# Interval Leisure Group to buy SVO



## Debbie118

I just heard a rumor that Interval Leisure Group is looking to buy Starwood Vacation Ownership. Thoughts?


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## DeniseM

Did you hear it from a timeshare sales person?


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## vacationtime1

Rumors are cheap, although we know Starwood is reorganizing.

What is the source?


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## Debbie118

I just heard this on CNBC news. Time frame was within the week a definitive announcement.


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## tschwa2

It wouldn't be the worst news.  It really hasn't seemed to change much for Hyatt owners.


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## Ty1on

How's Wall Street Journal?

http://www.wsj.com/articles/interval-leisure-in-talks-to-buy-starwood-hotels-timeshare-unit-1445535733?mod=wsjde_finanzen_wsj_barron_tickers

http://www.benzinga.com/movers/15/10/5937936/shares-of-interval-leisure-group-jump-5-following-dj-report-of-potential-deal-w


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## cubigbird

So this would mean the scrapping of the whole VSE idea and concept??? ...Or would VSE essentially be an entity underneath ILG???


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## bastroum

Maybe we would get our Starwood trades back in II.


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## PamMo

Debbie118 said:


> I just heard a rumor that Interval Leisure Group is looking to buy Starwood Vacation Ownership. Thoughts?



Thanks, Debbie! Tuggers are real news hounds! This is certainly an interesting development that we'll follow closely on this board.

http://www.reuters.com/article/2015...grp-m-a-starwood-hotels-idUSKCN0SG2CB20151022


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## LisaRex

Very interesting development.  I can't even begin to speculate on what that would mean.


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## klpca

bastroum said:


> Maybe we would get our Starwood trades back in II.



That would be a plus!

A few more tidbits here:http://www.4-traders.com/INTERVAL-L...-Buy-Starwood-Hotels-Timeshare-Unit-21247733/


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## GregT

I think this would be a logical conclusion, for the same reason that Hyatt being acquired by Interval made sense too.   This would definitely scrap VSE, but VSE may have been a giant "For Sale" sign anyway.

I think Bastroum may be onto something that this could favorably impact Starwood deposits for traders.  Interesting.

Best,

Greg


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## DavidnRobin

I am sticking with 'own where I go' strategy


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## Henry M.

DavidnRobin said:


> I am sticking with 'own where I go' strategy



+1 - Me too.


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## Helios

tschwa2 said:


> It wouldn't be the worst news.  It really hasn't seemed to change much for Hyatt owners.



Do you know what changed for Hyatt?


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## Helios

DavidnRobin said:


> I am sticking with 'own where I go' strategy



Only way to not get disappointed about what the future may bring.


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## Helios

I will be interested in knowing what this means for Harborside.  Harborside is really a joint venture of Starwood and Kerzner, so I wonder if we'll be treated differently than the Westin, Sheraton, and/or Vistana owners.


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## lizap

So far, nothing has changed, but there is talk about a 'pure points' system.  Don't know what this means as Hyatt already has a points system.  I suspect it might be a way to get more money from existing owners, a la Marriott. Intervals' pockets must be deep, first Hyatt, now Starwood..




moto x said:


> Do you know what changed for Hyatt?


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## pedro47

Can someone please explain what all this mean to the timeshare community?


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## Helios

There is also a rumor that HVGC is being sold and another rumor that HGVC may switch to II (a byproduct of being sold )

Just rumors at this point.  Interesting that there is so much change in the industry at once.


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## cubigbird

Do we just love to speculate???  

I am wonding that if SVO was to be bought by ILG, would SVO owners also be merged into the same system with Hyatt and would that bring new internal exchange options for us since technically it is the same company, or would the 2 systems but separate underlying entities?


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## NNerland

Time will obviously tell - but as when they announced the new spinoff - Long Term Marketing/Naming deals were signed meaning little change in what we actually see.  Just different name under different umbrella.

I read some about Hyatt today and it appears they acquired, but it operates as its own unit but gives them additional balance sheet leverage.

All about the assets for them and asset light for Starwood.  

Time of course will tell but I would anticipate it wouldn't be a free for all elimination of the structure we all purchased.   And, given the 100 year (I thought I read) marketing deals to keep Westin, Elite Benefits, etc....things will continue on as usual.

But I await the typical cynical replies about how we are all about to get screwed.


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## tschwa2

Interval did sell off one Hyatt vacation club (I think to Welk).  The two in SVN I would be the most concerned about would be Harborside and SDO.  

I would expect the two umbrellas of Hyatt and SVN to stay separate with perhaps some reciprocity (a la Wyndham/Worldmark) at maybe the 6 month mark or priority within II.  

Personally I would like to see Harborside go to Marriott with ability to enroll in the DC and perhaps better points values especially for summer months.

This also means II will be competing with itself selling retail weeks/points in Maui.


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## raygo123

pedro47 said:


> Can someone please explain what all this mean to the timeshare community?


It's the 80 - 20 theory.  3 will control 80% of the market.

Sent from my Nexus 7 using Tapatalk


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## Helios

tschwa2 said:


> Personally I would like to see Harborside go to Marriott with ability to enroll in the DC and perhaps better points values especially for summer months.




I second this.


Sent from my iPad using Tapatalk


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## raygo123

As a market matures the total number of companies consolidating into usually (+-)3.  Those big three (+ -) will control 80% of all transactions.  All others the rest.

Sent from my Nexus 7 using Tapatalk


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## mjm1

tschwa2 said:


> Interval did sell off one Hyatt vacation club (I think to Welk). .....
> 
> I would expect the two umbrellas of Hyatt and SVN to stay separate with perhaps some reciprocity (a la Wyndham/Worldmark) at maybe the 6 month mark or priority within II.



Welk did buy part of the Hyatt Residence Club in Northstar. And they are building out the rest of the property they acquired in the deal.

I would love to see some reciprocity between SVN and Hyatt. Neither has enough locations, but the quality is strong. It would be a nice combination.

It will be interesting to follow and see how things develop.

Mike


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## Ty1on

raygo123 said:


> As a market matures the total number of companies consolidating into usually (+-)3.  Those big three (+ -) will control 80% of all transactions.  All others the rest.
> 
> Sent from my Nexus 7 using Tapatalk



I completely understand what you are saying.  The Pareto Principle holds that 80% of something is controlled by 20% of the population.  Literally in Pareto's case, it was that 80% of land in Italy was owned by 20% of the population.

So what you are trying to say is that 20% of timeshare corporations control 80% of the inventory.  Assuming you are referring to II, Wyndham, and DRI, there would be 12 other major systems that control the remainder of the industry.  If you wrapped up all independent resorts into a single entity, you might be pretty close.  DVC and Marriott are well regarded systems but small in comparison to those three.


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## Ty1on

mjm1 said:


> Welk did buy part of the Hyatt Residence Club in Northstar. And they are building out the rest of the property they acquired in the deal.
> 
> I would love to see some reciprocity between SVN and Hyatt. Neither has enough locations, but the quality is strong. It would be a nice combination.
> 
> It will be interesting to follow and see how things develop.
> 
> Mike



If you use Wyndham's acquisitions of Worldmark and Shell as a benchmark, there is some reciprocity where Wyndham retail owners can book Worldmark (but I don't think it works the other direction), and very little interaction between Wyndham and Shell--It seems that Club Wyndham owns a few intervals in Shell resorts and makes that available to CWP members.

Seeing as II is an Exchange company first, and their Exchange arm makes a profit every time you deposit your Hyatt and trade it for an SVN or vice versa, I don't know what the value would be to the company of introducing reciprocity.


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## raygo123

Yes.  Hilton has it's toe in SFX, that's from memory from another post, you may see one or two high end "boutique" as SFX puts it, build a relationship.  Money is cheep, those public companies got to grow.  Other western based resorts.

