Hilton Grand Vacations owner update

[Clifbell]

I just went through an owner update... They will be announcing a new club that is a combination of the HGV and the Diamond international. They had to create a new legal entity because Diamond International is a trust and HGV is deeded... This seems consistent with what Marriott told me what they had to do to create a new club... And of course you have to purchase an upgrade to be in the new program that will have access to both sides...

I also sat in a Diamond international presentation earlier this week.. Diamond point totals are 11,000 points for a two bedroom. This is conveniently 1.6 times the 2 bedroom in HGV. The email explaining why we are getting the upgraded values explains how they would merge the two point values. So, it seems that Hilton is actually close to announcing a deal and labeling the new club.

Does this sound like something you would upgrade to? Of course they want more money... But what is new... I certainly want to be able to stay in the combined locations as there are some really good locations. It seems silly not to do the upgrade for the additional locations...

 

[1Kflyerguy]

I agree what you have heard makes sense. Personally we are pretty happy with the locations we currently have access to via our HGV and MVC ownership. I will definitely consider buying into the new program, but i will need to understand more the details first.

I have been a bit slow on my Diamond research and so far have not found any locations that have me super excited, but i am sure if spend more time i will find some locations of interest!

 

[geist1223]

Did they say if the Combination would have access to DRI Affiliates? They make up the bulk of the DRI Locations. Hilton may have to negotiate with each of them. Actually DRI is about 8 different Trusts. Currently Cabo Azul and The Modern Honolulu are stand alone. They there is DRI Europe.

 

[dayooper]

I just went through an owner update... They will be announcing a new club that is a combination of the HGV and the Diamond international. They had to create a new legal entity because Diamond International is a trust and HGV is deeded... This seems consistent with what Marriott told me what they had to do to create a new club... And of course you have to purchase an upgrade to be in the new program that will have access to both sides...

If they were referring to purchasing a new or trading in your current deed for an upgrade, this is NOT what has been said in the investor calls. It has been repeated that you will have to purchase (or upgrade to) a new deed or purchase a stand alone membership to play.

It seems silly not to do the upgrade for the additional locations...

Depends on the cost. I don't have a money tree orchard in my backyard so if I'm not going to use the locations, I'm not going to pay a large amount of money to purchase a new membership. If a new deed purchase is required, I'm not biting at all.

Here's the thing, DRI really doesn't have many Eastern locations that look better than the current HGVC resorts. Virginia Beach looks nice and the OBX location is one that I may want to visit, but the others? The Pigeon Forge property doesn't excite me (HGVC is supposedly working on their own Smokey Mountain resort) and Branson does not look like what my family would be interested in at all. Sure Mystic Dunes looks great, but should I spend a bunch of money when HGVC has great properties in Orlando? If my wife and I start traveling out west, there a a couple of nice locations (Tahoe and maybe Sedona), we might bite. It really isn't the time for us to travel like that right now (we are still hauling our families around on our vacations at this time).

Now Hyatt would be a different story. The Key West locations would really entice me. I might have already have purchased KW Hyatt resale, but the better half of me doesn't want another system to deal with

 

[SmithOp]

Did they explain what this new entity consists of? Is it trust points or deeds?

I dont understand how a new entity could access both without having people trade in their old deeds. Did they suddenly take all the outstanding, unsold deeds and combine them with a points trust?

To me it sounds like sales hoo-hah BS. The same thing DRI deeded owners were sold to trade in deeds for access to their trust, at higher annual fees too, even though being told the blended deeds would reduce the fees.

I feel like a gun nut, they’ll only get my deed by prying it from my cold dead fingers lol…


Sent from my iPad using Tapatalk Pro

 

[Gwendyc]

I'd like to access resorts in the Smoky Mountains and Williamsburg, but last year I got such a great deal on staying at the Powhatan, it would depend if it would be more expensive to use points. I hope what an above poster said is true regarding HGVC developing a Smoky Mountains resort.

