Hilton Grand Vacations strikes deal to acquire Diamond Resorts

[GregT]

Thanks for the pic! Does this map include affiliated resorts or just the DRI owned properties?

I believe it is everything and will seek to confirm this.

 

[bnoble]

They didn't.

So what does this mean?

Looking forward the accessing the [...] Grand Pacific resorts

 

[Sandy VDH]

Thanks for the pic! Does this map include affiliated resorts or just the DRI owned properties?

Looking at the list of resort, this is both.

 

[DRIless]

An Exciting New Chapter

Diamond Resorts and Hilton Grand Vacations






Dear Members and Owners,

Thank you for your continued trust and loyalty in Diamond Resorts. We strive to provide you with world-class destinations, unforgettable experiences and superior service — helping you to reconnect with what matters most.

With that in mind, I am thrilled to announce an exciting new chapter for Diamond Resorts that we expect will provide you with even more options and flexibility for your vacation ownership. Diamond Resorts and Hilton Grand Vacations (“HGV”) have signed an agreement to join together as one company, with HGV as the acquirer. This combination will bring together the iconic Hilton Grand Vacations brand with the scale and unique culture of Diamond Resorts to create a new global standard of vacation ownership hospitality.


Leading the Industry: More Options in More Destinations = More Memories

Together, the combined company will become one of the largest global timeshare networks, spanning North America, Europe and Asia. The HGV network delivers exciting new resorts in dozens of sought-after beach, ski and city destinations, including New York, Charleston, Park City and Japan.


The Diamond Resorts & Hilton Grand Vacations Commitment

Our commitment to our members and owners is that your vacation experience remains our top priority. Together, we believe we will provide you with one of the broadest offerings available in the vacation ownership industry and achieve new heights of excellence.

As an existing Diamond member or owner, you will continue to have access to the same benefits you have come to enjoy, including: access to Diamond’s resort portfolio, the Destination Xchange® program, the expanded Diamond Dream Holiday selection and our exclusive Events of a Lifetime® series. Over time, we expect most of our Diamond-managed properties to be rebranded under a new HGV sub-brand, further elevating your vacation experience.


Keeping You Informed

The transaction is subject to customary closing conditions, and we expect it will take several months to complete. We are committed to being transparent with you throughout this exciting process. To keep you informed, we will endeavor to share important updates as they become available in the What’s New section of your Member Area. If you have any questions, your Member Services team is available to assist you at any time as always. We look forward to providing you regular updates on the status of this transaction.

The completion of this transaction will mark the beginning of a new era of exceptional travel experiences. We can’t wait for you to see the many new destinations and extraordinary experiences in store for you. As always, our owners and members are at the heart of what we do, and we are honored to celebrate starting this new chapter with you.


Mike Flaskey
CEO, Diamond Resorts

 

[CalGalTraveler]

Makes one wonder what Diamond resorts will be rebranded?

My guess:

Cabo Azul
Point at Poipu
One or two of the Sedona and Scottsdale resorts.
Embarc resorts.
Williamsburg properites.
The newer Virginia Beach property.
KBR

Any other guesses?

Thanks for the list. What about their Lake Tahoe property?

Over the next year or two, it looks like we will be able to exchange into Diamond via RCI per Mark Wang's communication. This is a switch from II. I hope to try Cabo Azul, and some of the Embarcs if they become available.

IMHO...This is a good outcome for HGVC because they need more resorts in their quiver. I look forward to trying out new properties in Sedona, Cabo, Palm Desert and Whistler. I hope HGVC remains in charge. I had been holding off acquiring more points with the worry that Apollo/Diamond would take over. The only dark cloud is the share of stock owned by Apollo. Would they push to raise maint fees in the HGVC portfolio to maximize profitability? I am hopeful HGV will manage this.

I hope these new properties don't have nosebleed points values like the new HGV properties. Deal killer.

