# HUGE News for Hyatt Owners.....(no hyperbole)



## tahoeJoe

Hyatt Residence Club (the whole club) sold to.......wait for it.......wait for it.....


*INTERVAL INTERNATIONAL!!! ​*
http://www.businesswire.com/news/ho...-Acquire-Hyatt-Residential-Group#.U2uYXFc_R21

This may have HUGE implications upon owners, resale values etc. At least Hyatt sold out to a company with good reputation! :rofl:


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## Kal

IMHO I don't think the transaction will have many implications to Hyatt Club owners. The Hyatt Residence Club operated pretty much independent to the Hyatt Corp mothership. The only cross-over was the Hyatt Hotel benefit to HRC members. The HRC functioned as a stand alone business unit and relied on the Brand identification to the time share resorts. For the most part, the resorts were all funded almost entirely by developer money at new construction. Hyatt didn't have much skin in the game but enjoyed the profits generated by the HRC business unit.

My guess is there will be no identifiable change but Interval will probably have an easier path to market resort units after HRC members get first shot at reserving those units. Previously HRC had a contract with Interval identifying the formula for compensating Interval with HRC units when HRC members exchanged into Interval properties. The formula was complicated because the exchange is definitely not one-for-one. I suspect that formula will be somewhat eased to Interval's favor. There may also be some advantages where Interval provides HRC owners more incentives to exchange their HRC units into Interval.

Another negative impact will be the level of profit Interval will expect to receive from HRC business operations. To HRC owners, that could mean higher maintenance fees caused by HRC line items in each resort budget.


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## tahoeJoe

Kal said:


> Another negative impact will be the level of profit Interval will expect to receive from HRC business operations. To HRC owners, that could mean higher maintenance fees caused by HRC line items in each resort budget.



Exactly, I have NEVER seen a transaction involving TS where fees did not increase. Interval has a long history of raising exchange fees and finding new ways to charge customers. I would not be surprised to see Hyatt's "affordable" internal trading system to go away in favor of a more expensive II system. Just look how expensive II "short stay" exchange fees are.


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## GregT

That's really interesting at a number of levels.   II is branching out and taking direct control over a high quality chain.   Perhaps they like what Wyndham has been able to do with RCI/Worldmark/Fairfield and seeing if they can replicate it.

Also interesting in that this was presumably a competitively bid process, and therefore Hyatt wasn't bought by another company (like Wyndham or Marriott).

So II must have really wanted this.

I hope this turns out okay for the Hyatt owners -- the timeshare world is certainly turbulent and very interesting to see.

Best,

Greg


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## vacationhopeful

GregT said:


> That's really interesting at a number of levels.   II is branching out and taking direct control over a high quality chain.   Perhaps they like what Wyndham has been able to do with RCI/Worldmark/Fairfield and seeing if they can replicate it.
> 
> Also interesting in that this was presumably a competitively bid process, and therefore Hyatt wasn't bought by another company (like Wyndham or Marriott).
> 
> So II must have really wanted this.
> 
> I hope this turns out okay for the Hyatt owners -- the timeshare world is certainly turbulent and very interesting to see.
> 
> Best,
> 
> Greg



Doesn't Wyndham OWN International Interval now?


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## GregT

vacationhopeful said:


> Doesn't Wyndham OWN International Interval now?



Wyndham owns RCI, and I've been curious to see if one of the big chains would purchase Interval to copy what Wyndham has done with RCI (ie, really expand its rental business).

I think this is a really interesting move by Interval.

Best,

Greg


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## magicjourney

Hyatt is just a managing company, it doesn't own any of the club properties, or just a few? I am wondering if possible more HOA gonna say good bye to Hyatt after this like Hyatt Siesta Key? What if all properties leave hyatt, II get nothing?


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## magicjourney

*Just got the email*

Dear Owner, 

I am delighted to share some important news that means good things for the future of Hyatt Residential Group (HRG). 

Interval Leisure Group (ILG) has entered into an agreement to acquire Hyatt Residential Group (HRG) and we anticipate the transaction will be completed in the fourth quarter. You already know ILG because its subsidiary, Interval International, offers you comprehensive exchange services and other benefits. What you might not know is that ILG also has a very successful diversified management business that currently operates approximately 250 resorts around the world. In short, it is a major player in the shared ownership industry and we believe the right owner to take HRG to the next level. 

We are very excited about this news and I want to make sure that you understand why we believe this is the right step for you, our valued HRG owners: 

• ILG plans to invest in HRG to help us expand and grow. 
• All Hyatt Residence Club owners will continue to enjoy the same exceptional service offered by Hyatt Residence Club properties. 
• All Hyatt Gold Passport benefits will continue, including the exchange relationship. 
• All current Hyatt Residence Clubs in the portfolio will continue to carry the Hyatt Residence Club name. 
• All Hyatt Residence Club staff will remain in place, ensuring that you can count on the same wonderful associates continuing to make your vacation experiences memorable. 
• All current Hyatt Residence Club reservations, priorities and systems will remain in place. 
• Hyatt Residence Club members will continue to enjoy all the benefits of membership with Interval International. 

I expect this transition will be seamless for you. If you have any questions or concerns, I encourage you to contact your resort manager or 1-800-GOHYATT. 

I hope you are as excited as we are about our future together. 

Sincerely,  

Ed Crovo 
Senior Vice President 
Hyatt Residential Group


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## tahoeJoe

magicjourney said:


> Hyatt is just a managing company, it doesn't own any of the club properties, or just a few? I am wondering if possible more HOA gonna say good bye to Hyatt after this like Hyatt Siesta Key? What if all properties leave hyatt, II get nothing?



That is a KEY question, if II screws over Hyatt owners what is to prevent HOA boards (are you listening Dallas?) to saying goodbye to Hyatt (or II)?

As KAL pointed out Hyatt has no real skin in the game, never did, BUT II paid $190,000,000 for just management contracts? What the heck? I see management fee on the rise.


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## lizap

Don't see a lot changing.  This is a very interesting move, perhaps only the first acquisition.  More could be coming...




tahoeJoe said:


> That is a KEY question, if II screws over Hyatt owners what is to prevent HOA boards (are you listening Dallas?) to saying goodbye to Hyatt (or II)?
> 
> As KAL pointed out Hyatt has no real skin in the game, never did, BUT II paid $190,000,000 for just management contracts? What the heck? I see management fee on the rise.


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## ra34

I sure hope someone at Interval knows what is going on at Siesta Key....I am sure Hyatt would have to "disclose" certain information.


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## lizap

If this gives us access to SK, then this is fantastic news.  Also, sounds like there could be development of additional properties (which was a Hyatt weakness)

I'm not sure that I understand how Hyatt is going to bring II much value.  This is certainly not in II's core business; II is in the business of exchanging.  Perhaps this a strategic move in a different direction.  It's clear Hyatt wanted an infusion of cash, that can be used elsewhere.

Again, interesting move, don't see a lot of change for owners, but too early to tell.  It could turn out to be very good for owners, if II chooses to develop some new resorts under Hyatt's name...



ra34 said:


> I sure hope someone at Interval knows what is going on at Siesta Key....I am sure Hyatt would have to "disclose" certain information.


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## tschwa2

Besides management contracts wouldn't they acquire any unsold developer inventory plus the inventory (and costs associated with finishing it) at the Hyatt Maui that is currently in sales?


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## ra34

I don't see how there will be more inventory at HSK unless the remaining TS are sold and the owners trade out.  Remember only 11 of the 44 units are in the TS. The remaining 33 are rented individually with some owners allowing Hyatt to act as the rental manager.


