HGVC Point(s) Value

[TheWindrider]

Just curious if anybody else is tracking, or has determined, the value of an HGVC point. It’s not as straightforward as hotel points. I understand there are a lot of factors (season, property, unit type, etc) to consider and I am interested to know what range or average value others have come up with. Thanks y’all!

 

[Cyberc]

Just curious if anybody else is tracking, or has determined, the value of an HGVC point. It’s not as straightforward as hotel points. I understand there are a lot of factors (season, property, unit type, etc) to consider and I am interested to know what range or average value others have come up with. Thanks y’all!

To me the value is higher than the mf we pay. In a year where I’m able to actually use my points I can’t put a dollar value on it. Maybe I would stay 5 nights in NYC, 4-5 nights in Vegas, 7 nights in portugal and maybe gift 4-5 nights in NYC to friends and family.

Without HGV I couldn’t afford to stay at hotels like west 57th st In NYC. I would have to stay at a lesser luxury hotel, but hands down I’ve been spoiled by HGV and I can’t or won’t stay at a lesser hotel - I’d frankly rather not go.

In the years where I can’t use my points like in the past two, HGV gave me the option to save the points for next year and next year. I’m glad that HGV is thinking of their members and offered the free solution but keep rolling points over to next year again and again is not a real solution to me. If all members was offered that solution and even with only international members it will put a strain on the inventory for years to come. I could of course just book a larger unit, but in my opinion that’s a waste of points. Instead I have ensured that my points have been used and my mf paid. So in 2022 my non bHC points is valued at approx 42cents per point.

 

[GT75]

To me the value is higher than the mf we pay. In a year where I’m able to actually use my points I can’t put a dollar value on it.

I agree completely with this. To me it is hard to quantify (and not worth the effort either) but I feel that I am getting great value and also great time with family and friends that we bring along. For example, we are going to Breckenridge (Valdoro) on Monday for 10 nights in a 3-Bd. We have 2 grandkids going with us plus also additional relatives coming during our stay. How much would that cost us on the open market? I just know that I wouldn't be paying those prices. But to me it is spending the time with family and friends that wouldn't have happened without owning a TS. I actually have 3 more ski trips booked this winter and then all of the upcoming summer/fall trips booked.

I do know that others have calculated what they think owning a TS have saved them. I actually am probably spending more because we are taking some many more trips each year that we wouldn't have without owning a TS.

Sorry, but I don't think that I have actually answered your question by putting a calculation on a excel spreadsheet.

 

[TheWindrider]

I am in total agreement. We don’t have any children and have been sharing our TS blessings with family and friends over the years. We’re not the only ones who have benefited from our owning with HGVC. HGVC has always been part of our retirement plan and as we get closer, the more we’re convinced that we made the right move. We will stay in hotels only if there is no HGVC property or Registry Collection to where we are traveling. Yes, HGV in many ways, have spoiled us. I still have 2 stays to plug in to my spreadsheet this year but as of today I am seeing an average of $0.35/point. I am merely curious what valuation/range others are getting. Cheers to HGVC And to all of us !

 

[letsgobobby]

I pay $3500 in annual MFs and get 2 weeks in a 2 BR in Hawaii, which on Hilton's website seem to cost about $500 per night = $7000. At Thanksgiving the rates were actually closer to $700 per night including resort fees and taxes so maybe that is an underestimate.

That ignores the upfront costs to purchase, which I think is the correct way to perform this calculation, assuming one purchased resale. See explanation of perpetual bonds to understand why.

Perpetual bond - Wikipedia

en.m.wikipedia.org

YMMV and as all have said, it's the value which matters more than the price and the value for us is

 

[PigsDad]

I think any value calculation completely depends on when you stay and the location. Huge difference between a summer weekend Orlando stay vs. a President's Day weekend at Valdoro, for example, even though a 2BR would cost the same number of points for each of those reservations. Every once in a while I will calculate what my reservation dollar cost is based on my personal MF/point cost, but every time I do, I am always pleased.

