From the NY Post - Hilton fears bad rep over timeshare deal

[tombanjo]

"In particular, Hilton Worldwide appears worried that a sale of the timeshare resort company could tarnish the brand of its own swanky chain, according to sources close to the situation. "

Exclusive | Hilton fears bad rep over timeshare deal

An auction of Hilton Grand Vacations has been thrown into doubt, as hotel giant Hilton Worldwide appears to be waffling on whether to allow its brand to be licensed to prospective buyers, The Post …

nypost.com

 

[pedro47]

Thanks Richard for sharing this article.
Wyndham Destination owners and Diamonds owners needs to read this whole article. LOL.

 

[anderik1]

I just saw this as well. Makes me really wonder if the sale will go through.

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[dayooper]

The tidbit I thought was interesting was Wyndham is a suitor. I may be out of the loop, but that was a new one to me. I wonder what HGVC under Wyndham would look like.

 

[Conan]

Very insightful article, and in the New York Post of all places!

 

[ocdb8r]

My suggestion: If you care about this and have thinking similar to Hilton, I suggest you send an email to reinforce their fears. Let them know that HGVC managed by Wyndham or Diamond will irreparably damage your view of the Hilton brand and that you'll consider leaving both Hilton and HGVC if something like this were to occur. I guarantee you Wyndham and Diamond are pulling out every trick in the book to make Hilton feel ok about this...and we should be making sure Hilton knows this matters to owners. You can send an email to the CEO's office (of course he won't be reading these, but they are more likely to get to the right hands) at christopher.nassetta@hilton.com with cc to ir@hilton.com.

I understand there may be some who think it might not be so bad being merged into Wyndham or Diamond, but I for one am not interested in becoming part of those behemoths.

 

[SmithOp]

The tidbit I thought was interesting was Wyndham is a suitor. I may be out of the loop, but that was a new one to me. I wonder what HGVC under Wyndham would look like.

You might want to catch up on your reading.

Michael Brown to Lead Wyndham Vacation Ownership - Hotel Business

PARSIPPANY, NJ – Wyndham Worldwide has appointed Michael D. Brown as president and chief executive officer of Wyndham Vacation Ownership effective Michael Brown

www.hotelbusiness.com

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[GT75]

Similar Report (looks like from the same source)

Drama with the Hilton name

Concerns by Hilton Worldwide (NYSE:HLT) over its brand reputation could get in the way of a sale of Hilton Grand Vacations (NYSE:HGV), according to New...

seekingalpha.com

 

[pedro47]

At one time Wyndham was a suitor of Sunterra Resort now Diamond Resorts; now own by Apollo; CEO Leon Black..

 

[CPNY]

Now I’m glad Vistana was purchased by MVC lol.

 

[brp]

"Under a 100-year deal announced at the time of the spinoff, Hilton Grand Vacations pays Hilton Worldwide a 5% gross royalty fee for the right to use the Hilton name. By adding the Hilton name to its existing timeshares, a new owner would pay more royalty fees to Hilton."

OK, so maybe we should start talking about possibilities for what may happen in 97 years when this agreement expires...

Cheers.

 

[tombanjo]

Vacations will be digital - virtual experiences. I have already booked a weekend with Eccentrica Gallumbits for 2087. Villa Straylight was booked that week end, but maybe 2088 I'll get there.

 

[brp]

Vacations will be digital - virtual experiences. I have already booked a weekend with Eccentrica Gallumbits for 2087. Villa Straylight was booked that week end, but maybe 2088 I'll get there.

When did HGVC announce that they would have a virtual property on Eroticon 6? I must have missed that!

Cheers,
Bruce

 

[tahoeJoe]

"Under a 100-year deal announced at the time of the spinoff, Hilton Grand Vacations pays Hilton Worldwide a 5% gross royalty fee for the right to use the Hilton name. By adding the Hilton name to its existing timeshares, a new owner would pay more royalty fees to Hilton."

OK, so maybe we should start talking about possibilities for what may happen in 97 years when this agreement expires...

Cheers.

5% of gross seems incredibly high. Are you sure about this?

 

[dayooper]

Vacations will be digital - virtual experiences. I have already booked a weekend with Eccentrica Gallumbits for 2087. Villa Straylight was booked that week end, but maybe 2088 I'll get there.