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## lizap

I would think so.  Too bad they didn't purchase Hyatt before Welk acquired  a lot of Northstar Lodge.  Hopefully this will mean greater access to Siesta Key, Escala Lodge, and Miami Blue.  I wonder how long the purchase contract requires Hyatt to stay with II.  What's to keep II from dumping Hyatt and going with Marriott, Starwood, etc., to manage or even using its own name?  If owners at Maui or Residences at Park Hyatt aren't happy with this new arrangement, what's to keep them from dumping Hyatt/II (I suspect as long as the Hyatt name/reputation are retained, that most likely won't happen)? These are important questions, IMO.




tschwa2 said:


> Besides management contracts wouldn't they acquire any unsold developer inventory plus the inventory (and costs associated with finishing it) at the Hyatt Maui that is currently in sales?


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## lizap

Are all SK TSs sold?




ra34 said:


> I don't see how there will be more inventory at HSK unless the remaining TS are sold and the owners trade out.  Remember only 11 of the 44 units are in the TS. The remaining 33 are rented individually with some owners allowing Hyatt to act as the rental manager.


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## ra34

lizap said:


> Are all SK TSs sold?



No - I think there are about 60 left out of 176.


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## ondeadlin

As a Hyatt owner, I'm cautiously optimistic.

It's in II's interest to preserve the value in the system and the individual properties.  If, for some reason, II makes negative changes, the individual properties are attractive enough that they could attract interest from other high-end systems if they wanted to change management companies.


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## lizap

Changing management systems would mean changing from II/Hyatt.  How realistic is it that resorts would want to dump II?  Not likely..



ondeadlin said:


> As a Hyatt owner, I'm cautiously optimistic.
> 
> It's in II's interest to preserve the value in the system and the individual properties.  If, for some reason, II makes negative changes, the individual properties are attractive enough that they could attract interest from other high-end systems if they wanted to change management companies.


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## steve b

Hate to be a pessimist but this is awful.  Wait till you see the lack of inventory for Hyatt internal exhanges during Club use periods and the NEW INCREASED exchange fees.  I have almost always been able to use my Hyatt Mountain Lodge points for early or late ski season internal trades to the Hyatt Grand Aspen, now we will be competing with other owners from Diamond Resorts, VRI or other holdings of the parent company.  JUST WATCH HERE IT COMES!


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## ondeadlin

lizap said:


> Changing management systems would mean changing from II/Hyatt.  How realistic is it that resorts would want to dump II?  Not likely..



Actually, it doesn't necessarily mean that at all.  

Let's say, for example, that one of the current Hyatt properties in Beaver Creek wanted to bring in a new management company.  Let's say Marriott, which does not have a property in Beaver Creek, wanted to take over management.  The property would remain in II under those circumstances.


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## lizap

Still you are dumping a wholly-owned affiliate of II..   



ondeadlin said:


> Actually, it doesn't necessarily mean that at all.
> 
> Let's say, for example, that one of the current Hyatt properties in Beaver Creek wanted to bring in a new management company.  Let's say Marriott, which does not have a property in Beaver Creek, wanted to take over management.  The property would remain in II under those circumstances.


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## magicjourney

steve b said:


> Hate to be a pessimist but this is awful.  Wait till you see the lack of inventory for Hyatt internal exhanges during Club use periods and the NEW INCREASED exchange fees.  I have almost always been able to use my Hyatt Mountain Lodge points for early or late ski season internal trades to the Hyatt Grand Aspen, now we will be competing with other owners from Diamond Resorts, VRI or other holdings of the parent company.  JUST WATCH HERE IT COMES!



That's my fear as well. Let's hope II acquire Hyatt to copy the success of Marriott Vacation Club, not use Hyatt as a bait to draw in more exchangers.


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## Kal

Another aspect of the deal is this:

_"...ILG will acquire Hyatt’s interest in a joint venture that owns and is developing a 131-unit vacation ownership property in Maui, and will reimburse Hyatt an additional approximately $35 million, representing Hyatt’s contributions to the joint venture through the transaction’s anticipated closing date_."

The sales presentation for Maui places very heavy emphasis on owners having FULL access to the adjacent Hyatt Regency facilities. Hyatt will have no financial interest in the new Ka'anapali resort. It will be interesting if the Hyatt Hotel will allow the "new neighbors" unfettered access to the pools, spa and other hotel facilities.

It's also noteworthy that the top two guys in HRC (one being Ed Crovo) were both at Ka'anapali in the first part of April. Probably the last opportunity to check out the progress and kick the tires before finalizing the sale.  Even then they were pumping the sales crew for ideas for new resort locations in Hawaii.  Sure you betcha!


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## lizap

Conversely, there could be some very good things for Hyatt owners: conversion of SK, Park City, and Miami from fractionals would open up more access to Hyatt owners for exchange; borrowing/banking may be allowed by II; Hyatt owners may be allowed to switch into other Hyatts using II and even have preference.  I suspect for most Hyatt owners this transaction is at worst, neutral, and could be positive.  Time will tell...  Still pays to buy where you want to vacation most of the time..




steve b said:


> Hate to be a pessimist but this is awful.  Wait till you see the lack of inventory for Hyatt internal exhanges during Club use periods and the NEW INCREASED exchange fees.  I have almost always been able to use my Hyatt Mountain Lodge points for early or late ski season internal trades to the Hyatt Grand Aspen, now we will be competing with other owners from Diamond Resorts, VRI or other holdings of the parent company.  JUST WATCH HERE IT COMES!


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## lizap

Still trying to understand, from a strategic perspective, why II would want HRC.  If it was such a great profit center, Hyatt would have wanted to keep it.




magicjourney said:


> That's my fear as well. Let's hope II acquire Hyatt to copy the success of Marriott Vacation Club, not use Hyatt as a bait to draw in more exchangers.


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## ondeadlin

lizap said:


> Still trying to understand, from a strategic perspective, why II would want HRC.  If it was such a great profit center, Hyatt would have wanted to keep it.



Hilton had revenues of $4.2 billion last year.

Interval had revenues of about $500 million.

My guess is that the revenues generated by the HVC were small potatoes to Hyatt, particularly for a niche, non-core business.  Those revenues are probably more meaningful to II, particularly given that this is their core business and potentially brings them some synergy.


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## lizap

I don't see how purchasing HVC helps II's core business, which is exchanging.  Maybe they are trying to diversify into a different aspect of the TS business.  


QUOTE=ondeadlin;1624042]Hilton had revenues of $4.2 billion last year.

Interval had revenues of about $500 million.

My guess is that the revenues generated by the HVC were small potatoes to Hyatt, particularly for a niche, non-core business.  Those revenues are probably more meaningful to II, particularly given that this is their core business and potentially brings them some synergy.[/QUOTE]


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## peas

Do all the HRC resorts pay the adjacent hyatt hotel a fee to access some of the amenities?

I believe High Sierra does.  But how about Coconut Plantation or Wild Oak?

Now that they're not part of the same parent company, it seems that this relationship could become more strained.


