Hyatt Pure Points - Update from ILG Earnings Call

[TFTG]

I know there have been a few previous posts in regards to the new Hyatt Pure Points program and from the latest ILG earnings call, some more vague information on it has come out. When asked a question on the earnings call about the rumored program, the response from the CEO was as follows:

Yes, there are a lot of legal and technical initiatives going on around it. We are on track right now to move forward with that. The closing with Vistana is helpful, their Sheraton Flex is very similar to what we are going to be doing with HVO. The thing about the transition we don't expect lots of issues with the transition obviously there are learning curves. But they've always sold a points-based system even though it might have been a preference product where you got (inaudible) specific product, a location. You were still getting a points-based program which was part of the sales.

So this just provides them with ownership at a group of properties as opposed to one but the movement around the system is very similar so I think that might be a difference between others that have had more difficulty.

A follow-up question asked if all current owners had to migrate to the new program and the response was:

No, the beauty of having the system already sold where you can go around the system through the exchange program -- and I mean the proprietary branded exchange program -- is that a new product can be sold and people that had bought the other do not have to convert in to move around the system. They already are moving around the system.

Here is a link to the earnings call transcript: http://finance.yahoo.com/news/edited-transcript-iilg-earnings-conference-190531166.html

 

[Tucsonadventurer]

very informative, thank you for posting. It is good that those that own a week in a property do not have to convert to points but the inventory for exchanges may become a huge issue. Is there a time frame for when they will start marketing the all points system?

 

[Kal]

It seems obvious that ILG is focusing on new sales to stock available rooms in the Total Points pool. Who knows what meaningful incentive will be provided to existing HRC members? My guess is they won't get many takers from the high demand resorts in high seasons. But the sales people will push LOTS of great availability everywhere. Even then it will ride on NEW resorts that are attractive to existing HRC members.

Snake oil

 

[melroseman]

It seems obvious that ILG is focusing on new sales to stock available rooms in the Total Points pool. Who knows what meaningful incentive will be provided to existing HRC members? My guess is they won't get many takers from the high demand resorts in high seasons. But the sales people will push LOTS of great availability everywhere. Even then it will ride on NEW resorts that are attractive to existing HRC members.

Snake oil

After an initial period of downright hostile resistance I think it's now fair to say most Marriott owners have concluded that the points system superimposed on the weeks system has been a positive change. I would hope and expect the same from Hyatt, especially given the fact they can use the good and bad from Marriott's experience

 

[lizap]

Hopefully, ILG will let Hyatt owners buy into the new system for less than 2k like Marriott did...

After an initial period of downright hostile resistance I think it's now fair to say most Marriott owners have concluded that the points system superimposed on the weeks system has been a positive change. I would hope and expect the same from Hyatt, especially given the fact they can use the good and bad from Marriott's experience

 

[taffy19]

Hopefully, ILG will let Hyatt owners buy into the new system for less than 2k like Marriott did...

I believe they will.

Kal, you need to read some of the posts where TUGgers have shared how well the point system works for them with the Marriott. You could join the system in the beginning for a reasonable fee and have a yearly fee after that. They gave us enough bonus points to use in a certain time so it really didn't cost us anything. There is a yearly fee after that but many multiple week owners are saving more per year than that fee is so are not complaining either.

We went to several Hyatt presentations in the last two years and we were told over and over again that the Hyatt Developer (Builder) and Sales Department (ILG) learned from the mistakes that the Marriott made next door at Ka'anapali so they are aware of it that the Marriott had a rough start in the beginning. Many higher-ups at ILG came from the Marriott, Westin and Hilton so I doubt that it will happen here.

I am sure that the system will be great so long we do not have to give up any benefits that we received with the original purchase and certainly if you bought a fixed week/unit at the Hyatt. We haven't had at the Marriott either with our fixed week/unit deed but we have an additional choice how to make a more flexible exchange to another Marriott resort for more or less days or for a better or lesser view or for a bigger or smaller unit to make points stretch if it is a downgrade.

Since ILG now owns the Hyatt, Westin and Sheraton resorts, the pure points program may be more flexible yet between all these brand name resorts and other resorts that may want to affiliate with the ILG PPP too. This is what I expect and they will have a system in place that weighs the value of every week, unit size and quality and location and view of the unit too so we pay exactly for what we get and beating the system will be hard to do like it used to be.

Locations that are popular today may not be so popular tomorrow and newer resorts will require more points so they can adjust the system from time to time when it is needed.

 

[Kal]

Folks, the Hyatt system is already a points system AND a weeks system to boot. It's the best of both worlds. The only downside is the total number of resorts.

The fact that members own a specific unit/week does not readily lend itself to throwing that away in favor of a strictly points system.

If ILG offers up a high quality selection of new additions to the Hyatt program, AT A FAIR ENTRY PRICE, there may be some who will take the bait. Of course Maui is a nice new addition, but it's rarely available to the HRC. Quality unit/weeks at new resorts added to the system would have to be readily available otherwise it's just a shell game.

