Interval Leisure Group to buy SVO

[SMHarman]

I think all of these would be interesting, but the most interesting would be if Starwood deposits to II were returned because it is more lucrative for II to exchanges made via II versus via StarOptions.

Best,

Greg

Which would require the rolling back of SO for short trips at 8 months. That's what has decimated week availability in ii.

 

[VacationForever]

Which would require the rolling back of SO for short trips at 8 months. That's what has decimated week availability in ii.

Interesting hypothesis, but I don't believe there is a correlation. SVN SOs and Weeks relinquished to II should be in separate pools.

 

[mnmrsjjp]

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???

 

[tschwa2]

I don't think it will do anything to those that can deposit in RCI with the exception that perhaps fewer weeks will be deposited in the big bulk banks. I'm sure II will try to persuade those owners to switch over and there may be a return to the 2 for 1 offers from II and maybe RCI will counter with their own reduced membership fees (wouldn't that be nice especially for the points owners with RCI). Like Wyndham that still has some old timers from some specific resorts that still exchange through II, they may be able to limit new (resale) owners but should not be able force current owners over to the exchange company of the parent company.

 

[suzannesimon]

Interval did sell off one Hyatt vacation club (I think to Welk). The two in SVN I would be the most concerned about would be Harborside and SDO.

I would expect the two umbrellas of Hyatt and SVN to stay separate with perhaps some reciprocity (a la Wyndham/Worldmark) at maybe the 6 month mark or priority within II.

Personally I would like to see Harborside go to Marriott with ability to enroll in the DC and perhaps better points values especially for summer months.

This also means II will be competing with itself selling retail weeks/points in Maui.

I would be thrilled to see Harborside go to Marriott. It would make some sense since Marriott financed the Atlantis purchase and other Atlantis hotels are in the
Marriott rewards program. I'd personally like to see the Marriott quality management at Harborside.

 

[tschwa2]

The problem with that statement is I think a fair number of those who have stayed in the hotel over the last year have not seen Marriott quality management of the hotel, so I wouldn't expect it from the timeshare either.

This is from Trip Advisor:

http://www.tripadvisor.com/Hotel_Review-g147417-d507175-Reviews-Atlantis_Royal_Towers_Autograph_Collection-Paradise_Island_New_Providence_Island_Bahama.html

“Terrible”
1 of 5 starsReviewed 5 days ago NEW
Where do I begin? The prices were ridiculous although if the service was even half way decent I would not have minded. The rooms were mediocre and outdated. The bathroom light didn't work and it took several calls and hours to get someone to fix it. The remote and hair dryer were broken as well and we never did get anyone to fix those. The majority of the people were rude and appeared bothered by us being there. The beach was so crowded with a tiny restricted area where we could use the beach chairs...I felt like a sardine on top of everyone. As far as the grounds, we finally found a pool area that seemed decent and as soon as we were settled a woman informed us that the are was "preferred seating" and it would cost us $100.00 for two chairs to stay. Every time we turned around there was another charge, tax, fee. I have never wished a vacation to be over and I was just counting the days until I could come home. Never again.

 

[suzannesimon]

People either love it or hate it. There are plenty of 4 and 5 reviews as well. We go for the amenities, not luxurious rooms. Harborside also gives the ability to avoid the craziness with their private pool so you aren't fighting for chairs with the masses.

 

[tschwa2]

I agree but people looking for Marriott level of management generally hate it.

Many of the higher ratings are for the higher levels. Harborside was always listed as Moderate on the Budget to Luxury scale of bookings on the Atlantis website so other than getting into the Marriott network, I don't think changing the affiliation of Harborside from Starwood to Marriott would necessarily do much to improve quality or service.

 

[Helios]

I agree but people looking for Marriott level of management generally hate it.

Many of the higher ratings are for the higher levels. Harborside was always listed as Moderate on the Budget to Luxury scale of bookings on the Atlantis website so other than getting into the Marriott network, I don't think changing the affiliation of Harborside from Starwood to Marriott would necessarily do much to improve quality or service.

I agree. The problem is the staff.

 

[iworthman]

How about deedbacks?

While everyone seems to be speculating on how reservations/exchanges could be affected, I'm wondering if this could finally open the door for Starwood to take back units as well. I have been trying to dump mine for some time.

 

[okwiater]

While everyone seems to be speculating on how reservations/exchanges could be affected, I'm wondering if this could finally open the door for Starwood to take back units as well. I have been trying to dump mine for some time.

If you own at HRA, I would imagine you could probably dump it here on TUG.

 

[iworthman]

If you own at HRA, I would imagine you could probably dump it here on TUG.

I've tried already. A $3100 MF is a hard sell. Even when I'm willing to give it away.

 

[TimeShare Junky]

Titled Owners

As as I under stand deeded owners own the properties, they manage them. Correct ?

 

[komosatp]

I would be thrilled to see Harborside go to Marriott. It would make some sense since Marriott financed the Atlantis purchase and other Atlantis hotels are in the
Marriott rewards program. I'd personally like to see the Marriott quality management at Harborside.

