New Hilton property announced for Chicago

[TUGBrian]

https://www.tullahomanews.com/news/...cle_1a03ce88-286b-5a4a-8d05-ead0edb3fdef.html

"Hilton Grand Vacations Inc. (NYSE:HGV) announces it has entered into a purchase-sale agreement with Related Fund Management and The Chartres Lodging Group to acquire the top six floors of the 26-story DoubleTree by Hilton Hotel Chicago – Magnificent Mile, which will be HGV’s first property in this highly desirable market."

 

[CalGalTraveler]

Thanks @TUGBrian. Nice to see a new location added to the network even tho it will most likely be a 45 day by Hilton Club reservation which has limited possibilities for us on the west coast.

The quote by the HGVC CEO is very interesting and need to unpack it.

“Chicago is a great new market for HGV...,” says Mark Wang, president and CEO of Hilton Grand Vacations. “This project perfectly sums up our growth and investment strategy: new market, expanded customer access, bite-sized investment, capital-efficient deal structure and high returns.”

 

[bogey21]

Hilton has clearly decided that Hilton Club facilities in large cities is an untapped market...

George

 

[JohnPaul]

Nice to have more options. The only Chicago timeshare options I'm familiar with are the Wyndham Grand Chicago Riverfront which is a ridiculous cost in Shell points (my only option) or The Bluegreen Resorts at Hotel Blake (much more reasonable with Shell points - a week in a hotel room for same as a night in the Wyndham).

We used the Bluegreen option through Shell last year and are going again in a few weeks. We love the Art Institute of Chicago amongst other Chicago attractions.

 

[JohnPaul]

Also, one of the joys of being a SW flyer is that you can make your plane reservations and cancel up to the last minute if needed (and use the funds later). Makes the short booking window less of a problem.

 

[buzglyd]

I was at a conference at the Waldorf last year and stayed at the Doubletree. If it's the same property, it is a great location.

 

[CalGalTraveler]

Also, one of the joys of being a SW flyer is that you can make your plane reservations and cancel up to the last minute if needed (and use the funds later). Makes the short booking window less of a problem.

Good point. In addition to SWA flexibility (IMO this is why SWA is now our go-to airline), your post reminded me that you can book a cancellable hotel reservation (perhaps even in the same hotel) and if the HGVC unit becomes available at 45 days you can simply cancel the hotel.

Of course one would be getting the left-over units and no owners lounge access, but can decide if it is worth switching at the time. Wish they would offer reciprocal lounge access as a by Hilton Club owner perk.

 

[DannyTS]

the more the merrier

 

[brp]

Of course one would be getting the left-over units and no owners lounge access, but can decide if it is worth switching at the time. Wish they would offer reciprocal lounge access as a by Hilton Club owner perk.

What I want them to do is to allow W. 57th owners to book other By Hilton Club locations on a reciprocal-owner basis (with lounge access), but to keep reservations *into* W. 57th limited. If I had my druthers, of course

Cheers.

 

[alwysonvac]

From Wikipedia - https://en.m.wikipedia.org/wiki/DoubleTree_by_Hilton_Chicago_Magnificent_Mile

The 294-foot 29-story hotel was built by Hillman, Vagniers & Associates in 1974. It was originally a 495-room Holiday Inn City Centre until the hotel was rebranded as a Doubletree hotel in 2008.
The property was purchased by CCC Hotel Partners, LLC in February 2006, a joint venture between San Francisco based Chartres Lodging LLC and Dubai Investment Group.

.. It is independently owned by Chartres Lodging LLC and managed by Kokua Hospitality LLC. Kokua Hospitality is an affiliated property management group.
... Kokua Hospitality is a wholly owned subsidiary of The Chartres Lodging Group, LLC. There are six hotels managed by Kokua Hospitality; Inn of Chicago, The Doubletree Hotel Chicago Magnificent Mile, the Aloft Washington National Harbor, the Allerton Hotel, Chicago, Tremont Plaza Hotel and Grand Venue, Baltimore, MD and Hyatt Place Waikiki Beach, Honolulu, HI.​

http://chartreslodging.com/Portfolio/Chicago-IL/Doubletree-Chicago-Magnificent-Mile
http://newsroom.hilton.com/doubletree/property/1065

 

[JohnPaul]

I should think that giving reciprocal "By Hilton Club" lounge access would be smart. W 57th St started out with the lounge open to everyone but there just wasn't enough space so they changed the rules (as well as remodeling which produced much more seating).