Sent from my Nexus 7 using Tapatalk


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## dsmrp

If Starwood and II are in advanced talks, do you think they  can get the deal closed  in 2 months   ( year's end )?

Hope they maintain the internal trading with star options , by any other name,  for all locations , not just the mandatories. At least  for year or more. Integrating disparate systems or converting two to a 3rd, if they attempt it,  willl take quite awhile....


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## Ty1on

I would virtually guarantee that you won't see any substantive changes before 2016.


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## dsmrp

Ty1on said:


> I would virtually guarantee that you won't see any substantive changes before 2016.



Don't you mean 2017?


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## Ty1on

dsmrp said:


> Don't you mean 2017?





Noooo, I meant 2016.


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## SMHarman

moto x said:


> I will be interested in knowing what this means for Harborside.  Harborside is really a joint venture of Starwood and Kerzner, so I wonder if we'll be treated differently than the Westin, Sheraton, and/or Vistana owners.


Jv upfront but now it is run bases on the deeded docs.


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## s1b000

tschwa2 said:


> Interval did sell off one Hyatt vacation club (I think to Welk).  The two in SVN I would be the most concerned about would be Harborside and SDO.
> 
> 
> 
> I would expect the two umbrellas of Hyatt and SVN to stay separate with perhaps some reciprocity (a la Wyndham/Worldmark) at maybe the 6 month mark or priority within II.
> 
> 
> 
> Personally I would like to see Harborside go to Marriott with ability to enroll in the DC and perhaps better points values especially for summer months.
> 
> 
> 
> This also means II will be competing with itself selling retail weeks/points in Maui.




Why do you call out SDO specifically as a concern? Just curious... I get the Harborside concern.


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## Helios

s1b000 said:


> Why do you call out SDO specifically as a concern? Just curious... I get the Harborside concern.
> 
> 
> Sent from my iPhone using Tapatalk



I wondered about that too.  But I don't own there so I did not mention it.


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## tschwa2

I called out SDO only because it is in scotsdale along with WKV and may be redundant.  On the other hand Orlando is full of SVO and Key West has multiple Hyatts.


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## GregT

I really don't think this would have any impact on the internal StarOptions trading program.  I don't recall precedent where timeshare companies took away something that was structural, but would welcome any clarification.

If anything, there might be a date where existing owners are grandfathered in, and any future owners are subject to different rules (this is similar to what Marriott did in June 2010 and Worldmark did in November 2006).

Additionally, we might see a cross-pollination between the different systems, where StarOptions can be used to book Hyatt properties (the leftovers), similar to what Worldmark and Wyndham have done.

I think all of these would be interesting, but the most interesting would be if Starwood deposits to II were returned because it is more lucrative for II to exchanges made via II versus via StarOptions.

We will see -- I'm sure someone is really really mad that confidential merger discussions were leaked that broadly.  This is the kind of leak that can cool a deal for a few months.  We will see.

Best,

Greg


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## Sugarcubesea

I highly doubt this would happen but it would be nice as Starwood owner to be able to have access to some of the Hyatt properties but at this point everything is just a best guess.


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## lizap

Yeah, highly doubt this will happen. On the other hand, wouldn't mind using my Hyatt points to access WKORV, WPORV, and WSJ.  Doubt this will happen as well...



Sugarcubesea said:


> I highly doubt this would happen but it would be nice as Starwood owner to be able to have access to some of the Hyatt properties but at this point everything is just a best guess.


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## VacationForever

Sugarcubesea said:


> I highly doubt this would happen but it would be nice as Starwood owner to be able to have access to some of the Hyatt properties but at this point everything is just a best guess.



That already exists and is called trading in II.


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## s1b000

tschwa2 said:


> I called out SDO only because it is in scotsdale along with WKV and may be redundant.  On the other hand Orlando is full of SVO and Key West has multiple Hyatts.




Thanks for the response


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## GregT

Sugarcubesea said:


> I highly doubt this would happen but it would be nice as Starwood owner to be able to have access to some of the Hyatt properties but at this point everything is just a best guess.



I understand the skepticism, but Wyndham and Worldmark finally developed an exchange between the two systems, and charge a $99 exchange fee.  Worldmark owners only get access one month after Wyndham owners, so it would be the same as a Hyatt owner being able to use Hyatt points 7 months from check-in to book Starwood properties.

We all know there's little of value available 7 months out in SVO -- but the capability exists and is a great marketing tool.  I would not be surprised to see a similar type of pollination occur.

Of course, they need to do the deal first!!

Best,

Greg


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## lizap

I agree.  Something like this might work.





GregT said:


> I understand the skepticism, but Wyndham and Worldmark finally developed an exchange between the two systems, and charge a $99 exchange fee.  Worldmark owners only get access one month after Wyndham owners, so it would be the same as a Hyatt owner being able to use Hyatt points 7 months from check-in to book Starwood properties.
> 
> We all know there's little of value available 7 months out in SVO -- but the capability exists and is a great marketing tool.  I would not be surprised to see a similar type of pollination occur.
> 
> Of course, they need to do the deal first!!
> 
> Best,
> 
> Greg


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## dsmrp

At a 30,000 ft level, the Interval group owning Starwood timeshare business is a little disquieting.  So if sale went thru,  Interval (ILG) would have control on the "Starwood" timeshare reservation systems, rules & policies AND the external exchange company with their rules and exchange logic.  If you didn't want to use your home resort every year, e,g. primarily use as trader, you still have option to deposit into II. But potentially rules could become much more cohesive towards Interval's benefit & profit.  There's less 'competition' per se to keep 'em honest, when it's all under one corporate umbrella.

this is what DavidnRobin and others alluded to in their 'buy where you want to go' posts.  Personally I'm good with using my home resort or trading externally to go in shoulder season etc.  Hope for the best and plan for the worst


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## Julian926

If this works out, I'd like to see a points system in interval.  What's stopping me from using Interval is that I have 2 bedroom that I want to split into 1 bedrooms in different locations. I'd have to trade into a 2 bedroom or trade down to a 1 bedroom, without any change.


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## Ty1on

dsmrp said:


> At a 30,000 ft level, the Interval group owning Starwood timeshare business is a little disquieting.  So if sale went thru,  Interval (ILG) would have control on the "Starwood" timeshare reservation systems, rules & policies AND the external exchange company with their rules and exchange logic.  If you didn't want to use your home resort every year, e,g. primarily use as trader, you still have option to deposit into II. But potentially rules could become much more cohesive towards Interval's benefit & profit.  There's less 'competition' per se to keep 'em honest, when it's all under one corporate umbrella.
> 
> this is what DavidnRobin and others alluded to in their 'buy where you want to go' posts.  Personally I'm good with using my home resort or trading externally to go in shoulder season etc.  Hope for the best and plan for the worst



Wyndham, a bigger timeshare system, owns RCI, a bigger exchange system.


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## dsmrp

Ty1on said:


> Wyndham, a bigger timeshare system, owns RCI, a bigger exchange system.



Yup they're related. they also have higher fees.  If this sale goes thru, SVO to ILG, I think II fees will go up eventually.


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## Sugarcubesea

GregT said:


> I understand the skepticism, but Wyndham and Worldmark finally developed an exchange between the two systems, and charge a $99 exchange fee.  Worldmark owners only get access one month after Wyndham owners, so it would be the same as a Hyatt owner being able to use Hyatt points 7 months from check-in to book Starwood properties.
> 
> We all know there's little of value available 7 months out in SVO -- but the capability exists and is a great marketing tool.  I would not be surprised to see a similar type of pollination occur.
> 
> Of course, they need to do the deal first!!
> 
> Best,
> 
> Greg




See, I think that would be cool, if we could get a break like the $99 fee…that tome would be a good selling point to the timeshare folks...