 

[Clifbell]

Did they say if the Combination would have access to DRI Affiliates? They make up the bulk of the DRI Locations. Hilton may have to negotiate with each of them. Actually DRI is about 8 different Trusts. Currently Cabo Azul and The Modern Honolulu are stand alone. They there is DRI Europe.

They didn't mention the affiliates and I forgot to ask... I am not sure that the salespeople know that.... What they said for sure was that you got access to 150+ locations... They also said they were making it a lot harder on the Diamond International to gain access to Hilton.... More like $40K minimum upgrade. They mentioned HGV Gold as a name... But that may have nothing to do with reality.

 

[Clifbell]

I'd like to access resorts in the Smoky Mountains and Williamsburg, but last year I got such a great deal on staying at the Powhatan, it would depend if it would be more expensive to use points. I hope what an above poster said is true regarding HGVC developing a Smoky Mountains resort.

I bought the equivalent of the VIP at my review with Diamond... It was basically the cost of maintenance and they let you use the points over two years... Not restricted to just one week like the VIP... I should be able to 2-3 weeks out of it. I wanted to test out some of the resorts... In my case Lake Tahoe, Scottsdale, North Carolina, Tennessee, and Sedona.

 

[Clifbell]

Did they explain what this new entity consists of? Is it trust points or deeds?

I dont understand how a new entity could access both without having people trade in their old deeds. Did they suddenly take all the outstanding, unsold deeds and combine them with a points trust?

To me it sounds like sales hoo-hah BS. The same thing DRI deeded owners were sold to trade in deeds for access to their trust, at higher annual fees too, even though being told the blended deeds would reduce the fees.

I feel like a gun nut, they’ll only get my deed by prying it from my cold dead fingers lol…


Sent from my iPad using Tapatalk Pro

I'm not trading in my deeds either... I got the sense it was the only legal way they could combine the two... And there was no mention of trading in deeds... In fact they mentioned creating the entity because they want to keep deeds... My guess is they will be selling part of the inventory from the other locations as deeds... Not a lawyer so don't know how it works... In both cases it was clear that Hilton bought Diamond... The meeting at Diamond was buy our trial before the merger because we will only be selling what Hilton has... At Hilton it was we bought Diamond and we control the future... It may be sales hoo-hah... But it definitely felt different.

 

[PigsDad]

Remember that you are getting all of this "information" from sales people, and nothing has been formally announced yet. While there is most likely nuggets of truth in what they are saying, their job is to try to sell you a new / updated deed and they will say almost anything to obtain that goal.

Personally, I'm just waiting for the official announcements on the details of this new membership. Until then, the details can only be treated as speculation, IMO.

Kurt

 

[pedro47]

Remember that you are getting all of this "information" from sales people, and nothing has been formally announced yet. While there is most likely nuggets of truth in what they are saying, their job is to try to sell you a new / updated deed and they will say almost anything to obtain that goal.

Personally, I'm just waiting for the official announcements on the details of this new membership. Until then, the details can only be treated as speculation, IMO.

Kurt

Personally I would wait and see; until something is legally in writing and binding by all parties; before I spend one dollar from a sale person.

 

[dougp26364]

Don’t buy into a program that hasn’t been formerly announced yet. That’s nearly always a mistake. Don’t trust the sales people when they tell you buy now or be left out. They want your money now. Be patient. Wait for something official

 

[Lodemia]

Don’t buy into a program that hasn’t been formerly announced yet. That’s nearly always a mistake. Don’t trust the sales people when they tell you buy now or be left out. They want your money now. Be patient. Wait for something official

+1 Agreed. The wording that I have seen has so many loopholes in it that it looks like Swiss cheese. It doesn't say ANYTHING about existing owners, and the salespeople are trying to create urgency to get people to buy.

 

[tnsna]

Just got a letter today from Hilton stating the 1.6 increase in points………… our 5k contract will now be an 8 k contract

 

[geist1223]

the salespeople are trying to create urgency to get people to buy.

It is urgent to the Sales Folks. They want to make more money. Do you really think they care if it is a good thing for you.