Kurt

 

[TheWindrider]

I think any value calculation completely depends on when you stay and the location. Huge difference between a summer weekend Orlando stay vs. a President's Day weekend at Valdoro, for example, even though a 2BR would cost the same number of points for each of those reservations. Every once in a while I will calculate what my reservation dollar cost is based on my personal MF/point cost, but every time I do, I am always pleased.

Kurt
I understand. My original post does mention several of these factors to take into consideration (season, property, unit type, etc). I’m asking if anybody has done the task and what valuation, even a range, that they have come up with.

 

[PigsDad]

I understand. My original post does mention several of these factors to take into consideration (season, property, unit type, etc). I’m asking if anybody has done the task and what valuation, even a range, that they have come up with.

Understand, but given the huge difference taking those factors into consideration, the range would probably be something like from $0.10/point to $0.75/point, so not really useful at all.

Kurt

 

[TheWindrider]

Understand, but given the huge difference taking those factors into consideration, the range would probably be something like from $0.10/point to $0.75/point, so not really useful at all.

Kurt
You’re right. A range that wide ($.10-$.075) is probably not useful. Hard data might be able to narrow ranges. Thank you.

 

[PigsDad]

Off-topic: @TheWindrider, helpful hint -- put your comment outside of the <quote> tags when you respond, otherwise it looks like your response is part of the quote.

Kurt

 

[frank808]

Weeks 51 and 52 here at HHV Lagoon in a 2br OF unit costs 9600 points each week. Value to me is the MF paid of $4120 or about $2060 a week around $300 a day.

A regular standard view hotel room here at HHV would be $700 a night. I do not consider myself saving 60% as I would not pay those rates out of pocket. I would stay home instead.

I doubt TS has saved me any money. I travel more often than without TS. Plus get to stay in much larger and nicer accommodations than previously. Definitely spend more on vacationing than without TS.

While memories made with family and friends....PRICELESS!

Sent from my SM-N975U using Tapatalk

 

[Nowaker]

The cost of a HGVC point is your total MF divided by total points. For apple to apple comparison between other owners, you don't include the yearly club fee in the MFpp amount, but for your own accounting, you should.

The value of a HGVC point... depends. Would you pay the market rate at a HGVC resort? For example, 5 days during Christmas in a 2 BR lockoff at HGVC Paradise Las Vegas would cost $2173, or $434.60 per night. Would you pay this to stay there? If yes - the booking costs 5600 points, so $2173/5600= $0.388 is the value of a HGVC point for you.

I have 4 HGVC units with combined 2022 MFpp of $0.177. Therefore, this booking cost me $991.20, plus $59 booking fee, plus a 1/5 fraction of $193 club fee = $38.60. Total $1,088.80. That's around a half of the market price. $217 per night.

You must calculate your own ROI. I did - and with proper deeds, studio room bookings could be as low as around $50-60/night. I ended up just upping the quality and quantity of my stays - spending the same on timeshares as I used to on hotels, and getting 1 BR and 2 BRs with ocean views etc rather than 2 queen beds with no views.

 

[DazedandConfused]

$.006 per HHonor Hilton point (the points guy valuation)

$.10 to $.15 per HGVC point @ 20-25x HHonors conversion (not the best value)

 

[Nowaker]

My valuation of HH points: $0.0105, $0.0097, $0.0056, $0.0051, $0.0052 across five HH bookings - for a weighted average of $0.0059 across all bookings. TPG's valuation of $0.006 is therefore spot on.

 

[GT75]

$.10 to $.15 per HGVC point @ 20-25x HHonors conversion (not the best value)

Interesting. I think that this bounds it on the low end (and as @DazedandConfused stated “not the best value”). I have seen others try to price what it would cost to rent a similar rental. I thought that some of those calculations seem too high to me (but maybe they weren’t really that far off).

Using the HGVC to HH conversion, that would price my Valdoro 3 Br New Year’s ski week at $1260 or Lagoon Tower 2BR Penthouse Platinum week at $1440. That is way too low, IMO. It would certainly cost much more in the rental market. I see that the OS rental rates for Valdoro 3Br Platinum season is $3148. I don’t know how HGV is determining these numbers either. Now, I feel that my 3BR Valdoro 3BR ski season is worth $3-4K, but I haven’t done enough rental research to back up that claim.

