Welk now part of HRC [MERGED]

[Pathways]

Thought it was time for a new thread as HRC sent the email this morning that the transaction has now closed and Welk is officially a part of HRC.

" I am pleased to share that the transaction has closed, and necessary planning and analysis are already underway to help determine all the possibilities this may bring in the future"

Stephen P. Weisz
Chief Executive Officer
MVW

 

[Pathways]

Full email as follows:

​

Dear Member, Back in January, Hyatt Vacation Ownership’s parent company announced its plans to grow the Hyatt Residence Club resort portfolio through the purchase of Welk Resorts, the independent timeshare operator founded by beloved entertainment host Lawrence Welk. The intent for the transaction is to rebrand the Welk properties as Hyatt Residence Club resorts, subject to receipt of necessary approvals from Hyatt Hotels Corporation. I am pleased to share that the transaction has closed, and necessary planning and analysis are already underway to help determine all the possibilities this may bring in the future. This transaction will not impact your ability to continue enjoying current Hyatt Residence Club resorts and the World of Hyatt loyalty program, and there are no changes to your other vacation ownership benefits at this time. Reservation guidelines, exchange rules, reservation rights, and Club-to-Club and Interval International® exchange privileges are not anticipated to change as a result of this transaction. We will continue to share updates as they become available. Until then, you can view frequently asked questions regarding this exciting development. Thank you for being part of the Hyatt Residence Club vacation family. Warm regards,​

Stephen P. Weisz Chief Executive Officer MVW

 

[Pathways]

An interesting side note I mentioned in a different thread.

I just attended a Marriott sales presentation at GO on HHI. The sales exec admitted right up front he had nothing to add to help my portfolio, so said we could just chat for a hour.

At some point, I mentioned I was looking forward to the final integration of the Vistana/Marriott groups. He mentioned that sales was being very 'cautious' about even mentioning it, as nothing was official and things change all the time. He then mentioned as an example that the Welk acquisition that was announced earlier this year was called off last week.

And today it was announced that it has closed. Chalk another one up to sales BS, even when they have no reason to do it!!

 

[AJCts411]

To me, for the HRC week owners this will be a good fit in that nothing changes and there is a possibility of exchanging owned weeks into the added Welk properties. Not a points player so no idea on how those folks will come out.

 

[RunCat]

To me, for the HRC week owners this will be a good fit in that nothing changes and there is a possibility of exchanging owned weeks into the added Welk properties. Not a points player so no idea on how those folks will come out.

Not sure how good a fit it will be for the week owners since Welk is a mostly points system. Regardless, I suspect there will be some form of mandatory "upgrade" in order to utilize both systems resorts.

 

[Mongoose]

I wonder what this will do for the Welk resale market?

 

[Shankilicious]

I wonder what this will do for the Welk resale market?

Nothing yet, cuz as was said above, there will almost certainly be a fee to trade back and forth between Welk and HRC. So current owners of either won't be eligible for that to resale buyers. But I guess if someone wanted to buy in before resale prices potentially go up..... However, with so much up in the air, its not a good time to buy as HRC could restrict resale owner access to both systems.

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[Shankilicious]

Dear Welk Owner,

Earlier this year, I informed you that MVW had signed an agreement to acquire Welk Resorts. I am pleased to share that the transaction has closed. We are still in the early planning stages to determine all the possibilities this may bring in the future.

I’m excited for Welk Resorts to be part of this new vacation family. I’ve always held a great respect for MVW and, over the past few months, I have been impressed with how closely our organizations aligned, from our shared values to our commitment to delivering the highest standards in quality and customer service.

As a global leader in the vacation-ownership industry, MVW has 100+ resorts across seven brands, including Hyatt Residence Club. The intention is that upon final approval of Hyatt Hotels Corporation, Welk resorts will eventually be rebranded to Hyatt Residence Club. At this time, however, no immediate changes are expected, and you will continue to enjoy your Welk Resort benefits as you do today.

We will keep you informed, as more details become available. Until then, you can view frequently asked questions regarding this exciting development.

I am confident that this new future will make us better together, allowing us to deliver even more exceptional vacation experiences.

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[bradj]

To me, for the HRC week owners this will be a good fit in that nothing changes and there is a possibility of exchanging owned weeks into the added Welk properties. Not a points player so no idea on how those folks will come out.

As an HRC points player, I see nothing on the plus side for HRC owners. Just interference. If you read the letter just released to HRC owners, by Stephen Weisz, the legalize points to potential problems in the future. i.e. "there are no other changes to your other vacation benefits at this time." The following sentence is just as dubious. Reservation rights/exchange privileges are not anticipated to change as a result of this transaction. Lotsa wiggle room there. I see only dark clouds in the distance.

