HRC to acquire Welk Resorts [MERGED]

[nuwermj]

The real points values/discount in Hyatt is the 4,5,6 night stay that avoid Saturday night. As I pointed out earlier, 2200 to book KeyWest 7 night Xmas but only 1320 for 6 night with check in Sunday

Welk's point system is similar. The point requirements for Sunday night through Thursday night is 10% of the week point value; Friday night and Saturday night is 25%.

 

[bradj]

The good thing is that it will be a couple years before the Hyatt/Welk merger gets a program that joins the two.
So learn the system as it is as best as you can and there's a good chance that owners of Welk and Hyatt before the merger, "legacy owners" will have the option for a long time to remain in their own systems. It may be 7-10 years before Hyatt/Marriott starts to unofficially force legacy owners to join the new points program that Hyatt/Welk will come up with in the next year or so.

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Hyatt/Welk will have great difficulty converting/confiscating deeded weeks from Hyatt owners. Up until Covid, last March, Hyatt offered an Exit Program which was a semi attractive buy back program for Hyatt deeded weeks. When Covid hit, the program went to deeds back to Hyatt in lieu of foreclosure only. No $ to owners. At some point Hyatt/Marriott/Welk would probably have to start buying back deeded weeks. IMO a Marriott sale of the Hyatt/Welk product would already have happened. Passing this problem on to another buyer looks like the path of least resistance for Marriott.

 

[AJCts411]

I do own at Sunset and really do not care about points and such as these are the weeks I want to use. Viewed the purchase of a cheap way to be able to continue vacationing in Key West considering the spiraling upward trend of rental costs. So I certainly do not have much knowledge of points. So as an observer on the sidelines, seems to me that Marriot is not gambling on the purchase of Welk. They have a plan, just that it has not been disclosed yet. But what is coming, IMO, is a combined points only system, and two groupings of the resorts. One the those groupings will be a collection where the premium resorts would be grouped and then rest of the resorts would be in another group, with higher and lower point values per week. Speculation I know. All bundled up in a nice neat (to investor minds) package to be spun off.

 

[Tenga]

The good thing is that it will be a couple years before the Hyatt/Welk merger gets a program that joins the two.
So learn the system as it is as best as you can and there's a good chance that owners of Welk and Hyatt before the merger, "legacy owners" will have the option for a long time to remain in their own systems. It may be 7-10 years before Hyatt/Marriott starts to unofficially force legacy owners to join the new points program that Hyatt/Welk will come up with in the next year or so.

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Now the flip side its not a couple of years as you claim but an immediate new program. An integration based solely on a expedited sale of HRC with Welk now branded inside it to the market. TS industry no different then selling your own home. The fundamentals still apply. Put on a new roof and fresh coat of paint to make it more appealing to the market/buyer. No way Marriott is going to slow roll this out. Its going to put the lipstick on this pig and hang a 4 sale sign around its neck. At the end of the day its still a pig. But now no longer Marriott problem! Marriott can't move fast enough in this merger. Its not going to do the slow death roll out! Why would it?

Even if Marriott wanted to keep HRC and it doesn't. Why slowly drag it through the mud and diminish its value for the market even further? No my friend, there is a thing called reality in the business world and us Timeshare owners are "not" part of this equation. This is a purely business decision to unload a TS/product it never had intended to keep when it purchased back in 2017. And needs do so in a expedited manner! So year's maybe 7-10 can't see it happing. Be prepared as soon as regulatory approves Marriott Legal department will already have drafted up the Doc's for its announced roll out and sale....

Tenga

 

[Kal]

It's not like flipping a home. There are significant individual state approvals required. California, Hawaii and Florida are difficult.

 

[nuwermj]

...

"Bluegreen already licking its chops and raising $$$$....."

I would perfer Bluegreen to Wyndam or Diamond!!

"So year's maybe 7-10 can't see it happing."

I think the point of 7-10 years is that the current Welk trust fund/club will continue to function about as it is now for another 7-10 years (like HRC can function even though the parent company is no longer selling that product). Whatever new product comes to pass at whatever time table, the new management company (Hyatt or otherwise) can't eliminate the current owners' Association. If they stop selling that trust fund product, membership will decline over time, and inventory will be withdrawn, but that will be many years in the future.

