# Hyatt owner's update - Hyatt Trust?



## peas (Jul 8, 2016)

I went to an owner's update for the first time in a few years, and it was way more interesting than I ever imagined.

The sales person announced that Hyatt would be creating a trust system.
Curious if anyone knew about this.  They said it'd start around the end of this year. 

FYI - They also offered to "make whole" (hyatt language for "qualify" in Starwood speak) our resale week if we bought a developer week.  The minimum purchase was $12,500 purchase per each week we make whole.  12,500 could buy us a EOY 1100 pt week.

I thought about the trust system, and I can see how deeded owners with high MF would want to go into a trust to keep fees lower if they never used the deeded week they bought.  For those owners, whether in trust or in current system, they don't get home resort priority once they give up their deeded week, so I can see how this trust would be attractive to them.

Either way, I am sad if this news is true.  I'm guessing it would split inventory into 2 buckets, and owners stuck with less inventory/options.  

I don't have more details.  The sales rep had fuzzy language that I couldn't follow.


----------



## LurkerBee (Jul 8, 2016)

Well, I guess that explains why so many posts of hyatts not passing ROFR. I guess I won't hold my breath that mine will.

Edit to add: There is a post on the Starwood forum with some references to new access to Hyatt. I'm kind of putting them both together and reading between the lines. http://www.tugbbs.com/forums/showthread.php?t=243789


----------



## peas (Jul 8, 2016)

LurkerBee said:


> Edit to add: There is a post on the Starwood forum with some references to new access to Hyatt. I'm kind of putting them both together and reading between the lines. http://www.tugbbs.com/forums/showthread.php?t=243789



Thanks for the link.  It makes sense.  I didn't bother writing that the sales person said there's 6? properties coming online but didn't know what those properties would be.  I just ignored this comment since this is a common promise; however given the Starwood thread, I'm guessing it's a reference to the VSE properties.  The flex program seems to be the same timeframe as the hyatt trust program coming online.


I wasn't 100% sure when I wrote the above if she said 6 resorts coming online.  After reading the flex FAQ on the Starwood board, it makes me feel more certain that the 6 properties are the properties in Flex points.


----------



## LurkerBee (Jul 8, 2016)

Yes, I think that taken together, these two reports of recent owners updates suggest that big changes are coming since the sale of both systems. 

And that I'm not going to get my 2200 pt Hyatt week *sob*


----------



## bizaro86 (Jul 8, 2016)

The ILG conference call a few months ago told wall street they wete working on a "pure points" program, so this isn't just salespeak.


----------



## Tucsonadventurer (Jul 8, 2016)

We got an offer for 3 nights at Hyatt Pinon Pointe for $240 in a 2 bedroom, and of course we will need to attend  a presentation for owners. i was wondering what was up as I am assuming they are going to be introducing something new.


----------



## bdh (Jul 9, 2016)

peas said:


> I went to an owner's update for the first time in a few years, and it was way more interesting than I ever imagined.
> 
> The sales person announced that Hyatt would be creating a trust system.
> Curious if anyone knew about this.  They said it'd start around the end of this year.
> ...



Would be interesting to see what the "benefits" would be for a deeded HRC owner to have their resale week "made whole".  IE: the only thing a resale HRC owner can't do is exchange their TS week into Gold Passport Points - as noted a multitude of times in previous threads, the loss of the ability to trade a week in a TS unit for 3-7 days in a hotel room is not much of a loss.  

If being "made whole" is THE selling point for the points program, it would be extremely surprising if many resale HRC owners would be enticed to spend $12.5K for 1100 of EOY HRC points.  There has be some other benefit to motivate current resale owners to spend more money.  

Will be fun to watch it all unfold.


----------



## heathpack (Jul 9, 2016)

bdh said:


> Would be interesting to see what the "benefits" would be for a deeded HRC owner to have their resale week "made whole".  IE: the only thing a resale HRC owner can't do is exchange their TS week into Gold Passport Points - as noted a multitude of times in previous threads, the loss of the ability to trade a week in a TS unit for 3-7 days in a hotel room is not much of a loss.
> 
> If being "made whole" is THE selling point for the points program, it would be extremely surprising if many resale HRC owners would be enticed to spend $12.5K for 1100 of EOY HRC points.  There has be some other benefit to motivate current resale owners to spend more money.
> 
> Will be fun to watch it all unfold.



I'm sure that being made whole is going to mean being allowed to access the new pure points inventory, which you can bet they will not allow legacy owners to access.

Hyatt will start selling points, the new members will be able to access the inventory of the new points resorts, plus the inventory deposited into club use by the old owners who buy in to the new system.  

Old owners who do not buy in will likely continue to operate in the same manner as always, albeit with reduced availability of units in the pool they can access for club use.