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## bdh

steve b said:


> Hate to be a pessimist but this is awful.  Wait till you see the lack of inventory for Hyatt internal exhanges during Club use periods and the NEW INCREASED exchange fees.  I have almost always been able to use my Hyatt Mountain Lodge points for early or late ski season internal trades to the Hyatt Grand Aspen, now we will be competing with other owners from Diamond Resorts, VRI or other holdings of the parent company.  JUST WATCH HERE IT COMES!





ondeadlin said:


> As a Hyatt owner, I'm cautiously optimistic.
> 
> It's in II's interest to preserve the value in the system and the individual properties.  If, for some reason, II makes negative changes, the individual properties are attractive enough that they could attract interest from other high-end systems if they wanted to change management companies.





lizap said:


> Conversely, there could be some very good things for Hyatt owners: conversion of SK, Park City, and Miami from fractionals would open up more access to Hyatt owners for exchange; borrowing/banking may be allowed by II; Hyatt owners may be allowed to switch into other Hyatts using II and even have preference.  I suspect for most Hyatt owners this transaction is at worst, neutral, and could be positive.  Time will tell...  Still pays to buy where you want to vacation most of the time..



No doubt there will be some good changes and some bad ones - all depends on how each owner currently uses the HRC system and how the ILG changes will affect/change the internal and external exchange system.  I would not expect there to be increased SK, PC, The Blue or Northstar access - the HRG/ILG sale doesn't add more TS units at those properties (the vast majority of units at these locations are whole ownership in lieu of TS).  Will be interesting to see if the Hyatt/Andaz property in NYC is included or excluded in the ILG deal. 

While there's merit is lizap's "pays to buy where you want to vacation" comment, I'd hate to see the current collection of HRC properties broken up.  HRC has some great properties and locations in the system and the option of being able to jump btwn the various locations is a positive of the system.

If things disintegrate within the HRC system with the ILG purchase, it could be a really bad thing for the 1300/1400 pt week owners as those could become even more undesirable and a good thing for the 2000/2200 pt week owners as those could become even more desirable.  IE: few want to travel to Colorado in mud season while lots would like to travel to KW for week 51/52 or the prime time Feb/April months.


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## ra34

Kal said:


> Another aspect of the deal is this:
> 
> _"...ILG will acquire Hyatt’s interest in a joint venture that owns and is developing a 131-unit vacation ownership property in Maui, and will reimburse Hyatt an additional approximately $35 million, representing Hyatt’s contributions to the joint venture through the transaction’s anticipated closing date_."
> 
> The sales presentation for Maui places very heavy emphasis on owners having FULL access to the adjacent Hyatt Regency facilities. Hyatt will have no financial interest in the new Ka'anapali resort. It will be interesting if the Hyatt Hotel will allow the "new neighbors" unfettered access to the pools, spa and other hotel facilities.
> 
> It's also noteworthy that the top two guys in HRC (one being Ed Crovo) were both at Ka'anapali in the first part of April. Probably the last opportunity to check out the progress and kick the tires before finalizing the sale.  Even then they were pumping the sales crew for ideas for new resort locations in Hawaii.  Sure you betcha!



Just ask the owners of Four Seasons Avaria - Hyatt took over the hotel portion and either cut shared services or started charging significant fees...


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## Kal

ra34 said:


> Just ask the owners of Four Seasons Avaria - Hyatt took over the hotel portion and either cut shared services or started charging significant fees...


 
 Bingo!  That's exactly how I view the outcome for the "new HRC" and Hyatt Hotel shared services.


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## lizap

Certainly, as a 'for profit' company, they are going to charge what the market will bear.  Hyatt already charges more than many others (e.g., Starwood), and has a more challenging/restrictive system.  I might be willing to pay more if I received something more in return (e.g. banking/borrowing points; greater availability at SK, Park City, Miami; being able to trade for other Hyatts in II and with preference, etc.).  It's a slippery slope.  If things don't work out (too many unfavorable changes) I have no problem selling my Hyatt 2 BR unit for significantly less than I paid for it in about a year (I never expected to get much for it anyway).  At that time, I will have more than recouped my cost less MFs.  I don't think II wants too many situations like that.  That certainly would not be in their best interest. Whatever they do, they will do slowly; don't expect any significant changes for at least a year or so...



Kal said:


> Bingo!  That's exactly how I view the outcome for the "new HRC" and Hyatt Hotel shared services.


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## Kal

lizap said:


> Certainly, as a 'for profit' company, they are going to charge what the market will bear. Hyatt already charges more than many others (e.g., Starwood), and has a more challenging/restrictive system. I might be willing to pay more if I received something more in return ...



There are two different companies we are discussing. One is Hyatt and the other is the "new HRC". 

Hyatt Corp's only link to the new HRC system appears to be shared hotel services. It's hard to imagine Hyatt Corp will continue to provide freebies at its hotels to time share resorts. On a resort by resort basis, a property may want to continue the shared service at a nearby hotel. In that case I would hope it would be a fee for service paid entirely by that specific time share resort and not the Club. A clear example would be Bonita Springs. IMHO, they do need those hotel services. There are other HRC resorts where there's not much demand for a shared hotel service. In each case the decision should be that of the HOA and the associated budget.

It sounds like your reference to a "challenging/restrictive system" is the design/operation of the time share program. Indeed, the basis of the HRC program is a "boutique operation". With that brings a system in many cases which is more restrictive than others and with fewer resort locations. There are many pluses and minuses, but it is different. For me, I would like to see some changes, but none that would allow non-HRC members increased access to the system. The one change that I would enjoy is NOT PAYING A SEPARATE INTERVAL FEE for each week I own. *Yeah, in my dreams!! *


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## lizap

Thanks Kal.  I always trust and value your input.  If the extent of it is reduced shared hotel services, I can live with that..


QUOTE=Kal;1624168]There are two different companies we are discussing. One is Hyatt and the other is the "new HRC". 

Hyatt Corp's only link to the new HRC system appears to be shared hotel services. It's hard to imagine Hyatt Corp will continue to provide freebies at its hotels to time share resorts. On a resort by resort basis, a property may want to continue the shared service at a nearby hotel. In that case I would hope it would be a fee for service paid entirely by that specific time share resort and not the Club. A clear example would be Bonita Springs. IMHO, they do need those hotel services. There are other HRC resorts where there's not much demand for a shared hotel service. In each case the decision should be that of the HOA and the associated budget.

It sounds like your reference to a "challenging/restrictive system" is the design/operation of the time share program. Indeed, the basis of the HRC program is a "boutique operation". With that brings a system in many cases which is more restrictive than others and with fewer resort locations. There are many pluses and minuses, but it is different. For me, I would like to see some changes, but none that would allow non-HRC members increased access to the system. The one change that I would enjoy is NOT PAYING A SEPARATE INTERVAL FEE for each week I own. *Yeah, in my dreams!! *[/QUOTE]


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## ivywag

I'm wondering if we'll still have to pay an II fee for each owned week (we have 5)?  Also, will owners of resorts adjacent to Hyatt hotels still be able to use hotel facilities.  e.g….  High Sierra Lodge pools, beach and fitness facilities.  Several of the resorts have use of nearby hotel facilities.  It also will be interesting to see how they handle Highlands Inn.  It is part hotel and part timeshare and I believe that the restaurants are all part of the hotel system.


I missed the second page of postings before replying.  Sorry for adding questions which had already been addressed!!!


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## Kal

ivywag said:


> I'm wondering if we'll still have to pay an II fee for each owned week (we have 5)? Also, will owners of resorts adjacent to Hyatt hotels still be able to use hotel facilities. e.g…. High Sierra Lodge pools, beach and fitness facilities. Several of the resorts have use of nearby hotel facilities. It also will be interesting to see how they handle Highlands Inn. It is part hotel and part timeshare and I believe that the restaurants are all part of the hotel system.


 
 One thing to remember is that Hyatt Corp does not do anything for FREE.  I would guess that there will be an additional fee to use the hotel facilities.  The more facilities, the higher the fee.