 

[Skicolorado]

Interesting. I think that this bounds it on the low end (and as @DazedandConfused stated “not the best value”). I have seen others try to price what it would cost to rent a similar rental. I thought that some of those calculations seem too high to me (but maybe they were really that far off).

Using the HGVC to HH conversion, that would price my Valdoro 3 Br New Year’s ski week at $1260 or Lagoon Tower 2BR Penthouse Platinum week at $1440. That is way too low, IMO. It would certainly cost much more in the rental market. I see that the OS rental rates for Valdoro 3Br Platinum season is $3148. I don’t know how HGV is determining these numbers either. Now, I feel that my 3BR Valdoro 3BR ski season is worth $3-4K, but I haven’t done enough rental research to back up that claim.

Your 3BR valdoro is likely worth more than that.
We own week 52 at valdoro (2 BR Plus - which has a private hot tub) we use it some years and rent it others. The last 2 times we have rented it, 7 nights has netted us $5000+ (After we pay advertising fees, guest cert, etc) I’d guess your 3BR would a bit more. We also own a condo in the village and it rents for more than valdoro due to the ski in ski out location.

 

[brp]

The cost of a HGVC point is your total MF divided by total points. For apple to apple comparison between other owners, you don't include the yearly club fee in the MFpp amount, but for your own accounting, you should.

May want to include the original buy-in price divided by number of points and an estimate of years of use for a more accurate figure. For DVC, which has a fixed end date, this is easier. For HGVC, it is an estimate, but still worth including.

Cheers.

 

[MattnTricia]

I value my points about .35 a point.

We are currently paying about .13 a point in MF.

I know they are worth more for peak weeks and substantially less for many locations especially when used non peak but .35 is what I figure for what we like to book.

I Never been happier with what I own when I consider that we paid the equivalent of about $1080 in MF last year for 2 Bedroom Ocean View weeks in the Lagoon tower that we utilized.

I am paying more for everyday hampton inn's right now than what we pay to go to Hawaii.

 

[GT75]

Your 3BR valdoro is likely worth more than that.
We own week 52 at valdoro (2 BR Plus - which has a private hot tub) we use it some years and rent it others. The last 2 times we have rented it, 7 nights has netted us $5000+ (After we pay advertising fees, guest cert, etc) I’d guess your 3BR would a bit more. We also own a condo in the village and it rents for more than valdoro due to the ski in ski out location.

Thanks @Skicolorado for providing some real data. I have always wonder what my ski trips to both Park City and Breckenridge are worth (and how much these TS are saving me). I was able to book Valdoro 3Br 12/27-1/8/22 this past ski season. I know that was a prime time booking. Even better than the savings was the wonderful memories with grandkids and other relatives who joined us.

It is currently listed on Hilton web site for 1/31/22-1/7/23 for a little less than $7K.

 

[Paulcos]

Just curious if anybody else is tracking, or has determined, the value of an HGVC point. It’s not as straightforward as hotel points. I understand there are a lot of factors (season, property, unit type, etc) to consider and I am interested to know what range or average value others have come up with. Thanks y’all!

 

[Paulcos]

While this may not be a good way to value HGV points, I use the fact that you now get get a 1:16 point conversion to Hilton points, and the Points Guy values Hilton points at .6 cents to 1 Hilton point. Therefore, if you do the math, 1000 of the new HGV points are worth 1000 x 16 x .006 or $96. Hence, if you redeem a room for 1500 points, that is worth $144. At least that is one way of looking at it.

 

[GMan82]

While this may not be a good way to value HGV points, I use the fact that you now get get a 1:16 point conversion to Hilton points, and the Points Guy values Hilton points at .6 cents to 1 Hilton point. Therefore, if you do the math, 1000 of the new HGV points are worth 1000 x 16 x .006 or $96. Hence, if you redeem a room for 1500 points, that is worth $144. At least that is one way of looking at it.

The only problem I see with that is we know that the conversion to Honors already represents a significant devaluation. 5000 old points at the 1:25 = 125k honors points, enough for 2-3 nights in a Hampton Inn. It’s hard to draw any real conclusions using those valuations due to the devaluations.