If Hyatt owns enough inventory outright, they might require that we old owners purchase a unit from them again in order to participate in the system.  If they don't, they will likely let us in for a fee of some sort.

My guess is they will offer the pure points side some perks over the rest of us, as invective to buy.  Something like the ability to borrow and bank points into future years. And/or the ability to book 2-3 years out in Interval, rather than 12 months. The former would give points members a significant booking advantage over we current owners.

It's going to be interesting.  I'm glad that we like our underlying week well enough because who knows how easy it will be to use the Hyatt system down the road.

Also interesting for us is that we own Starwood as well.  They are doing this points thing too...


----------



## Kal (Jul 9, 2016)

It's easy to see that Hyatt is using a new mechanism to attract new buyers. A "Total Points Program" could have new benefits not available to existing owners. Those new benefits might encourage an existing owner to transfer ownership into the Points Program, but at what cost? A number in the range of $12K would have to have MAJOR cost benefits.

However, the success of the new program is to have significant units available in that "bucket". The way to make that work is:

- ROFR acquisitions by Hyatt 
- existing owners transferring into the Points Program
- purchase of units from Hyatt's inventory

The ROFR option is interesting as who is the owner of that unit? If Hyatt owns the unit to create points to sell, then Hyatt would be responsible for the annual MFs. Think about occupancy issues. If all those related points are not consumed, Hyatt is still responsible for the associated MFs. It would be hard to believe that Hyatt would want to get into the MF payment business like the rest of us.

 Then there is the thorny issue of deeded ownership!


----------



## peas (Jul 9, 2016)

bdh said:


> If being "made whole" is THE selling point for the points program, it would be extremely surprising if many resale HRC owners would be enticed to spend $12.5K for 1100 of EOY HRC points.  There has be some other benefit to motivate current resale owners to spend more money.



At his point, the only benefit given to us was the ability to convert to Hyatt Passport points.  They kept emphasizing what our passport points could get us.  I am not sure if they were saying in subtext or if I was inferring too much the possibility of our resale weeks being prohibited from some type of offer when the trust rolls out.  

I think the biggest incentive for someone like aspen or HI owner to convert their deeded week into trust is the promise that MF would be lower due to an averaged MF.  however, this would only apply to those owners who don't care about fixed weeks.



heathpack said:


> I'm sure that being made whole is going to mean being allowed to access the new pure points inventory, which you can bet they will not allow legacy owners to access.
> 
> Also interesting for us is that we own Starwood as well.  They are doing this points thing too...



I am guessing that that being made whole later on (not for us now since the trust doesn't exist) may possibly mean taking our deeded resale week and making it whole + putting it into the trust to give trust access.  I was looking through the starwood board, and I was looking for a 1x offer for VSE owners to buy into the trust like Marriott did for DC Points.  I couldn't find a tread like that which makes me think that it didn't happen.  I'm looking to see how they rolled out the Flex trust program to see how they would roll out the Hyatt trust.  It seems like the only way starwood owners could go access to trust is only by buying the points from developer.  Correct?  Or was there some qualification offer involved to get into the flex program?


Btw, Wild Oak Ranch will be building out a new pair of buildings.  It's not a surprise since the grounds had been under construction for some time and there's been a lot of activity in the area for the past 2 years.  So I guess there will be a lot of trust availability for the hyatts in active sales -- in particular WOR.   Sales at WOR are excited because she says there hasn't been diamond availability to sell for the last 2 years and now they're preselling diamonds and platinums for some units in the new building.


----------



## heathpack (Jul 10, 2016)

peas said:


> I'm looking to see how they rolled out the Flex trust program to see how they would roll out the Hyatt trust.  It seems like the only way starwood owners could go access to trust is only by buying the points from developer.  Correct?  Or was there some qualification offer involved to get into the flex program?.



I believe this is correct.

IMO all of this ties in too with the recent change in Interval, the one in which II now charges more for bigger units.  I hear people arguing how it's not fair, they don't get any credit for trading their 2BR for a studio!  Or if they downgrade in resort quality!  

Did you notice II recently changing their "quality" designations for certain resorts too?

I'm guessing there's going to be a new Points World, in which you pay for your exchanges with points, and points are charged based on unit size, TDI, and resort quality.

This is something they'll sell as an advantage of points.  "No need to exchange your two BR to get a studio!  Just pay with a reduced number of points!". Meanwhile charging you more points to upgrade in quality or season...


----------



## ntsmith (Jul 11, 2016)

*Change is coming*



peas said:


> I went to an owner's update for the first time in a few years, and it was way more interesting than I ever imagined.
> 
> The sales person announced that Hyatt would be creating a trust system.
> Curious if anyone knew about this.  They said it'd start around the end of this year.
> ...




