Hilton resuming ROFR?

[onenotesamba]

So, I've heard from two separate (and reputable, as per this board) real estate agents, that Hilton has started exercising ROFR, again, as of last week.

Not sure if anyone can confirm that with first hand experience (I hope not), but I just got a cheap 4800 pt. unit, and I'm wondering if my first foray into HGVC will be bought out from under me.

Anyone else hearing/experiencing this, firsthand?

 

[Jason245]

Well.. report back to us with the results. ..then we will have a current data point.

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[Helios]

If this true, I am very glad my unit recently passed ROFR.

 

[SmithOp]

I have 2 that just went in for rofr, will let you know in a couple of weeks if they pass. One I'm selling, one buying.

Agents may be motivated to get you to pay more for a higher commission.

Companies coming up on end of 4th quarter typically freeze spending so they can report better end of year financials.


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[alwysonvac]

If it gets bought back by HGVC, you can always try again. Time is on your side

I don't think you'll lose any money if HGVC executes their Right of First Refusal. The real estate agents can confirm.

 

[1Kflyerguy]

Believe Hilton reported an increase in inventory of unsold units at there last quarterly results so would be a bit surprised, but would not rule it out.

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[Helios]

Thinking about, wouldn't exercising ROFR go against their Asset Light Strategy?

Unless they intend to generate some quick cash by selling highly desirable inventory at low prices. But, I don't think that would be a route that HGVC take.

 

[Jason245]

Thinking about, wouldn't exercising ROFR go against their Asset Light Strategy?

Unless they intend to generate some quick cash by selling highly desirable inventory at low prices. But, I don't think that would be a route that HGVC take.

Which is why resale prices are dropping lower and lower.

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[Helios]

Which is why resale prices are dropping lower and lower.

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What's the fix to stop the prices going down?

 

[Jason245]

What's the fix to stop the prices going down?

Fix the supply/demand equation for resale, or artificially fix it.

Options include:

Creating a robust resale market that competes against the developer sale market (not going to happen0

Use ROFR in instances where the price is below some floor that is set (artificial)

Enact some provision (prepay 5 years of MF with transfer etc) on resales that makes them unappealing. (artificial).

Have an exceptional brand that holds value just based on brand (DVC anyone).

 

[Helios]

Fix the supply/demand equation for resale, or artificially fix it.

Options include:

Creating a robust resale market that competes against the developer sale market (not going to happen0

Use ROFR in instances where the price is below some floor that is set (artificial)

Enact some provision (prepay 5 years of MF with transfer etc) on resales that makes them unappealing. (artificial).

Have an exceptional brand that holds value just based on brand (DVC anyone).

I like the last item. I think that would be the best way to do it.

 

[Jason245]

I like the last item. I think that would be the best way to do it.

Hilton doesn't have that and has no intention of making it like that. ..

Disney is an entertainment company first, the timeshare business is a means of getting more customers to the parks and spending money on entertainment. ..

Hilton is a lodging company first and formost...

The difference. .. one is an experience (disney ) that continues throughout the duration of your stay, the other (every other timeshare ) is a commodity (a room to sleep in).

In commodity businesses, you can only be as smart as your dumbest competition as those are the prices you must compete with, and at the end of the day. .lowest price wins.


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[1Kflyerguy]

Thinking about, wouldn't exercising ROFR go against their Asset Light Strategy?

I don't think exercising ROFR or buy taking units back into inventory inherently goes against the asset light model. They are taking them back to resell for a profit, not to hold for a long time. I believe they stopped excising it, because they had enough inventory, particularity with the new resorts in Oahu, Maui and Hilton Head coming online.

I expect they may start exercising again, but i think they only stopped sometime earlier this year, so i am doubtful they would restart this soon. But time will tell.

 

[arnief]

Can DVC hold value when the purchase expires after time?

 

[Jason245]

Can DVC hold value when the purchase expires after time?

Value of okw units now(on resale market ) are higher then they were 20 years ago when originally purchased. And that is without the 10 years of free tickets incentive they were providing.

