Marriage Between Interval and Hotel Chain? [Hyatt & Starwood]

[LarryAck]

If Hyatt buys Starwood, what is the feeling that there will be a relationship between the vacation properties, and the Hyatt chain. I know most people feel the exchange of options for points is a losing proposition, but has worked for us, since we bought lots of properites, through retail, and with the combination of developer purchases have brought them into the portfolio. Would hate to lose that feature, since we can't possibly use all the vacation villa time during the year, but 25 stays at hotels during the year, free have worked great.

 

[SMHarman]

It is quite serendipitous that Hyatt and HOT discussions are back on and II will own both timeshare franchises of the same brands.

You'd figure they could work something out.

Especially if the Hyatt and Starwood hotel loyalty schemes merged then they would kinda sorta have to do something. StarOptions would convert to StarHyattPoints.

 

[LarryAck]

That was my hope. The programs are pretty similar, especially as you get to their Diamond vs Platinum level. Now the question is will they allow you to convert to hotel points.

 

[SandyPGravel]

That was my hope. The programs are pretty similar, especially as you get to their Diamond vs Platinum level. Now the question is will they allow you to convert to hotel points.

...And conveniently:hysterical: forget what was bought from developer and what was bought resale so everyone could convert to hotel points if they want to.

 

[LarryAck]

Now your looking for gifts. Can only root for that.

 

[CeeWoo]

I don't know if it adds much to the conversation, but I got this email a few minutes ago from Starwood:

Dear Owner,

Earlier this year, Starwood Hotels & Resorts (Starwood) announced its intention to spin off its vacation ownership business into a stand-alone, public company. Today, we are excited to share that immediately following the spin, Starwood Vacation Ownership will be acquired by Interval Leisure Group (ILG), to become one of the industry’s largest providers of world-class vacation experiences. We anticipate this transaction to be completed in the second quarter of 2016, when we officially become a wholly-owned subsidiary of ILG.

ILG is a global provider of non-traditional lodging with a portfolio of leisure businesses, including branded vacation ownership, vacation rentals and resort management, that currently operates more than 200 resort properties around the world. As an Owner, you may be familiar with Interval International® – their exchange subsidiary – and a valued partner with us over the past 15 years. With the combination of our two companies, we will create a stronger, more integrated timeshare and exchange business resulting in a more robust portfolio of vacation offerings for Owners and Guests.

We will continue to be the exclusive provider of vacation ownership for the renowned Westin® and Sheraton® brands, while providing all of the features and benefits of ownership you have come to expect. As an Owner, you will continue enjoying your timeshare resorts as you always have as well as continued access to the industry-leading Starwood Preferred Guest® (SPG) program. Current reservation guidelines and fees, exchange rules, reservation rights, and exchange privileges through Starwood Vacation Network℠, Interval International and other current exchange options will all remain the same.

This announcement reinforces our plans for accelerated growth as ILG is committed to invest in new Westin and Sheraton properties. Most notably, The Westin Nanea Ocean Villas, currently under construction, will be the newest resort on beautiful Kā‘anapali Beach in Maui, opening in 2017. In early 2016, we are also scheduled to begin converting the remaining 96 poolside hotel rooms into vacation ownership villas at The Westin St. John Resort & Villas.

In addition, the five transferring Starwood properties announced earlier this year remain part of the transaction and are anticipated to provide additional inventory for Owners over time, including The Westin Resort & Spa, Los Cabos; The Westin Cancún Resort & Spa; The Westin Resort & Spa, Puerto Vallarta; Sheraton Kaua‘i Resort; and Sheraton Steamboat Resort. You can continue to access these hotel properties through the SPG program.

We believe becoming part of ILG is transformational for our company and holds great value for our Owners. This transaction puts us at the forefront of our industry, offering you and your family even more choices for unique and memorable vacation experiences.

Thank you for your continued loyalty. We are excited about our bright future together and will update you as more details become available. To view today’s press release and for a list of questions and answers, click here.

Best Regards,
Steven Williams
Stephen G. Williams
Chief Operating Officer

 

[LarryAck]

To me this is the best possible news.

 

[tahoeJoe]

To me this is the best possible news.

Why do you say that? Just curious.

 

[LarryAck]

If you are happy with the program, and they are leaving things as is, why wouldn't you be happy. My concern was all what SPG offers to SVN may have been negated once the sale went through.

 

[tahoeJoe]

If you are happy with the program, and they are leaving things as is, why wouldn't you be happy. My concern was all what SPG offers to SVN may have been negated once the sale went through.

Makes sense. I'm just sure they will keep things that way they are, but I hope so.

 

[DavidnRobin]

StarOptions would convert to StarHyattPoints.

??? - you must mean StarPoints... unless they are looking for lawsuits.

 

[krj9999]

What I would say is this; if Hyatt does purchase Starwood (HOT) and with both the Hyatt and Vistana timeshares being under the II umbrella, it would make sense to have some closer coordination and/or consolidation in the Hyatt/Vistana timeshare systems given that neither have great depth of resorts.

How that would play out would certainly take some time, and what that would mean for owners is not clear. But I would think it should be a positive.

Of course, this is still speculation currently.

 

[SMHarman]

??? - you must mean StarPoints... unless they are looking for lawsuits.

Nope.

When westin and Sheraton merged the points schemes merged to create Starwood preferred guest (from Sheraton preference guest)

If Hyatt and Starwood merge their preferred guest schemes will merge.

Starwood timeshares retail purchases currently have the option to convery SO to SP. If the SP currency changes then that option with also change.