 As a note, in Key West guests at the Sunset Harbor resort could use the Hyatt Hotel facilities.  Within the last year, Hyatt changed the policy to only allow use of the fitness center and not allow use of their pool or beach.

 There was also a 15% discount provided to those guests for food/beverage at the Hyatt Hotel.  I wonder what will happen to that discount?


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## wilma

Kal said:


> One thing to remember is that Hyatt Corp does not do anything for FREE.  I would guess that there will be an additional fee to use the hotel facilities.  The more facilities, the higher the fee.
> 
> As a note, in Key West guests at the Sunset Harbor resort could use the Hyatt Hotel facilities.  Within the last year, Hyatt changed the policy to only allow use of the fitness center and not allow use of their pool or beach.
> 
> There was also a 15% discount provided to those guests for food/beverage at the Hyatt Hotel.  I wonder what will happen to that discount?



I was told by the Hyatt High Sierra (Tahoe) staff that the vacation club pays the hotel for our use of the hotel pool and beach.


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## Steve

I hope it turns out better than it has at Aviara.  I am an owner at Four Seasons Aviara and, in addition to the many other negative changes since Hyatt took over management of the hotel, Hyatt has recently cut off all access to the tennis courts that are adjacent to the timeshare units.  There are a lot of very unhappy Four Seasons Aviara owners, and the resale value has plummeted since the split between the hotel and the timeshare resort.

Steve


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## wilma

Looks like the Carmel Highlands Inn hotel was also sold in the deal--


http://www.montereyherald.com/reale...s-inn-sold-florida-company?source=most_viewed


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## flexible

*Hyatt sold to Interval Leisure Group [merged]*

http://www.staradvertiser.com/news/...Corp_sells_residential_unit.html?id=258482481

Hyatt Residential Group, specializing in fractional ownership, or time-share operations, has been sold to Miami-based Interval Leisure Group for $190 million.

The residential operation markets and manages 16 vacation ownership properties in Hawaii, Arizona, California, Colorado, Florida, Nevada, Texas and Puerto Rico.

ILG will acquire Hyatt's interest in a joint venture that owns and is developing a 131-unit Hyatt Ka'anapali Beach timeshare resort on Maui, for which ILG will pay Chicago-based Hyatt an additional $35 million.

As a result of the transactions, ILG will serve as Hyatt's exclusive licensee in vacation ownership.

Following the transaction's closure, Hyatt's management team will continue to operate the businesses under ILG leadership.


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## ra34

Steve said:


> I hope it turns out better than it has at Aviara.  I am an owner at Four Seasons Aviara and, in addition to the many other negative changes since Hyatt took over management of the hotel, Hyatt has recently cut off all access to the tennis courts that are adjacent to the timeshare units.  There are a lot of very unhappy Four Seasons Aviara owners, and the resale value has plummeted since the split between the hotel and the timeshare resort.
> 
> Steve



I don't think it will - this is now becomes a revenue stream for Global Hyatt by charging arbitrary fees for shared use.  You want to use the pool - you must pay!

I am pretty sure that Hyatt charges the Four Seasons Avaria employees to park in "their" garage.


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## GregT

ra34 said:


> I don't think it will - this is now becomes a revenue stream for Global Hyatt by charging arbitrary fees for shared use.  You want to use the pool - you must pay!
> 
> I am pretty sure that Hyatt charges the Four Seasons Avaria employees to park in "their" garage.



I think it is Park Hyatt, not Hyatt, that took over management of Aviara.  Or maybe Parc Hyatt?

Thx


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## lizap

If this is the worst that happens, I will be not pleased, but ok with it.




ra34 said:


> I don't think it will - this is now becomes a revenue stream for Global Hyatt by charging arbitrary fees for shared use.  You want to use the pool - you must pay!
> 
> I am pretty sure that Hyatt charges the Four Seasons Avaria employees to park in "their" garage.


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## optimist

This is very strange timing as I would imagine it will hurt their sales in Maui.  If buyers look carefully at who owns what, I am not sure they would shell out the big bucks for something that should be called Interval Ka'anapali Beach

If we follow the money, then it's bad news for owners and good news for Hyatt and Interval...


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## Beefnot

optimist said:


> This is very strange timing as I would imagine it will hurt their sales in Maui. If buyers look carefully at who owns what, I am not sure they would shell out the big bucks for something that should be called Interval Ka'anapali Beach


 
Who said it should be called anything other than Hyatt?  The Hyatt Residence Club brand remains.


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## cdziuba

As a non-Hyatt owner who loves trading into Hyatts, what is your opinion on the impact of getting Hyatt trades when II takes over Hyatt?  Will it likely be easier or harder to trade into a Hyatt, or will there likely be no impact?

Very interesting turn of events!  Now, if only the DVCs would return to II!


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## Kal

Even more convoluted in Maui is WHO OWNS WHAT? 

The _*Hyatt Regency Maui Resort and Spa*_ is located immediately adjacent to the new time share property. The Hyatt hotel is actually owned by Marriott International, Inc. but Hyatt has a long term lease agreement to brand the hotel structure as "Hyatt".

The time share units are deeded fee simple units where the owner is given title, which includes the land and any improvements to the land in perpetuity. Unlike other HRC deeded units, the buyer owns one week in a specific sized unit. Except for 8-1 BR units which have a "mountain view", all other 123 units have an ocean view. Things get a little complicated because the "owned unit" is in group of units within about 4 floors. The owner does not own a unique numbered unit. This raises the obvious question: 

_"what is the meaning of fee simple when I don't own a legally described unit? Does the deed say - it's up there somewhere?"_

Now throw in the fact that Interval now owns the "Hyatt Residence Club" timeshare facility (exclusive of the groups of fee simple units owned by others). And the owners have "rights" to use the neighbor's pool (Hyatt), where the neighbor doesn't own the pool but rents it from someone else (Marriott).

Oh this definitely looks like an Abbott & Costello "who's on first" situation!


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## Kal

Rumor has it that Interval will place a new person in charge of the HRC.  His name is Charles (something) and he was the President and CEO of a small business transportation enterprise called *"Chuck and a Truck". :whoopie: :ignore:*


----------



## magicjourney

wilma said:


> Looks like the Carmel Highlands Inn hotel was also sold in the deal--
> 
> 
> http://www.montereyherald.com/reale...s-inn-sold-florida-company?source=most_viewed



That's interesting. So the hotel rooms will be converted to timeshare units?


----------



## magicjourney

Kal said:


> Rumor has it that Interval will place a new person in charge of the HRC.  His name is Charles (something) and he was the President and CEO of a small business transportation enterprise called *"Chuck and a Truck". :whoopie: :ignore:*



huh, pack well and ship safely. No wonder why II bring him in. That's guess where hyatt's next destination is.


----------



## tschwa2

cdziuba said:


> As a non-Hyatt owner who loves trading into Hyatts, what is your opinion on the impact of getting Hyatt trades when II takes over Hyatt?  Will it likely be easier or harder to trade into a Hyatt, or will there likely be no impact?



My feeling is that it won't be easier or harder to exchange into Hyatt through II but excess inventory may be available as Getaways (and not necessarily cheap) instead of Hyatt.com.

Interval's parent company took over Trading Places (which is both a management company and an exchange company) and VRI which is also a management company that operates an exchange.  VRI and Trading places used reciprocal inventory even before the acquisitions but I haven't really noticed an influx in inventory from either of those groups into II.  They all seem to be operating fairly independently


----------



## Kal

Looking ahead, the Hyatt brand has always provided resort developers with the assurance of a good marketing partner in funding and developing a new resort.  If I was a developer I would be very comfortable in teaming with a strong player in the hospitality industry who had a proven track record.  I'm not so sure Interval is viewed in the same light.  They may be in the hospitality industry, but nothing like Hyatt Corp.

