A Welcome to HGV From Chief Customer Officer Stan Soroka

[youppi]

Dear Diamond Resorts Members, Hello and welcome to the Hilton Grand Vacations family! As Chief Customer Officer, I'd like to take this opportunity to share with you some insight into HGV and introduce you to your Club leadership team. Since 1992, Hilton Grand Vacations has been committed to providing the highest quality vacation ownership options, while delivering outstanding services and benefits to our Club Members. During our nearly 30 years of operation, we've worked hard to become one of the largest timeshare companies, operating a distinguished collection of upscale properties in sought-after destinations. And now, as a combined business, we will be guided by HGV's six core values: Hospitality, Integrity, Leadership, Teamwork, Ownership and Now. Our Club Operations leadership team is committed to upholding the company’s values each and every day. Areas of focus that are strategically handled by this team include: Member Support: HGV's multi-channel and award-winning customer contact centers provide outstanding assistance to our Members under the leadership of our vice presidents of Club Services, Barbie Rinks (East Coast) and Brad Harris (West Coast). Digital Strategy: The digital operations team led by Jason Bongo, vice president of Club Operations and Club Engagement, delivers creative Member solutions and innovative product launches geared toward the user experience on the Club Member website and HGV mobile app. APAC Owner Services: The Club Japan team provides localized, dedicated services to our Owners living in the Asia-Pacific region under the guidance and leadership of Yasushi Adachi, senior director of Asia Owner Services. In the months and years ahead, our Club leadership team looks forward to serving you as we integrate these two outstanding companies into one. As we move forward with our integration efforts, I encourage you to continue accessing your Diamond ownership. While many of you are eager to hear how HGV's purchase of Diamond translates into future exchange opportunities, integration of the companies will be a multi-year, phased initiative. For the time being, nothing changes, and you will continue to make reservations and access your timeshare inventory the same way you do now. As new membership and timeshare product details are finalized, including program and products costs, we will communicate these to you. The purchase of Diamond Resorts marks an exciting milestone for both companies. I look forward to the new, shared adventures that lie ahead for us all.​

All the best,​ Stan Soroka EVP & Chief Customer Officer​

 

[pedro47]

That was an outstanding welcome message to Diamond Resorts owners. IMHO.

 

[DRIless]

That was an outstanding welcome message to Diamond Resorts owners. IMHO.

Outstanding would be if there was any real news or information usable to DRI members.

 

[geist1223]

As anticipated there will be no changes in the near term. The integration will take years.

 

[Ty1on]

As anticipated there will be no changes in the near term. The integration will take years.

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, where developer bought owners can pay a $99 fee to internally exchange into the other club.

 

[DRIless]

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.

That's what I would expect, milk the members for the added locations from the other Club.

 

[FunnyFarm]

Anybody have any clue as to how to contact Stan Soroka or the VPs of Club Services.
They don't list any information.
I'd like to contact them about a Diamond Sampler issue that Diamond has ghosted me on.

 

[GT75]

Stan Soroka, Chief Customer Officer
(407) 722-3112 ... ssoroka@hgvc.com


- From http://www.elliott.org/company-contacts/hilton-grand-vacations/

 

[dandjane1]

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.

 

[pedro47]

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

 

[pedro47]

Thanks

 

[CanuckTravlr]

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.

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)

 

[pedro47]

To CanuckTravlr thanks for sharing this information.

 

[Talent312]

Neglected to mention how DRI will be called Hilton Vacation Club (no Grand).
The phrase: "future exchange opportunities" being vague terminology.

 

[pedro47]

Their will be some smiling faces when HGVC starts collecting MF from Diamond owners in December 2021 and January 2022. IMHO.

 

[NOLA47]

As a hilton grand vacations owner, if I can be offered booking access to diamond owned resorts before they are open to non owners I’ll be ok with that.

 

[Arusso]

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.

 

[dayooper]

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.

This is what HGVC CEO Mark Wang has said so far:

• The 2 divisions will remain separate, with DRI being named HVC
• All purchased rights will not change
• There will be a common currency between the divisions
• They are planning a new membership that will link the 2 divisions
• The membership can be purchased as a standalone, but will be included with any new purchase

Must of this came from an investors call at the end of July do not sure how much will come to fruition. Not sure if there will be any additional fees or how much the standalone membership will cost.

 

[dandjane1]

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)

Thanks for the more in-depth info, CanuckTravlr.
The "Not rooted in Uncle Sam" was the phrase in the article, not my words.
Yes, any ChiCom (civilian=military) ownership DOES mean something to me, although my concern
was probably misplaced in this case. Glad you chimed in!

 

[tomt73]

"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.

 

[CanuckTravlr]

@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!

 

[pedro47]

@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!

I enjoyed your response to the topic. Thanks

 

[tomt73]

@CanuckTravlr @pedro47

Thanks for the kind thoughts, folks. I'm not an attorney, although I've done a good deal of work with them. The basic concept in BK is that the pre-BK shareholders stand to lose their stake to creditors. Creditors may get all or part of the re-organized company's equity, or get new, more secure debt instruments, in the hope that they will eventually recover their claims on the company's cash flow. I am totally unfamiliar with how Chinese courts may implement this concept, including how the somewhat flexible Chinese "rule of law" may operate in this case.