 

[Jason245]

Well.. more inventory in this "club" can only mean lower resale prices. ..

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[CalGalTraveler]

Yes, more inventory will depress resales time over time, but not right away. It will take until the dev loans are paid off which could take as much as 10 years (or whatever the HGVC horizon is on their loans.)

My latest SWAG theory on current HGVC developer strategy:

1) Charge astronomical prices so financing is needed. This keeps resales off the street from newer units because owners cannot sell with a loan balance for up to 10 years.

2) The lack of inventory on newer unit resales bolsters resale prices which further fuels additional dev purchases because buyers believe that their unit won't tank in price; differential to resale is not worth the risk. Case: Why are Grand Waikikian prices still so high?

3) If owners default on loan then HGVC automatically take back inventory and it does not become a resale. Cycle repeats.

Resale values plummet in about 5 - 10 years when the loans are paid off and resale units flood the market. Owners cannot blame the developer for loss in value anymore because too much time has passed.

Agree? Disagree?

 

[dayooper]

Yes, more inventory will depress resales time over time, but not right away. It will take until the dev loans are paid off which could take as much as 10 years (or whatever the HGVC horizon is on their loans.)

My latest SWAG theory on current HGVC developer strategy:

1) Charge astronomical prices so financing is needed. This keeps resales off the street from newer units because owners cannot sell with a loan balance for up to 10 years.

2) The lack of inventory on newer unit resales bolsters resale prices which further fuels additional dev purchases because buyers believe that their unit won't tank in price; differential to resale is not worth the risk. Case: Why are Grand Waikikian prices still so high?

3) If owners default on loan then HGVC automatically take back inventory and it does not become a resale. Cycle repeats.

Resale values plummet in about 5 - 10 years when the loans are paid off and resale units flood the market. Owners cannot blame the developer for loss in value anymore because too much time has passed.

Agree? Disagree?

Sounds pretty accurate to me. As long as they keep adding a couple of new HGVC resorts in locations where they don’t currently have an over abundance of properties, anything else is gravy.

My wife and I might actually use a Chicago room. It’s a close drive for us.

 

[Jason245]

Yes, more inventory will depress resales time over time, but not right away. It will take until the dev loans are paid off which could take as much as 10 years (or whatever the HGVC horizon is on their loans.)

My latest SWAG theory on current HGVC developer strategy:

1) Charge astronomical prices so financing is needed. This keeps resales off the street from newer units because owners cannot sell with a loan balance for up to 10 years.

2) The lack of inventory on newer unit resales bolsters resale prices which further fuels additional dev purchases because buyers believe that their unit won't tank in price; differential to resale is not worth the risk. Case: Why are Grand Waikikian prices still so high?

3) If owners default on loan then HGVC automatically take back inventory and it does not become a resale. Cycle repeats.

Resale values plummet in about 5 - 10 years when the loans are paid off and resale units flood the market. Owners cannot blame the developer for loss in value anymore because too much time has passed.

Agree? Disagree?

5 to 10 years sounds about right...that being said.. if the bull market (in 2 weeks longest in history ), flips.. we could see things happening much sooner with the ny and DC properties..

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[CalGalTraveler]

5 to 10 years sounds about right...that being said.. if the bull market (in 2 weeks longest in history ), flips.. we could see things happening much sooner with the ny and DC properties..

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Good reminder about the bull market.

I don't believe significant declines will be limited to by Hilton Club. I expect it to impact all of the newer tier high point value properties e.g. Towers, Grand Waikikian, GI etc.