Interval Leisure Group to buy SVO

[Weimaraner]

My concern is will the older Starwood resorts still be able to deposit in RCI and what will happen to those folks at Vistana that have their weeks enrolled in RCI Points???

I have that same concern since I use one to trade in RCI. This issue was addressed in the FAQ.

WILL MY EXCHANGE COMPANY AFFILIATION REMAIN THE SAME? Yes. You and your HOA will continue to have the same exchange company affiliation agreement you have today.

 

[LisaRex]

This is awesome! One flacky website (intervalworld) deserves another (mystarcentral). Perfect match!

Vistana's new motto: You just never know what you're going to get!

 

[NNerland]

I have read that Starwood signed an 80 year licensing deal with II and that all indications are not much will change for owners.

Remember - II is now the DIRECT SELLERS - it is in THEIR ABSOLUTE BEST Interest to keep a good network of value in tact.

Thus -- the 80 year contract makes sense as that keeps that stuff alive.

Never say never, but I am not a panic kind of guy -- and don't get emotional with my analysis -- I like FACTS

 

[suzannesimon]

As a Hyatt owner, I have only seen improvement since Interval bought it. A lot of updates have been going on at Sunset Harbor. These may have happened anyway, but there certainly has been no downgrade in services. They also upgraded all the Hyatt owners to Gold membership in II at no additional charge.

 

[Julian926]

As a Hyatt owner, I have only seen improvement since Interval bought it. A lot of updates have been going on at Sunset Harbor. These may have happened anyway, but there certainly has been no downgrade in services. They also upgraded all the Hyatt owners to Gold membership in II at no additional charge.

That's great. I'm hoping Staroptions could be used in Interval as points so I can split my 2 bedrooms to smaller units.

 

[DavidnRobin]

That's great. I'm hoping Staroptions could be used in Interval as points so I can split my 2 bedrooms to smaller units.

It is possible that Voluntary resale (low value) may really benefit in some scenarios.

 

[Julian926]

It is possible that Voluntary resale (low value) may really benefit in some scenarios.

Although my starwood is mandatory, I'm curious as well with how they're going to treat mandatory vs voluntary contracts.

 

[DeniseM]

If they give voluntary deeds, mandatory status, this devalues developer sales, so I will be surprised if this happens - unless they charge a high fee for it.

 

[wannagotoo]

Curious about remaining Platinum with Starwood based on my timeshares. FAQ has this:
Will I still be able to enjoy my Starwood Vacation Network benefits?
•Yes. You will continue to receive the same valuable benefits; award-winning branded experiences and preferred access to the industry-leading SPG program that you’ve come to know and expect from us. Current reservation guidelines and fees, exchange rules, reservation rights, and exchange privileges through Starwood Vacation NetworkSM, Interval International® and other current exchange options will all remain the same.



Will current and future Starwood Vacation Network (SVN) members still have access to Starwood hotels? Will I still be able to convert my StarOptions to Starpoints and access Starwood hotels worldwide?
•Yes, all current and future Owners will continue to enjoy Gold-level access to the Starwood Preferred Guest® program as they have in the past. The terms and conditions governing access to Starwood hotels through SVN and the SPG program are reviewed and updated from time to time. Any changes that may take place in the ordinary course of business would not be attributable to the transaction.

 

[NNerland]

Curious about remaining Platinum with Starwood based on my timeshares. FAQ has this:
Will I still be able to enjoy my Starwood Vacation Network benefits?
•Yes. You will continue to receive the same valuable benefits; award-winning branded experiences and preferred access to the industry-leading SPG program that you’ve come to know and expect from us. Current reservation guidelines and fees, exchange rules, reservation rights, and exchange privileges through Starwood Vacation NetworkSM, Interval International® and other current exchange options will all remain the same.



Will current and future Starwood Vacation Network (SVN) members still have access to Starwood hotels? Will I still be able to convert my StarOptions to Starpoints and access Starwood hotels worldwide?
•Yes, all current and future Owners will continue to enjoy Gold-level access to the Starwood Preferred Guest® program as they have in the past. The terms and conditions governing access to Starwood hotels through SVN and the SPG program are reviewed and updated from time to time. Any changes that may take place in the ordinary course of business would not be attributable to the transaction.

Again - there is no doubt we will pay for this in the future. But there are selling contracts and unless Starwood wants to buyout or someone who buys Starwood wants to buy out those deals things will more than likely continue to be the same. Being cynical, I am sure it may come at a cost as we are agreeing to pay licensing fees to keep Westin and Starwood -- but a good program is IN THEIR BEST INTERESTS if they want to SELL NEW UNITS

 

[dsmrp]

If they give voluntary deeds, mandatory status, this devalues developer sales, so I will be surprised if this happens - unless they charge a high fee for it.