 

[Kal]

...Kal, you need to read some of the posts where TUGgers have shared how well the point system works for them with the Marriott...

Based upon my somewhat limited knowledge of the Marriott system, I find the method of confirming a points reservation at a desired Marriott property is not user friendly. With Hyatt, you have 6 months to decide if you want to occupy the specific unit/week you own.

 

[scsu_hockey_fan]

They are going to have a lot of inventory to sell with the new construction at coconut and wild oak, once they become available to sell I see the rofr activity decreasing. They would be smart to let the new points/trust owners have access to Hyatt thru interval to ease up on the availability problem at the sold out deeded week resorts (that would require interval to change to points also to make reservatons for less then a full week)

Another very long term issue is the rising tide levels (predicted 6 foot rise in 50 to 85 years, maybe sooner. 6 feet well pretty much put coconut and keywest under water. Just a 2-3 foot rise will put coconuts private beach under water. What are the legal issues with points sold as a trust when the trust resort is underwater? :hysterical:

 

[bdh]

you need to read some of the posts where TUGgers have shared how well the point system works for them with the Marriott. You could join the system in the beginning for a reasonable fee and have a yearly fee after that.

No doubt the point system works for some Marriott owners. However, as Kal mentioned, HRC is been a point and week system - its been that way for years and is equitable to all owners and works well. The current HRC point/week system does not have the points "skim" that Marriott engineered when they converted from weeks to points. Due to the HRC point system's original configuration, there was no beating the system (trade a studio for a 2 bedroom).

Other than adding more/desirable properties to the HRC system, it will be interesting to see how ILG/HRC PPP "improves" on what's in place now.

 

[Sullco2]

Construction at Coconut Plantation?

This is the first mention I've seen of building at Coconut Plantation. Please provide more information. Thanks.

 

[bdh]

This is the first mention I've seen of building at Coconut Plantation. Please provide more information. Thanks.

Per the salesmen's comments for the past 5 years at Coconut and Wild Oak, "they're getting ready to break ground on the next phase".

But I did see their lips moving!

 

[scsu_hockey_fan]

This is the first mention I've seen of building at Coconut Plantation. Please provide more information. Thanks.

someone posted this info on a earlier thread about a month ago or so....

""For the remainder of 2016, our focus at HPO will continue to be on enhancing our sales and marketing infrastructure and channels to increase the velocity and efficiency of sales as well as support the launch of the Pure Points Club. We also expect to open the Sales Preview Gallery in Key West and commence construction of new phases at our Bonita Springs and San Antonio Resorts later this year."

Was from their recent conference call. Transcript is here:

http://seekingalpha.com/article/3973...pt?part=single "

 

[ivywag]

Another thought

Hyatt (now ILG) has always been a management company hired by the developers to sell and manage each property. Therefore, after the property sold out the owners and the board at the specific resort could retain them to manage or fire the management company and hire another if they wished. I'm wondering how a resort could possibly change management with points owners involved. Maybe this is a way for ILG to maintain control and limit our options.
Any thoughts?

 

[sts1732]

Hyatt (now ILG) has always been a management company hired by the developers to sell and manage each property. Therefore, after the property sold out the owners and the board at the specific resort could retain them to manage or fire the management company and hire another if they wished. I'm wondering how a resort could possibly change management with points owners involved. Maybe this is a way for ILG to maintain control and limit our options.
Any thoughts?

I think the key is .......it never really sells out. It would seem that there is always some units kept back for "developer units". Haven asked that question in many owner meetings( how many) never a straight answer given, only "the developer retains some units"
I don't recall the question being put forward in any " call to forms" other than the usual new reps and the occasional "fully fund or not"
Therefore I'm left with just the Hyatt name, and being gobbled by ILG, because they gave Hyatt a sweatheart deal.

 

[Kal]

I think the key is .......it never really sells out. It would seem that there is always some units kept back for "developer units"...

Te term "sell out" really doesn't have a meaning. At the start, the developer is a member of the resort BOD. That is a guaranteed seat until the percentage of developer held units falls below about 5%. At that time the BOD usually votes the developer seat off the board. At all times, the BOD can replace the management firm with an alternate firm.

If the developer still holds units, they have the status of all the other owners except those units are usually not deposited into the HRC pool. They can manage those units as desired, or turn them over to the resort management firm to manage (i.e. usually rent them out).

 

[ivywag]

Using High Sierra as an example-- High Sierra has its own BOD and the current Board and owners could vote to replace Hyatt/Interval as the management company. With points being sold and those new owners being sold access to all resorts, is it going to limit the High Sierra owners' ability to replace Interval as the management company? I'm not advocating that this happen, but it's always a good thing to have options in case of problems down the road. If a majority of current owners convert to points, presumably Interval will then control the majority of the units and could not be replaced. They would also control the budgets and dues increases whereas now the owners at each resort at least have input.