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## SMHarman

GregT said:


> I think all of these would be interesting, but the most interesting would be if Starwood deposits to II were returned because it is more lucrative for II to exchanges made via II versus via StarOptions.
> 
> Best,
> 
> Greg


Which would require the rolling back of SO for short trips at 8 months. That's what has decimated week availability in ii.


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## VacationForever

SMHarman said:


> Which would require the rolling back of SO for short trips at 8 months. That's what has decimated week availability in ii.



Interesting hypothesis, but I don't believe there is a correlation.  SVN SOs and Weeks relinquished to II should be in separate pools.


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## mnmrsjjp

My concern is will the older Starwood resorts still be able to deposit in RCI and what will happen to those folks at Vistana that have their weeks enrolled in RCI Points???


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## tschwa2

I don't think it will do anything to those that can deposit in RCI with the exception that perhaps fewer weeks will be deposited in the big bulk banks.  I'm sure II will try to persuade those owners to switch over and there may be a return to the 2 for 1 offers from II and maybe RCI will counter with their own reduced membership fees (wouldn't that be nice especially for the points owners with RCI).  Like Wyndham that still has some old timers from some specific resorts that still exchange through II, they may be able to limit new (resale) owners but should not be able force current owners over to the exchange company of the parent company.


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## suzannesimon

tschwa2 said:


> Interval did sell off one Hyatt vacation club (I think to Welk).  The two in SVN I would be the most concerned about would be Harborside and SDO.
> 
> I would expect the two umbrellas of Hyatt and SVN to stay separate with perhaps some reciprocity (a la Wyndham/Worldmark) at maybe the 6 month mark or priority within II.
> 
> Personally I would like to see Harborside go to Marriott with ability to enroll in the DC and perhaps better points values especially for summer months.
> 
> This also means II will be competing with itself selling retail weeks/points in Maui.



I would be thrilled to see Harborside go to Marriott.  It would make some sense since Marriott financed the Atlantis purchase and other Atlantis hotels are in the
Marriott rewards program.  I'd personally like to see the Marriott quality management at Harborside.


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## tschwa2

The problem with that statement is I think a fair number of those who have stayed in the hotel over the last year have not seen Marriott quality management of the hotel, so I wouldn't expect it from the timeshare either.

This is from Trip Advisor:


> http://www.tripadvisor.com/Hotel_Review-g147417-d507175-Reviews-Atlantis_Royal_Towers_Autograph_Collection-Paradise_Island_New_Providence_Island_Bahama.html
> 
> “Terrible”
> 1 of 5 starsReviewed 5 days ago NEW
> Where do I begin? The prices were ridiculous although if the service was even half way decent I would not have minded. The rooms were mediocre and outdated. The bathroom light didn't work and it took several calls and hours to get someone to fix it. The remote and hair dryer were broken as well and we never did get anyone to fix those. The majority of the people were rude and appeared bothered by us being there. The beach was so crowded with a tiny restricted area where we could use the beach chairs...I felt like a sardine on top of everyone. As far as the grounds, we finally found a pool area that seemed decent and as soon as we were settled a woman informed us that the are was "preferred seating" and it would cost us $100.00 for two chairs to stay. Every time we turned around there was another charge, tax, fee. I have never wished a vacation to be over and I was just counting the days until I could come home. Never again.


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## suzannesimon

People either love it or hate it.  There are plenty of 4 and 5 reviews as well.  We go for the amenities, not luxurious rooms.  Harborside also gives the ability to avoid the craziness with their private pool so you aren't fighting for chairs with the masses.


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## tschwa2

I agree but people looking for Marriott level  of management generally hate it.

Many of the higher ratings are for the higher levels.  Harborside was always listed as Moderate on the Budget to Luxury scale of bookings on the Atlantis website so other than getting into the Marriott network, I don't think changing the affiliation of Harborside from Starwood to Marriott would necessarily do much to improve quality or service.


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## Helios

tschwa2 said:


> I agree but people looking for Marriott level  of management generally hate it.
> 
> Many of the higher ratings are for the higher levels.  Harborside was always listed as Moderate on the Budget to Luxury scale of bookings on the Atlantis website so other than getting into the Marriott network, I don't think changing the affiliation of Harborside from Starwood to Marriott would necessarily do much to improve quality or service.



I agree.  The problem is the staff.


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## iworthman

*How about deedbacks?*

While everyone seems to be speculating on how reservations/exchanges could be affected, I'm wondering if this could finally open the door for Starwood to take back units as well. I have been trying to dump mine for some time.


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## okwiater

iworthman said:


> While everyone seems to be speculating on how reservations/exchanges could be affected, I'm wondering if this could finally open the door for Starwood to take back units as well. I have been trying to dump mine for some time.



If you own at HRA, I would imagine you could probably dump it here on TUG.


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## iworthman

okwiater said:


> If you own at HRA, I would imagine you could probably dump it here on TUG.


I've tried already. A $3100 MF is a hard sell. Even when I'm willing to give it away.


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## TimeShare Junky

*Titled Owners*

As as I under stand deeded owners own the properties, they manage them. Correct ?


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## komosatp

suzannesimon said:


> I would be thrilled to see Harborside go to Marriott.  It would make some sense since Marriott financed the Atlantis purchase and other Atlantis hotels are in the
> Marriott rewards program.  I'd personally like to see the Marriott quality management at Harborside.


Just want to clarify this a bit...

Marriott was only peripherally involved in the Atlantis recapitalization*. The total recap was for around $2 billion. A consortium of bank lenders provided $1.75 billion. Brookfield, the hedge fund/private equity company that now owns Atlantis put in $175 million of their own money. Marriott provided $100 million. So Marriott provided around 1/20th (~5%) of the recap funding. I don't think that loan gives Marriott much of a role in the day-to-day at Atlantis. It was more of a good faith gesture to inaugurate Atlantis becoming part of the Autograph Collection. 

The bottom line is the Marriott loan was probably a value-add play for Marriott to add a signature property to use in its hotel loyalty system. And to have an inside track if/when Brookfield decides to sell Atlantis. Brookfield likes it because they have a seasoned hotel managment company ready to step-in should the newly formed Atlantis management company not measure up.

_*And Atlantis wasn't exactly 'purchased'. Sol Kerzner, the former owner and original builder of Atlantis, defaulted on loans he took out to expand Atlantis and take the his company private. The loans couldn't be refinanced (Atlantis was able to make the debt payments, but was unable to refinance when the balloon payment on his original loans came due) and Brookield owned the piece of the original deal that allowed them to become the new owner of the property, should it go onto default._

I'm not writing this all to nitpick little details, but to highlight the fact that Marriott isn't really all that involved at Atlantis.  I get the fun speculation, but there will be lots of bidders should Atlantis go up for sale.

And don't forget that Atlantis' new GM came from Starwood.


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## SkyBlueWaters

They must have a lot of cash...from those fees they add and increase every year. I don't get it though. In one of their presentations, the more lucrative side of this business is the rental from hotel operations.


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## Marathoner

SkyBlueWaters said:


> They must have a lot of cash...from those fees they add and increase every year. I don't get it though. In one of their presentations, the more lucrative side of this business is the rental from hotel operations.


These types of purchases are financed so they don't really have the cash. That said, their growth prospects are good enough for the banks to lend them the money.


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## SkyBlueWaters

Marathoner said:


> These types of purchases are financed so they don't really have the cash. That said, their growth prospects are good enough for the banks to lend them the money.



