total interest paid. Consider paying cash if possible.
Buying based on emotion, not logic	Purchasing a timeshare that doesn’t fit your lifestyle or financial reality, leading to regret and financial stress.	Stick to your budget, review all documents objectively, and consult with a neutral third party before signing.
Not reading the contract carefully	Being bound by unexpected clauses, limitations on usage, or unfavorable terms regarding fee increases or cancellations.	Read every section of the contract, paying close attention to cancellation policies, usage restrictions, and fee adjustment clauses.
Assuming it’s an investment	Expecting appreciation that rarely occurs, leading to disappointment and financial loss when trying to sell.	Understand that timeshares are primarily a lifestyle purchase, not an investment. Most depreciate in value significantly.
Failing to consider travel costs	Underestimating the true cost of vacations, as the timeshare only covers lodging, not transportation or other expenses.	Budget for flights, gas, car rentals, food, and activities separately from the timeshare purchase and maintenance fees.
Not verifying availability for desired dates	Being unable to book preferred vacation times or locations due to limited inventory, making the timeshare less useful than anticipated.	Understand the booking windows, point redemption flexibility, and any restrictions on using your timeshare week or points.
Relying solely on developer information	Missing crucial details or potential downsides that the sales team may not highlight.	Seek independent reviews, talk to current owners (if possible), and consult with a financial advisor or timeshare expert.

Decision rules (simple if/then)

• If your primary goal is to make money or see your money grow, then do not buy a timeshare, because timeshares are generally lifestyle purchases that depreciate in value and are difficult to sell.
• If you cannot comfortably afford the upfront purchase price and all associated fees without impacting your emergency fund or essential savings, then do not buy a timeshare, because a timeshare commitment can lead to financial distress if your budget is already tight.
• If you rarely take vacations or your vacation habits are unpredictable, then do not buy a timeshare, because you will likely end up paying for unused vacation time and facing ongoing fees for something you don’t utilize.
• If you have significant high-interest debt, then prioritize paying off that debt before considering a timeshare purchase, because the interest paid on consumer debt is often higher than any perceived benefit of a timeshare.
• If you can consistently find comparable hotel or rental accommodations for less than the total annual cost of your timeshare (including fees and travel), then purchasing a timeshare may not be financially beneficial.
• If you are not willing to commit to using the timeshare for at least 7-10 years or more, then do not buy, because the high upfront costs and fees make it difficult to recoup your investment over a shorter period.
• If the sales representative is pressuring you to make an immediate decision, then walk away from the deal, because legitimate purchases allow time for thorough review and consideration.
• If you cannot obtain a clear, written breakdown of all current and projected costs, including annual fees for the next decade, then do not proceed with the purchase, because transparency in pricing is essential for informed decision-making.
• If you haven’t factored in the cost of transportation and other vacation expenses beyond lodging, then recalculate the true cost of your vacations, because the timeshare only covers the accommodation itself.
• If you are not comfortable with the potential for annual fee increases, then do not buy a timeshare, because fees are subject to change and can rise over time, sometimes significantly.
• If you plan to use the timeshare for a specific, short-term need (e.g., a single family reunion in a particular location), then explore rental options instead of ownership, because purchasing a timeshare is a long-term commitment.

FAQ

How much does a Holiday Inn timeshare typically cost to buy?

The initial purchase price can vary widely, often ranging from a few thousand dollars for basic memberships or off-season weeks to tens of thousands of dollars for prime locations, larger units, or more desirable seasons.

What are the ongoing annual fees for a Holiday Inn timeshare?

These fees, often called maintenance fees or club dues, are mandatory and cover the upkeep of the resorts. They can range from several hundred to over a thousand dollars per year, depending on the type of ownership and the resort.

Is financing available for Holiday Inn timeshares?

Yes, developers often offer financing options. However, it’s crucial to understand the interest rates and terms, as financing can significantly increase the total cost over the life of the loan.

Can I sell my Holiday Inn timeshare later?

Yes, you can attempt to sell your timeshare, but the resale market is often challenging. Most timeshares sell for a fraction of their original purchase price, and there’s no guarantee of a sale.

What are “points” in the context of a Holiday Inn timeshare?

Holiday Inn Club Vacations often uses a points-based system. You purchase a certain number of points, which you then redeem to book accommodations. The number of points needed depends on the size of the unit, the season, and the location.

Are there fees for exchanging my timeshare week or points?

Yes, if you use an exchange company (like RCI or Interval International) to swap your week or points for a different resort or time, there will typically be an exchange fee.

How do annual fees increase?

Annual fees can increase to cover rising operating costs, resort renovations, property taxes, and inflation. The developer’s contract usually outlines how and when these fees can be adjusted.

Is a Holiday Inn timeshare a good investment?

Generally, timeshares are not considered investments. They are typically lifestyle purchases that often depreciate in value and can be difficult to sell.

What happens if I stop paying my timeshare fees?

Failing to pay your annual fees can lead to foreclosure on your timeshare interest, damage to your credit score, and potential legal action from the developer.

What this page does NOT cover (and where to go next)

• Specific resale market data for individual Holiday Inn resorts: For current resale values, you’ll need to research specific listings on resale websites or consult with resale brokers.
• Detailed legal aspects of timeshare contracts: Consult with a legal professional specializing in timeshare law for advice on contract specifics and buyer protections.
• Alternative vacation ownership models: Explore options like vacation clubs, fractional ownership, or simply booking hotels and vacation rentals for comparison.
• Strategies for exiting a timeshare if you already own one: If you’re looking to divest a timeshare, research legitimate timeshare exit companies or legal counsel.
• Tax implications of timeshare ownership: Consult with a tax advisor for information on any potential tax deductions or liabilities related to timeshare ownership.