60% Points Adjustment (Merger Related)

[brp]

Yeah, a 7000 point week is now 11200. Like that is really an easy number to remember. LOL.

My guess its that it will be 2 -3 years and a calculator before MY mind converts to the new point scheme.

By contrast our 5250 at W. 57th goes to 8400, so this gets easier

Cheers.

 

[SmithOp]

I got the email also, this sentence looks like it will be extra cost for us to get access to DRI resorts.

This is necessary to operate a centralized reservation system that will give Members a seamless booking experience, as well as set the groundwork for a future membership offering that will provide access to more properties in new markets (once details are finalized, including program costs and fees, we’ll share these with you).

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[dayooper]

I got the email also, this sentence looks like it will be extra cost for us to get access to DRI resorts.

This is necessary to operate a centralized reservation system that will give Members a seamless booking experience, as well as set the groundwork for a future membership offering that will provide access to more properties in new markets (once details are finalized, including program costs and fees, we’ll share these with you).

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Eh, I think that it always has been since the beginning. Back in the Q2 Investors call, Mark Wang said there would be a cost to join the new membership. Either with a developer purchase or as a standalone product. During that same investor call, he said they would have a common currency and this looks like it’s it.

If anything, this looks like the new membership is coming soon. Whether it‘s worth the cost (whatever that might be) remains to be seen.

 

[audirt]

I got the email also, this sentence looks like it will be extra cost for us to get access to DRI resorts.

This is necessary to operate a centralized reservation system that will give Members a seamless booking experience, as well as set the groundwork for a future membership offering that will provide access to more properties in new markets (once details are finalized, including program costs and fees, we’ll share these with you).

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Great catch. Anyone have any insight into what these extra fees would look like? You'd like to think that the new fees will apply primarily to Diamond members that are transitioning to Hilton, but I'm not holding my breath.

It's easy for me to imagine a scenario where you pay extra to reserve outside your ownership tier. For example, I'm a HGVC owner and if I want to reserve at other HGVC resorts, that will continue to have the same $79 fee. BUT... if I want to book at BHC or (the new) HVC, the reservation fee is more.

Speaking only for myself, if they choose to go in that direction... and IF the extra fee were manageable (say an extra $50)... I'd be okay with that. What I would not be okay with is being hit up to spend some four-figure amount for the privilege of booking a Diamond resort.

 

[escanoe]

Slightly more detailed answer from the full FAQ on the website:

Will this affect my access to Diamond inventory?
While the adjustment of Points will allow for a single Points scale shared between the HGV and Diamond Club Programs, it does not allow for booking across Club platforms.

Hilton Grand Vacations will be introducing a new membership program during the first half of 2022. Using one consistent simplified Points scale will allow us to set the groundwork for our future membership offering. As details become available, such as program costs and fees, we’ll share these with you.

For now, the only way to access Diamond inventory as a Hilton Grand Vacations Club Member is through RCI Exchange.

 

[bizaro86]

Embarc resorts are not yet visible in HGVC platform. But there was an earlier thread and Embarc owners weighed in that ALL of those resorts will be rebranded as HGVC.

*Any Embarc owners have an update to share on this??*

The other 6 DRI resorts they are folding in during Q2 will be a 3rd tier - literally and figuratively I suspect-- brand called Hilton Vacation Club (HVC). Because that's so easily distinguishable from HGVC. ; )

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Right. I was hoping a points chart had been published. There aren't any DRI resorts I'm likely to use except Embarc. So while this does likely tell you the conversion to DRI club resorts, it doesn't tell you the conversion to Embarc.

 

[ccwu]

Points Adjustment for Club Members

On February 24, 2022, Hilton Grand Vacations is changing the number of Points allocated to a Club Member’s vacation ownership interest and the number of Points required to make a reservation.

ClubPoints, Bonus Points & Saved Points: The adjustment will increase all Points by 60%. Therefore, for every 1 Point in a Club Member’s account, the account will change to 1.6 Points. Example: If on February 23, a Club Member had 5,000 ClubPoints, on February 24, the Member will have 8,000 ClubPoints.
Club Reservations: The number of Points needed to make reservations will also be adjusted across the Club Program by the same 60%. Hence, a Member’s ability to make reservations using their Points within the Hilton Grand Vacations Club system stays the same.
RCI: Currently deposited Points in RCI will also be adjusted on February 24, 2022.
Hilton Honors: Honors conversion ratios will be adjusted proportionally so you receive a commensurate Points amount.
ClubPartner Perks: The exchange value per Points converted for ClubPartner Perks will be adjusted proportionally for each partner.
Maintenance Fees: The exchange value per Bonus Points for maintenance fees will be adjusted proportionally as well.


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Moderator Note: Threads merged. <--SueDonJ

 

[dayooper]

What are the points requirements for the Embarc resorts? Do they line up with Diamond? Does Diamond have differing point requirements for different resorts?