HGV is looking more and more like MVC/Vistana. Many locations. Legacy weeks portfolios, and a trust points system. Potentially an exchange to replace RCI? We should watch what MVC does to Vistana/Westin because I view HGVC system as similar to Vistana because it has it's own legacy mini-points system attached to deeds and contains upscale properties. Will take years to see rollout.

 

[dougp26364]

In the past we were silver elite owners with DRI. We did a deed back of our 2 Polo Towers units several years ago. DRI was our original purchase into timeshare in 1998, so we have a fare amount of experience with their resorts.

KBC and the Lake Tahoe resort use to be branded Embassy Suites. I always wondered why Hilton let them go to DRI all those years ago. Now perhaps they will bring them back. Lake Tahoe has a nice location by the Lake on the California side. KBC is a very nice resort but not in a primo location. We’ve stayed there twice. Reserving a good unit through DRI was always easy enough. I wonder what it will be like in the future as there has been pent up demand within the HGVC system for a Maui location.

HGVC members might also gain access to Branson, MO. The Suites at Fall Creek are decent, but I wouldn’t spend a lot of HGVC points for one of those units. It’s not the best location but not bad. I always thought it could be a really nice resort if they maintained the grounds a little better. That resort also use to manage a dock for fishing and boat slips/boat rentals on Lake Tannycomo.

I hope that eventually HGVC owners will gain access to DRI’s vast holdings in Sedona. Marriott greatly disappointed us when they couldn’t merge Hyatt into their system. At least now we have hope of an easier way in besides the expensive exchange options of II or RCI.

The one thing I do know is that owner updates just got more interesting. We’ve been through the wringer with all the sales speculation at Marriott when they merged with Vistana/Westin/Sheraton, so we’re pretty use to the wild variety of untruths that are bound to be uttered at the round table. At least it gives me an excuse to go. We stopped going to HGVC owner updates because the rewards were to low and they had nothing to offer us of interest. Now, at least I can listen to the speculation and ramblings as they try to update our ownership to something higher based on promises of things to come, none of which they will ever put in writing.

 

[karibkeith]

Looking forward the accessing the Embarc and Grand Pacific resorts, the others not so much. I would hope that if folded into the HGVC system, that the points levels for the “entry level” resorts, which seems to be the vast majority of the Diamond holdings, would be more like the gold silver and bronze HGVC point levels by unit size. I definitely would not stay at most of those. I have successfully avoided them in the exchange systems and I don’t intend to use any of those.

Where did you see acquiring access to Embarc resorts? Diamond Club members have not had this access since Diamond bought Intrawest.

 

[karibkeith]

I am not sure this is good news or bad news for HGVC members, but I am leaning towards this is bad news

From the other side, I am a Diamond owner and this looks like horrible news to me. I went to the HGVC site and most of the places looked like hotels and not resorts. Also trying to get a list was like pulling teeth from a hen's mouth. Perhaps if I could sign in, I would get better information. Does anyone have a list?

 

[dougp26364]

For those interested in what DRI quality is like, I’ll post links to our photo albums from past stays at DRI resorts. Keep in mind we’ve been out of DRI since 2016, so all of these albums are 2015 and older.

Maui KBC

DRI Ka'anapali Beach Club March 2015 - dougp26364

Maui Hawaii: One bedroom deluxe Ocean View units. Corner unit 412 and side unit 404

dougp26364.smugmug.com

DRI Ka'anapali Beach Club April 2013 - dougp26364

Maui Hawaii1 bedroom deluxe ocean view

dougp26364.smugmug.com

Sedona: Bell Rock Inn

DRI Bell Rock Inn, May 2015 - dougp26364

Sedona, AZ: 2 bedroom unit

dougp26364.smugmug.com

Sedona: The Ridge on Sedona Golf Resort

DRI The Ridge on Sedona Golf Resort Feb 2013 - dougp26364

Sedona, AZ 1 bedroom

dougp26364.smugmug.com

Sedona: Sedona Summit (Mesa Suite unit)

