Valuation of HGVC points

[DazedandConfused]

Does anyone have a basic valuation per HGVC point value?

I peg my value to about $0.1 per point, but it it probably a little higher.

When I look at using my HGVC points for a reservation, I look at the point cost and also the equivalent value in the booking. Of course you can compare total points for a reservation vs the rack rate of the hotel, but I estimate HGVC points are worth about $.08 to $.11 per point and I base that value on the value of HHonors points.

Most websites value HHonors at $.005pp (some use $.006pp) and with a 16:1 conversion that is HGVC at $.08 (but that does not incorporate the conversion fee or yearly membership fees) so that actual cost is actually higher. However, the better approach (and this will be different for all owners) is to take the total amount in annual dues plus the $155 conversion fee plus the $199 membership fee and then divide that by the number of points owned (and this assumes the cost to buy into HGVC is $0 but that would complicate things even more) and I get about $0.1 per point. If I add in the cost to buy HGVC, it would be much higher, but that is a sunk cost that is hard to evaluate as it is based on years of ownership and resale value, etc.

So, if a HGVC reservation costs me 5,000 points to book a particular resort, then I view that as me spending $500 and in almost every situation, I am getting good value vs booking at rack rate or other methods.

 

[SmithOp]

You could aggregate the sunk cost across the expected years of ownership, say 25 years, so 1/25th of purchase cost divided by annual points = annual sunk cost per point.

 

[DazedandConfused]

You could aggregate the sunk cost across the expected years of ownership, say 25 years, so 1/25th of purchase cost divided by annual points = annual sunk cost per point.

I agree, but there is usually some resale value, so a little challenging to get a true cost, so I focus on the carry cost of ownership or use

 

[GT75]

Most websites value HHonors at $.005pp (some use $.006pp) and with a 16:1 conversion that is HGVC at $.08 (but that does not incorporate the conversion fee or yearly membership fees) so that actual cost is actually higher. However, the better approach (and this will be different for all owners) is to take the total amount in annual dues plus the $155 conversion fee plus the $199 membership fee and then divide that by the number of points owned (and this assumes the cost to buy into HGVC is $0 but that would complicate things even more) and I get about $0.1 per point.

I don't understand what this has to do with trying to figure out the value of your ownership. I use my average MF which is a little less than $0.1/pt in 2023.

 

[DazedandConfused]

I don't understand what this has to do with trying to figure out the value of your ownership. I use my average MF which is a little less than $0.1/pt in 2023.

Because I converted some of my HGVC to HHonors and used those to stay at the Hilton Tokyo and got fantastic value from it and was trying to figure out the real cost to do that. Of course, it is much easier if I stay at a HGVC property. Also, the value of HHonors points is fairly established but the value of HGVC points will depend on what resort is owned.

One small irritant with HGVC is all the fees (yearly fee, point conversion, reservation fee, banking fee) vs DVC that has none of these pesky fees.

 

[GT75]

Because I converted some of my HGVC to HHonors and used those to stay at the Hilton Tokyo and got fantastic value from it and was trying to figure out the real cost to do that.

Understand. If you converted "some" of current year pts to HH, then I believe you only got 1: 13 conversion rate, unless you are Legacy Elite member:

From the rules:

Current Year Hilton Honors Hotel Reservations. HGVClub Legacy Members and HGV Max Legacy Members may confirm a Hilton Honors hotel reservation for travel by December 31 of the current year, using any number of their current year or next year’s allotment of ClubPoints, which will be converted into Hilton Honors points at the conversion ratio of 1 ClubPoint to 13 Hilton Honors points. For example, 3,200 ClubPoints = 41,600 Hilton Honors points. Reservations must be confirmed via the HGVClub Call Center and travel dates must be completed within the current year.​

Hilton Honors Conversion for Following Year Use. Prior to December 31, 11:59 PM ET of the current use year, eligible Members may convert any or all of the next year’s allotment of ClubPoints into Hilton Honors points. Except as described below, ClubPoints may be converted into Hilton Honors points on a biennial (every-other-year) basis (including owners of biennial interests) at the current ratio of 1 ClubPoint to 16 Hilton Honors points for a fee. For example, 5,000 ClubPoints = 80,000 Hilton Honors points.​

 

[DazedandConfused]

I converted December 2022 and got 16:1

I know that most people are against HGVC to HHonors conversions, but in my case, travel to Japan and Europe has been a very good use of points from the conversion. Of course, I wish there were "more" HGVC locations in places I want to visit.