Eh . . . Gallumbits was a little to pretentious for me. Everyone kept saying it was their precious, but the program was a little glitchy and was in dire need of an update. It's like it was two different virtual resorts. Now The Hillton Valley Resort was great! We stayed in the Emmet program during the Brown season and it was awesome! Our only issue was the 1.21 gigawatts it used.

 

[brp]

5% of gross seems incredibly high. Are you sure about this?

I quoted the article linked above. I have no idea, personally, about the veracity of the statement.

Cheers.

 

[dayooper]

You might want to catch up on your reading.

Michael Brown to Lead Wyndham Vacation Ownership - Hotel Business

PARSIPPANY, NJ – Wyndham Worldwide has appointed Michael D. Brown as president and chief executive officer of Wyndham Vacation Ownership effective Michael Brown

www.hotelbusiness.com

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This came out well before I bought into HGVC or even thought about owning a TS. I still haven't heard of anyone other than Apollo/Diamond and Blackstone being suitors. I know Wyndham was brought up as a what if in the original thread, but it's the first time outside of speculation that they were mentioned by name.

 

[1Kflyerguy]

I quoted the article linked above. I have no idea, personally, about the veracity of the statement.

Cheers.

Thats the same figure i have read elsewhere. It does seem a bit high, but Hilton is strong brand, and they do a fair bit of cross marketing, such as passing people who make phone reservations over to HGV for possible promo stays, etc.

 

[dayooper]

Thats the same figure i have read elsewhere. It does seem a bit high, but Hilton is strong brand, and they do a fair bit of cross marketing, such as passing people who make phone reservations over to HGV for possible promo stays, etc.

They also spun off the HGVC division and were in the thick of things as they wrote the contract laguage for the agreement.

 

[SmithOp]

This came out well before I bought into HGVC or even thought about owning a TS. I still haven't heard of anyone other than Apollo/Diamond and Blackstone being suitors. I know Wyndham was brought up as a what if in the original thread, but it's the first time outside of speculation that they were mentioned by name.

My point was there is a lot of inbreeding in the Orlando boardrooms of these Timeshare Systems, Brown had previously worked HGV and Marriott before going to Wyndham. Its no surprise Wyndham is interested, imo.


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[dayooper]

My point was there is a lot of inbreeding in the Orlando boardrooms of these Timeshare Systems, Brown had previously worked HGV and Marriott before going to Wyndham. Its no surprise Wyndham is interested, imo.


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I'm not surprised either. In fact, I thought Wyndham would benefit greatly from the system and brand. More so than Diamond, IMHO. Wyndham as a need for the high end timeshare to keep up with Marriott and HGVC, as long as they kept the Hilton branding, would fill that void spectacularly. The biggest issue is keeping the Hilton brand as it brings in different clientele then their regular hotels.

 

[CalGalTraveler]

Is Wyndham TS separate from the hotels similar to HGVC and Hilton? If not, I doubt Hilton would want to mix brands and share hotel sourced leads that could potentially get in the hands of a competitor. This could damage relationships with their lower end brand franchisees such as Hampton. In general, Hilton and Wyndham are two separate classes.

Hilton HTL should be rightfully concerned about the tarnish on their brand if these deals succeed.

I hope these deals fall apart.

 

[CalGalTraveler]

This came out well before I bought into HGVC or even thought about owning a TS. I still haven't heard of anyone other than Apollo/Diamond and Blackstone being suitors. I know Wyndham was brought up as a what if in the original thread, but it's the first time outside of speculation that they were mentioned by name.

It doesnt appear much happened under Michael Brown as HGVC CEO and the brand appeared to be on cruise control. This could have been distractions and hotel constraints pre-spinoff, or the CEO is a bureaucratic boat anchor. Once Mark Wang came on board expansion started happening.

 

[CalGalTraveler]

Never heard of buyout firm Centerview partners. Can anyone shed light on their interest in the timeshare industry?

 

[brp]

Is Blackstone still in the mix (likely not or someone would have said something here)? A number of people here know a lot more than me about this, but I thought that we potentially liked Blackstone relative to the other options.

Cheers.