 Thus the potential impact will be slow development of new resorts to add to the HRC list of current properties.  But then again, Hyatt didn't set the industry on fire in new time share properties.  They clearly moved to the very high end residences.

 All in all, it was more that the HRC subsidiary didn't generate the profit level (and growth) that Hyatt enjoys with all its other subsidiaries.


----------



## lizap

Given that HRC didn't generate the profit level that Hyatt wanted/needed, I still don't get what contribution HRC can make to II's mission and strategic plan.  Seems that II is venturing into an area beyond its core business..  Only time will tell, but this could potentially be a very bad move on II's part, in which case, HRC could end up being sold again down the road.  Wonder how the acquisition was financed?


QUOTE=Kal;1624626]Looking ahead, the Hyatt brand has always provided resort developers with the assurance of a good marketing partner in funding and developing a new resort.  If I was a developer I would be very comfortable in teaming with a strong player in the hospitality industry who had a proven track record.  I'm not so sure Interval is viewed in the same light.  They may be in the hospitality industry, but nothing like Hyatt Corp.

 Thus the potential impact will be slow development of new resorts to add to the HRC list of current properties.  But then again, Hyatt didn't set the industry on fire in new time share properties.  They clearly moved to the very high end residences.

 All in all, it was more that the HRC subsidiary didn't generate the profit level (and growth) that Hyatt enjoys with all its other subsidiaries.[/QUOTE]


----------



## Sullco2

I'm surprised no one has commented that Hyatt is simply
running away from an industry that is in its death throes. I've been in and around the ts biz for  3 decades and have watched it strangle itself. From the bull____ points programs to its ignoring the resale tsunami the industry will go down in business school textbooks as one of the stupidest in history. I can almost hear the Pritzkers sighing in relief from here.


----------



## lizap

I believe I read that Marriott's TS business is doing quite well..




Sullco2 said:


> I'm surprised no one has commented that Hyatt is simply
> running away from an industry that is in its death throes. I've been in and around the ts biz for  3 decades and have watched it strangle itself. From the bull____ points programs to its ignoring the resale tsunami the industry will go down in business school textbooks as one of the stupidest in history. I can almost hear the Pritzkers sighing in relief from here.


----------



## sjsharkie

Sullco2 said:


> I'm surprised no one has commented that Hyatt is simply
> running away from an industry that is in its death throes. I've been in and around the ts biz for  3 decades and have watched it strangle itself. From the bull____ points programs to its ignoring the resale tsunami the industry will go down in business school textbooks as one of the stupidest in history. I can almost hear the Pritzkers sighing in relief from here.



What planet are you on?

MVCI has tripled in value in less than 3 years since the spinoff.  I don't like points programs, but Marriott and others seem to have done quite well.  Like any sector with competition, some do well and some don't.  Hyatt felt things weren't profitable enough to continue.

Predicting that the timeshare concept will die is one thing.  Saying it is in its death throes is just ignoring reality.

-ryan


----------



## bdh

Sullco2 said:


> I'm surprised no one has commented that Hyatt is simply running away from an industry that is in its death throes. I've been in and around the ts biz for  3 decades and have watched it strangle itself. From the bull____ points programs to its ignoring the resale tsunami the industry will go down in business school textbooks as one of the stupidest in history. I can almost hear the Pritzkers sighing in relief from here.



Don't mean to pile on, but....

Probably because the TS world/system isn't just ready to go extinct as you predict. There are definitely some TS entities/properties that will/should die on the vine, however there are some that are alive, well and profitable (even in a soft economy). While the points systems of today aren't viewed by the old time TS folks as desirable, the noise from the cash register doesn't sound like BS to Team Marriott. 

No doubt they are cheering at Camp Pritzkers - but its not sighs of relief, its because they made a great sale of a development program/concept while retaining a revenue stream from the Hyatt name/HRC properties. Hyatt had very little ownership/money in the HRC properties - the mature properties are obviously owned by individual deeded owners and the new properties are funded more by developer money than Hyatt money. So ILG pays $190 mil for the HRG development program/concept, but gets just about no property (ILG paid an additional $35 mil for the Maui property) and ILG pays Hyatt a continual licensing fee to use the Hyatt name moving forward.


----------



## lizap

Had a chance to look at some of Interval Leisure Group's financial information this morning.   Interestingly ILG's recent financial data shows exchange/membership revenue declining but revenue from Aston/Aqua hotels and VRI in Europe increasing.  I would imagine this accounted for a large part of the motivation to acquire HRC.  It concerns me that ILG has a relatively high debt to equity ratio, and that is from data prior to the acquisition.  It is certainly possible that HRC could be sold again down the road if ILG needs an infusion of capital.  This (current acquisition) is probably a good move for the Hyatt Corp. as they receive capital, will receive yearly fees from managing the resorts, and allows them to more closely focus on their core hotel business.  Remains to be seen if it was a good move for ILG or resort owners..


----------



## gemsfw

This will not increase availability at the Park City property. The owners own a complete full ownership of each unit. The resort is totally sold out. The owners have a management contract with Hyatt hotels were Hyatt will rent their properties out and give them a percentage of the revenue or they may put it in the timeshare system and get the timeshare points based on the week number (same as Colorado resorts). These owners can get way more money renting out their units as Hyatt hotel suites than getting timeshare points. These owners get huge money during ski season and during Sundance film festival. The owners did not even consider the timeshare points as a good option. Check the rates charged by Hyatt Park City and you will see why it is a no brainer why they choose the money? I looked at purchasing a two bedroom unit two years ago and talked to three owners and the onsite Hyatt manager during my research.


----------



## lizap

Yet, there is availability at the Colorado resorts during off-peak times.  How is Park City different?






gemsfw said:


> This will not increase availability at the Park City property. The owners own a complete full ownership of each unit. The resort is totally sold out. The owners have a management contract with Hyatt hotels were Hyatt will rent their properties out and give them a percentage of the revenue or they may put it in the timeshare system and get the timeshare points based on the week number (same as Colorado resorts). These owners can get way more money renting out their units as Hyatt hotel suites than getting timeshare points. These owners get huge money during ski season and during Sundance film festival. The owners did not even consider the timeshare points as a good option. Check the rates charged by Hyatt Park City and you will see why it is a no brainer why they choose the money? I looked at purchasing a two bedroom unit two years ago and talked to three owners and the onsite Hyatt manager during my research.


----------



## pedro47

How will this impact II members who would like to exchange into Hyatt ?


----------



## gemsfw

The park city owners control their own individual property. Hyatt does not have option of putting extra inventory into the residence club system. The park city owners leave it in the rental pool and make way more money. During ski season they rent it out a two bedroom for $1300 a night. I would rather get the owners percentage of $7000 for a week then 2000 points. Even during the off season they get conventions which bring pretty good money as opposed to the low points offered by Hyatt. Plus Hyatt gives an incentive to the owners to keep in the hyatt hotel rental pool by increasing the payout percentage based on increased weeks put into rental pool. The colorado resorts are controlled by hyatt.


----------



## lizap

My guess is no change.




pedro47 said:


> How will this impact II members who would like to exchange into Hyatt ?


----------



## bdh

lizap said:


> Yet, there is availability at the Colorado resorts during off-peak times.  How is Park City different?



We're mixing apples and oranges with Colorado HRC and Park City.  