 

[bogey21]

The fundamentals still apply. Put on a new roof and fresh coat of paint to make it more appealing to the market/buyer. No way Marriott is going to slow roll this out. Its going to put the lipstick on this pig and hang a 4 sale sign around its neck. At the end of the day its still a pig. But now no longer Marriott problem! Marriott can't move fast enough in this merger. Its not going to do the slow death roll out! Why would it?

Don't know if it is accurate but I love your way of thinking...

George

 

[Tenga]

It's not like flipping a home. There are significant individual state approvals required. California, Hawaii and Florida are difficult.

Hi Kal, I looked into this. As set up in the articles in the trust and filed in each state were the trust are incorporated. HRC or HVGG as it states in the filings has the exclusive right to buy, sell, or terminate the trust. Since the trust currently exist it only needs to update and file, no need for approval by the states. Now here is the million dollar question that you brought into the light.

Not state approval, but Hyatt's approval!
In order for this merger to take place. Hyatt has to agree. And I direct quote from Marriott filing "The transaction is expected to close early in the second quarter of 2021 and is subject to the satisfaction of customary closing conditions, Rebranding the resorts to the Hyatt Residence Club brand is subject to final approval from Hyatt Hotels Corporation or its affiliate".

If there was ever a time for Hyatt, once and for all to rid its self from the Timeshare industry and get this monkey off its back it will be this year 2021. I see it fast tracked for approval with a legal disclosure from Marriott its intent to sell. Hyatt then has nothing to tie its hands up in the TS industry. This will allow it to focus on its core hospitality industry its" hotel's". It sold HRC to ILG in what 2014? Hyatt a lot smarter then Marriott. It got out! of TS. Here is the opportunity to get out for good!
Regards,
Tenga

 

[dioxide45]

Hi Kal, I looked into this. As set up in the articles in the trust and filed in each state were the trust are incorporated. HRC or HVGG as it states in the filings has the exclusive right to buy, sell, or terminate the trust. Since the trust currently exist it only needs to update and file, no need for approval by the states. Now here is the million dollar question that you brought into the light.

Not state approval, but Hyatt's approval!
In order for this merger to take place. Hyatt has to agree. And I direct quote from Marriott filing "The transaction is expected to close early in the second quarter of 2021 and is subject to the satisfaction of customary closing conditions, Rebranding the resorts to the Hyatt Residence Club brand is subject to final approval from Hyatt Hotels Corporation or its affiliate".

If there was ever a time for Hyatt, once and for all to rid its self from the Timeshare industry and get this monkey off its back it will be this year 2021. I see it fast tracked for approval with a legal disclosure from Marriott its intent to sell. Hyatt then has nothing to tie its hands up in the TS industry. This will allow it to focus on its core hospitality industry its" hotel's". It sold HRC to ILG in what 2014? Hyatt a lot smarter then Marriott. It got out! of TS. Here is the opportunity to get out for good!
Regards,
Tenga

Why would Hyatt want out? They don't own the resorts or the business, they just get free cash for HRC to put it's name on the resorts and sell the product. Much the same way all the other timeshare brands are doing it today. It isn't a monkey on the back of Hyatt Hotels, they have very little risk and all the reward.

 

[Kal]

Over time, the big issue was how to deal with the deeded properties. Now, Hyatt is serving as the property manager for the deeded owners. The owners always have the option of tossing Hyatt (or subsequent manager) and hire a new one. Granted, the Club function is a property of the manager, so that could be an interesting decision point. Then too it might be like herding cats to get all the owners to agree on anything.

 

[Pathways]

Not state approval, but Hyatt's approval!
In order for this merger to take place. Hyatt has to agree. And I direct quote from Marriott filing "The transaction is expected to close early in the second quarter of 2021 and is subject to the satisfaction of customary closing conditions, Rebranding the resorts to the Hyatt Residence Club brand is subject to final approval from Hyatt Hotels Corporation or its affiliate".