Just want to clarify this a bit...

Marriott was only peripherally involved in the Atlantis recapitalization*. The total recap was for around $2 billion. A consortium of bank lenders provided $1.75 billion. Brookfield, the hedge fund/private equity company that now owns Atlantis put in $175 million of their own money. Marriott provided $100 million. So Marriott provided around 1/20th (~5%) of the recap funding. I don't think that loan gives Marriott much of a role in the day-to-day at Atlantis. It was more of a good faith gesture to inaugurate Atlantis becoming part of the Autograph Collection.

The bottom line is the Marriott loan was probably a value-add play for Marriott to add a signature property to use in its hotel loyalty system. And to have an inside track if/when Brookfield decides to sell Atlantis. Brookfield likes it because they have a seasoned hotel managment company ready to step-in should the newly formed Atlantis management company not measure up.

*And Atlantis wasn't exactly 'purchased'. Sol Kerzner, the former owner and original builder of Atlantis, defaulted on loans he took out to expand Atlantis and take the his company private. The loans couldn't be refinanced (Atlantis was able to make the debt payments, but was unable to refinance when the balloon payment on his original loans came due) and Brookield owned the piece of the original deal that allowed them to become the new owner of the property, should it go onto default.

I'm not writing this all to nitpick little details, but to highlight the fact that Marriott isn't really all that involved at Atlantis. I get the fun speculation, but there will be lots of bidders should Atlantis go up for sale.

And don't forget that Atlantis' new GM came from Starwood.

 

[SkyBlueWaters]

They must have a lot of cash...from those fees they add and increase every year. I don't get it though. In one of their presentations, the more lucrative side of this business is the rental from hotel operations.

 

[Marathoner]

They must have a lot of cash...from those fees they add and increase every year. I don't get it though. In one of their presentations, the more lucrative side of this business is the rental from hotel operations.

These types of purchases are financed so they don't really have the cash. That said, their growth prospects are good enough for the banks to lend them the money.

 

[SkyBlueWaters]

These types of purchases are financed so they don't really have the cash. That said, their growth prospects are good enough for the banks to lend them the money.

Of course, it's leveraged but they would still need some equity going in or the bank won't lend. What I'm wondering about is, what will they do to turn it around and make a profit off it when the seller disposed of it for a reason. What seceret advantage do they have to give this "partnership" a synergy for its growth.

 

[krj9999]

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

 

[pedro47]

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

A Chinese investors group invested very heavily into DRI during this passed year..

 

[okwiater]

It's official: Interval Leisure will become part of Vistana Signature Experiences

It's official: http://finance.yahoo.com/news/interval-leisure-group-acquire-starwood-103000944.html

Interval Leisure Group (Nasdaq:IILG) (“ILG”), and Starwood Hotels and Resorts Worldwide, Inc. (HOT) (“Starwood”) today announced that the Boards of Directors of both companies have unanimously approved a definitive agreement under which a wholly owned subsidiary of ILG will acquire and then merge with and into Vistana Signature Experiences (“Vistana”). The combination, which will follow completion of the planned spin-off of Vistana from Starwood announced on February 10, 2015, has a total value to Starwood of approximately $1.5 billion.

 

[okwiater]

It's official: http://www.iilg.com/phoenix.zhtml?c=223490&p=irol-newsArticle&ID=2103252

MIAMI & STAMFORD, Conn.--(BUSINESS WIRE)--Oct. 28, 2015-- Interval Leisure Group (Nasdaq:IILG) (“ILG”), and Starwood Hotels and Resorts Worldwide, Inc. (NYSE:HOT) (“Starwood”) today announced that the Boards of Directors of both companies have unanimously approved a definitive agreement under which a wholly owned subsidiary of ILG will acquire and then merge with and into Vistana Signature Experiences (“Vistana”). The combination, which will follow completion of the planned spin-off of Vistana from Starwood announced on February 10, 2015, has a total value to Starwood of approximately $1.5 billion.

 

[LisaRex]

Very interesting.

I'm disappointed with the name, but oh well.

 

[Julian926]

Very interesting.

I'm disappointed with the name, but oh well.

What I don't understand is that if they're paying $30 million per year to have the naming rights, why not keep it Starwood?

 

[Julian926]

http://www.bizjournals.com/southflo...eisure-group-tobuy-starwoods-1-5-billion.html

Vistana manages 22 high-end timeshare resorts with more than 220,000 owners. The company has about 5,000 employees. Once the merger is complete, its portfolio will expand to 200 resorts and 500,000 owners and will include Sheraton Vacation Club, Westin Vacation Club and Hyatt Residence Club brands. The combined businesses are expected to create $26 million in savings five years after the transaction closes.


Based on this, it sounds like Hyatt will be under "Vistana." Is that right?

 

[margolism]

The company name doesn't mean as much as the market-facing brands they license. I will be curious how market facing the Vistana name actually winds up being.

I am confident the brand management folks understand that Vistana has an overall lack of equity among consumers, and thus it will play a relatively minor role as it relates to this audience.