Recent Hilton Buy Backs

[ricoba]

It is cheaper for Hilton to exercise right of first refusal than to build new. .

This quote sums it all up for me. Hilton would prefer to exercise ROFR instead of building new properties in new places. This along with the new credo of building new resorts with higher point requirements sets a trend that I as a owner am unhappy with.

 

[eugeneleemd]

clean title

most of those ebay auctions don't offer title insurance and or title search. how much would/should that normally cost and can anyone recommen a good company?

 

[natarajanv]

title insurance/search costs about $250-300 for TS which are priced about 10K or so. We are dealing with duncan realty. Ask for Susan.

http://www.duncanrealtyandescrow.com/

 

[thinze3]

First off, not all timeshare companies have ROFR, that is why you can buy some on eBay for $1.00.
Let's see, 110,000 HGVC owners, paying avg. $800 / year in MF's, $88,000,000 / year revenue stream and cash flow. Yes, I do think they care.
Lowering asset values isn't typically what hedge funds do. If you could get your hands on a $15000 asset for $5000, would you do it? Would it improve your net book value at the end of the day? That, is exactly what Blackstone is looking to do.
Seth is right. ROFR is here to stay, and they will continue to selectively use it to their advantage.

Slow down. No need to be so testy. If HGVC buys hundreds of timeshares for $5000, they will own hundreds of timeshares worth $5000, nothing more. Can they sell them for more, of course they can; except for the fact that the economy has all but shut down developers sales. Buying timeshares using valuable hard-to-obtain cash could be very illfated today. Adding debt and assetts you can't currently sale would in no way improve"net book value".

There are plenty of Starwood and Marriott properties to be had for $1, even though they both have the right to execute ROFR. You know why they don't execute ROFR on those properties, because the purpose of ROFR is not to help the owners, it is to make them more money when times are good. Times are NOT good now, and in my humble opinion people are getting great deals past ROFR at ALL developers, and these so called $11,500 minimums for 7000 HGVC points are simply pipe dreams. I someone finds a deal several thousands cheaper and tries to get past ROFR, HGVC will not ROFR that unit unless they have a buyer waiting on standby.

P.S. - I won't discuss this anymore as I don't want to turn this into a ROFR thread. It think that the thread is about recent buybacks. I would like to hear from those who passed HGVC ROFR at bargain basement prices.

.

 

[larsok]

Times are NOT good now, and in my humble opinion people are getting great deals past ROFR at ALL developers, and these so called $11,500 minimums for 7000 HGVC points are simply pipe dreams. I someone finds a deal several thousands cheaper and tries to get past ROFR, HGVC will not ROFR that unit unless they have a buyer waiting on standby.

P.S. - I won't discuss this anymore as I don't want to turn this into a ROFR thread. It think that the thread is about recent buybacks. I would like to hear from those who passed HGVC ROFR at bargain basement prices.

.

It is a thread about ROFR as Hilton exercising ROFR means they buy back.
I recently purchased two one bedroom units platinum in Orlando Intl. Drive, 9600 points, for $11,346.
Hilton did in fact exercise ROFR, just as Seth had predicted.

 

[scififan]

Just completed purchase of 7000 point platinum in Las Vegas convention center for $10k about 3 weeks ago. I was surprised it passed ROFR, but I'm a happy camper

 

[Talent312]

Just completed purchase of 7000 point platinum in Las Vegas convention center for $10k about 3 weeks ago. I was surprised it passed ROFR, but I'm a happy camper

Its my theory that Hilton's use of its ROFR has as much to do with projected sales and inventory needs as anything, but it may be finding "good deals" a bit easier these days thanks to desperate sellers. I'd say that its evidence that Hilton believes that, sooner or later, it will find enuff fools who'll pay retail or others who'll book units thru Hilton Hotels.

 

[Bustah]

7000 platinum event week (New Years) at HGVC Karen - $10K.

Passed ROFR.

 

[Sandy VDH]

That is one of the lowest Platinum purchases that have gotten through ROFR that I have heard of for a while. And it is an event week to boot.

Good job.

Wonder why Hilton didn't take it.

 

[JonathanIT]

That is one of the lowest Platinum purchases that have gotten through ROFR that I have heard of for a while.

Well, there's the one reported just two posts above.

 

[ricoba]

Well, there's the one reported just two posts above.

The first listing is not an event week (New Years), the second is an event week.

Event weeks normally hold a premium over a straight 7000 Platinum points, since they are automatically reserved for the owners. They are not floating weeks, but high demand/season weeks.