Of course, it's leveraged but they would still need some equity going in or the bank won't lend. What I'm wondering about is, what will they do to turn it around and make a profit off it when the seller disposed of it for a reason. What seceret advantage do they have to give this "partnership" a synergy for its growth.


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## krj9999

And in other news, HOT (Starwood) spiked this afternoon on news of Chinese interest in potential buyout.


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## pedro47

krj9999 said:


> And in other news, HOT (Starwood) spiked this afternoon on news of Chinese interest in potential buyout.



A Chinese investors group invested very heavily into DRI during this passed year..


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## okwiater

*It's official: Interval Leisure will become part of Vistana Signature Experiences*

It's official: http://finance.yahoo.com/news/interval-leisure-group-acquire-starwood-103000944.html

Interval Leisure Group (Nasdaq:IILG) (“ILG”), and Starwood Hotels and        Resorts Worldwide, Inc. (HOT) (“Starwood”) today announced that the        Boards of Directors of both companies have unanimously approved a        definitive agreement under which a wholly owned subsidiary of ILG will        acquire and then merge with and into Vistana Signature Experiences        (“Vistana”). The combination, which will follow completion of the        planned spin-off of Vistana from Starwood announced on February 10,        2015, has a total value to Starwood of approximately $1.5 billion.


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## okwiater

It's official: http://www.iilg.com/phoenix.zhtml?c=223490&p=irol-newsArticle&ID=2103252

MIAMI & STAMFORD, Conn.--(BUSINESS WIRE)--Oct. 28, 2015--       Interval Leisure Group (Nasdaq:IILG) (“ILG”), and Starwood Hotels and       Resorts Worldwide, Inc. (NYSE:HOT) (“Starwood”) today announced that the       Boards of Directors of both companies have unanimously approved a       definitive agreement under which a wholly owned subsidiary of ILG will       acquire and then merge with and into Vistana Signature Experiences       (“Vistana”). The combination, which will follow completion of the       planned spin-off of Vistana from Starwood announced on February 10,       2015, has a total value to Starwood of approximately $1.5 billion.


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## LisaRex

Very interesting. 

I'm disappointed with the name, but oh well.


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## Julian926

LisaRex said:


> Very interesting.
> 
> I'm disappointed with the name, but oh well.



What I don't understand is that if they're paying $30 million per year to have the naming rights, why not keep it Starwood?


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## Julian926

http://www.bizjournals.com/southflo...eisure-group-tobuy-starwoods-1-5-billion.html

Vistana manages 22 high-end timeshare resorts with more than 220,000 owners. The company has about 5,000 employees. Once the merger is complete, its portfolio will expand to 200 resorts and 500,000 owners and will include Sheraton Vacation Club, Westin Vacation Club and Hyatt Residence Club brands. The combined businesses are expected to create $26 million in savings five years after the transaction closes.


Based on this, it sounds like Hyatt will be under "Vistana."  Is that right?


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## margolism

The company name doesn't mean as much as the market-facing brands they license.  I will be curious how market facing the Vistana name actually winds up being. 

I am confident the brand management folks understand that Vistana has an overall lack of equity among consumers, and thus it will play a relatively minor role as it relates to this audience.


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## Julian926

margolism said:


> The company name doesn't mean as much as the market-facing brands they license.  I will be curious how market facing the Vistana name actually winds up being.
> 
> I am confident the brand management folks understand that Vistana has an overall lack of equity among consumers, and thus it will play a relatively minor role as it relates to this audience.



That might be true from a hotel standpoint, but I don't think this applies to the timeshare industry.  Most people  immediately identify with the package.  My friends would say they are owners in the Marriott Destination Club or Hilton Grand Vacation.  If they had to be more specific, they might refer to the location where their deed is. 

Moreover, Starwood advertises Starwood Vacation Network.  It does not advertise separate units like Sheraton Vistana Village.  Why?  The value proposition of the network, not the unit, attracts the timeshare buyer.  Whereas the hotel renter only cares about where he or she is  staying. 

There would be a herculean effort to rebrand to "Vistana," in my humble opinion. 

Based on my last comments, it's possible that Vistana is a bigger umbrella.  If Hyatt wasto fall under Vistana, then it makes sense why they call it Vistana. You'd have conflicting licensing issues if Hyatt were to be under Starwood Vacation Network.


----------



## taterhed

Sounds suspiciously to me like they are changing the name to allow a new 'umbrella' to cover multiple brands with names they'd like to keep.....  (oh, say Hyatt, Westin etc...)

who knows.


----------



## Julian926

http://www.marketwatch.com/story/in...ntegrated-shared-ownership-company-2015-10-28

“This transformational transaction creates significant value for the shareholders of both companies and positions us at the forefront of a rapidly evolving industry,” said Craig Nash, Chairman, President and CEO of ILG. “By bringing together ILG and Vistana, two companies with long histories of hospitality brand stewardship and leadership, we are creating a company with strong positions from which to offer highly attractive and complementary product offerings. We will continue to grow our full suite of brands, including Hyatt Residence Club, Sheraton Vacation Club and Westin Vacation Club, and the combined company will maintain an enhanced portfolio of properties, services and expertise to provide guests with the top, high-quality vacation ownership brands and best vacation experiences in the industry. In addition, with an even more diverse offering of leading properties and broader geographic reach and scale, ILG will strengthen its competitive position and ability to capitalize on revenue and profit growth opportunities over time. This combination further reinforces ILG’s balance sheet and conservative leverage profile so we may continue to prudently grow the business.”

I'm not 100% sure, but it sounds like Hyatt and Starwood are now one vacation club.  Anyone reading this differently?


----------



## margolism

Change takes time.  Owners will likely continue to say they own a Starwood timeshare because the market-facing brand associated with the property is a Starwood equity.   A formal legal name change does not mean that consumers will immediately adopt the new name in their vernacular.


----------



## SMHarman

Hyatt and Starwood timeshare companies will be held by the same holding company. 

Likely in time it could be more efficient to build a single reservation system etc but on day one nothing changes. 

The brand agreements still stand and will be part of thr goodwill / intellectual capital purchased


----------



## TFTG

SMHarman said:


> Hyatt and Starwood timeshare companies will be held by the same holding company.
> 
> Likely in time it could be more efficient to build a single reservation system etc but on day one nothing changes.
> 
> The brand agreements still stand and will be part of thr goodwill / intellectual capital purchased



On the business side of things and based on the news reports, it appears Hyatt & Starwood will subsidiaries of the main holding company, as you mentioned above.  

ILG now is the exclusive global licensee of three top vacation ownership brands and the license agreement for the Westin/Sheraton timeshare brands looks pretty good for Starwood, which Hyatt is rumored to be buying.  

From one of the press releases: Under the terms of the license agreement, Starwood will receive an annual base royalty fee of $30 million plus 2% of vacation ownership interest sales.  

Now for the timeshare/reservation/points side of things...this will be interesting to see how this all plays out?  
Will Interval Intl want to add the Westin/Sheraton brands to their newly announced "Pure Points Program" they discussed on their last earnings call or will that just be for the Hyatt properties or will we see a hybrid system of points that can be used across the brands in the future?    

There is some discussion of this new program in the "All Other Timeshare Systems" here on TUGBBS...


----------



## SMHarman

And as I said in the other post somewhere. If Hyatt hotels and Starwood hotels merge then the loyalty programs merge. 

As Starwood timeshare owners can convert to hotel points (retro and retail purchase) that convert would go to the combined scheme which could book into both Starwood hotels and timeshares and Hyatt hotels and timeshares. 

There is a natural cross progression forced by some currently offered programs. 

How they roll that to us resale plebs is another matter.