 

[buzglyd]

and let's hope this includes the end of resort fees at DRI resorts for HGV members. The Palm Desert property was charging $35 a day the last time I stayed there.

 

[hgvcowner88]

Why not restructure DRI points to line up with "ours?"
IMO. they should be the ones having to learn new math.

Now, I need to add more formulas to my spreadsheets.
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.

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It's totally a pain to adjust to the changing points. But if they had adjusted the DRI people, they would have adjusted their point values down to match with "ours". People in DRI seeing their points go down would have created a negative feeling for most versus HGVC people seeing their points increase.

 

[dougp26364]

If this is accurate/true, it looks like they’re making adjustments to get points requirements between DRI and HGVC to align with each other. This would make reserving between the two clubs a little easier

 

[Wright17s]

I'm still trying to digest.... but in the email I just received, they state:

Why is Hilton Grand Vacations making the Points adjustment?
Soon after our acquisition of Diamond Resorts, we conducted an analysis of all Club programs. The analysis determined that adjusting ClubPoints, Saved Points and Bonus Points up by 60% creates one consistent, simplified Points scale. This is necessary to operate a centralized reservation system that will give Members a seamless booking experience, as well as set the groundwork for a future membership offering that will provide access to more properties in new markets (once details are finalized, including program costs and fees, we’ll share these with you).

 

[ccwu]

I also receive the following email.

Dear Club Member,

Hilton Grand Vacations will adjust all Points within the Club Member Program on February 24, 2022. Starting on this day, the Club website, mobile app and Club Partner sites will reflect the newly adjusted totals. If you toured between February 1 and February 24, this was likely discussed during your presentation. However, if you toured prior to February 1, you were likely presented a pre-adjusted Points value.

What is Hilton Grand Vacations changing?
With this adjustment, we are changing the number of Points allocated to your vacation ownership interest and the number of Points required to make a reservation. The adjustment will be an increase of 60%. In other words, every 1 Point (including ClubPoints, Bonus Points and Saved Points) will be increased to 1.6 Points.

For example, if your ownership was allocated 5,000 ClubPoints annually before the Points adjustment, the allotment would increase to 8,000 ClubPoints annually, starting February 24, 2022.

Likewise, the number of Points needed to make a reservation will be adjusted by the same 60%. If a reservation required 5,000 ClubPoints on February 23, 2022, that same reservation would require 8,000 ClubPoints starting on February 24, 2022. Hence, your ability to make reservations using your Points anywhere within the Hilton Grand Vacations Club system stays the same.

Why is Hilton Grand Vacations making the Points adjustment?
Soon after our acquisition of Diamond Resorts, we conducted an analysis of all Club programs. The analysis determined that adjusting ClubPoints, Saved Points and Bonus Points up by 60% creates one consistent, simplified Points scale. This is necessary to operate a centralized reservation system that will give Members a seamless booking experience, as well as set the groundwork for a future membership offering that will provide access to more properties in new markets (once details are finalized, including program costs and fees, we’ll share these with you).

What does this mean to you?
Your timeshare ownership interest and access rights remain the same — you’ll be able to make a reservation at a Hilton Grand Vacations property as you do now. Additionally, all ClubPoints allocations and requirements are being adjusted equally. Hence, your ability to make reservations using your Points stays the same.

Will this impact Hilton Honors Points conversions and ClubPartner Perks?
Hilton Honors Points conversions will be proportionally adjusted so you receive a commensurate number of Points. The dollar amount per Points converted for ClubPartner Perks also will be adjusted proportionally for each partner.

How can I learn more?
We’ve created an online learning path to help you learn more. Visit my.hgv.com/points-adjustment to:

Watch our video tutorials
Review our Frequently Asked Questions
Use our Points Adjustment Calculator to see your new Points total
We appreciate your understanding as we work toward our goal of integrating these two great companies. And we look forward to helping you make more fantastic vacation memories in 2022 and beyond!

–Hilton Grand Vacations


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[dougp26364]

So are these new point levels more in line with what DRI charges for similar units of the same size and time of year? I suspect it was easier to change the HGV point levels given that there is no underlying trusts with units and points declared like DRI has.

No. Our DRI 2 bedroom Polo Towers units were around 15,000 points. The conversion brings our 7,000 point 2 bedroom HGVC LV strip up to 11,200 points. IMHO, there is no comparison between the two resorts. HGVC has considerably better quality. OTOH, the MF cost of those Polo Towers units exceeded the MF cost of our Hilton resort. That was the biggest factor when deciding which resort group to remain with, Hilton vs DRI. Hilton win out based on cost to quality. DRI had the advantage of more locations, but we were only interested in three locations, Maui, Sedona and Santa Fe. Maui was easy enough to get with out MVC ownership. The resort in Santa Fe wasn’t that great of quality, just a nice location plus it was a drivable destination. Sedona is the only location we gave up and really missed. So it was an easy choice to give up DRI and keep HGVC.