Yes, I'd think this would make developer sales extremely tough.
But yet this is the HGVC model . And allowing resale buyers to join the HGVClub, for a fee of course, has seemed to keep resale values up. Not as much as developer prices certainly, but not a tanked $1 either.
The club joining fees aren't outrageous, about $400-600 depending on what you buy, true HGVC or affiliate.

Hilton does not have as many locations as SVN... no St John or Bahamas, but they have some in Europe.
They charge smaller fees for lots of things such as making a non-home resort club reservation. I have no idea how they're making their money outside of these fees, but some people on the Hilton forum think HGVC is doing fine financially.

 

[JudyS]

And in other news, HOT (Starwood) spiked this afternoon on news of Chinese interest in potential buyout.

Although the rumors look stronger that Hyatt (the hotel system, not the timeshare system) will buy Starwood (the hotel system, not the timeshare system). (Although then maybe Hyatt will be bought by Chinese investors; who knows.)

So, I'm wondering what will happen to the big pile of Starpoints I'm sitting on.

Curious about remaining Platinum with Starwood based on my timeshares. FAQ has this:
Will I still be able to enjoy my Starwood Vacation Network benefits?
•Yes. You will continue to receive the same valuable benefits; award-winning branded experiences and preferred access to the industry-leading SPG program that you’ve come to know and expect from us. Current reservation guidelines and fees, exchange rules, reservation rights, and exchange privileges through Starwood Vacation NetworkSM, Interval International® and other current exchange options will all remain the same.



Will current and future Starwood Vacation Network (SVN) members still have access to Starwood hotels? Will I still be able to convert my StarOptions to Starpoints and access Starwood hotels worldwide?
•Yes, all current and future Owners will continue to enjoy Gold-level access to the Starwood Preferred Guest® program as they have in the past. The terms and conditions governing access to Starwood hotels through SVN and the SPG program are reviewed and updated from time to time. Any changes that may take place in the ordinary course of business would not be attributable to the transaction.

For this to be true, the Starwood Preferred Guest program would need to continue to exist.

So, if Hyatt hotels buys Starwood hotels, presumably either 1) Hyatt's reward system (I don't even know its name) and Starwood Preferred Guest would continue as separate systems, or 2) Hyatt's reward system would become part of the Starwood Preferred Guest program.

So, what do people think will happen with SPG/Starpoints?

 

[JudyS]

It is possible that Voluntary resale (low value) may really benefit in some scenarios.

That was my thought, too. But, I don't think voluntary resorts will be offered StarOptions. (And I don't think David meant that, either. At least, that is not how I read his post.)

Instead, voluntary resorts may become more valuable because Interval offers new, appealing options to all Starwood owners. This could lead to more Starwood inventory becoming available in Interval, or to Starwood owners getting some sort of trade preference into Hyatt properties, etc. All Starwood owners would benefit from these changes. But, owners with resales at voluntary resort would benefit the most, because their only special trade/booking privileges are the ones they get through Interval. (Well, there is at least one other special privilege -- the option for owners at some Florida Sheratons to book a different Florida Sheraton at 6 months or so before check-in -- but this privilege is minor.)

 

[GregT]

It is possible that Voluntary resale (low value) may really benefit in some scenarios.

I would think that the primary benefit would be potential for better bulk banks in II, because II can earn more fees from this than from SVN trading.

I concur with others that it is unlikely that voluntary resorts would be given a mandatory status. But I would think a return to historical bulk banks would be a big improvement.

Best,

Greg

 

[dsmrp]

I would think that the primary benefit would be potential for better bulk banks in II, because II can earn more fees from this than from SVN trading.

I concur with others that it is unlikely that voluntary resorts would be given a mandatory status. But I would think a return to historical bulk banks would be a big improvement.

Best,

Greg

What would happen to the Sheraton Flex program? Large bulk banks seems to be at cross purposes to it.

 

[GregT]

What would happen to the Sheraton Flex program? Large bulk banks seems to be at cross purposes to it.

I was thinking more of the bulk banks for properties not currently in a Flex program, like WKORV and WPORV, which seem to appear in smaller quantities and closer to check-in. I don't monitor WLR, but it may be similar.

I just think that Interval would benefit from bulk banking in the historical manner, where the bulk banks happen months in advance of check-in, and with some level of predictability. This attracts new potential buyers of now Interval owned Starwood inventory, plus generates more fee income in II trades.

I think the purchase of Hyatt and Starwood by Interval was a brilliant response to Marriott's decision to create an internal trading competitor that was to Interval's disadvantage. Starwood also changed the trading experience (negatively) for its ownership and Interval had to have seen the writing on the wall -- that if they can't control the supply, then they ran the risk of being an exchange for independents -- which isn't nearly as exciting as including the high quality properties.

It is bold, and very curious to see how it plays out. I've always preferred mini-systems, and using points because the inventory access is more predictable than the Wild West of trading. I will be curious to see how Interval manages its two new toys to see if trading becomes a more positive experience.

Best,

Greg

 

[DavidnRobin]

I would think that the primary benefit would be potential for better bulk banks in II, because II can earn more fees from this than from SVN trading.