DRI Sedona Summit Feb. 2013 - dougp26364

Sedona, AZ 1 bedroom Mesa Suite

dougp26364.smugmug.com

Las Vegas: The Suites at Polo Towers

DRI's The Suites at Polo Towers March 2012 - dougp26364

Las Vegas, NV 1 bedroom Suite

dougp26364.smugmug.com

Estes Park,CO: Historic Crags Lodge (not certain if this one is DRI or an affiliate. I believe it’s DRI)

DRI's The Historic Crags Lodge June 2012 - dougp26364

Estes Park, CO June 2012. 1 bedroom unit

dougp26364.smugmug.com

Branson, MO: The Suites at Fall Creek

DRI The Suite's at Fall Creek 12/2010 Lake Tanycomo units - dougp26364

Branson, MO 2 bedroom unit in older section by Lake Tanycomo.

dougp26364.smugmug.com

DRI The Suites at Fall Creek Branson, MO 2011 - dougp26364

Branson, MO. Compliation of 3 different stays in 3 different style units

dougp26364.smugmug.com

Santa Fe: Villas De Santa Fe

DRI Villas De Santa Fe, May 2011 - dougp26364

Santa Fe New Mexico 2 bedroom unit

dougp26364.smugmug.com

 

[GT75]

Does anyone have a list?

This was everything including affiliates a few years ago.

 

[dioxide45]

The timeshare division is separate. It caused problems in Carlsbad when Aviara turned into a Park Hyatt and denied Four Season owners access to hotel amenities which they had previously when it was a Four Seasons. Owners were not happy.

Perhaps separate, but not different in the sense that the timeshare division is its own company. With Hilton, Marriott and Wyndham, the timeshare companies were spun off several years ago. I don't think Four Seasons has done that. That same issue has come up a few times with other timeshare brands. Four Seasons would have to sell their timeshare division off. Could be done I guess, but it wouldn't fit into any of the other companies all that well since Four Seasons hotels are on their own.

 

[dougp26364]

From the other side, I am a Diamond owner and this looks like horrible news to me. I went to the HGVC site and most of the places looked like hotels and not resorts. Also trying to get a list was like pulling teeth from a hen's mouth. Perhaps if I could sign in, I would get better information. Does anyone have a list?

DRI owners aren’t going to gain much in way of new locations. What they might gain is better management. We left DRI in 2016 because the management fees where higher than Marriott and Hilton, but the quality of their resorts wasn’t anywhere close to Hilton or Marriott.

 

[GT75]

HGV is looking more and more like MVC/Vistana. Many locations. Legacy weeks portfolios, and a trust points system for upsell. Potentially an exchange to replace RCI? We should watch what MVC does to Vistana/Westin because I view HGVC system as similar to Vistana because it has it's own legacy mini-points system attached to deeds and contains upscale properties. Will take years to see rollout.

I think that many are seeing the statement "Over time, the majority of Diamond's resorts will be rebranded under a new HGV brand" that HGVC owners will have access to these resorts without changes to our ownership. I don't think that this will be the case. This isn't the case either in my very limited understanding of the Marriott/Vistana/Hyatt merger either. I would expect that HGVC members will have to purchase something in order to have access to this new HGV brand.

I would honestly like to be wrong on this.

 

[dioxide45]

--Deleted--

 

[T_R_Oglodyte]

I think that many are seeing the statement "Over time, the majority of Diamond's resorts will be rebranded under a new HGV brand" that HGVC owners will have access to these resorts without changes to our ownership. I don't think that this will be the case. This isn't the case either in my very limited understanding of the Marriott/Vistana/Hyatt merger either. I would expect that HGVC members will have to purchase something in order to have access to this new HGV brand.

I would honestly like to be wrong on this.

Whatever is done needs to maintain inventory control and it also can't abrogate provisions of the acquired program. That's why whenever Diamond has acquired another resort system, the acquired resort system turns into its own trust.

It has also meant that each system operates independently, except to the extent that members in one system "upgrade" and add their interest in their home resort to another resort collection. That has apparently been DRI's mechanism for opening up reservation ability across trusts.