Colorado HRC properties are fractional (each owner has a deeded week & 10 floating days) and the owners/units are part of The Club by default - a week is in HRPP for the owner's use for 6 months - if the week is not used by the owner after 6 months, the week automatically rolls to CUP and is available for all Club member use/reservation.  Since the vast majority of owners don't use their floating days, there's typically lots of inventory that rolls to CUP and becomes available to Club members.  

PC is whole ownership and the owner may elect to deposit one of the 52 weeks they own into The Club so that the owner can then exchange into a different HRC property.  So if a PC doesn't elect to deposit one of their weeks into The Club, there is no inventory for Club members to trade for.  Typically PC owners don't use the Club for exchanges, so there is never any PC units available for Club members.  FWIW  The Blue in Miami is a similar whole ownership and that's why there isn't much availability there. 

Note that the only inventory that Hyatt controls at any of the 16 HRC properties are units that have not been sold to individual owners.  IE:  Main Street in Breck is sold out - so there are no developer/Hyatt weeks that can enter the HRC exchange system as they don't own any weeks at that property.


----------



## lizap

Is it possible for II to sell the unsold units (if there are any) at PC as fractionals, like the Col. Resorts?  Seems like that might be something they might be interested in doing.




bdh said:


> We're mixing apples and oranges with Colorado HRC and Park City.
> 
> Colorado HRC properties are fractional (each owner has a deeded week & 10 floating days) and the owners/units are part of The Club by default - a week is in HRPP for the owner's use for 6 months - if the week is not used by the owner after 6 months, the week automatically rolls to CUP and is available for all Club member use/reservation.  Since the vast majority of owners don't use their floating days, there's typically lots of inventory that rolls to CUP and becomes available to Club members.
> 
> PC is whole ownership and the owner may elect to deposit one of the 52 weeks they own into The Club so that the owner can then exchange into a different HRC property.  So if a PC doesn't elect to deposit one of their weeks into The Club, there is no inventory for Club members to trade for.  Typically PC owners don't use the Club for exchanges, so there is never any PC units available for Club members.  FWIW  The Blue in Miami is a similar whole ownership and that's why there isn't much availability there.
> 
> Note that the only inventory that Hyatt controls at any of the 16 HRC properties are units that have not been sold to individual owners.  IE:  Main Street in Breck is sold out - so there are no developer/Hyatt weeks that can enter the HRC exchange system as they don't own any weeks at that property.


----------



## SunandFun83

*Future Development and Sales?  What changes?*

Hyatt has several properties that are actively selling and have room for development.  Windward Point, Wild Oak, Highlands and Pinon Point have been offering the low price tours and sales pitch for several years.  Hawaii is new.  coconut Plantation has only built three buildings out of 14 planned.

How does this sale to II change the ability to build out and sell the existing properties?  

I am hoping that Hyatt/II will invest and build out four to six more buildings at Coconut Plantation ( I own and rent several weeks).  This will make the resort more sustainable with more activities, more units sharing management costs, even more people around the pool and golf course.

Any idea if the Hyatt brand will be expanded into some of the on-hold properties like New York?


----------



## lizap

If it's done, II will do it, not Hyatt, as Hyatt will no longer have ownership interest.  But from looking at how leveraged II is, any expansion appears to be quite a ways out.





SunandFun83 said:


> Hyatt has several properties that are actively selling and have room for development.  Windward Point, Wild Oak, Highlands and Pinon Point have been offering the low price tours and sales pitch for several years.  Hawaii is new.  coconut Plantation has only built three buildings out of 14 planned.
> 
> How does this sale to II change the ability to build out and sell the existing properties?
> 
> I am hoping that Hyatt/II will invest and build out four to six more buildings at Coconut Plantation ( I own and rent several weeks).  This will make the resort more sustainable with more activities, more units sharing management costs, even more people around the pool and golf course.
> 
> Any idea if the Hyatt brand will be expanded into some of the on-hold properties like New York?


----------



## bdh

lizap said:


> Is it possible for II to sell the unsold units (if there are any) at PC as fractionals, like the Col. Resorts?  Seems like that might be something they might be interested in doing.



I think PC has been sold out as whole ownership - if there are a few left, I would not expect them to be sold as fractional.


----------



## bdh

SunandFun83 said:


> How does this sale to II change the ability to build out and sell the existing properties?
> 
> I am hoping that Hyatt/II will invest and build out four to six more buildings at Coconut Plantation ( I own and rent several weeks).  This will make the resort more sustainable with more activities, more units sharing management costs, even more people around the pool and golf course.
> 
> Any idea if the Hyatt brand will be expanded into some of the on-hold properties like New York?



I doubt it would change the on going sales efforts of existing units at the various properties.  If one believes the inference in the ILG/HRG press release, ILG will develop additional Hyatt properties - expect that could mean the additional planned units at CP and WO as well as un-named new properties supposedly sitting on the shelf.  I haven't seen any mention of the NYC Andaz property in the ILG/HRG transaction - so I would not expect it to be an ILG property.


----------



## lizap

Would be interesting to hear from someone that owns at one of these resorts to get their perspective..perhaps there are stipulations that prohibit fractionals from being sold from unsold inventory. I believe this would apply to SK as well..



bdh said:


> I think PC has been sold out as whole ownership - if there are a few left, I would not expect them to be sold as fractional.


----------



## Sullco2

All right--based on its value proposition to consumers, which is the only measure by which I am evaluating the timeshare industry, it should be in its death throes.

If most of you are waving the flag of how well the companies and/or shareholders are doing, then the Kool Aid has successfully flowed.  

I suppose one could look back in history and cite GM's profitably when it was putting the Corvair on America's highways and burning people to a crisp with its terribly unsafe design.

If the bottom line is your only criterion, then robber barons should all be enshrined in the business school hallways.  Are they?

I loved the timeshare concept when it began and entered the industry wholeheartedly.  It has since deteriorated into a shameful flim flam and the early promise of letting the little guy live high (affordably and confidently) for a week or so on vacation has disappeared.

One has only to scan the comments throughout tug's many pages to see what educated consumers really think of the shenanigans the industry continues to foist on the public.

Of course I gather that it's all in how you measure "success."


----------



## bdh

Sullco2 said:


> All right--based on its value proposition to consumers, which is the only measure by which I am evaluating the timeshare industry,* it should be* in its death throes.



And yet, somehow the industry continues - no doubt the industry is wrong and you are correct.



Sullco2 said:


> If most of you are waving the flag of how well the companies and/or shareholders are doing, then the Kool Aid has successfully flowed.
> 
> I suppose one could look back in history and cite GM's profitably when it was putting the Corvair on America's highways and burning people to a crisp with its terribly unsafe design.
> 
> If the bottom line is your only criterion, then robber barons should all be enshrined in the business school hallways.  Are they?
> 
> I loved the timeshare concept when it began and entered the industry wholeheartedly.  It has since deteriorated into a shameful flim flam and the early promise of letting the little guy live high (affordably and confidently) for a week or so on vacation has disappeared.
> 
> One has only to scan the comments throughout tug's many pages to see what educated consumers really think of the shenanigans the industry continues to foist on the public.
> 
> Of course I gather that it's all in how you measure "success."



Not sure the mixed bag of metaphors is germane to the ILG/HRG sales topic.  It's unfortunate that you're unhappy with your ownership, however TUG  includes pages of owners that enjoy the TS product they own and use.

Wish you well - take care.


----------



## Sullco2

Aha, I am not remotely unhappy with buying a prime time Boston week for $500. For all the right reasons--ability to break up the week in particular. But the Boston hotel prices make it work despite mfs. Extraordinarily rare circumstance.