I concur with others that it is unlikely that voluntary resorts would be given a mandatory status. But I would think a return to historical bulk banks would be a big improvement.

Best,

Greg

I never meant that this would not be w/o a fee to convert.
btw - just joining the speculation discussions... (which at its core - this is what is happening here)
I plan to use my VOIs at the resorts I own, and why I own them. Only my WKV VOIs are impacted directly - and I rent these out.

Overall - considering that corporate profits are #1 priority - this generally does not come out as a benefit for typical customer (owner) no matter what the spin. IME IMO
(candy bars are smaller, and cost more, but have prettier wrappers...)

 

[paluamalia]

Interval purchase

Looks like it happened...saw a letter on Syed's website

 

[alexadeparis]

Instead, voluntary resorts may become more valuable because Interval offers new, appealing options to all Starwood owners. This could lead to more Starwood inventory becoming available in Interval, or to Starwood owners getting some sort of trade preference into Hyatt properties, etc. All Starwood owners would benefit from these changes. But, owners with resales at voluntary resort would benefit the most, because their only special trade/booking privileges are the ones they get through Interval. (Well, there is at least one other special privilege -- the option for owners at some Florida Sheratons to book a different Florida Sheraton at 6 months or so before check-in -- but this privilege is minor.)

or they may become worth even less because Interval may decide to discontinue the Starwood preference. If you have Hyatt and want to exchange, you cannot get a Hyatt unit through II. To exchange into a Hyatt unit, it must be an internal exchange through Hyatt points. They could end up doing that, too. There have been reports all over these boards about Marriott and Starwood weeks dissipating in II, very little is being deposited, and what is being deposited is off season or almost last minute. Same thing for Disney in RCI; there have been no 2 bedrooms in a long time and what is showing up is one or two resorts 3 or 4 months ahead of time. So it again boils down to buy into the system you want to use, and the developers are squeezing every loophole closed that they can in an effort to force you to buy retail. (End of rant.)

 

[tschwa2]

or they could start charging the full membership for each SVN week you own like they do for Hyatt instead of full for the first, greatly reduced for the second and no extra for the third or any additional ownerships.

I don't think they would do either of these things (remove II preference or increase membership fees) for a while at least. I don't think they want the back lash. My guess is that changes will be eased in. Some will be more beneficial to owners than others but I don't think they would risk several major changes that hurt the owners. Owners are often the best customers.

 

[dsmrp]

or they may become worth even less because Interval may decide to discontinue the Starwood preference. If you have Hyatt and want to exchange, you cannot get a Hyatt unit through II. To exchange into a Hyatt unit, it must be an internal exchange through Hyatt points. They could end up doing that, too. There have been reports all over these boards about Marriott and Starwood weeks dissipating in II, very little is being deposited, and what is being deposited is off season or almost last minute. Same thing for Disney in RCI; there have been no 2 bedrooms in a long time and what is showing up is one or two resorts 3 or 4 months ahead of time. So it again boils down to buy into the system you want to use, and the developers are squeezing every loophole closed that they can in an effort to force you to buy retail. (End of rant.)

Yes agree Interval could discontinue the Starwood preference now that they will own units supply. Hope not, even tho' I've never used the preference. I still think-hope it would be to Interval's advantage long term to get the voluntary resale $ values up to make their developer sales more competitive and maintain brand perception of quality & value.

 

[lizap]

Whatever they do, it won't be for a while. The Hyatt deal took place quite a while ago and NO change so far except we were all upgraded to Interval Gold. The Starwood transaction doesn't close until the second quarter of 2016, so I doubt there would be any major changes until 2018, if then..

Yes agree Interval could discontinue the Starwood preference now that they will own units supply. Hope not, even tho' I've never used the preference. I still think-hope it would be to Interval's advantage long term to get the voluntary resale $ values up to make their developer sales more competitive and maintain brand perception of quality & value.

 

[gcole]

Just got the email notification.

Sent from my SAMSUNG-SGH-I537 using Tapatalk

 

[gcole]

[Thank you, but this has already been posted]

 

[JudyS]

...I think the purchase of Hyatt and Starwood by Interval was a brilliant response to Marriott's decision to create an internal trading competitor that was to Interval's disadvantage. Starwood also changed the trading experience (negatively) for its ownership and Interval had to have seen the writing on the wall -- that if they can't control the supply, then they ran the risk of being an exchange for independents -- which isn't nearly as exciting as including the high quality properties...

Good points! Especially since II has always branded itself as focusing on the quality of the resorts it offers.

or they may become worth even less because Interval may decide to discontinue the Starwood preference....

What would be the advantage to II in doing that? As GregT noted, II will make more money if Starwood owners exchange through II than if they don't. (Unless the SVN fee structure radically changes.)

Yes, there has been a reduction of exchange inventory from the hotel-brand timeshares, but I don't think that's something the exchange companies want.