----------



## CeeWoo

*Email I got a while ago from Starwood*

Dear Owner,

Earlier this year, Starwood Hotels & Resorts (Starwood) announced its intention to spin off its vacation ownership business into a stand-alone, public company. Today, we are excited to share that immediately following the spin, Starwood Vacation Ownership will be acquired by Interval Leisure Group (ILG), to become one of the industry’s largest providers of world-class vacation experiences. We anticipate this transaction to be completed in the second quarter of 2016, when we officially become a wholly-owned subsidiary of ILG.

ILG is a global provider of non-traditional lodging with a portfolio of leisure businesses, including branded vacation ownership, vacation rentals and resort management, that currently operates more than 200 resort properties around the world. As an Owner, you may be familiar with Interval International® – their exchange subsidiary – and a valued partner with us over the past 15 years. With the combination of our two companies, we will create a stronger, more integrated timeshare and exchange business resulting in a more robust portfolio of vacation offerings for Owners and Guests.

We will continue to be the exclusive provider of vacation ownership for the renowned Westin® and Sheraton® brands, while providing all of the features and benefits of ownership you have come to expect. As an Owner, you will continue enjoying your timeshare resorts as you always have as well as continued access to the industry-leading Starwood Preferred Guest® (SPG) program. Current reservation guidelines and fees, exchange rules, reservation rights, and exchange privileges through Starwood Vacation Network℠, Interval International and other current exchange options will all remain the same.

This announcement reinforces our plans for accelerated growth as ILG is committed to invest in new Westin and Sheraton properties. Most notably, The Westin Nanea Ocean Villas, currently under construction, will be the newest resort on beautiful Kā‘anapali Beach in Maui, opening in 2017. In early 2016, we are also scheduled to begin converting the remaining 96 poolside hotel rooms into vacation ownership villas at The Westin St. John Resort & Villas.

In addition, the five transferring Starwood properties announced earlier this year remain part of the transaction and are anticipated to provide additional inventory for Owners over time, including The Westin Resort & Spa, Los Cabos; The Westin Cancún Resort & Spa; The Westin Resort & Spa, Puerto Vallarta; Sheraton Kaua‘i Resort; and Sheraton Steamboat Resort. You can continue to access these hotel properties through the SPG program.

We believe becoming part of ILG is transformational for our company and holds great value for our Owners. This transaction puts us at the forefront of our industry, offering you and your family even more choices for unique and memorable vacation experiences.

Thank you for your continued loyalty. We are excited about our bright future together and will update you as more details become available. To view today’s press release and for a list of questions and answers, click here.

Best Regards,
Steven Williams
Stephen G. Williams
Chief Operating Officer


----------



## sjuhawk_jd

Julian926 said:


> ...
> I'm not 100% sure, but it soun...clubs, just owned and operated by one entity.


----------



## gregb

Here is a link to the ILG news page.  On the right side, under Presentations and Events is a link to "Interval Leisure Group to Acquire Starwood’s Vacation Ownership Business".  It is a PDF presentation that discusses the spin off/merger.  You may find it interesting.

http://www.iilg.com/phoenix.zhtml?c=223490&p=irol-irhome

As I read it, the old SVO (new Vistana) will continue to operate as a subsidiary of ILG.  They will continue to be marketed as Westin and Sheraton resorts.  

It will be interesting to see what happens to the SPG points system as Hyatt merges with the Starwood hotels.

Greg


----------



## TUGBrian

bloomberg reporting this today...

http://www.bloomberg.com/news/artic...ng-vistana-timeshare-unit-to-interval-leisure


----------



## Julian926

I guess I wasn't too clear.  Based on the press releases, there are 3 vacation clubs:

Sheraton Vacation Club
Westin Vacation Club 
Hyatt Residence Club

Sheraton and Westin were, or still is, under one network: Starwood Vacation Network.  The 2 "clubs" were able to make reservations under one network. 

Is Vistana a network that comprises of Sheraton, Westin and Hyatt? And if so, would that mean SVN people will eventually reserve Hyatt dates and vice versa?

I understand this won't happen overnight.  I'm more curious about the end game.


----------



## gregb

ILG stock price is dropping for the day.  It closed yesterday at $20.77 and has dropped to $17.93 at this point.

Guess the market doesn't think this is such a good deal.

Greg


----------



## gregb

Julian926 said:


> Is Vistana a network that comprises of Sheraton, Westin and Hyatt? And if so, would that mean SVN people will eventually reserve Hyatt dates and vice versa?



The "old SVN" is now the new Vistana.  New name, but same product.  The word from the merger documents implies that the SVN/Vistana will continue to operate as it did when part of Starwood.  It will continue to include Westin and Sheraton vacation ownership resorts.

No indication that the Hyatt resorts will "join" the Vistana group, at least not yet.

Greg


----------



## bnoble

sjuhawk_jd said:


> Yes I am, they will still be different vacation clubs, just owned and operated by one entity.



That's my take too, much as Wyndham, WorldMark, and Shell are all distinct.  There might be some increased cross-over opportunities as the Club Pass program does for Wyn/WM, but my guess is that they will tread carefully.


----------



## Julian926

:





gregb said:


> The "old SVN" is now the new Vistana.  New name, but same product.  The word from the merger documents implies that the SVN/Vistana will continue to operate as it did when part of Starwood.  It will continue to include Westin and Sheraton vacation ownership resorts.
> 
> No indication that the Hyatt resorts will "join" the Vistana group, at least not yet.
> 
> Greg



Not disputing you since I'm not sure how accurate this source is

-----
http://www.bizjournals.com/southflor...5-billion.html

Vistana manages 22 high-end timeshare resorts with more than 220,000 owners. The company has about 5,000 employees. Once the merger is complete, its portfolio will expand to 200 resorts and 500,000 owners and will include Sheraton Vacation Club, Westin Vacation Club and* Hyatt Residence Club* brands. The combined businesses are expected to create $26 million in savings five years after the transaction closes.
----------
This implies Hyatt under Vistana assuming "its" refers to Vistana.


----------



## canesfan

Starwood will also own 55% of Vistana after the deal.


----------



## dsmrp

Thanks to those who linked in some news and finance articles with their posts. It seems IMO with the vertical business structure the new company will have, we'll see these changes in the future:
1a. more ROFR,  where contractually allowed, to give more inventory to sell and keep the price points up
1b.  maybe a deedback/buy back program for same reasons.
2.  higher exchange fees, but more units to exchange.
3.  conversion to another reservation currency (long term), where they'll make money in the conversion rates and fees.
4.  New programs, aka limitations to reserve at new locations e.g. Cabo San Lucas, Kauai etc and other properties they'll have on drawing board to develop.

Overall I think to make the money they'll want/need to make to pay for the new locations, licensing agreements, royalties and of course profits, they'll have to re-invent themselves and change-shift the current timesharing paradigm.  I mean there's only so much $$ you can get out of current strategies.  Will be interesting to see if they get enough people on board to buy in to new strategies to truly make a paradigm shift in leisure vacation business.  What's going to be in it for us ???


----------



## Julian926

I like this part of the press release (from Starwood CFO)


 While Starwood has been focused on executing an asset-light strategy across the company,Vistana will benefit from ILG’s commitment to invest in new properties to drive increased growth. This transaction will better position the combined company for greater long-term growth, which will in turn
create exciting opportunities for our teams.”


----------



## Henry M.

From the Interval International Group's press release it sounds like in the end, Starwood will be the majority owner of the combined company:



> The combination will result in Starwood shareholders owning approximately 55% of the combined company on a fully diluted basis, with existing shareholders of ILG owning approximately 45% of the combined company.



Then if Hyatt acquires Starwood, they will own the whole enchilada.