I am still waiting for the average owner's perspective of the "success" of the industry from their perspective.


----------



## magicjourney

Sullco2 said:


> Aha, I am not remotely unhappy with buying a prime time Boston week for $500. For all the right reasons--ability to break up the week in particular. But the Boston hotel prices make it work despite mfs. Extraordinarily rare circumstance.
> 
> I am still waiting for the average owner's perspective of the "success" of the industry from their perspective.



Sorry, I don't get your rationale for bashing timeshare system, and I don't understand your example either. If you think it make sense to buy Marriott Custom House, most Hyatt properties are just superior, less MFs, higher price tag for cash reservation, and can be broken up to 2, 3, 4 days booking.


----------



## Sullco2

This will be my last post on the topic.

Buying timeshare makes sense when it's a place you want badly to come back to, the price is right (in my case, $500 on resale for a week that sold for $20,000 retail), you can trust the management company, and there is no competition in the area.

For our family with small grandkids on Cape Cod, the short stay in the city of Boston is a great treat.  Dividing the mfs by the number of nights yields a better deal than hotels and gets you a unique downtown spot.  

Plus it gets II membership with Getaways that can add value. Why the Getaways are available at all, plus why the rental inventory is available just begins to uncover the flim flam in the industry's use of owners' inventory.

In addition to that inventory reference, here's more on the bashing part:  Someone paid $20,000 for this Marriott product and sold it to me for $500.  so much for "You own it and can resell it."  And don't bother me with the "It's only Right to Use in Boston" argument.  The lease has decades more to run.

Ask most long time MVCI owners how they feel about the new points system and they will tell you  it's a Marriott scheme to force owners to spend money again.

The vast majority of timeshare companies, with Wyndham almost certainly at the top of the list, sell their products with absolutely no regard for the truth about how it works in reality.  The points systems that prevail were created to instill phony value in off season weeks, of which most resort areas have many many.  

The points system also exists to get people into an entry level ownership in the day of the tour, despite the fact that they won't be able to use the tiny package at all and will throw more money into it down the road to try to get some value from "ownership."

I find it impossible to believe that people on TUG are giving the industry a free pass because the industry makes money.  Where is the outrage about the ethical nether world that the companies inhabit?

Hyatt is certainly trying to salvage their reputation by getting out of the trenches and being "just the management company."  While I believe Hyatt is the best of all timeshare systems, that's faint praise and that doesn't mean it hasn't been sullied with the reputation of the industry at large.

The industry has spawned some of the most criminal businesses around--from their own captive Shylock financing arms to postcard companies to travel clubs to you name it--their trade groups have done nothing really to stop these spinoffs.

I am done now and won't be responding further.  Thank you.


----------



## tahoeJoe

*So true....*



Sullco2 said:


> Ask most long time MVCI owners how they feel about the new points system and they will tell you  it's a Marriott scheme to force owners to spend money again.



As a Marriott owner I completely agree. The Marriott DC is/was a scam and most legacy owners I talk to don't like it. 



Sullco2 said:


> The points systems that prevail were created to instill phony value in off season weeks, of which most resort areas have many many.



Yes, Yes Yes!!!     I don't know why more people don't recognize this.  All points (i.e. summer points vs mud-season points) are NOT created equal BUT they all carry the same price tag. At least in Marriott, not in Hyatt so much.  



Sullco2 said:


> The points system also exists to get people into an entry level ownership in the day of the tour, despite the fact that they won't be able to use the tiny package at all and will throw more money into it down the road to try to get some value from "ownership."



So true, I have several friends who got suckered by this tactic. 



Sullco2 said:


> I find it impossible to believe that people on TUG are giving the industry a free pass because the industry makes money.  Where is the outrage about the ethical nether world that the companies inhabit?



This is the most perplexing issue of all you raised. I don't understand all the TUG lap dogs. When a company like Marriott or Wyndham pulls a fast one why not call them out?

All of the aforementioned being said, the Hyatt point system is tied to an actual deeded week on an actual unit. So lower point value weeks carry a much lower price tag, this is true in Hyatt and Hilton. The cost of points are NOT all the same in these systems.


----------



## Kal

tahoeJoe said:


> ...the Hyatt point system is tied to an actual deeded week on an actual unit. So lower point value weeks carry a much lower price tag, this is true in Hyatt and Hilton. The cost of points are NOT all the same in these systems.



True, Hyatt has been a value on the deeded unit ownership, up until Maui. In Maui, a person "owns" a given size unit, but the unit is one of many grouped on about 4 floors of the building. Kinda like fruit salad. YOU get a salad, but you don't get an apple, or banana or a strawberry.

Maui also is unique in that ALL weeks are Diamond weeks just because it's Maui. But then every week is priced different which actually says not all weeks are the same. I suspect the owners win on that one. Some 2200 point weeks exceed $100K while other 2200 point weeks are about $70K. The cheap 2200 point purchase still trades the same as the high priced week.

However, getting back to the point, paying $100K for 7 days frames up the time share industry. Me thinks the industry is not quite yet in "death throes" as Maui will most certainly sell out within 3 years. Matter of fact, in early April Hyatt had $1 million in Maui sales in ONE DAY.

Hmmmm, what did P.T. Barnum have to say about this?  

_As footnote, if this is so good, why did Hyatt bail out?_


----------



## tahoeJoe

Kal said:


> _As footnote, if this is so good, why did Hyatt bail out?_



That is the $190 million question. My guess is, and this is PURE SPECULATION, Hyatt Corp was looking for quick cash to boost quarterly, or annual earnings. Often CEO compensation is tied to stock price or earnings and this sale could boost some high level executives bonuses. Plus, timeshare was never part of their core business plan. 

Since Hyatt went public a few years ago I have noticed a huge shift in their corporate philosophy. Although it was never articulated, it appears Hyatt is much more profit driven than customer service driven. It is a shame because I used to like staying in Hyatt hotels. Not anymore, I almost never stay in them these days. Hyatt hotels loss is Marriott's and Starwood's gain.


----------



## vacationtime1

Kal said:


> *As footnote, if this is so good, why did Hyatt bail out?*




Hey, guys; this isn't about us.  It isn't even about timeshares.

The Pritzker family is reorganizing its corporate operations.  There has been a lot in the financial press about it over the last couple of months; here's one example (I have read other articles but this is what I just found in a quick Google search):  http://www.chicagobusiness.com/article/20030304/NEWS01/20008096/pritzkers-restructure-hyatt-empire

It may or may not result in an IPO and it may or may not have to do with various family members wanting more liquidity to allow more financial separation from other family members.  But Hyatt's timeshare operations are a very small part of the reorganization and certainly not its cause.


----------



## wilma

vacationtime1 said:


> Hey, guys; this isn't about us.  It isn't even about timeshares.
> 
> The Pritzker family is reorganizing its corporate operations.  There has been a lot in the financial press about it over the last couple of months; here's one example (I have read other articles but this is what I just found in a quick Google search):  http://www.chicagobusiness.com/article/20030304/NEWS01/20008096/pritzkers-restructure-hyatt-empire
> 
> It may or may not result in an IPO and it may or may not have to do with various family members wanting more liquidity to allow more financial separation from other family members.  But Hyatt's timeshare operations are a very small part of the reorganization and certainly not its cause.



Not sure I understand your comment and the link is to a very old (2003) article. Hyatt already went public in 2009.


----------



## vacationtime1

wilma said:


> Not sure I understand your comment and the link is to a very old (2003) article. Hyatt already went public in 2009.



