We will have to wait and see, but historically Hilton has been good to pre-existing owners of the resorts brought into the Club. I am familiar with the SW Florida resorts which were part of Mariner. Owners, whether pre-existing or new owners of weeks at those resorts have never been required to join the HGV Club. The Mariner resorts typically were dual-affiliated with RCI and II, and as far as I know, they still maintain their dual affiliations. Thus, an owner at any of those resorts can choose to join HGV Club, join RCI and/or II, join all three, or join none. If an owner joins none, he or she pays only the maintenance fees set by the board at his or her resort and taxes imposed by the county in which it is located.
I am not familiar with other Hilton takeovers. However, this morning I decided to learn what happened when Hilton took over operation of Elara. Elara was previously known as PH (Planet Hollywood) Towers and was owned and marketed by Westgate Resorts before it ran into financial trouble during the Great Recession. Westgate sold PH Towers to Resort Finance America LLC, which was a unit of Centerbridge Capital Partners, and RFA appointed HGV to market and manage the project. The companies put out a news release which said, "The 12,000-plus existing timeshare owners of PH Towers Westgate will continue with full ownership rights and benefits associated with their original purchase from Westgate Resorts," according to the Las Vegas Sun newspaper's online Vegas Inc.
Perhaps there are some other TUG members who can provide information about other Hilton takeovers. I think the opportunity for Hilton and Diamond in this combination is to retain revenues from sales of new projects, resales at resorts where they are appointed to be the resale agent, and management fees from resorts that the combined Hilton/Diamond manages, while cutting duplicative costs and expenses so that the overall enterprise is more profitable than the two separate enterprises were. As far as raising maintenance fees at individual resorts, Hilton cannot do that without convincing the boards of directors at those individual resorts to do so, and if it does, the money from those maintenance fees (except for Hilton's own management fee paid by the resort) have to stay with the resort and be used for the benefit of the resort. The boards of those resorts likely have contracts for resort management with Diamond which Hilton will now be performing in Diamond's place. If the boards of those resorts had any brains when they entered into those contracts, the contracts probably eventually expire or could be terminated if Diamond's (and now Hilton's) management services are unsatisfactory. Hilton isn't going to want that.
One thing I haven't mentioned so far is the trust that Diamond uses for its club. I have never seen it. I would speculate that it says something like, "you place your week into the trust so that we (Diamond) are the owner of that week, but we promise to give you weeks, points, or some other measure of time in the resorts which are part of this trust." What could Diamond, and now Hilton, do with this trust? Dissolve it? Why would they want to do that? It sounds like the fees Diamond is charging its members who are members of this trust include fees that go to Diamond (and soon, Hilton). Hilton isn't going to cut off its nose to spite its face. I could see that Hilton might try to find a way for Diamond trust members to get access to HGVC resorts, and if that happens, HGVC members will probably get corresponding access to the resorts in Diamond's trust. If that does happen, I would not anticipate HGVC members overwhelming the trust with reservations for Diamond resorts. First, there are a lot more Diamond members than there are Hilton members. More importantly, my own experience has been that Hilton gives up points in its club (which translate into some type of usage in one of its resorts, depending on size, time of year, etc) if an affiliate owner chooses to exchange his or her week for points. The affiliate owner gets HGVC points, and the affiliate owner's week then shows up in HGVC's system as available to a Hilton owner for a certain amount of points. There has never been any mass taking of anything away from owners in resorts "taken over" by Hilton. But this is my own complete speculation, having never read any of Diamond's documents.
Hilton's email to its members states in relevant part, "I want to assure you that your ownership rights and access to your Home Resort will not be changed or diluted. . . . Integrating the two companies is anticipated to be a multi-year, phased initiative, which means you may not hear about expanded offerings or benefits immediately." Later, in the same email, Hilton states, "Together, we will provide the broadest range of offerings with a wider array of price points –
a new HGV sub-brand to complement our existing Hilton Grand Vacations and By Hilton Club brands." (Emphasis added) Once again, I believe Hilton's statements. What is available to you and what is available to me is not changing any time soon, and when it does change, Hilton is looking to expand offerings, not take them away. They are not looking to upset the apple cart.
I bought into HGVC 20 years ago this year. At that time, the "news" in the industry was that Hilton, Marriott, Starwood, Disney, and several others were changing the timeshare game drastically by being fairer to customers. Here's a typical statement from a newspaper article in 2008: "Virtually all investments look bad these days, but some pretty big names want you to reconsider one of the most maligned of all: the timeshare. High pressure tactics and deceptive costs have given timeshares a mixed reputation. But companies including
Disney,
Marriott,
Hyatt, Starwood and
Hilton dominate the industry, offering new perks and better value." I believe that Hilton has done this over the years. I haven't seen anything about its combination with Diamond that indicates it is changing this philosophy.
The last thing I can think of is fees. Hilton has not been considered to have outrageous fees. Its fees are generally less than Marriott's or Disney's. Diamond has been alleged to have high fees, although the comments from many of you Diamond owners is that Diamond's fees aren't that bad. With a new HGV sub-brand, it seems likely that the fee structure that Diamond uses now isn't going to change right away. Perhaps it will never change. If and when it does change, Hilton's charges now are (1) resort maintenance fees and taxes, (2) an annual club fee, and (3) reservation fees (except for various levels of Elite owners, who avoid these fees by owning enough weeks/points) to qualify. It sounds like Diamond builds some of these fees into one fee, so there aren't separate fees. If Hilton changes the way that fees are charged, I doubt the overall amount of fees will increase, although some people's fees might be more and some people's fees less, depending on how they vacation.
The more I look at this, the more I can see good possibilities coming from it. Hilton is telling us this, also. Our inclination as customers is never to believe what a timeshare company says, and for good reason, but I think Hilton's actions over the years show that it does do, and wants to do, a good job for its resort owners.