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[elleny76]

Disney is Disney and the resorts are only owned for 45 years only I believe.

Besides I thank all those people who buys retail remember NO retail NO resale.

Can DVC hold value when the purchase expires after time?

 

[frank808]

Disney is Disney and the resorts are only owned for 45 years only I believe.

Besides I thank all those people who buys retail remember NO retail NO resale.

Actually 50 years right to use. The oldest resorts expire in 2042. Old Key West sells for almost double what the original asking price was. And this is at resale prices.

 

[Jason245]

Actually 50 years right to use. The oldest resorts expire in 2042. Old Key West sells for almost double what the original asking price was. And this is at resale prices.

Which is why I am amazed how an ENTERTAINMENT company has actually produced the ONLY timeshare like product that has fulfilled all (or almost all) the promises from the Sales People.

I can not think of another ownership option out there where the value actually increases, they give you everything you are promised, and do what they say they are going to say they are going to do and not nickle and dime you throughout the process.

From my look at the fee chart for HGVC, back 10+ years ago, HGVC started with the DVC model, and somehow was led astray....

 

[elleny76]

Yes still pricey for a resale TS. I bought DVC resale and I own 200 points. Now in compare with 100 points today sales at the Poly... I totally paid resale ( half of the amount for todays 100 points value_Poly)

Actually 50 years right to use. The oldest resorts expire in 2042. Old Key West sells for almost double what the original asking price was. And this is at resale prices.

 

[pinetree1]

Hilton ROFR

I heard from a broker that Hilton is very aggressively exercising ROFR now and any offer under $9000 for Vegas Strip 7000 point could not pass ROFR. Just wonder how true is the comment. Any one has recent purchase experience? Thanks for sharing.

 

[presley]

I heard from a broker that Hilton is very aggressively exercising ROFR now and any offer under $9000 for Vegas Strip 7000 point could not pass ROFR. Just wonder how true is the comment. Any one has recent purchase experience? Thanks for sharing.

I can't speak to that particular property, but there have been a lot of posts in the last few weeks about people buying at all time low prices. It will be easy to buy a 7,000 point contract for less than that, but I don't know which properties.

 

[Jason245]

I heard from a broker that Hilton is very aggressively exercising ROFR now and any offer under $9000 for Vegas Strip 7000 point could not pass ROFR. Just wonder how true is the comment. Any one has recent purchase experience? Thanks for sharing.

Tell the broker to give your offer (whatever it is) to seller and if you lose to ROFR please tell us because we have no data points proving they have exercised rofr in over 6 months..

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[SmithOp]

I heard from a broker that Hilton is very aggressively exercising ROFR now and any offer under $9000 for Vegas Strip 7000 point could not pass ROFR. Just wonder how true is the comment. Any one has recent purchase experience? Thanks for sharing.

Hogwash! Sales are easily passing at 90 cents a point or less. The agent probably has a seller that wants way too much.


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[onenotesamba]

Since I started this thread, I'll report back. I had an offer for 4800 pts Plat 1BR at SeaWorld pass ROFR at $2500 in December. I've got another purchase of 4800 pts pending at the Boulevard/Strip for$3000, and the seller told me that the same unit passed ROFR at around that price, recently.

For 7000 point packages, I haven't seen many on the resale market for less than $1 per point, but I certainly wouldn't pay/offer more than that. There are plenty of resale units out there. If Hilton buys a unit out from under you at a low price, you can always find a comparable unit there for a slightly higher price and see if that one passes.

I'd look for a 7K point package at less than $6K and give it a shot. If it doesn't pass, try again at a slightly higher price. It might take some time, but no one has reported ROFR activity on this board in a long time, so you've got nothing to lose by taking your time. Slow and steady wins the race.

 

[pinetree1]

The broker Judi Kozlowski who is mentioned quite lot on the broad refused to take anything less than $9000. I will just try other sellers in different markets and will report back. Thank you for all your ideas and support.