youppi
TUG Member
|
|
|
|
Outstanding would be if there was any real news or information usable to DRI members.That was an outstanding welcome message to Diamond Resorts owners. IMHO.
As anticipated there will be no changes in the near term. The integration will take years.
That's what I would expect, milk the members for the added locations from the other Club.We're still misreading the message. As in the quarterly call before, they are talking about integrating the companies, here, not the clubs. "integration of the companies will be a multi-year, phased initiative" It's also pretty clear from this communication that he views future interoperability between the clubs as an exchange situation, not a merging or integration of club assets. An example of that in practice is Wyndham/Worldmark, share developer bought owners can pay a $99 fee to internally exchange into the other club.
Stan Soroka, Chief Customer Officer
(407) 722-3112 ... ssoroka@hgvc.com
- From http://www.elliott.org/company-contacts/hilton-grand-vacations/
Just saw this online, which is news to me. I know the ChiComs are in many US businesses,
but did not know they owned 25% of Hilton Hotels & Resorts!
Headquarters: McLean, Virginia
Bought By: HNA Group Co Ltd
Headquarters: Haikou, China
Hilton Hotels & Resorts has been operating since 1919 thanks to founder Conrad “Nicky” Hilton. From a handful of simple locations, Hilton became a worldwide name with 586 hotels in 85 countries by 2018. Today, Hilton hotels are all over the world.
Hilton Hotels ©Dace Kundrate / Shutterstock.com
In 2016, China’s aviation and shipping titan HNA Group paid $6.5 billion for a 25% stake in the hospitality chain, becoming the biggest shareholder. This was the second purchase that year for HNA who also bought Carlson Hotels Inc. in a bid to spread its wings into the hotel industry. At the time of the purchase, Hilton Hilton was worth around $26 billion.
While 25% isn’t 100%, it certainly makes a difference. Hilton will always remain a distinctly American brand thanks to pop culture history, but does it make a difference to guests to know the business isn’t rooted in Uncle Sam anymore? The jury’s out on that one.
Well, it does make a difference to me.
Thanks for sharing this article
Just saw this online, which is news to me. I know the ChiComs are in many US businesses,
but did not know they owned 25% of Hilton Hotels & Resorts!
Headquarters: McLean, Virginia
Bought By: HNA Group Co Ltd
Headquarters: Haikou, China
Hilton Hotels & Resorts has been operating since 1919 thanks to founder Conrad “Nicky” Hilton. From a handful of simple locations, Hilton became a worldwide name with 586 hotels in 85 countries by 2018. Today, Hilton hotels are all over the world.
Hilton Hotels ©Dace Kundrate / Shutterstock.com
In 2016, China’s aviation and shipping titan HNA Group paid $6.5 billion for a 25% stake in the hospitality chain, becoming the biggest shareholder. This was the second purchase that year for HNA who also bought Carlson Hotels Inc. in a bid to spread its wings into the hotel industry. At the time of the purchase, Hilton Hilton was worth around $26 billion.
While 25% isn’t 100%, it certainly makes a difference. Hilton will always remain a distinctly American brand thanks to pop culture history, but does it make a difference to guests to know the business isn’t rooted in Uncle Sam anymore? The jury’s out on that one.
Well, it does make a difference to ME.
Precisely ! Anyone who believes that the "integration" will be without cost and seamless without a as-yet-to-be determined fee - as you noted - in order for Diamond owners be able to access HGV properties is, IMO, naïve. In fact, assuming that the business model of resort developers in is to continue to monetize owners, and with experience in such acquisitions by other entities in the past, the next level of speculation logically follows and it might take a more insidious fashion than just establishing a fee for exchanges. I do not believe this is a negative attitude on my part. I see it as a real possibility for the future.That's what I would expect, milk the members for the added locations from the other Club.
Precisely ! Anyone who believes that the "integration" will be without cost and seamless without a as-yet-to-be determined fee - as you noted - in order for Diamond owners be able to access HGV properties is, IMO, naïve. In fact, assuming that the business model of resort developers in is to continue to monetize owners, and with experience in such acquisitions by other entities in the past, the next level of speculation logically follows and it might take a more insidious fashion than just establishing a fee for exchanges. I do not believe this is a negative attitude on my part. I see it as a real possibility for the future.
Thanks for the more in-depth info, CanuckTravlr.Not sure what you mean when you say Hilton is not rooted in "Uncle Sam" anymore? Also, be aware that HGV Inc. (the timeshare corporation) is not the same as Hilton Inc. (the hotel corporation). They are separately traded public companies. HGV was split off from Hilton itself in January 2017. In any case, both are still US corporations with headquarters in the USA. HNA Group acquired a 25% interest in Hilton in 2016 from Blackrock Group, so it also retained a 25% share in HGV Inc. when they split. A year later they were in discussions to sell their interest in HGV Inc.
Just because there are some foreign investors, whether Chinese or otherwise, does not change the nationality of a corporation, and certainly not at only 25%. The majority of investors in both companies are institutional. Finally, if you checked for more current information, rather than going off on a rant about CCP "takeovers", which American companies have been doing for years in other countries, you would have realized that HNA Group filed for bankruptcy in January 2021. This will involve a financial restructuring, similar to a US Chapter 11. Under the restructuring, most of those shares you were concerned about will be claimed by its creditors, which includes non-Chinese organizations.
HNA Group - Wikipedia
HNA Restructuring: What does it mean for creditors? (twobirds.com)
"Not sure what you mean when you say Hilton is not rooted in "Uncle Sam" anymore? Also, be aware that HGV Inc. (the timeshare corporation) is not the same as Hilton Inc. (the hotel corporation). They are separately traded public companies. HGV was split off from Hilton itself in January 2017. In any case, both are still US corporations with headquarters in the USA. HNA Group acquired a 25% interest in Hilton in 2016 from Blackrock Group, so it also retained a 25% share in HGV Inc. when they split. A year later they were in discussions to sell their interest in HGV Inc.
Just because there are some foreign investors, whether Chinese or otherwise, does not change the nationality of a corporation, and certainly not at only 25%. The majority of investors in both companies are institutional. Finally, if you checked for more current information, rather than going off on a rant about CCP "takeovers", which American companies have been doing for years in other countries, you would have realized that HNA Group filed for bankruptcy in January 2021. This will involve a financial restructuring, similar to a US Chapter 11. Under the restructuring, most of those shares you were concerned about will be claimed by its creditors, which includes non-Chinese organizations."
I might gently point out that the HGVC or Hilton Hotels "shares" themselves won't be claimed by creditors. Rather, a sale of the shares will be arranged and the proceeds will be distributed to creditors, IF, and only IF, the HNA Group BK proceeding goes to a liquidation. The more usual "re-organization" in BK sees the company re-structure financially, with creditors getting shares in a "new" HNA Group, and pre-BK shareholders getting wiped out (unlikely in this case due to CCP government involvement) or massively diluted when "new" shares are issued.
I enjoyed your response to the topic. Thanks@tomt73
Yes, I agree. Your response gives a more accurate outline of what likely will happen under the reorganization as I understand it. I was trying to explain it without getting too far into the technical weeds, both because that wasn't my primary purpose and I am also not very familiar with the rules and procedures of Chinese courts. Thanks for explaining it better!