 

[Pathways]

If Hyatt buys Starwood, what is the feeling that there will be a relationship between the vacation properties, and the Hyatt chain.

There is no longer any relationship between Hyatt and the Hyatt Residence Club (the timeshares). ILG simply has in their contract the right to use the Hyatt name and retains the ability to deposit weeks for Gold Passport points. That doesn't mean they WILL always do both those things, just that they CAN for the length of the contract.

They have entered into basically the same agreement now with Starwood. Starwood Vacation Ownership will no longer have a relationship with Starwood, the hotel business, other that the rights to the name and hotel points transfers should ILG choose to continue same.

Therefore, should Hyatt Hotels purchase Starwood, there still won't be any relationship other than the original contracts with ILG.

The hotel entity could compine the points program, but that is it.

(Both of these items will cost ILG a good cut of their profits. I'm sure some whiz-bang MBA will at some point recommend cutting those ties to eliminate the payments.)

If you are happy with the program, and they are leaving things as is, why wouldn't you be happy. My concern was all what SPG offers to SVN may have been negated once the sale went through.

They will not leave things as they are. The only questions are: What will they change and when?

ILG did not purchase HRC and SVO to offer new options to owners. They purchased them TO MAKE MORE MONEY!

Hopefully the changes they institute to make more money will co-incidentally improve things for most of us owners. Bets anyone?

 

[raygo123]

Brands have power. If, the names go away, then there is a probability that the systems would merge. The strongest remaining name would become the umbrella.

Sent from my Nexus 7 using Tapatalk

 

[LarryAck]

There is no longer any relationship between Hyatt and the Hyatt Residence Club (the timeshares). ILG simply has in their contract the right to use the Hyatt name and retains the ability to deposit weeks for Gold Passport points. That doesn't mean they WILL always do both those things, just that they CAN for the length of the contract.

They have entered into basically the same agreement now with Starwood. Starwood Vacation Ownership will no longer have a relationship with Starwood, the hotel business, other that the rights to the name and hotel points transfers should ILG choose to continue same.

Therefore, should Hyatt Hotels purchase Starwood, there still won't be any relationship other than the original contracts with ILG.

The hotel entity could compine the points program, but that is it.

(Both of these items will cost ILG a good cut of their profits. I'm sure some whiz-bang MBA will at some point recommend cutting those ties to eliminate the payments.)




They will not leave things as they are. The only questions are: What will they change and when?

ILG did not purchase HRC and SVO to offer new options to owners. They purchased them TO MAKE MORE MONEY!

Hopefully the changes they institute to make more money will co-incidentally improve things for most of us owners. Bets anyone?

Dont be so sure. The reality is the SPG program has brought an incredible amount of value to Starwood. If the purchaser starts messing with the program, the value may diminish, and I would love to take a front seat to the amount of lawsuits that would follow.

 

[DavidnRobin]

Nope.

When westin and Sheraton merged the points schemes merged to create Starwood preferred guest (from Sheraton preference guest)

If Hyatt and Starwood merge their preferred guest schemes will merge.

Starwood timeshares retail purchases currently have the option to convery SO to SP. If the SP currency changes then that option with also change.

SPG = SPs not SOs...
If you are talking about SO conversion to SPs to be matched with Hyatt points for Hyatt hotel stays - different beast entirely - hotel to hotel. But... for SVO TS (SO) to Hyatt TS (or any other TS) - ain't going to happen with a hotel point conversion.

Do I care? No. I use my TSs, and do not convert to SPs (and rarely use SVN - 1x). But SVO/VSE has CCRs that need to be accounted for - and deeded properties. They can eliminate SVN (if they choose), but then the SVO VOI will go to a regional exchange (per CCRs).

With these threads - It feel like a certain news organization that creates a story line, then continually reports it to make it seem like fact. And everyone discusses it like it is a fact - when it was all created from speculation and biases.
IMO YMMV

 

[SMHarman]

David your reading comprehension is usually much higher. Para 3 of my post talks of SO to SP.

I was going to write about questionable benefit but felt that distracted.

Now I'm also getting my ihg and Hyatt mixed up thinking this was a reinvigoration of the April talks. It no, they were ihg.

So all this speculation does assume the groom of Hyatt will wed the HOT Bride. Only the II/Vistana wedding has occurred thus far.

Of course the Hyatt/Hyatt timeshare divorce and subsequent II/Hyatt wedding have also occurred as we speculate on how these these puzzle pieces fit together.

 

[Henry M.]

As I said in the other thread:

From the Interval International Group's press release it sounds like in the end, Starwood will be the majority owner of the combined company:

The combination will result in Starwood shareholders owning approximately 55% of the combined company on a fully diluted basis, with existing shareholders of ILG owning approximately 45% of the combined company.

Then if Hyatt acquires Starwood, they will own the whole enchilada.

Maybe we should combine the threads?

 

[SMHarman]

As I said in the other thread:

From the Interval International Group's press release it sounds like in the end, Starwood will be the majority owner of the combined company:



Then if Hyatt acquires Starwood, they will own the whole enchilada.

Maybe we should combine the threads?

Except Hyatt is about half the market cap of Starwood.

Hyatt and a big ol pile of debt and New shares.

 

[Password is taco]

As I said in the other thread:

From the Interval International Group's press release it sounds like in the end, Starwood will be the majority owner of the combined company:



Then if Hyatt acquires Starwood, they will own the whole enchilada.

Maybe we should combine the threads?

Starwood shareholders will own 55% of the combined company, not Starwood would own 55% of the compbined company. Instead of paying for the acquisition with cash, they're paying for it with stock.