----------



## Julian926

emuyshondt said:


> From the Interval International Group's press release it sounds like in the end, Starwood will be the majority owner of the combined company:
> 
> 
> 
> Then if Hyatt acquires Starwood, they will own the whole enchilada.



Actually, Starwood shareholders will own 55% of the new entity.  Starwood (HOT) is divesting itself of the timeshare industry.


----------



## Henry M.

So you think they'll distribute 55% of the shares of the new entity to HOT shareholders, rather than HOT owning the shares? I don't know one way or the other.

HOT will divest its timeshare business but instead of selling it through an IPO, it will sell it to this new venture. However, it can still own a part of that company. They would not be involved in the day-to-day running of the enterprise. They will just have a few people on the board and be able to vote on corporate matters.


----------



## Ken555

This is awesome! One flacky website (intervalworld) deserves another (mystarcentral). Perfect match!


Sent from my iPad


----------



## gregb

They want to do the transaction tax free.  So I expect the IILG shares will be distributed to HOT shareholders.  

IILG is down $2.87 (13.82%) from yesterday.
HOT is up $4.69 (6.27%) today and about $11 (~16%) from Monday.

Looks like the market feels Starwood shareholders are getting the better deal.

Greg


----------



## krj9999

HOT trading up on their own potential buyout news.

But the price does seem to be pretty high that IILG is paying, with VAC enterprise value at ~$2.4 billion for comparison.



gregb said:


> They want to do the transaction tax free.  So I expect the IILG shares will be distributed to HOT shareholders.
> 
> IILG is down $2.87 (13.82%) from yesterday.
> HOT is up $4.69 (6.27%) today and about $11 (~16%) from Monday.
> 
> Looks like the market feels Starwood shareholders are getting the better deal.
> 
> Greg


----------



## Weimaraner

mnmrsjjp said:


> My concern is will the older Starwood resorts still be able to deposit in RCI and what will happen to those folks at Vistana that have their weeks enrolled in RCI Points???



I have that same concern since I use one to trade in RCI. This issue was addressed in the FAQ.

WILL MY EXCHANGE COMPANY AFFILIATION REMAIN THE SAME? Yes. You and your HOA will continue to have the same exchange company affiliation agreement you have today.


----------



## LisaRex

Ken555 said:


> This is awesome! One flacky website (intervalworld) deserves another (mystarcentral). Perfect match!



Vistana's new motto:  You just never know what you're going to get!


----------



## NNerland

I have read that Starwood signed an 80 year licensing deal with II and that all indications are not much will change for owners.   

Remember - II is now the DIRECT SELLERS - it is in THEIR ABSOLUTE BEST Interest to keep a good network of value in tact.

Thus -- the 80 year contract makes sense as that keeps that stuff alive.

Never say never, but I am not a panic kind of guy -- and don't get emotional with my analysis -- I like FACTS


----------



## suzannesimon

As a Hyatt owner, I have only seen improvement since Interval bought it.  A lot of updates have been going on at Sunset Harbor.  These may have happened anyway, but there certainly has been no downgrade in services.  They also upgraded all the Hyatt owners to Gold membership in II at no additional charge.


----------



## Julian926

suzannesimon said:


> As a Hyatt owner, I have only seen improvement since Interval bought it.  A lot of updates have been going on at Sunset Harbor.  These may have happened anyway, but there certainly has been no downgrade in services.  They also upgraded all the Hyatt owners to Gold membership in II at no additional charge.



That's great.  I'm hoping Staroptions could be used in Interval as points so I can split my 2 bedrooms to smaller units.


----------



## DavidnRobin

Julian926 said:


> That's great.  I'm hoping Staroptions could be used in Interval as points so I can split my 2 bedrooms to smaller units.



It is possible that Voluntary resale (low value) may really benefit in some scenarios.


----------



## Julian926

DavidnRobin said:


> It is possible that Voluntary resale (low value) may really benefit in some scenarios.



Although my starwood is mandatory, I'm curious as well with how they're going to treat mandatory vs voluntary contracts.


----------



## DeniseM

If they give voluntary deeds, mandatory status, this devalues developer sales, so I will be surprised if this happens - unless they charge a high fee for it.


----------



## wannagotoo

Curious about remaining Platinum with Starwood based on my timeshares. FAQ has this:
Will I still be able to enjoy my Starwood Vacation Network benefits?
•Yes. You will continue to receive the same valuable benefits; award-winning branded experiences and preferred access to the industry-leading SPG program that you’ve come to know and expect from us. Current reservation guidelines and fees, exchange rules, reservation rights, and exchange privileges through Starwood Vacation NetworkSM, Interval International® and other current exchange options will all remain the same.



Will current and future Starwood Vacation Network (SVN) members still have access to Starwood hotels? Will I still be able to convert my StarOptions to Starpoints and access Starwood hotels worldwide?
•Yes, all current and future Owners will continue to enjoy Gold-level access to the Starwood Preferred Guest® program as they have in the past. The terms and conditions governing access to Starwood hotels through SVN and the SPG program are reviewed and updated from time to time. Any changes that may take place in the ordinary course of business would not be attributable to the transaction.


----------



## NNerland

wannagotoo said:


> Curious about remaining Platinum with Starwood based on my timeshares. FAQ has this:
> Will I still be able to enjoy my Starwood Vacation Network benefits?
> •Yes. You will continue to receive the same valuable benefits; award-winning branded experiences and preferred access to the industry-leading SPG program that you’ve come to know and expect from us. Current reservation guidelines and fees, exchange rules, reservation rights, and exchange privileges through Starwood Vacation NetworkSM, Interval International® and other current exchange options will all remain the same.
> 
> 
> 
> Will current and future Starwood Vacation Network (SVN) members still have access to Starwood hotels? Will I still be able to convert my StarOptions to Starpoints and access Starwood hotels worldwide?
> •Yes, all current and future Owners will continue to enjoy Gold-level access to the Starwood Preferred Guest® program as they have in the past. The terms and conditions governing access to Starwood hotels through SVN and the SPG program are reviewed and updated from time to time. Any changes that may take place in the ordinary course of business would not be attributable to the transaction.



Again - there is no doubt we will pay for this in the future.  But there are selling contracts and unless Starwood wants to buyout or someone who buys Starwood wants to buy out those deals things will more than likely continue to be the same.  Being cynical, I am sure it may come at a cost as we are agreeing to pay licensing fees to keep Westin and Starwood -- but a good program is IN THEIR BEST INTERESTS if they want to SELL NEW UNITS


----------



## dsmrp

DeniseM said:


> If they give voluntary deeds, mandatory status, this devalues developer sales, so I will be surprised if this happens - unless they charge a high fee for it.



Yes, I'd think this would make developer sales extremely tough.
But yet this is the HGVC model .  And allowing resale buyers to join the HGVClub, for a fee of course, has seemed to keep resale values up.  Not as much as developer prices certainly, but not a tanked $1 either. 
The club joining fees aren't outrageous, about $400-600 depending on what you buy, true HGVC or affiliate.

Hilton does not have as many locations as SVN... no St John or Bahamas, but they have some in Europe. 
They charge smaller fees for lots of things such as making a non-home resort club reservation. I have no idea how they're making their money outside of these fees, but some people on the Hilton forum think HGVC is doing fine financially.


----------



## JudyS

krj9999 said:


> And in other news, HOT (Starwood) spiked this afternoon on news of Chinese interest in potential buyout.


Although the rumors look stronger that Hyatt (the hotel system, not the timeshare system) will buy Starwood (the hotel system, not the timeshare system). (Although then maybe Hyatt will be bought by Chinese investors; who knows.)

