Disaffiliatin - Possible / Impacts?

Is it possible for HGVC-affiliated properties to cease the affiliation? Has it ever happened? What would happen to HGVC owners at those properties if this did occur?

De ja vu

This question has come up before. I believe the answer is: no HGVC affiliate has been given the boot. There has been rumors that Bay Club in Waikoloa will get booted when Kings Land goes into full swing, but those are just rumors.

However, the word is that GPR-MarBrisa will not allow the transfer of HGVC Club to resale. Only the original owner will have access to HGVC properties. Resale owners will only trade within Grand Pacific Resorts.

My opinion, if they drop an affiliate, the owners will lose the ability to trade within HGVC. I guess that is the risk you take when buying an affiliate.

I guess there is 2 scenarios for an affiliate.

1) HGVC no longer wants the contract at the affliate and drops their management arrangement. This has yet to happened within HGVC. But it has happened at Marriott.

OR

2) The Affiliate POA no longer want HGVC as the management company and the POA fires them. This has not happened at HGVC or Marriott that I am aware of, but it has happened plenty of times with other management companies, Peppertree, Equivest, Wyndham, VRI, Berkley Group/Daily Management etc etc etc..

If the management company is HGVC and they are making money from the property and the property is being maintained and funded adequately then there is no reason to have the property dropped. HGVC Management is making money off the POA, and they want to stop this because......?

It is just rumor. Likely because this is the only situation where an Affiliate and an HGVC specific build are side by side. The Bay Club actually sold all the land the HGVC is built on to them, so perhaps there is some agreement in the sale to keep the Bay Club as an affiliate as part of the deal.

This affiliate issue really puzzles me- I can understand the Marbrisa- as HGVC has no resorts in California-
but 15 or so Marco island affiliates? Bay Club-? only to charge a member 75 dollard to get into HWV? I cant make sense out of this- Ive been told that too many affiliates can make HGVC look like an echange RCI type company and that this will negatively impact the value of HGVC resorts. Ive also been told otherwise-----Who knows?
I just wonder why HGVC is so adverse to building out of vegas, Hawaii and Orlando
Any thoughtson this issue?
It would be great to have some insight.

There has been much discussion about "affiliate" and HGVC Resorts and disaffiliation. Once a resort has been sold out, even a HGVC developed resort they become an affiliate in the "Club". If you review the covenant of your resort after an initial 3 year management agreement the agreement at HGVC developed resorts will automatically be renewed. However the covenants allow the management agreement to be terminated either by the management company (HGVC) or the owners association (by vote of the majority of owners). In effect once the resort has been sold out there is no difference between a affiliate or a HGVC resort. Therefore all this talk about affiliates being a lesser value is incorrect. It is incumbent that the owners and HGVC work together to maintain the Club. If the owners continue to see the value of Club membership and the relationship remains good there should be no reason to disaffiliate any resort.

Problems have occurred when, as resorts age, there is a need to update a resort to meet the newer quality standards and a management company proposes to undertake a renovation. If the cost has not been properly funded in the reserves and a special assessment is required, frictions will occur between the parties. This can occur at any resort but is more likely at smaller resorts, such as the case with the smaller Marriott resorts on Hilton Head or Vail since the number of owners are fewer and can be more proactive and oppose a higher maintenance fee or special assessment resulting in the management company determining that the resort no longer meets the quality standards they require of their resorts. Over the past few years the increase in the quality and cost of newer resorts in the hotel companies timeshare programs has meant that older resorts will need much more updating to meet the new standards. Keep this in mind when buying any older resort that hasn't been renovated.

My resorts on Sanibel and Hutchinson Island have had a excellent relationship with HGVC and the owners have continually renewed our management contracts.

benjaminb13 said:

I just wonder why HGVC is so adverse to building out of vegas, Hawaii and Orlando

It would be great to have some insight.

Click to expand...

Demand. People travel to these locations with greater frequency than others. It is simply a supply and demand situation.

See these lists...
http://www.travelsense.org/destinations/hotspots.cfm
http://www.hotelsbycity.net/top10/usa/
http://realtravel.com/united_states-featured-d1561-52.html

Management but no Affliation

I have been contemplating on the current question and came up with a question.

Can a TS hire HGVC to manage but not affliate. Lets say the TS is in a good location with good owners. They just don't like their current management team. So, they hired HGVC to manage but they do not what to convert their TS to HGVC points and "join the club". Would this be possible?

Many HGVC Affiliate owners have paid an enrollment fee to enroll in Club. If they were to disassociate a location, they would have issues with the funds that they received. Typically when a trading company (eg II or RCI) disassociate a resort, all current owners are grandfathered in. That being said, Hilton has never disassociated a resort and I have not been bade aware of any flans for them to start.

Seth
with HGVC Waikola and HGVC KIngsland built- What are HGVCs plans for bay Club?

They have high demand for the property. There is no reason to think they have any major changes planned.