# HGVC how do you figure out the value of points to dollar value



## Hubley (Jan 2, 2021)

just wondering how i figure out how much a room would cost for instance if i stayed 14 nights for  for 11600 points? i understand i can divide 11600 Divided by 14 nights to + 828.57 points a day. 
then how do i figure out the dollar value per day?????


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## 1Kflyerguy (Jan 2, 2021)

This would depend on what your trying to figure out.  If your trying to determine your actual cost, you should look to see what the annual maintenance fee was for the 11600 points used to book the room.  You could then divide that by the 14 nights to get your actual dollar cost per night.

The the other way to look at this would be go to Hilton.com and try to reserve the same room / resort and dates to find the going cash rate for your visit.  It quite possible you won't find the exact same room available, but try to get the best match possible.  You can then compare that to your actual costs.


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## Hubley (Jan 2, 2021)

1Kflyerguy said:


> This would depend on what your trying to figure out.  If your trying to determine your actual cost, you should look to see what the annual maintenance fee was for the 11600 points used to book the room.  You could then divide that by the 14 nights to get your actual dollar cost per night.
> 
> The the other way to look at this would be go to Hilton.com and try to reserve the same room / resort and dates to find the going cash rate for your visit.  It quite possible you won't find the exact same room available, but try to get the best match possible.  You can then compare that to your actual costs.


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## Hubley (Jan 2, 2021)

someone along the way told me to divide the 11600 by 14 nights. which would be 828.57 points a day. 
Then 828.57 by 20 = $165.74 a night would be my cost. 
so better to use points as $370.00 a night. I can;t remember where they got the 20???? i know it was explained to me but i am lost after these yrs.


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## GT75 (Jan 2, 2021)

I agree with @1Kflyerguy, it depends on what you are trying to do.    I don't really know what dividing by 20 is based upon.


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## BingoBangoBongo (Jan 2, 2021)

For you math to work you’re multiplying 828 points x .20.   I’m still not sure what the result means relative to the cost.  As 1K points out you need to figure out what the cost of the points are (MF + possibly some portion of the initial purchase cost) and that number divided by 14 to get the cost per night.


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## GT75 (Jan 2, 2021)

.20 would then probably be someone's MF/point ratio.   If you view your purchase price as a sunk cost, then your MF/point ratio is how much your points are costing you each year.


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## NOLA47 (Jan 2, 2021)

I have wondered what factors into this myself.  I guess it depends on the person.  I often rent from a person who charges me $10.50 a point for a rental.  I don’t really want to ask how he comes up with this amount because I know that it is still a very good price for the location And the season.  As suggested earlier, I go online and attempt to purchase it directly from the resort to reach that conclusion.  When I use my own maintenance fees and points to determine my own points value, it is considerably less.  I do think that the initial cost should be factored in somehow.  I am also pretty certain the amount I pay for my rental is much more than his maintenance fees so I feel that its a win win for both of us.


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## brp (Jan 3, 2021)

NOLA47 said:


> I have wondered what factors into this myself.  I guess it depends on the person.  I often rent from a person who charges me $10.50 a point for a rental.  I don’t really want to ask how he comes up with this amount because I know that it is still a very good price for the location And the season.



I have a feeling that you don't mean $10.50 a point. For something as low as a 300 point night somewhere that would be over $3000/night. Maybe $0.50/point could be reasonable in some locations, though.

Cheers.


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## NOLA47 (Jan 3, 2021)

Yes, I do mean $10.50 per point.  The rental has required 200 points (and I have the table of points to confirm it) which comes to half of the regular rental cost for that peak season.  We didn't get to go this year and I see that the required points has increased for 2021. Just the complimentary chair rental on the beach is an awesome amenity.


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## natarajanv (Jan 3, 2021)

NOLA47 said:


> Yes, I do mean $10.50 per point. The rental has required 200 points (and I have the table of points to confirm it) which comes to half of the regular rental cost for that peak season. We didn't get to go this year and I see that the required points has increased for 2021. Just the complimentary chair rental on the beach is an awesome amenity.


The smallest possible reservation which is a studio for 3 nights costs about 330 points. Where was this rental property?

Sent from my Pixel 4 XL using Tapatalk


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## dayooper (Jan 3, 2021)

NOLA47 said:


> Yes, I do mean $10.50 per point.  The rental has required 200 points (and I have the table of points to confirm it) which comes to half of the regular rental cost for that peak season.  We didn't get to go this year and I see that the required points has increased for 2021. Just the complimentary chair rental on the beach is an awesome amenity.



What property is this? $10.50 a point just doesn’t make sense to me. There isn’t a MF fee that’s $1 a point, let alone 10 times greater. As @natarajanv says above, the smallest single point total is 330 points. I‘m not saying you are wrong (I have been wrong many times in my my life, just ask my wife), I just don’t know where these points are being used at.


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## PigsDad (Jan 3, 2021)

NOLA47 said:


> Yes, I do mean $10.50 per point.  The rental has required 200 points (and I have the table of points to confirm it) which comes to half of the regular rental cost for that peak season.  We didn't get to go this year and I see that the required points has increased for 2021. Just the complimentary chair rental on the beach is an awesome amenity.


I think you are referring to a different point system, not HGVC points.  There is no way a HGVC point is worth anywhere remotely close to $10.50.  Are you perhaps referring to Disney Vacation Club points?

Kurt


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## brp (Jan 3, 2021)

PigsDad said:


> I think you are referring to a different point system, not HGVC points.  There is no way a HGVC point is worth anywhere remotely close to $10.50.  Are you perhaps referring to Disney Vacation Club points?
> 
> Kurt



In which case that's a pretty good deal as they usually go above $15/point.