Based on your post, where do they need the approval from Hyatt for this purchase? It just states they need Hyatt approval to REBRAND the resorts and place the Hyatt name on Welk

 

[dannybaker]

Personally we do not care for points in the Marriott system and can never get a fair trade with points. We have been MVC members for close to 15 years and dislike points. Yes we enrolled into MVC points system and have that option. We prefer to exchange weeks for weeks in Marriott. Our three Welk weeks are always depositing into RCI and we utilize RCI points system. We do like RCI points system and exchange into Disney and Hilton all the time. Our three Welk weeks currently can be traded into RCI or II. We often trade our three weeks at Welk into ten weeks with RCI, of course we love this. As most things in life continues to change we will adapt and rely on the awesome people on TUG to utilize our weeks efficiently.

 

[SueDonJ]

Hi Kal, I looked into this. As set up in the articles in the trust and filed in each state were the trust are incorporated. HRC or HVGG as it states in the filings has the exclusive right to buy, sell, or terminate the trust. Since the trust currently exist it only needs to update and file, no need for approval by the states. Now here is the million dollar question that you brought into the light.

Not state approval, but Hyatt's approval!
In order for this merger to take place. Hyatt has to agree. And I direct quote from Marriott filing "The transaction is expected to close early in the second quarter of 2021 and is subject to the satisfaction of customary closing conditions, Rebranding the resorts to the Hyatt Residence Club brand is subject to final approval from Hyatt Hotels Corporation or its affiliate".

If there was ever a time for Hyatt, once and for all to rid its self from the Timeshare industry and get this monkey off its back it will be this year 2021. I see it fast tracked for approval with a legal disclosure from Marriott its intent to sell. Hyatt then has nothing to tie its hands up in the TS industry. This will allow it to focus on its core hospitality industry its" hotel's". It sold HRC to ILG in what 2014? Hyatt a lot smarter then Marriott. It got out! of TS. Here is the opportunity to get out for good!
Regards,
Tenga

Marriott, Int'l (MAR) the hotel company has been out of the timeshare business since 2011 after having spun off its timeshare division; Marriott Vacations Worldwide (VAC) is the separate timeshare company. It has since enjoyed a similar relationship to MAR as the Hyatt timeshares do to the Hyatt hotel company - ie that of a contractual arrangement allowing naming rights in exchange for cash considerations, and, access to the Bonvoy (formerly Marriott Rewards) customer loyalty program for the timeshare owners. The same happened with Starwood's timeshare division spinning off to the new company Vistana Signature Experiences in 2016, prior to it coming under the Marriott Vacations Worldwide umbrella in the same 2018 ILG acquisition wherein VAC picked up Hyatt timeshares.

Whatever the naming rights arrangement is between Hyatt the hotel company and the Hyatt timeshares, it continues to present obstacles that VAC apparently didn't face when Marriott timeshares were spun off to a new company, or, that Westin, Vistana and St. Regis timeshares didn't face when spun off from Starwood. Almost immediately on the ILG acquisition, VAC started talking in investor communications about more fully integrating formerly-Starwood timeshares within the existing VAC set-up while at the same time, warning that the Hyatt issues wouldn't be simple. With these new Welk resorts being integrated into Hyatt, and these obstacles not having been figured out yet, I fall more towards the side that says VAC will be shopping Hyatt/Welk to others in the industry. But anything's possible, and the speculation is always interesting.

 

[TravelTime]

The only locations I would even consider with Welk would be Northstar in Tahoe.

 

[Shankilicious]

The only locations I would even consider with Welk would be Northstar in Tahoe.

Not a fan of infinity pools to the ocean huh?

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[Kal]

The only locations I would even consider with Welk would be Northstar in Tahoe.

That property started out as a fractional. My guess is the cost to get a reservation would be significant and the waiting list even longer. Typically, the owners of those units a far ahead through rental rather than tossing it into a club pool.