So, I'm wondering what will happen to the big pile of Starpoints I'm sitting on. 




wannagotoo said:


> Curious about remaining Platinum with Starwood based on my timeshares. FAQ has this:
> Will I still be able to enjoy my Starwood Vacation Network benefits?
> •Yes. You will continue to receive the same valuable benefits; award-winning branded experiences and preferred access to the industry-leading SPG program that you’ve come to know and expect from us. Current reservation guidelines and fees, exchange rules, reservation rights, and exchange privileges through Starwood Vacation NetworkSM, Interval International® and other current exchange options will all remain the same.
> 
> 
> 
> Will current and future Starwood Vacation Network (SVN) members still have access to Starwood hotels? Will I still be able to convert my StarOptions to Starpoints and access Starwood hotels worldwide?
> •Yes, all current and future Owners will continue to enjoy Gold-level access to the Starwood Preferred Guest® program as they have in the past. The terms and conditions governing access to Starwood hotels through SVN and the SPG program are reviewed and updated from time to time. Any changes that may take place in the ordinary course of business would not be attributable to the transaction.


For this to be true, the Starwood Preferred Guest program would need to continue to exist. 

So, if Hyatt hotels buys Starwood hotels, presumably either 1) Hyatt's reward system (I don't even know its name) and Starwood Preferred Guest would continue as separate systems, or 2)  Hyatt's reward system would become part of the Starwood Preferred Guest program.

So, what do people think will happen with SPG/Starpoints?


----------



## JudyS

DavidnRobin said:


> It is possible that Voluntary resale (low value) may really benefit in some scenarios.


That was my thought, too. But, I don't think voluntary resorts will be offered StarOptions. (And I don't think David meant that, either. At least, that is not how I read his post.)

Instead, voluntary resorts may become more valuable because Interval offers new, appealing options to all Starwood owners. This could lead to more Starwood inventory becoming available in Interval, or to Starwood owners getting some sort of trade preference into Hyatt properties, etc. All Starwood owners would benefit from these changes. But, owners with resales at voluntary resort would benefit the most, because their only special trade/booking privileges are the ones they get through Interval. (Well, there is at least one other special privilege -- the option for owners at some Florida Sheratons to book a different Florida Sheraton at 6 months or so before check-in -- but this privilege is minor.)


----------



## GregT

DavidnRobin said:


> It is possible that Voluntary resale (low value) may really benefit in some scenarios.



I would think that the primary benefit would be potential for better bulk banks in II, because II can earn more fees from this than from SVN trading.

I concur with others that it is unlikely that voluntary resorts would be given a mandatory status.  But I would think a return to historical bulk banks would be a big improvement.

Best,

Greg


----------



## dsmrp

GregT said:


> I would think that the primary benefit would be potential for better bulk banks in II, because II can earn more fees from this than from SVN trading.
> 
> I concur with others that it is unlikely that voluntary resorts would be given a mandatory status.  But I would think a return to historical bulk banks would be a big improvement.
> 
> Best,
> 
> Greg



What would happen to the Sheraton Flex program?  Large bulk banks seems to be at cross purposes to it.


----------



## GregT

dsmrp said:


> What would happen to the Sheraton Flex program?  Large bulk banks seems to be at cross purposes to it.



I was thinking more of the bulk banks for properties not currently in a Flex program, like WKORV and WPORV, which seem to appear in smaller quantities and closer to check-in.  I don't monitor WLR, but it may be similar.

I just think that Interval would benefit from bulk banking in the historical manner, where the bulk banks happen months in advance of check-in, and with some level of predictability.   This attracts new potential buyers of now Interval owned Starwood inventory, plus generates more fee income in II trades.

I think the purchase of Hyatt and Starwood by Interval was a brilliant response to Marriott's decision to create an internal trading competitor that was to Interval's disadvantage.  Starwood also changed the trading experience (negatively) for its ownership and Interval had to have seen the writing on the wall -- that if they can't control the supply, then they ran the risk of being an exchange for independents -- which isn't nearly as exciting as including the high quality properties.

It is bold, and very curious to see how it plays out.   I've always preferred mini-systems, and using points because the inventory access is more predictable than the Wild West of trading.  I will be curious to see how Interval manages its two new toys to see if trading becomes a more positive experience.

Best,

Greg


----------



## DavidnRobin

GregT said:


> I would think that the primary benefit would be potential for better bulk banks in II, because II can earn more fees from this than from SVN trading.
> 
> I concur with others that it is unlikely that voluntary resorts would be given a mandatory status.  But I would think a return to historical bulk banks would be a big improvement.
> 
> Best,
> 
> Greg



I never meant that this would not be w/o a fee to convert.
btw - just joining the speculation discussions... (which at its core - this is what is happening here)
I plan to use my VOIs at the resorts I own, and why I own them.  Only my WKV VOIs are impacted directly - and I rent these out.

Overall - considering that corporate profits are #1 priority - this generally does not come out as a benefit for typical customer (owner) no matter what the spin. IME IMO
(candy bars are smaller, and cost more, but have prettier wrappers...)


----------



## paluamalia

*Interval purchase*

Looks like it happened...saw a letter on Syed's website


----------



## alexadeparis

JudyS said:


> Instead, voluntary resorts may become more valuable because Interval offers new, appealing options to all Starwood owners. This could lead to more Starwood inventory becoming available in Interval, or to Starwood owners getting some sort of trade preference into Hyatt properties, etc. All Starwood owners would benefit from these changes. But, owners with resales at voluntary resort would benefit the most, because their only special trade/booking privileges are the ones they get through Interval. (Well, there is at least one other special privilege -- the option for owners at some Florida Sheratons to book a different Florida Sheraton at 6 months or so before check-in -- but this privilege is minor.)



or they may become worth even less because Interval may decide to discontinue the Starwood preference. If you have Hyatt and want to exchange, you cannot get a Hyatt unit through II. To exchange into a Hyatt unit, it must be an internal exchange through Hyatt points. They could end up doing that, too. There have been reports all over these boards about Marriott and Starwood weeks dissipating in II, very little is being deposited, and what is being deposited is off season or almost last minute. Same thing for Disney in RCI; there have been no 2 bedrooms in a long time and what is showing up is one or two resorts 3 or 4 months ahead of time. So it again boils down to buy into the system you want to use, and the developers are squeezing every loophole closed that they can in an effort to force you to buy retail. (End of rant.)


----------



## tschwa2

or they could start charging the full membership for each SVN week you own like they do for Hyatt instead of full for the first, greatly reduced for the second and no extra for the third or any additional ownerships.

I don't think they would do either of these things (remove II preference or increase membership fees) for a while at least.  I don't think they want the back lash.  My guess is that changes will be eased in.  Some will be more beneficial to owners than others but I don't think they would risk several major changes that hurt the owners.  Owners are often the best customers.


----------



## dsmrp

alexadeparis said:


> or they may become worth even less because Interval may decide to discontinue the Starwood preference. If you have Hyatt and want to exchange, you cannot get a Hyatt unit through II. To exchange into a Hyatt unit, it must be an internal exchange through Hyatt points. They could end up doing that, too. There have been reports all over these boards about Marriott and Starwood weeks dissipating in II, very little is being deposited, and what is being deposited is off season or almost last minute. Same thing for Disney in RCI; there have been no 2 bedrooms in a long time and what is showing up is one or two resorts 3 or 4 months ahead of time. So it again boils down to buy into the system you want to use, and the developers are squeezing every loophole closed that they can in an effort to force you to buy retail. (End of rant.)



Yes agree Interval could discontinue the Starwood preference now that they will own units supply. Hope not, even tho' I've never used the preference.  I still think-hope it would be to Interval's advantage long term to get the voluntary resale $ values up to make their developer sales more competitive and maintain brand perception of quality & value.