 

[Pathways]

As an HRC points player, I see nothing on the plus side for HRC owners. Just interference. If you read the letter just released to HRC owners, by Stephen Weisz, the legalize points to potential problems in the future. i.e. "there are no other changes to your other vacation benefits at this time." The following sentence is just as dubious. Reservation rights/exchange privileges are not anticipated to change as a result of this transaction. Lotsa wiggle room there. I see only dark clouds in the distance.

As someone who has been tasked at some point with writing releases, I think you are spending WAY too much time trying to read 'between the lines' These are all standard phrases, and do not in any way (IMO) portend the future.

As a multiple week owner, I see nothing but positives. To spend that much money to bring in a quality group to add to a dying brand (or stagnant at best) shows a commitment to HRC that I didn't expect. (Many just think MVW will simply sell the whole thing - I don't think so).

Welk should not affect HRC at all. We have deeded weeks, and it would be very difficult to make major changes to our weeks based point system.

Welk will most likely be added as points only, and be made available to the new points only system within Hyatt. As a HRC owner, I don't expect to have access to the Welk properties unless it is last minute reservations, nor do I care. But 'growth' in the Hyatt brand is a plus for long term viability.

 

[bradj]

As someone who has been tasked at some point with writing releases, I think you are spending WAY too much time trying to read 'between the lines' These are all standard phrases, and do not in any way (IMO) portend the future.

As a multiple week owner, I see nothing but positives. To spend that much money to bring in a quality group to add to a dying brand (or stagnant at best) shows a commitment to HRC that I didn't expect. (Many just think MVW will simply sell the whole thing - I don't think so).

Welk should not affect HRC at all. We have deeded weeks, and it would be very difficult to make major changes to our weeks based point system.

Welk will most likely be added as points only, and be made available to the new points only system within Hyatt. As a HRC owner, I don't expect to have access to the Welk properties unless it is last minute reservations, nor do I care. But 'growth' in the Hyatt brand is a plus for long term viability.

Actually it's not "between the lines" it IS the lines. I admire your optimism. I wish I had some of it. These may be standard phrases for flexibility in a letter to HRC owners. For change. If you want reading between the lines, try untangling Item #4 listed on the Hyatt Residence Club FAQ page (highlighted link listed above in Stephen Weisz letter). In all honesty, I hope you're right and I'm wrong. Maybe I've dealt with dynamics WAY too long.

 

[Pathways]

If you want reading between the lines, try untangling Item #4 listed on the Hyatt Residence Club FAQ page

I think we've already addressed this numerous times from the day this was announced. And I addressed this in #10. I don't expect as an HRC owner to be able to access Welk, and I don't expect Welk will be able to directly access HRC. And that is pretty much what they are saying.

Any integration will most likely come either by folding Welk points into the Hyatt Points Program, or there will be a new overlay to connect them which will of course require $$. HRC owners such as myself will be left out of this, just as we are left out of the points program now unless we pony up the dollars. Which is fine by me, I have no interest.

We will be fine with our weeks. Look at Marriott - eleven years and counting- the weeks owners are still doing fine. And they have NO points options as a week owner. HRC already has a points option built in.

 

[mjm1]

We are in the process of becoming Hyatt Pinon Pointe owners and I don’t anticipate being able to access Welk resorts. Having been a Welk owner in the past that doesn’t concern us. Most of their resorts are nice, but the locations became less appealing to us, so we sold our ownership back to them.

I do agree with others that expanding HRC is good for the brand. I can also see MVC holding onto HRC because it is a quality system. As long as they see more value in holding and increasing revenue they will keep it. If not, they will sell it when they think the time is right. Since we are MVC and Vistana owners I hope they keep HRC too. All very strong systems.

Best regards.

Mike

 

[RunCat]

As a Welk owner, not Hyatt, I too see little will change with the current systems that are in place. When Welk moved to a points system, those that still owned fixed/flex weeks were unaffected; their options were not expanded though.
A couple of thoughts:
1) As others suggested, any cross-use will likely be in a new points system that will require a new purchase to play. It will be interesting to see what the exchange rate is between Welk and Hyatt points.
2) Welk has tons of current available inventory. This will be a huge business opportunity for MVC to sell additional the NEW Hyatt ownership.
3) Welk has real estate to expand on many of their properties. Cabo, Breckenridge, and Escondido all have plats laid out and approved for new buildings. Not sure the Escondido needs more units, but Breckenridge and Cabo could both benefit.

IMO, all of these things are good for the MVC business and provides growth and new vibrancy for the Hyatt program. It might be good for Welk owners. But I suspect that the low point owners in the Welk program might be left with fewer opportunities.

 

[RunCat]

but the locations became less appealing to us, so we sold our ownership back to them.

Tend to agree on this point. But I currently have many points and find ways to use them. As a resident of Boulder, the opening of Breckenridge was a god-send. Last year we were up there for about 6 different weekends. This year, we have 4 weekend trips planned so far and will likely schedule a few more before the end of the year. Most of the time we are going to either Escondido/Cabo/Northstar. And use Breckenridge for weekend trips (short 2 hour drive).

