I have taken a quick glance of the 10-k.
I don't believe I noticed any significant new or interesting information.
That being said since this question came up during the last few months:
HCNY - Revenue is recognized on a straight line over term of contract instead of at point of sale (this is why they don't like the RTU model and are trying to shift away from it).
Blackstone - They have a specific disclaimer that blackstone can more or less make them do things that are not in the best interest of hilton or the other shareholders due to their influance (spin off of Timeshare biz anyone?)
inventory - 6 years worth (lots of points in the system for them to rent directly). 85% of it is now 3rd party developed (in line with capital light model, but if that is all blackstone developed, kinda interesting).
Revenue - 75% from sales of intervals (as expected). less than 16% from resort ops.... between the management and sales, I think everyone can agree that the money and focus is on interval sales, management is ancellary at best, and only slightly more money then they get from interest on the loans they issue.
Blackstone - while there is only the 2014 example, it looks like they may be forcing the 3rd party developers to be blackstone subs for timeshare construction projects... (Just a reminder in case anyone forgot this)
Future developments:
" As of December 31, 2015, we are committed to purchase approximately $206 million of inventory over a period of four years. The ultimate amount and timing of the acquisitions is subject to change pursuant to the terms of the respective arrangements, which could also allow for cancellation in certain circumstances."
$206M sounds like old news (based on resorts that are comming). Anyone disagree?
"In 2014, we completed the sale of certain land and easement rights at one of our hotels to an affiliate of Blackstone in connection with a timeshare project. ...In 2014, we transferred $45 million of property and equipment to timeshare inventory as part of a conversion of certain floors at one of our owned properties into timeshare units.
"
This sounds like the embassy suites project.. .any thoughts?
I don't believe I noticed any significant new or interesting information.
That being said since this question came up during the last few months:
HCNY - Revenue is recognized on a straight line over term of contract instead of at point of sale (this is why they don't like the RTU model and are trying to shift away from it).
Blackstone - They have a specific disclaimer that blackstone can more or less make them do things that are not in the best interest of hilton or the other shareholders due to their influance (spin off of Timeshare biz anyone?)
inventory - 6 years worth (lots of points in the system for them to rent directly). 85% of it is now 3rd party developed (in line with capital light model, but if that is all blackstone developed, kinda interesting).
Revenue - 75% from sales of intervals (as expected). less than 16% from resort ops.... between the management and sales, I think everyone can agree that the money and focus is on interval sales, management is ancellary at best, and only slightly more money then they get from interest on the loans they issue.
Blackstone - while there is only the 2014 example, it looks like they may be forcing the 3rd party developers to be blackstone subs for timeshare construction projects... (Just a reminder in case anyone forgot this)
Future developments:
" As of December 31, 2015, we are committed to purchase approximately $206 million of inventory over a period of four years. The ultimate amount and timing of the acquisitions is subject to change pursuant to the terms of the respective arrangements, which could also allow for cancellation in certain circumstances."
$206M sounds like old news (based on resorts that are comming). Anyone disagree?
"In 2014, we completed the sale of certain land and easement rights at one of our hotels to an affiliate of Blackstone in connection with a timeshare project. ...In 2014, we transferred $45 million of property and equipment to timeshare inventory as part of a conversion of certain floors at one of our owned properties into timeshare units.
"
This sounds like the embassy suites project.. .any thoughts?