I'm sad to report that this is 100% true. I attended a sales tour at my home resort recently. They offered to "*Hyattize*" (their word, not mine) my existing resale week if I made a developer purchase of at least $12,500. The sales manager also told me that there are several new resorts being added and that I may not have access to them since I only have a resale week. She said nothing is official yet but she's "concerned" that I may eventually be "shut out" of the new resorts based on some "changes" that are happening soon. 

My question to the sales lady was, "If I own two resale weeks, but make a developer purchase and 'Hyattize' one of those resale weeks.... what happens to my remaining resale week? Would the non-Hyattized resale week be shut out of the new resorts? Would I only be able to access the new resorts using the developer week and the 'Hyattized' week?!" The response was, "This is all hypothetical so we really don't know how access to the new resorts would work."

I'm upset becasue I remember when this happened to deeded Marriott owners who were threatened with the Destination Points program. Deeded owners who did not buy into he new points program were left with hardly any MVC inventory to trade into.  It's a shame considering many people were 20+ year owners who's maintenance fees helped build the MVC business.  It sounds like Hyatt is about to go down the exact same road.... and I'm not happy about it at all. If deeded owners don't buy into this "hypothetical" new program, our access to new properties will probably be non-existent.


----------



## lizap (Jul 11, 2016)

Read Kal's comments from above regarding having sufficient trust inventory:

-ROFR acquisitions by Hyatt 
- existing owners transferring into the Points Program
- purchase of units from Hyatt's inventory


Of these three, I don't see #2 happening very quickly given the cost.  Remember the cost to Marriott deeded owners to gain access into the trust was much lower than $12.5k.
# 1 will happen but not quickly
#3 - There's not that much inventory left.

So, in my opinion, this will affect current owners eventually, but most likely, not in the short-term..





ntsmith said:


> I'm sad to report that this is 100% true. I attended a sales tour at my home resort recently. They offered to "*Hyattize*" (their word, not mine) my existing resale week if I made a developer purchase of at least $12,500. The sales manager also told me that there are several new resorts being added and that I may not have access to them since I only have a resale week. She said nothing is official yet but she's "concerned" that I may eventually be "shut out" of the new resorts based on some "changes" that are happening soon.
> 
> My question to the sales lady was, "If I own two resale weeks, but make a developer purchase and 'Hyattize' one of those resale weeks.... what happens to my remaining resale week? Would the non-Hyattized resale week be shut out of the new resorts? Would I only be able to access the new resorts using the developer week and the 'Hyattized' week?!" The response was, "This is all hypothetical so we really don't know how access to the new resorts would work."
> 
> I'm upset becasue I remember when this happened to deeded Marriott owners who were threatened with the Destination Points program. Deeded owners who did not buy into he new points program were left with hardly any MVC inventory to trade into.  It's a shame considering many people were 20+ year owners who's maintenance fees helped build the MVC business.  It sounds like Hyatt is about to go down the exact same road.... and I'm not happy about it at all. If deeded owners don't buy into this "hypothetical" new program, our access to new properties will probably be non-existent.


----------



## SmithOp (Jul 11, 2016)

Its called FUD - Fear, uncertainty, and doubt.  If you want #2 to happen faster then spread a lot of it at owner updates and they will spread it too.


Sent from my iPad Mini 4 using Tapatalk


----------



## lizap (Jul 11, 2016)

Given the cost for Hyatt owners to transfer into the trust, I seriously doubt there will be very many takers.  Now if they reduce the price to something similar to Marriotts (perhaps a Marriott owner can remind us, but I think it was somewhere between $5 hundred -2k), they might have some success..



SmithOp said:


> Its called FUD - Fear, uncertainty, and doubt.  If you want #2 to happen faster then spread a lot of it at owner updates and they will spread it too.
> 
> 
> Sent from my iPad Mini 4 using Tapatalk


----------



## steve b (Jul 18, 2016)

the cost initially to join the Marriott Destinations Club was a one time fee of 695 to enroll all your developer purchased weeks or 1795 if you has weeks bought reale.  You also received 800 one time bonus points to join.  I enrolled my weeks first day never looked back and bought stock in the new vacation club entity which skyrocketted.   I predict initially there will be a similiar enrollment fee initially and that many Hyatt owners will gladly pay and join.. Guys this is why these companies have merged.  I also would keep a close eye on the stock of these companies in that the underlying real estate will go up rather rapidly on the books of the company after the formation of the points program


----------



## LurkerBee (Jul 20, 2016)

For the record - my predication above was correct. Hyatt took all of two weeks to execute RORF on the Beach House week I was trying to buy.


----------



## Cropman (Jul 20, 2016)

Is it just the 2200 point contracts getting ROFR?  Or did I just get lucky on my1880 point contract?  It is a week 4, 2 bedroom, penthouse style, at Hyatt Sunset Harbor in Key West for $9500.  Or maybe I didn't get a great buy.  Oh well, we thought it was a great deal and are looking forward to leaving Michigan behind at the end of January!  I hope Hyatt eases up for everyone.