 

[mjm1]

Tend to agree on this point. But I currently have many points and find ways to use them. As a resident of Boulder, the opening of Breckenridge was a god-send. Last year we were up there for about 6 different weekends. This year, we have 4 weekend trips planned so far and will likely schedule a few more before the end of the year. Most of the time we are going to either Escondido/Cabo/Northstar. And use Breckenridge for weekend trips (short 2 hour drive).

Does Welk still own the property in Poipu? They bought that back when we still owned, but it sounds like they haven’t developed it. As I recall it was a little inland somewhere near the small shopping area.

Best regards.

Mike

 

[Shankilicious]

Does Welk still own the property in Poipu? They bought that back when we still owned, but it sounds like they haven’t developed it. As I recall it was a little inland somewhere near the small shopping area.

Best regards.

Mike

Yes. However there were remains found on the property during excavation and the project has been on hold for three years until they find out if they're tribal remains and can be moved.
Also yes, there's a street and beach front property between the Welk property and the beach

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[RunCat]

Does Welk still own the property in Poipu? They bought that back when we still owned, but it sounds like they haven’t developed it. As I recall it was a little inland somewhere near the small shopping area.

Best regards.

Mike

As Shank said above. Interestingly, the Poipu property was not mentioned at all in the MVC purchase conference call. Nor has it been mentioned on any of the sales presentations.. We will see if it ever gets developed.

 

[skimeup]

It is interesting that in the statement from Weisz that he mentions Welk in Santa Fe. While there seems to be an affiliated property (El Corazon), it is not listed on the Welk web page listing of resorts. I would be delighted to visit a Welk in Santa Fe - and the Palm Springs property is enticing as well, though it seems easy enough to trade into Palm Springs using EEE points. On the whole, though, I'm not sure I see much benefit to Hyatt owners.

 

[nuwermj]

It is interesting that in the statement from Weisz that he mentions Welk in Santa Fe. While there seems to be an affiliated property (El Corazon), it is not listed on the Welk web page listing of resorts. I would be delighted to visit a Welk in Santa Fe - and the Palm Springs property is enticing as well, though it seems easy enough to trade into Palm Springs using EEE points. On the whole, though, I'm not sure I see much benefit to Hyatt owners.

Welk got the management contract at El Corazon last year. The points trust has owned intervals for longer. The location may not be on the Welk website because they may not be in a position to rent the inventory.

 

[grevas1]

As Shank said above. Interestingly, the Poipu property was not mentioned at all in the MVC purchase conference call. Nor has it been mentioned on any of the sales presentations.. We will see if it ever gets developed.

According to this article, the Welk Family retained the Poipu property, as well as some other property in Escondido and Branson, thus wasn't part of the sale. https://viewfromthewing.com/marriot...nce-welk-resorts-will-rebrand-them-as-hyatts/

 

[nuwermj]

According to this article, the Welk Family retained the Poipu property, as well as some other property in Escondido and Branson, thus wasn't part of the sale. https://viewfromthewing.com/marriot...nce-welk-resorts-will-rebrand-them-as-hyatts/

Thanks for the link.

'The Welk family will retain ownership of an “undeveloped 22-acre site near Poipu beach in Kauai that is entitled for 168 timeshare units or condominiums” as well as “land near the Escondido resort and also real estate in Branson near that timeshare property.”'

I wonder if the real estate in Branson is the hotel at the timeshare property.

 

[Shankilicious]

Thanks for the link.

'The Welk family will retain ownership of an “undeveloped 22-acre site near Poipu beach in Kauai that is entitled for 168 timeshare units or condominiums” as well as “land near the Escondido resort and also real estate in Branson near that timeshare property.”'

I wonder if the real estate in Branson is the hotel at the timeshare property.

I've been told repeatedly that the extra branson land is the hill above the resort behind the new buildings. They could add easily 8 more buildings in that space. One should be able to look up the GIS map and see the lines

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[nuwermj]

I've been told repeatedly that the extra branson land is the hill above the resort behind the new buildings. They could add easily 8 more buildings in that space. One should be able to look up the GIS map and see the lines

The wording is what caught my eye. It said “land near the Escondido resort and also real estate in Branson." Since the Escondido asset was described as "land" while the Branson asset as "real estate," I wonder if the Banson land was sold to Marriott but Welk kept the hotel. I imagine Marriott Vacation's license agreements with both Marriott hotels and Hyatt hotels prevents them from running hotels.

 

[Shankilicious]

The wording is what caught my eye. It said “land near the Escondido resort and also real estate in Branson." Since the Escondido asset was described as "land" while the Branson asset as "real estate," I wonder if the Banson land was sold to Marriott but Welk kept the hotel. I imagine Marriott Vacation's license agreements with both Marriott hotels and Hyatt hotels prevents them from running hotels.

That very well could be.....

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