 

[DEROS]

First off, not all timeshare companies have ROFR, that is why you can buy some on eBay for $1.00.
Let's see, 110,000 HGVC owners, paying avg. $800 / year in MF's, $88,000,000 / year revenue stream and cash flow. Yes, I do think they care.
Lowering asset values isn't typically what hedge funds do. If you could get your hands on a $15000 asset for $5000, would you do it? Would it improve your net book value at the end of the day? That, is exactly what Blackstone is looking to do.
Seth is right. ROFR is here to stay, and they will continue to selectively use it to their advantage.

The problem with you logic is that HGVC does not profit on the MF. They profit on the Management Fee they charge each resort, which should be a fix charge. They also profit on the exchange fees and all other fees that they charge to manipulate your points or stay. Also the $95 annual fee collected from each member to be a member. I don't think the MF from all the HGVC resort and affiliates goes to a large HGVC account collecting interest or used for investments and paying out when bills are due. At least I hope that is not what HGVC is doing. It would be a bad day if one of the resort or all, falls apart because the money for MF was blown on an investment gone south.

Deros

 

[thinze3]

Please don't kill me you HGVC owners, but I wouldn't be surprised to see these 7000 platinum points selling, and passing ROFR, for $1 a point before long.

 

[Sandy VDH]

The first listing is not an event week (New Years), the second is an event week.

Event weeks normally hold a premium over a straight 7000 Platinum points, since they are automatically reserved for the owners. They are not floating weeks, but high demand/season weeks.

They were the same price at the same resort, I thought they were the same week. However looking back I am seeing that they are posted by different poeple. So two made it through ROFR at 10K for 7K points.

 

[JonathanIT]

7000 platinum event week (New Years) at HGVC Karen - $10K.

Could you clarify what property this is?

 

[ricoba]

Could you clarify what property this is?

It's the HGVC at the Hilton Hotel.

They distinguish it by calling it Karen Street since it sits on Karen Street.

It's where we own. I quite like it because it's smaller and has a private club feel to it.

 

[JonathanIT]

It's the HGVC at the Hilton Hotel.

They distinguish it by calling it Karen Street since it sits on Karen Street.

It's where we own. I quite like it because it's smaller and has a private club feel to it.

Sorry for being so dense... but Hilton Hotel where??

 

[ricoba]

Sorry for being so dense... but Hilton Hotel where??

This one.

It's off the Strip, behind the Sahara.

Elvis made it famous!

 

[JonathanIT]

This one.

It's off the Strip, behind the Sahara.

Elvis made it famous!

Ah, yes LAS VEGAS would have been a simple answer from the beginning. There are HGVC's in a lot of places.

 

[ricoba]

Ah, yes LAS VEGAS would have been a simple answer from the beginning. There are HGVC's in a lot of places.

That's not quite true

Sadly, there are really only 3 main locations for HGVC, Las Vegas, Orlando, Hawaii, the rest are primarily affiliates

But maybe someday our club will build outside those areas, like they are doing now in NYC. But until then, we can only hope.

 

[Seth Nock]

One of the unlicensed "brokerage" companies submits fraudulent right of first refusal documents with forged signatures. This has led to units "passing" right of first refusal at lower figures. This company does not allow anyone to take title insurance. Therefore, the buyer does not have clean title and may have problems when he attempts to sell the unit.

Regarding sales, I have been told that Hilton developer sales in Vegas are surprisingly strong.

 

[ricoba]

One of the unlicensed "brokerage" companies submits fraudulent right of first refusal documents with forged signatures. This has led to units "passing" right of first refusal at lower figures. This company does not allow anyone to take title insurance. Therefore, the buyer does not have clean title and may have problems when he attempts to sell the unit.

Regarding sales, I have been told that Hilton developer sales in Vegas are surprisingly strong.

Wow, that is incredible! If you are aware of this fraud, I am sure Hilton is as well. Isn't there anything that Hilton can do to stop this (I assume) illegal behavior?

 

[thinze3]

Wow, that is incredible! If you are aware of this fraud, I am sure Hilton is as well. Isn't there anything that Hilton can do to stop this (I assume) illegal behavior?

IMHO Hilton simply wouldn't recognize the new owner if they didn't sign off on ROFR.

 

[Bustah]

Seth,

Not saying you're wrong, but wondering exactly what you mean as all three of my resale purcahses passed ROFR before I ever signed any documents. Do you mean the broker is forging the Sellers signature?

 

[alwysonvac]

Seth,

Not saying you're wrong, but wondering exactly what you mean as all three of my resale purcahses passed ROFR before I ever signed any documents. Do you mean the broker is forging the Sellers signature?

When the resale purchase passes ROFR, HGVC sends a one page document titled the "Waiver of Right of First Refusal". The one page document includes the sellers names, buyer names and the contract number along with a HGVC notarized signature. This one page document was included with my closing documents.