 

[GT75]

There is an FB admin who I believe does this regularly. Until he stated "the facts with math", I wouldn't have believed that it was possible. So, I see how this can work which seems to be for international Hilton Hotels. I do know that my one datapoint was for Milan Hilton last year. The room rate was > $500 but the HH point requirement was 60K.

 

[brp]

There is an FB admin who I believe does this regularly. Until he stated "the facts with math", I wouldn't have believed that it was possible. So, I see how this can work which seems to be for international Hilton Hotels. I do know that my one datapoint was for Milan Hilton last year. The room rate was > $500 but the HH point requirement was 60K.

I could also see this working in some cases if we didn't have 2.2M HH points. A bunch came from a former developer sale that we sold back to them (and kept the points). Add in two free night certificates from Aspire and the fact that we rarely stay at Hilton anymore (and that only international), I don't see us needing to do conversion.

Cheers.

 

[GT75]

I could also see this working in some cases if we didn't have 2.2M HH points.

Your TUG virtual friends could help you with this.

 

[letsgobobby]

international redemption are good value it seems. but I still like the value proposition of HGVC redemptions better overall.

 

[DazedandConfused]

international redemption are good value it seems. but I still like the value proposition of HGVC redemptions better overall.

Agreed, I just booked HGVC NYC Central at 5th and it was a bargain ($160 per day) vs staying in a regular hotel ($300+).

 

[Nowaker]

Agreed, I just booked HGVC NYC Central at 5th and it was a bargain ($160 per day) vs staying in a regular hotel ($300+).

My upcoming 1-week RCI stay at West 57th is even sicker. 3840 points ($400) + RCI fee $249 = $649/week = $92/night. (or a little more if I'm charged "cleaning fee" - but usually this isn't charged for full-week stays)

 

[muscae]

My upcoming 1-week RCI stay at West 57th is even sicker. 3840 points ($400) + RCI fee $249 = $649/week = $92/night. (or a little more if I'm charged "cleaning fee" - but usually this isn't charged for full-week stays)

Daily resort fee?

 

[Nowaker]

Daily resort fee?

No. As per RCI booking:

"Housekeeping fee for all RCI Points reservations: There may be a fee of 90 U.S. dollars for Studio, per stay. Cash or Credit is accepted." Fee plus tax, for less than 7 night stays.
"Housekeeping fee for all RCI Points reservations: There may be a fee of 117 U.S. dollars for 1 Bedroom units, per stay. Cash or Credit is accepted." Fee plus tax, for less than 7 night stays.

 

[yodaDaenerys]

in the US it seems hhonors points are valued at about $0.005 (e.g. $400 reservation requires 80,000 points). if you are lucky enough to have $MF/HGVC point of 0.10, and convert at 1:16, that means your cost for hhonors points is $0.00625. this is the way i've looked at it, to conclude that converting to hhonors is not the way to go. so long as you can book in HGVC resorts, that's the best value for your points.

 

[4TimeAway]

in the US it seems hhonors points are valued at about $0.005 (e.g. $400 reservation requires 80,000 points). if you are lucky enough to have $MF/HGVC point of 0.10, and convert at 1:16, that means your cost for hhonors points is $0.00625. this is the way i've looked at it, to conclude that converting to hhonors is not the way to go. so long as you can book in HGVC resorts, that's the best value for your points.

It seems mostly this way. If you have too many HGVC points and want to travel somewhere that only has hotels this may be a descent option.

I have plenty of HH, so didn't use this.

Booked a hotel in Rome 5 nights hotel, 120,000 HH (budget travel trip). Not a great deal, but not paying money makes it seem cheaper, plus you've go to use the points somehow.

 

[yodaDaenerys]

Booked a hotel in Rome 5 nights hotel, 120,000 HH

that sounds like a pretty good deal, equivalent of roughly $200 a night in rome.