----------



## lizap

Whatever they do, it won't be for a while.  The Hyatt deal took place quite a while ago and NO change so far except we were all upgraded to Interval Gold.  The Starwood transaction doesn't close until the second quarter of 2016, so I doubt there would be any major changes until 2018, if then..



dsmrp said:


> Yes agree Interval could discontinue the Starwood preference now that they will own units supply. Hope not, even tho' I've never used the preference.  I still think-hope it would be to Interval's advantage long term to get the voluntary resale $ values up to make their developer sales more competitive and maintain brand perception of quality & value.


----------



## gcole

Just got the email notification.

Sent from my SAMSUNG-SGH-I537 using Tapatalk


----------



## gcole

[Thank you, but this has already been posted]


----------



## JudyS

GregT said:


> ...I think the purchase of Hyatt and Starwood by Interval was a brilliant response to Marriott's decision to create an internal trading competitor that was to Interval's disadvantage.  Starwood also changed the trading experience (negatively) for its ownership and Interval had to have seen the writing on the wall -- that if they can't control the supply, then they ran the risk of being an exchange for independents -- which isn't nearly as exciting as including the high quality properties...


Good points! Especially since II has always branded itself as focusing on the quality of the resorts it offers. 



alexadeparis said:


> or they may become worth even less because Interval may decide to discontinue the Starwood preference....


What would be the advantage to II in doing that? As GregT noted, II will make more money if Starwood owners exchange through II than if they don't. (Unless the SVN fee structure radically changes.)

Yes, there has been a reduction of exchange inventory from the hotel-brand timeshares, but I don't think that's something the exchange companies want.


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## LisaRex

I agree that no changes will take place for awhile.  If they do, I can see II modeling a new system after the system that Marriott used to use.  IOW, having all exchanges take place through II, with a long owner priority period to encourage buying into that program.


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## SkyBlueWaters

http://www.bloomberg.com/news/artic...ng-vistana-timeshare-unit-to-interval-leisure

In this merger, Starwood shareholders own 55% of Vistana, and the boards of ILG and Vistana merge.


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## RuralEngineer

*II buying Starwood's timeshare business*

http://phx.corporate-ir.net/Externa...9NTk5MjczfENoaWxkSUQ9MzEwMDA4fFR5cGU9MQ==&t=1

note their 9% fee on contracts is less then DRI's.  II both collaborates and competes with other timeshare companies.  lots of consolidation in the industry.

Stephen


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## pedro47

Maybe II will now show more Getaways Special for Starwood's.


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## Helios

I am really hoping for some sort or advantages when trading into Hyatt.  However, my Starwood Exec contact told me there wouldn't be any in the foreseeable future.


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## raygo123

The 80- 20 theory is happening even more quickly as the big 3 emerges.  Rumor has it blue green may be next

Sent from my Nexus 7 using Tapatalk


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## Helios

raygo123 said:


> The 80- 20 theory is happening even more quickly as the big 3 emerges.  Rumor has it blue green may be next
> 
> Sent from my Nexus 7 using Tapatalk



Where is HGVC going to end up?


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## pedro47

moto x said:


> Where is HGVC going to end up?



Look likes there will be three (3) major players in the future RCI/Wyndham, DRI, and II.


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## RuralEngineer

*additional context*

http://www.ft.com/cms/s/0/9a0bbcae-8253-11e5-8095-ed1a37d1e096.html

"In the past, growing a hotel company required enormous capital investment, but over the past two decades, many hotel groups have expanded by adopting an “asset-light” model of managing, rather than owning, properties."

similar strategies ...


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## GregT

pedro47 said:


> Look likes there will be three (3) major players in the future RCI/Wyndham, DRI, and II.



Interesting theory on consolidation -- but why DRI as the third and not Marriott?  I don't track DRI very much, have they been an active consolidator?

Thx


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## tschwa2

Hilton, DRI and even Holiday Inn have been actively expanding and building or acquiring inventory (asset light) in new locations.  

Other than hotel conversions with limited inventory and slowly building out current locations Marriott hasn't been expanding.


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## Helios

pedro47 said:


> Look likes there will be three (3) major players in the future RCI/Wyndham, DRI, and II.



I hope HGVC keeps status quo and stays with RCI instead of switching to II.


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## raygo123

pedro47 said:


> Look likes there will be three (3) major players in the future RCI/Wyndham, DRI, and II.


It doesn't mean 3 it could be 4, and that still leaves 20% of the market as smaller entities.  They will end up the same as they now exist, or smaller associations.  As long as RCI and II remain doing business as usual.  An analogy is the supermarket industry.  Big chains, and wholesalers who service smaller independent grocers.  

RCI, II, and SFX, are such entities.

Sent from my Nexus 7 using Tapatalk


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## mindy35

*What's the straight shot on the spin-off, sale and merging of SVO to II?*

It's been a busy year and I guess I have not been paying close enough attention. 

We are here now at WKORV-N and everything looks great. They've updated the furnishings and carpet and the property looks well maintained overall. 

I really have no desire to go to an owners update especially because I anticipate a lot of double talk when posed with the question I've listed as the title of this thread.

So.....I ask you......great TUGers:

How does the spinoff of SVO and subsequent purchase by II effect me and my weeks at my home resort and other Westin timeshare properties? 

The good and the bad.


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## dioxide45

I don't see how this can be negative for Starwood owners. I really can only see it being a positive thing given that Starwood was already spinning off the vacation ownership segment. I think it will provide some more stability to the new company.

While there may be concerns about Starpoints use, I think that would be there even in an independent VVE where Starwood Hotels is looking for a buyer. One never knows how loyalty programs will work under new ownership, there is the possibility that SPG may or may not survive. If it doesn't, what that means for VVE owners that use those points isn't known.

In the end, I think VVE being under the ILG umbrella will be good for VVE owners as opposed to going it alone.


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## irish

*Marriott/ii/ spg ??*

soo, II is taking over the starwood  timeshares? is that right? i own 2 MVC weeks which i almost always deposit with interval(occasionally rent/trade for MR points.)  i do try to exchange my II deposited weeks for WESTIN KIERLAND (family in the  Scottsdale area)so how/will i be able to make the the same trade?


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## elleny76

great question... following    would like to know if Hyatt will be available.


cubigbird said:


> Do we just love to speculate???
> 
> I am wonding that if SVO was to be bought by ILG, would SVO owners also be merged into the same system with Hyatt and would that bring new internal exchange options for us since technically it is the same company, or would the 2 systems but separate underlying entities?


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## SueDonJ

(businesswire.com link to 3/18/16 Starwood press release)

Yesterday was one of "the" days in the process of Starwood/Vistana being spun-off to ILG.  Any indication that things are (or aren't) proceeding as planned?


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## DeniseM

My sources say that the roll-over will occur on April 4th.


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## SueDonJ

Having gone through this when Marriott spun off their timeshares, I suggest that you take screenshots or print-outs of the profile, ownership, pending reservation and any other relevant pages in your online accounts now before all the machinations happen.  Most likely things will go fairly smoothly but for the few of us who did see errors, it helped to be able to make side-by-side comparisons.

Good luck!


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## dioxide45

SueDonJ said:


> Having gone through this when Marriott spun off their timeshares, I suggest that you take screenshots or print-outs of the profile, ownership, pending reservation and any other relevant pages in your online accounts now before all the machinations happen.  Most likely things will go fairly smoothly but for the few of us who did see errors, it helped to be able to make side-by-side comparisons.
> 
> Good luck!



If only we would have been warned about the new owners website for MVCI. I see little change for any Starwood owners for their system accounts. That will be a longer more gradual process. The company doesn't buy them and then flip a switch. IT infrastructure will probably sit at Starwood for a while until they transition everything over.


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