Sorry about the old link; here is a newer one on the same subject: 
http://online.wsj.com/news/articles/SB10001424052702304281004579220162619539146

My intent was to respond to the comments by Kal and TahoeJoe as to "why" Hyatt sold off its timeshare business -- they did it to raise cash.


----------



## tahoeJoe

*Will Interval ....*

Now that Interval International (II) will soon be the new owner of Hyatt Res Club, I wonder if II will allow Hyatt owners to trade their CUP or LCUP points THROUGH II  for stays at Hyatt properties? 

If allowed, a Hyatt owner could trade 1300 points through II for a week in a 2-bedroom at Hyatt which would cost 1880, 2000 or even 2200 points through Hyatt's internal system. 

Hilton Grand Vac Club allows this with RCI. Although the exchange fee is higher, an owner could save a lot of points. I hope II does the same.


----------



## Kal

tahoeJoe said:


> ...If allowed, a Hyatt owner could trade 1300 points through II for a week in a 2-bedroom at Hyatt which would cost 1880, 2000 or even 2200 points through Hyatt's internal system...


 
 I'm not sure whether to file this under "Free Lunch" or "Santa Claus".

 Remember, the former HRC regime is still in place.


----------



## tahoeJoe

Kal said:


> I'm not sure whether to file this under "Free Lunch" or "Santa Claus".
> 
> Remember, the former HRC regime is still in place.



Yes, but this change would generate more revenue for II. Theoretically, if an owner does an internal Hyatt trade, II gets nothing, nada, zip. If an owner trades through II, regardless of where they trade to, then II makes at least  $184 per transaction. Why would II care where an owner trades to as long as it is available. 

As for the old regime, are they still calling the shots? I thought they were just collecting a licensing fee from Hyatt owner who already paid for that.


----------



## Kal

Actually, there would be more availability if a HRC owner cannot trade back into the HRC.  More HRC points are consumed as is thereby freeing up more units than if HRC owners traded back in using fewer points.

 The previous HRC management structure is still in place.  The only change is the parent.  The only question would be cash flow.  Will Interval be satisfied with the current profits from the HRC or will they want more.  However, like any purchase of a new asset, Interval will probably want to place some of their people into the HRC Management structure.  Most certainly they would not want to harm that cash cow with newbies.


----------



## tahoeJoe

Kal said:


> Actually, there would be more availability if a HRC owner cannot trade back into the HRC.  More HRC points are consumed as is thereby freeing up more units than if HRC owners traded back in using fewer points.



Yeah maybe, tell this to the Hyatt suits who changes the point structure at Highlands Inn. I'm sure they were concerned about that. :annoyed:


----------



## scsu_hockey_fan

tahoeJoe said:


> Yes, but this change would generate more revenue for II. Theoretically, if an owner does an internal Hyatt trade, II gets nothing, nada, zip. If an owner trades through II, regardless of where they trade to, then II makes at least  $184 per transaction. Why would II care where an owner trades to as long as it is available.
> 
> As for the old regime, are they still calling the shots? I thought they were just collecting a licensing fee from Hyatt owner who already paid for that.



I do not remember the exact numbers, but the interval membership fee is build into the Hyatt maintenance fee from what i was told. That means everyone pays the interval membership whether they use interval or not.  Lets just say it was $100, and there are about 30,000 owners.  That's a nice chuck of change. I can't see them changing anything.


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## scsu_hockey_fan

tahoeJoe said:


> Yes, but this change would generate more revenue for II. Theoretically, if an owner does an internal Hyatt trade, II gets nothing, nada, zip. If an owner trades through II, regardless of where they trade to, then II makes at least  $184 per transaction. Why would II care where an owner trades to as long as it is available.
> 
> As for the old regime, are they still calling the shots? I thought they were just collecting a licensing fee from Hyatt owner who already paid for that.



For a hyatt internal trade under the ownership of interval, why would interval NOT get the $ reservation fee$ that is now in place???? They would be getting something....


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## ivywag

*It's official*

Interval did a press release today announcing that the sale closed and that Hyatt will receive a fee from Interval for the use of the HRC name.  It also said that we will maintain our Gold Passport privileges.  I googled "Hyatt Interval Sale" looking for info and it showed up.


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## ivywag

*Here's the release*

Interval Leisure Group Completes Acquisition of Hyatt Residential Group
By Business Wire,  October 01, 2014, 04:05:00 PM EDT
Vote up AAA



MIAMI & CHICAGO--(BUSINESS WIRE)-- Interval Leisure Group ("ILG") (NASDAQ:IILG), a leading global provider of non-traditional lodging across a broad spectrum of the vacation industry, has completed the previously announced acquisition of Hyatt Residential Group from affiliates of Hyatt Hotels Corporation ("Hyatt") (NYSE:H), a leading global hospitality company. The purchase price of approximately $220 million includes Hyatt's interest in a joint venture that owns and is developing Hyatt Ka'anapali Beach, a 131-unit shared ownership property in Maui. In connection with the acquisition, a subsidiary of ILG has entered into a global Master License Agreement with respect to the exclusive use of the Hyatt brand in shared ownership.

Under the terms of the global Master License Agreement, Hyatt will receive annual license fees and the Hyatt Residence Club and 16 existing shared ownership resorts will retain the Hyatt Residence Club brand. The approximately 30,000 Hyatt Residence Club owners will continue to receive all privileges currently associated with their memberships, including Hyatt Gold Passport benefits.

About Interval Leisure Group

Interval Leisure Group (ILG) is a leading global provider of non-traditional lodging, encompassing a portfolio of travel, leisure, membership, exchange, resort management, and rental businesses. Interval InternationalandTrading Places International (TPI) offer exchange and travel-related products to more than 2 million member families worldwide. Under license from Hyatt, Hyatt Vacation Ownership markets and manages shared ownership properties and operates Hyatt Residence Club. Vacation Resorts International, VRI Europe, and TPI offer timeshare resort, homeowners' association, and club management services, while Aston Hotels & Resorts and Aqua Hospitality provide hotel and condominium rentals and resort management. Headquartered in Miami, Florida, ILG has offices in 16 countries and nearly 6,000 employees. For more information, visit www.iilg.com.

About Hyatt Hotels Corporation

Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company with a proud heritage of making guests feel more than welcome. Thousands of members of the Hyatt family strive to make a difference in the lives of the guests they encounter every day by providing authentic hospitality. The Company's subsidiaries manage, franchise, license, own and develop hotels, resorts, branded residences and vacation ownership properties under the Hyatt®, Park Hyatt®, Andaz®, Grand Hyatt®, Hyatt Regency®, Hyatt Place®,Hyatt House®,Hyatt Zilara™,Hyatt Ziva™, Hyatt Residences® and Hyatt Residence Club®brand names and have locations on six continents. As of June 30, 2014, the Company's worldwide portfolio consisted of 563 properties in 48 countries. For more information, please visit www.hyatt.com.



Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20141001006619/en/

Source: Interval Leisure Group and Hyatt Hotels Corporation



This article appears in: News Headlines

Referenced Stocks: H, IILG




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Read more: http://www.nasdaq.com/press-release...esidential-group-20141001-01177#ixzz3F3f0GPvJ


----------



## tahoeJoe

ivywag said:


> Interval Leisure Group Completes Acquisition of Hyatt Residential Group
> By Business Wire,  October 01, 2014, 04:05:00 PM EDT
> Vote up AAA
> 
> Source: Interval Leisure Group and Hyatt Hotels Corporation
> 
> This article appears in: News Headlines




Hmm.......good news?! 

It will be interesting to see when all those "new resorts" that II will bring into the Hyatt system will materialize.


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