Wyndham in the running to purchase HGVC...

[HitchHiker71]

Exclusive | Hilton fears bad rep over timeshare deal

An auction of Hilton Grand Vacations has been thrown into doubt, as hotel giant Hilton Worldwide appears to be waffling on whether to allow its brand to be licensed to prospective buyers, The Post …

nypost.com

Looks like HGVC is up on the chopping block so to speak, and Wyndham is explicitly mentioned in this article as one of the suitors. This is especially interesting to me when we consider that Michael Brown came from HGVC not too long ago - and I'm sure still has a fair amount of indirect influence as a result. Granted there are other suitors as well, but still, interesting to watch.

 

[lds337]

This would be awful for the HGVC as Hilton would mostly opt out of its licensing agreement.

Then HGVC timeshares would be devalued. Not to mention IMHO that HGVC is probably one of the best Timeshare companies for Resale owners and Wyndham is one of the Worst.


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[HitchHiker71]

This would be awful for the HGVC as Hilton would mostly opt out of its licensing agreement.

Then HGVC timeshares would be devalued. Not to mention IMHO that HGVC is probably one of the best Timeshare companies for Resale owners and Wyndham is one of the Worst.


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That depends on how they manage the M&A integration activities. If Michael Brown wants to make wholesale changes to how Wyndham functions today, there’s no better way than to undertake a major acquisition and make wholesale changes to certain aspects of the business as part of the integration. If Hilton has a sales and marketing division that already has the culture and practices he would rather have, then you simply eliminate the current Wyndham division and replace it with the Hilton division. Granted I’m glossing over significant details, but this type of strategic decision making happens during major M&As. Same with how resale is handled. Lots of opportunities to embrace significant wholesale changes from the outside in, as opposed to more organic and gradual change management from the inside out (which is what Wyndham is facing today).


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[SNA27]

Can Blue thread coexist with Gold thread? HLT has done quite well. Blackstone (BX) bought Hilton, fixed it up it made it public again and it has been doing very well since. BX has done well too.
Maybe WYND and HGV could benefit from someone like BX to take them over and straighten their mess out.

 

[ecwinch]

Why do you think makes Hilton one of the best companies regarding "best Timeshare companies for Resale owners"?

 

[SNA27]

Purely from a selfish point of view, WYND should acquire HGV and distance itself from WH. Hilton is a superior brand compared to Wyndham. In fact, I hope WYND can find a way to subsume itself into HGV. Club Hilton sounds way better than Club Wyndham!

 

[Eric B]

Purely from a selfish point of view, WYND should acquire HGV and distance itself from WH. Hilton is a superior brand compared to Wyndham. In fact, I hope WYND can find a way to subsume itself into HGV. Club Hilton sounds way better than Club Wyndham!

That's an interesting thought, but I don't think it would be workable because of the occasional spot where a Club Wyndham property is contiguous or an integral part of a Wyndham Hotel property (e.g., Clearwater). Additionally, the owner of the Hilton trademark might decide that such an action devalues their mark and either terminate or decline to renew the licensing agreement. In any case, I don't see a personal benefit to changing the name of the TS I'm staying at, although it might effect the rental prospects. In any case, the Hilton brand includes a spectrum of hotel qualities as does the Wyndham brand.

As a Club Wyndham owner, I wouldn't mind seeing the acquisition happen, though for other reasons. This could lead to a larger number of resorts being available through Club Wyndham Plus as associate resorts that might be bookable with my Club Wyndham points without paying a fee or for just the $99 fee similar to booking a WorldMark resort.

 

[RX8]

Why do you think makes Hilton one of the best companies regarding "best Timeshare companies for Resale owners"?

HGVC treats resale owners exactly the same as direct owners with one minor exception - the points they own are not eligible toward elite status. Elite status starts at 14,000 points and would cost something like $75,000+ buying direct. The benefits are nice but not worth the price of admission. Plus, most owners will never even get to 14,000 total points even counting resale.

With recent changes even DVC has limited the resorts that non-grandfathered resale owners have access to.

 

[HitchHiker71]

That's an interesting thought, but I don't think it would be workable because of the occasional spot where a Club Wyndham property is contiguous or an integral part of a Wyndham Hotel property (e.g., Clearwater). Additionally, the owner of the Hilton trademark might decide that such an action devalues their mark and either terminate or decline to renew the licensing agreement. In any case, I don't see a personal benefit to changing the name of the TS I'm staying at, although it might effect the rental prospects. In any case, the Hilton brand includes a spectrum of hotel qualities as does the Wyndham brand.

If you read the linked article - it appears that Hilton will probably not allow the suitor to use the Hilton name no matter what - so it is likely whomever purchases the timeshare unit will not be able to use the Hilton brand name.

As a Club Wyndham owner, I wouldn't mind seeing the acquisition happen, though for other reasons. This could lead to a larger number of resorts being available through Club Wyndham Plus as associate resorts that might be bookable with my Club Wyndham points without paying a fee or for just the $99 fee similar to booking a WorldMark resort.

I’m assuming, similar to Worldmark, that the HGVC founding trust documents will not allow for much integration - so even if Wyndham were to acquire HGVC it will simply be another subsidiary brand just like Worldmark is today. Unless the owners vote to actually allow for the trust(s) to be altered - this is the only possible outcome IMHO. So we would probably see another version of “Club Pass” to allow for booking into HGVC properties - and this ability would only be available for developer points - just like it is today for Club Pass.





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[geist1223]

So if Hilton refuses to allow the new entity (whom ever it is) to use the Hilton name - how much will this reduce the value of the purchase?

 

[Grammarhero]

Wyndham’s owners average $91k HHI, compared to $155k for HGVC.

 

[ecwinch]

No matter what happens, I think that it is pretty clear that given Wyndham's track record with Shell and WM, that HGVC - at best - will simply become another brand in the Club Wyndham portfolio - perhaps with exchange options via Club Pass. HGVC is a mix of ownership rights, and the governing documents of the respective entities still have to be adhered to.