Perhaps they’re also considering overall cost per member in the calculations to make things “more equal” going forward without having to adjust fees to be more equal between programs?

As it stands now, it looks like reserving Sedona will be at a premium, but that’s all right with me. I’ve become somewhat bored with the lack of Hilton locations and Sedona is an easy flight into Phoenix for us. Realizing the MF cost difference from what we once owned, it doesn’t feel like that big of a deal.

 

[magmue]

Also note HGVC's pitch to get more bodies in the seats for owner updates: "If you toured between February 1 and February 24, this was likely discussed during your presentation. However, if you toured prior to February 1, you were likely presented a pre-adjusted Points value."

Because the sales staff are trustworthy information sources.

 

[Nowaker]

Since it's DRI that was acquired, why couldn't they deflate their points, rather than inflating ours... Chaos is to come.

 

[brp]

Seems there is already an active thread on the identical topic right on the top of the front page.

Cheers.

 

[geist1223]

In DRI we do not pay a Reservation/Booking Fee. Also only the 1st Day of the Reservation has to be within the Booking Window. We also have the Club Select/Club Combination in which you make a Booking in one of your other Timeshare Organizations , give it to DRI, and get DRI Points in exchange. We are Cabo Azul Members.

 

[dayooper]

@geist1223 @dougp26364 or anybody else familiar with DRI? How many points does it take to book a 2 bedroom high season week?

 

[Mowogo]

Since it's DRI that was acquired, why couldn't they deflate their points, rather than inflating ours... Chaos is to come.

Because if DRI is slotting in a lot at the lower end of the point scale you end up with a lot more fractional point issues deflating a currency rather than inflating.

 

[WhatTheDogSaid]

Separately the Federal Reserve announced that it will stop buying timeshares, thus ending its pandemic era stimulus program…..

 

[NOLA47]

I suspect this is related to the merger with DRI, as the OP noted in their post title. 2 BR units in DRI resorts may be as low as 6000 points per week. With the plan to rebrand 6 DRI resorts into HVC by Q2 this seems timely.

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what are the 6 DRI resorts you are referring to that will likely be converted to HVC by Q2??

 

[Cyberc]

Since everyone is getting more points from the developer, does they count towards elite

 

[geist1223]

Number of Points depends on the Resort and the View. A 2 Bedroom Pool/Partial Ocean View at Cabo Azul for January 2023 was about 14,650 Points for the week.
Currently at Point at Poipu. All Units 2 bedroom 1st week Garden View 9350. 2nd week Ocean View darn close to Ocean Front 12,650 Points.

 

[dougp26364]

@geist1223 @dougp26364 or anybody else familiar with DRI? How many points does it take to book a 2 bedroom high season week?

We haven’t been member of DRI for several years. My only point of reference was Las Vegas, where we owned a deed week at The Suites at Polo Towers, a week at The Villas at Polo Towers, HGVC Las Vegas Strip and MVC Grand Chateau.

The best I can recall Polo Towers was 15,000 DRI points. Our HGVC is 7,000 points or, with the 60% boost, 11,200 points. BUT, our Polo Towers weeks MF’s were a few hundred dollars more expensive than our HGVC week and, DRI was as expensive as a 2 bedroom at Marriott’s Grand Chateau. This is why we dropped out DRI ownership. The quality didn’t live up to the fees.

There appears, at this time, that there will be a “premium” in points value to use HGVC points to reserve DRI properties. At the outset this will likely upset Hilton owners. I assume it won’t be a lot better for DRI owners wanting to reserve HGVC properties, but will need more information to make that call.

It looks like HGVC will stay as is as far as reserving within the HGVC system. If DRI properties, which are lower quality than HGVC at this point, this might make it a tough sell to get current HGVC members to literally buy in.
I’m on the edge of deciding, do I stay with Hilton and buy into the extra properties or, do I sell and get completely out. A lot will depend on the buy in to reserve DRI properties, the rules and the availability, Sedona is my primary target destination. If the price is to high or if I believe it will be to difficult to reserve, selling out may be the better option for us. I’m hoping they aren’t going to ask in the thousands to join the combined clubs. Marriott opted for a $695 fee when they announced their program. Way back when Diamond bought Sunterra, their buy in was, if memory serves me correctly, $2,995.

I’m not willing to buy in at $2,995 like I did before with Diamond. Back then I wanted access to Maui and this was before Marriott had come out with their program. I don’t need that access anymore, but a lot of Hilton owners might be willing to pay that price like I did at that time. For $695 I’d buy in. I’d probably buy in close to $1,000. If the buy in gets more expensive than that, it will take a lot of serious thought and a great deal more details about the future of properties offered, the cost to book DRI properties, and the ease of booking across brand lines.