Cheers.


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## NOLA47 (Jan 3, 2021)

I apologize if I gave the impression this was a hilton grand vacations rental.  It is a diamond resorts rental.  Had it been HGV, I would have been able to reserve the resort with my ownership with HGV. Sorry for the confusion.


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## dayooper (Jan 3, 2021)

NOLA47 said:


> I apologize if I gave the impression this was a hilton grand vacations rental.  It is a diamond resorts rental.  Had it been HGV, I would have been able to reserve the resort with my ownership with HGV. Sorry for the confusion.



Ahhhh . . . That makes sense.


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## Hubley (Jan 9, 2021)

Thanks


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## NOLA47 (Mar 21, 2021)

A quick points question please.  Will the 2020 points that hilton grand vacations automatically transferred/saved into 2021 be able to be transferred into 2022 for a fee?


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## GT75 (Mar 22, 2021)

NOLA47 said:


> A quick points question please.  Will the 2020 points that hilton grand vacations automatically transferred/saved into 2021 be able to be transferred into 2022 for a fee?


No.  Not 2020 points.


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## NOLA47 (Mar 22, 2021)

Thank you!!!


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## DazedandConfused (Mar 22, 2021)

Hubley said:


> just wondering how i figure out how much a room would cost for instance if i stayed 14 nights for  for 11600 points? i understand i can divide 11600 Divided by 14 nights to + 828.57 points a day.
> then how do i figure out the dollar value per day?????



HGVC annual dues runs about $.10 to $.20 per point (some even higher) with $.15 as a good average

Annual dues only: 
829 points = $82.90 @ $.10 valuation
829 points = $124.35 @ $.15 valuation
829 points = $165.80 @ $.20 valuation

This assumes your original investment was worth $0 and that is not realistic, so lets assign a $.10 value to that as you can argue resale is $1pp and over 10 years the value is $.10pp, but if you bought NYC from Hilton, then this is MUCH higher

Annual dues + $.1 cost to buy: 
829 points = $165.80 @ $.20 valuation
829 points = $207.25 @ $.25 valuation
829 points = $248.70 @ $.30 valuation

This should give a good idea of using your points vs paying cash for a room, but obviously it would be non-productive to pay cash for a room and let your points go to waste.

Personally, I think $.25pp is about the best true value of most HGVC points


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## rdw95 (Mar 23, 2021)

What I do it this to determine my price.

I spread out (depreciate) my purchase price for a property over 10 years.  Example = if I purchased a property for $7000 all in, my price per year would be $700.

I then figure out my maintenance fee cost for the week.  Say my maintenance fee for a year is $700.

So, that equals $700 +  $700 = $1400 for a week.  Then divide $1400 by 7 for the daily price it costs me, which in this case would = $200 a day.  Or, I could divide the total number of points for a week by the $1400 figure in this example to know the exact cost per dollar for each property use.

I do this with the price of each property I own.   I use a 10 year depreciation for the purchase price (I'm 65), and the good lord willing I will still be traveling well past the next 10 years!!

As you can see by my "fuzzy math", the daily dollar figure (or dollar per point) would be different for each property I own.  And, we are in the process of purchasing additional property, as now seems to have some great deals.


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## Magus (Mar 24, 2021)

I usually use an opportunity cost on my purchase price of 6-7% [blended bond/stock investment return or normal rental property cap rate) plus the annual MF /point. For example, my King's Land property has 14,400 points/year for $1845 MF/yr, or $0.128/point. I also spent $10k to purchase it, which I am currently assuming I will re-coup all or most if I ever sell it. Opportunity cost of that $10k is $650/year (10k * 6.5%) or $0.045 per point per year, or a total true cost of $0.173 per point per year. So a stay that cost 5,000 points for 7 nights somewhere I would say it cost me $865 or so (add $59 if you are charged the club res fee) or $123/night. 

[When using my points, I also compare to other options there or elsewhere (cash, hilton honor points, marriott points, free night certificates) for a relative value comparison]


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## DazedandConfused (Mar 25, 2021)

Magus said:


> I usually use an opportunity cost on my purchase price of 6-7% [blended bond/stock investment return or normal rental property cap rate) plus the annual MF /point. For example, my King's Land property has 14,400 points/year for $1845 MF/yr, or $0.128/point. I also spent $10k to purchase it, which I am currently assuming I will re-coup all or most if I ever sell it. Opportunity cost of that $10k is $650/year (10k * 6.5%) or $0.045 per point per year, or a total true cost of $0.173 per point per year. So a stay that cost 5,000 points for 7 nights somewhere I would say it cost me $865 or so (add $59 if you are charged the club res fee) or $123/night.
> 
> [When using my points, I also compare to other options there or elsewhere (cash, hilton honor points, marriott points, free night certificates) for a relative value comparison]



I your situation, I would just use annual dues as your $10k investment is worth about $20k now, so you actually have a negative opportunity cost.


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## brp (Mar 25, 2021)

I don't bother with the whole "opportunity cost" thing and just do a simple amortization of initial cost (considering it as sunk cost) plus MFs. This is easier for our DVC as that has an end date, so the number of years is known.

But, really, I don't bother with figuring this out, in general. I stay in the places I want to stay using these points and don't hunt around to see if I can save a few bucks elsewhere. I do that with other aspects 

For example, I'm sure I could find a place in NYC for less than we're paying in sunk cost and MFs for W. 57th. Don't care. That's where I want to stay.

Cheers.


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