 

[pedro47]

Apollo just purchased The Ventian Resort and Michaels Arts and Crafts stores in the past week. Their investment holders are looking for some huge future profits IMHO.

 

[escanoe]

Wow, take a few hours off from TUG ... and it is a whole new world when you come back.

I am going to lay low for a few years, and someone can wake me up and tell me about the changes once they are implemented. I got way too caught up in the merger discussion when we were scared HGVC would be taken over in the past. Looking at all the other big mergers that have taken place in timeshares, it seems hard to look at them and anticipate what will happen. My only two predictions are that 1) it will be slow and 2) probably far less revolutionary than all the speculation on here.

 

[bcoh630]

Diamond Resorts are listed on their TUG forum
Diamond Resorts have 6 different tiers.

Diamond Resorts The Club points and Destination Exchange pdfs 240+ page listing

 

[Jason245]

My personal take:

1. Management benefits - This is probably much better for DRI than they could expect. HGVC from my experience runs a very tight and high end ship with very high standards and quality. My experience when I have gone to DRI resorts has been hit or miss. HGVC is always top quality in my experience.

2. Location beneftis - HGVC win - Lets be honest, HGVC resorts are great, but their portfolio of locations has been limited. I think there is great opportunity with this to give me and other HGVC owners access to more locations (assuming the exchange rates make sense).

HGVC is very built up in a few locations, and was moving to slow to expand imho.

3. Resort availability - Honestly I think this will be a wash in the long run. You have people who buy the week they want and stay every year and then you have people who view things as Points is Points. Generally either way, if you book very early you will get what you want, and if you wait for the last minute you will get the leftovers...

4. Industry as a whole - I think this consolidation as well as the others creates serious concerns about the continued viability of exchange networks like RCI and II. Think about it, if you have locations everywhere in network why would you go out of network, and this really pushes towards that. Unfortunatly, that means that we could see DVC write a specific trade deal with one of the big collectives of timeshares and pull out of RCI.


Change is always concerning, and we will all have to wait and see, but as long as DRI doesn't cause a dilution of the HGVC experience or resort management standards, I think that lots of good could come from this.

 

[brp]

Wow, take a few hours off from TUG ... and it is a whole new world when you come back.

I am going to lay low for a few years, and someone can wake me up and tell me about the changes once they are implemented.

My take as well. Lots of discussion/speculation, but there is nothing at all going on. And it will be several years before this will have any impact (positive or negative) on HGVC owners.

Cheers.

 

[Sandy VDH]

@Jason245 I agree on a lot of those points.

It is a eat or be eaten time in many timeshares systems. HGVC was just too small and was going to be consumed. It is much better for HGVC to buy DRI then the other way around, which was on the table last year. I would have dumped my HGVC inventory if that event had happened. I don't want anything to do with Diamond management.

HGVC is a much better managed company, it is much better at customer facing policies that are mindful. In all the Covid stuff, I have to give HGVC a huge applause for how they handled everything. I think a lot of other companies failed on how they managed things, both from an actions perspective and from a communication point of view.

HGVC is in it for the long haul, in most cases. Many other public traded company are live and die by the quarter, and this starts you down the path of cutting corners, and costs. Maintenance on units and resorts looks a little short of what you would be expecting, as in the case with many Diamond properties. But HGVC properties have not really had this happen to any location that I am aware of.

I think DRI wins by obtaining a better managed and more customer friendly leadership. I think HGVC wins by a diversification of locations which was happening but too slowly.

 

[Jason245]

@Jason245 I agree on a lot of those points.

I In all the Covid stuff, I have to give HGVC a huge applause for how they handled everything. I think a lot of other companies failed on how they managed things, both from an actions perspective and from a communication point of view.

I stayed at multiple HGVC resorts and also several hotels and at least 1 non HGVC resort. I will point blank say that I was dissapointed with how non- Hilton branded Resorts or Hotels (I stayed at Hilton hotels and non hilton hotels), held standards compared to Hilton ones.