 

[dannybaker]

I am always upset that my underlying deeded week maintenance fees keep increasing every year in Hyatt and Marriott. But then compared to those Marriott DC trust point and Hyatt trust HPP point they are significantly lower per points. Then I look at the maintenance fees for Hyatt beaver creek or Aspen., I am happy I am able to trade there and not that maintenance fees. So it is all relative.

Currently maintenance fees for Welk look high already. Maybe Welk owners can comment of the maintenance fees required to book a 2 BR at various place. But my guess is that it is higher than what we Are paying and is more consistent with point base system

We currently pay $1317 for a two bedroom look off platinum week that trades into all 52 weeks. Our Marriott two bedroom lock off units maintenance fee is $1500.

 

[TravelTime]

That property started out as a fractional. My guess is the cost to get a reservation would be significant and the waiting list even longer. Typically, the owners of those units a far ahead through rental rather than tossing it into a club pool.

It is possible to get reservations through ThirdHome and EliteAlliance but you can’t pick your dates and the dates are usually last minute.

 

[fleecer]

The only locations I would even consider with Welk would be Northstar in Tahoe.

LOL

 

[RunCat]

The only locations I would even consider with Welk would be Northstar in Tahoe.

The nice thing about a points system, rather than fixed weeks, is that you get to choose how you spend your points and you get to choose where and when to go. I have no desire to go to Branson, MO and limited desire to go to FL or Carmel. But I have multiple trips planned for Escondido, Breckenridge and Avon. I would have liked to go to Cabo, but, for me, there is too much uncertainty about air travel .

 

[dsmrp]

I'm not excited about the Welk locations either except perhaps Cabo.
We don't go on ski vacations, so Northstar is of so-so interest. But it's a plus that most of Welk locations are in the West, as I am too.

If Hyatt trading availability will be diluted with the merger, or later sold off, the only consolation to me is that we bought where we want to go, Pinon Pt. And in a good unit and week period.

 

[ivywag]

I'm surprised none of the commenting Hyatt owners are interested in Cabo.

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There are lots of high-quality resorts available in Cabo through II. Welk is good , but IMHO there are many resorts in Cabo of equal or better quality. We go every year including one year to Welk and always are able to book a great resort through II. Thus Welk is not a needed addition. Really, the only Welk property that interests us is Northstar and we already have limited availability there through Hyatt We don’t see the Welk acquisition as a benefit. Adding Hyatt access to Welk weeks owners only dilutes the availability of internal trades if we’re not interested in any of the Welk properties. My husband and I both feel that the Hyatt system has been very special. We have gotten to know most of the managers during our 21 years of ownership and are treated as family at all of the resorts that we visit frequently. They all go out of their way to try to fulfill our requests. We haven’t seen that when visiting other corporate timeshares. We are at WKORVN now and find that, although nice, the feeling is much different than within the Hyatt system. It’s more of a big, corporate, impersonal atmosphere. I’m sure that there are many Welk owners who feel the way about their system that we do about Hyatt. We all buy what meets our likes and needs. This merger only benefits Marriott corporate and their bottom line.

 

[CPNY]

Well I’m sure it will take a few years for any combination program to come to fruition. We still don’t have a VSN/MVC program. MVW sees 55,000 potential new buyers with the Welk acquisition. When they exhaust their sales efforts they will prob sell off both Welk and Hyatt.

I wouldn’t worry if I were a hyatt owner, chances are MVW is too busy trying to figure out the Marriott vistana side of this business. However, after reading everyone concerns, it sounds like we are re living the Marriott acquisition of ILG all over again.

 

[boraxo]

Big Plus for Hyatt owners out west. Happy to have some new trade options in the portfolio.

 

[jjking42]

At Northstar this weekend booked via Hyatt points
attended update this morning
they are selling welk points 420k points for $56,000 MF is 2300
making a big deal about vip program and registry collection
they did know anything about how HRC or HPP work
they say they are excited to have the Hyatt name because most millennials don’t know the Welk name
lots of other stuff said some of it probably not true about the sale to Hyatt etc and Welk financial success.
I told them I bought my Hyatt points resale and they said Welk would never let thier points sell cheap because of ROFR .Laugh out loud . I got my gifts and was out in 90 minutes very low pressure.