----------



## lizap (Jul 21, 2016)

So, they are NOT exercising ROFR on every contract...



Cropman said:


> Is it just the 2200 point contracts getting ROFR?  Or did I just get lucky on my1880 point contract?  It is a week 4, 2 bedroom, penthouse style, at Hyatt Sunset Harbor in Key West for $9500.  Or maybe I didn't get a great buy.  Oh well, we thought it was a great deal and are looking forward to leaving Michigan behind at the end of January!  I hope Hyatt eases up for everyone.


----------



## Kal (Jul 21, 2016)

Cropman said:


> Is it just the 2200 point contracts getting ROFR? Or did I just get lucky on my1880 point contract? It is a week 4, 2 bedroom, penthouse style, at Hyatt Sunset Harbor in Key West for $9500. Or maybe I didn't get a great buy. Oh well, we thought it was a great deal and are looking forward to leaving Michigan behind at the end of January! I hope Hyatt eases up for everyone.



 You got a very good deal.  A friend purchased a Week 4, Sunset Harbor town house in 2015 for $40K directly from Hyatt.


----------



## LurkerBee (Jul 21, 2016)

Cropman said:


> Is it just the 2200 point contracts getting ROFR?  Or did I just get lucky on my1880 point contract?  It is a week 4, 2 bedroom, penthouse style, at Hyatt Sunset Harbor in Key West for $9500.  Or maybe I didn't get a great buy.  Oh well, we thought it was a great deal and are looking forward to leaving Michigan behind at the end of January!  I hope Hyatt eases up for everyone.



Congrats! I thought it was the low point contracts getting ROFRed, so I went with a 2200pt. And then they started going. I have no idea what they are picking up, other than cheap ones. I'll admit, mine was on the low side, but based on a price per point that I thought was over others that appeared to pass. *sigh* I'm not sure what to try.


----------



## TFTG (Jul 21, 2016)

peas said:


> I went to an owner's update for the first time in a few years, and it was way more interesting than I ever imagined.
> 
> The sales person announced that Hyatt would be creating a trust system.
> Curious if anyone knew about this.  They said it'd start around the end of this year.
> ...



It will be interesting to see how all of this plays out and when Hyatt (Interval) will announce something or anything in regards to the points program and how it works. 

I assume the new points program coming also helps explain why I keep getting emails from Hyatt Gold Passport via the Hyatt Residence Club to attend a sales presentation at pretty low rates and either $100 or 10k hyatt gold passport points for attending a sales presentation.  I've received offers for Hyatt Carmel, Hyatt Maui, Hyatt Pinon Pointe and Hyatt Sedona all within the last month.  You can see the offers here at their new sales/marketing websites: https://maui.hyattresidenceclub.com/

If you want to see what they are offering for others HRC locations scroll down to the bottom and check other the other resort sites.  Looks like they are stepping up their marketing and gearing up for the points program...


----------



## lizap (Jul 21, 2016)

We considered the Maui deal, but the price is not low enough.  I believe the Maui resort is being sold as deeded weeks.  There has been no official announcement, other than 'trusted' salespeoples' words. The pertinent issue here is will they have sufficient trust inventory, should they decide to do this.

Read Kal's comments from above regarding having sufficient trust inventory:

-ROFR acquisitions by Hyatt 
- existing owners transferring into the Points Program
- purchase of units from Hyatt's inventory


Of these three, I don't see #2 happening very quickly given the cost. Remember the cost to Marriott deeded owners to gain access into the trust was much lower than $12.5k, in fact less than $2k.
# 1 will happen but not quickly
#3 - There's not that much new inventory left.

Now, they could open a bunch of new resorts and put them in the trust or they could charge existing owners a reasonable fee, ala Marriott.  Otherwise even if they decide to use a trust system, it will not affect existing owners for some time.




RandyS84 said:


> It will be interesting to see how all of this plays out and when Hyatt (Interval) will announce something or anything in regards to the points program and how it works.
> 
> I assume the new points program coming also helps explain why I keep getting emails from Hyatt Gold Passport via the Hyatt Residence Club to attend a sales presentation at pretty low rates and either $100 or 10k hyatt gold passport points for attending a sales presentation.  I've received offers for Hyatt Carmel, Hyatt Maui, Hyatt Pinon Pointe and Hyatt Sedona all within the last month.  You can see the offers here at their new sales/marketing websites: https://maui.hyattresidenceclub.com/
> 
> If you want to see what they are offering for others HRC locations scroll down to the bottom and check other the other resort sites.  Looks like they are stepping up their marketing and gearing up for the points program...


----------