Honestly, Hilton was Hands down the best/safest COVID experience I had.

 

[ocdb8r]

So, what is a bit flabbergasting to me is that no one seems to know what resorts Diamond actually owns. I spent 30 minutes on the Diamond Board here and another 30 minutes on their own website, and I have no idea what the 92 resorts HGV is actually purchasing are. WTF?!?!?

My take after re-reading all the different announcements is that HGV will leverage the existing Diamond Trust product, rebrand it HGV points, and find a way to include as many existing HGV resorts in it as possible (likely via a combination of buying/repossessing deeded weeks and dropping them into the trust and creating some sort of internal exchange between trust points and deeded weeks, like Marriott did with DC Points). Existing deed owners will be "upsold" on either exchanging their deeds for an HGV Trust Points product or a "pay to play" fee to be able to use their weeks in the trust pool (like Marriott did).

I would bet this will have limited impact on existing inventory as they have already hinted that the Diamond resorts will be rebranded under a "a new HGV sub-brand" which says to me they acknowledge most of these resorts aren't up to current HGV Brand standards. I suspect that means they will have lower point values than most existing HGV resorts, meaning trading in will be relatively expensive from a DRI points perspective. On the other hand, HGV owners may be tempted to try some of the better Diamond resorts (reducing pressure on existing inventory)....and in the end it will be a wash (i.e. there will be no massive extra demand on existing HGV resorts).

The devil in the details is what happens with future developments. If HGV dumps all (or a large portion) of new development inventory like Maui, Cabo and Barbados into the trust; existing HGV owners will have slim pickings for these resorts unless they "pay to play" in the trust pool. The one interesting things is that HGV seems to hint that it may not go all in on a trust product. The full statement on the Investor Relations website includes the following:

Accelerates launch of HGV-branded trust product offering: rebrand Diamond’s properties over time to drive revenue growth in a new customer segment

• Combining HGV's points-based deeded product with Diamond’s points-based trust structure will allow the Company to cater to a wider audience.
• HGV’s deeded product provides premium pricing, inventory sourcing flexibility, and the ability to pre-sell projects to support strong project-level cash flow, while giving buyers and owners the value of guaranteed availability.
• The introduction of a trust product allows for lower barriers to ownership, reduced inventory delivery volatility and inventory recycling, enabling smoother sales and upgrades while providing buyers and owners network and pricing flexibility.

To me, this could mean HGV will continue to sell a deeded product as they believe it commands a premium price.

Bottom line...yet another merger to wonder about. Between owning HGV, Hyatt and Vistana....EVERYTHING is up in the air for me these days!

 

[T_R_Oglodyte]

So, what is a bit flabbergasting to me is that no one seems to know what resorts Diamond actually owns. I spent 30 minutes on the Diamond Board here and another 30 minutes on their own website, and I have no idea what the 92 resorts HGV is actually purchasing are.

try this link: https://cmsprod.diamondresorts.com/sites/default/files/us-member-benefits-book-combined_23.pdf
Bear in mind that for many of the affiliate resorts the inventory is extremely limited. They exist mostly so that Diamond could put a dot on a map to make themselves look bigger than they reallly are. Same concept as a single guy putting a concave mirror on his bedroom ceiling.

 

[pianodinosaur]

CoVid has put a serious damper on our travel plans. I love timesharing but what good is having all these additional travel options if we cannot use them? We had booked a Greek Island and Turkey cruise out of Rome with Royal Caribbean for 2020 to celebrate my retirement. That was cancelled so we scheduled a May 2021 Holy Land cruise out of Rome but that has now been cancelled. HGVC has advised us that we will get another 125% upgrade for a new cruise. Royal Caribbean has announced that they will be cruising out of Israel in 2022. However, Odessey of the Seas was just locked up due to CoVid. My wife is now pushing me to get out of timesharing because of all these cancellations.

Frankly, we would both love to go back to the Club IntraWest resorts that are currently owned by Diamond.