 

[scsu_hockey_fan]

I was at wild oak ranch recently and attended a presentation to get resort credit for free sea world tickets. They did not mention one peep about the new points system. They tried to sell me 2800 points (I.e. 2 silver weeks) for $40,000. I wanted to open so many can of worms but my wife kept reminding me to keep this as short as possible by kicking my foot. You know how that one song goes, take the money and run. From another source outside they did say construction would start in 30 to 60 days. Sounds like they just got a new resort manager also.

 

[dahntahn]

I was at wild oak ranch recently and attended a presentation to get resort credit for free sea world tickets. They did not mention one peep about the new points system. They tried to sell me 2800 points (I.e. 2 silver weeks) for $40,000. I wanted to open so many can of worms but my wife kept reminding me to keep this as short as possible by kicking my foot. You know how that one song goes, take the money and run. From another source outside they did say construction would start in 30 to 60 days. Sounds like they just got a new resort manager also.

My wife and I are currently at Coconut Plantation and attended the owners meeting this week. The management team repeatedly stated they could not comment or give any information on the coming points program because they did not know enough about it. They once again cited plans to begin new construction on a fourth building (like they did one year ago at our owners mtg) but nothing has started yet.
They also informed us that HRC had changed the season designations on some weeks here and handed out the new points/seasons chart. When I reviewed it, I discovered that all the Key West resorts had been changed in their seasons as well. I confirmed this with the staff here, and found that we had gained 1600 points on three timeshares we own at Beach House:
Week 24 was bronze/1300 , now platinum/2000; week 49 was bronze/1300, now gold/1880;
Week 15 was gold/1880, now diamond/2200. The following day I received an email confirming the week 49 change by adding 580 points to those in our HRPP bucket. I assume the other changes will occur as the points arrive on the weeks owned. I am surprised at the season changes, as it means a windfall for us but not for other HRC owners who not only didn't get an increase in their points, but now must use more points to exchange into the Key West properties (all three have had the same season changes). This likely also increases the resale value of the former bronze weeks, which had very little at 1300 points.
Interestingly, the week 2 which we own here at CP does not change, stays gold/1880.

 

[wilma]

My wife and I are currently at Coconut Plantation and attended the owners meeting this week. The management team repeatedly stated they could not comment or give any information on the coming points program because they did not know enough about it. They once again cited plans to begin new construction on a fourth building (like they did one year ago at our owners mtg) but nothing has started yet.
They also informed us that HRC had changed the season designations on some weeks here and handed out the new points/seasons chart. When I reviewed it, I discovered that all the Key West resorts had been changed in their seasons as well. I confirmed this with the staff here, and found that we had gained 1600 points on three timeshares we own at Beach House:
Week 24 was bronze/1300 , now platinum/2000; week 49 was bronze/1300, now gold/1880;
Week 15 was gold/1880, now diamond/2200. The following day I received an email confirming the week 49 change by adding 580 points to those in our HRPP bucket. I assume the other changes will occur as the points arrive on the weeks owned. I am surprised at the season changes, as it means a windfall for us but not for other HRC owners who not only didn't get an increase in their points, but now must use more points to exchange into the Key West properties (all three have had the same season changes). This likely also increases the resale value of the former bronze weeks, which had very little at 1300 points.
Interestingly, the week 2 which we own here at CP does not change, stays gold/1880.

I attended a owner update at hyatt carmel on weds and the sales weasel annnounced that the hyatt pure points program was released this month at all the florida resorts! She claimed none of the other salespeople had any info on the program other than hyatt will no longer sell deeded weeks. She was a fountain of bs: she also claimed that hyatt is exercising rofr on all resales and has been for at least a year so they can add that inventory into their new program. My sister recently bought a 1880 tahoe week that passed rofr. She also told us that when you buy resale that you can never combine points from different weeks to trade so would never be able to trade into maui because a week costs 2200 points. We both started laughing and wondered out loud how we traded 1.5 weeks of points to spend a week in maui. She claimed that was a mistake because as resale owners we are flagged in the system, whatever that means.....

 

[bdh]

I attended a owner update at hyatt carmel on weds and the sales weasel annnounced that the hyatt pure points program was released this month at all the florida resorts! She claimed none of the other salespeople had any info on the program other than hyatt will no longer sell deeded weeks. She was a fountain of bs: she also claimed that hyatt is exercising rofr on all resales and has been for at least a year so they can add that inventory into their new program. My sister recently bought a 1880 tahoe week that passed rofr. She also told us that when you buy resale that you can never combine points from different weeks to trade so would never be able to trade into maui because a week costs 2200 points. We both started laughing and wondered out loud how we traded 1.5 weeks of points to spend a week in maui. She claimed that was a mistake because as resale owners we are flagged in the system, whatever that means.....

They were selling weeks at WP in Oct and anticipated having enough inventory at WP to continue sales at WP thru 2017. When asked about the pure points system, the salesman knew nothing about it (which I believe as he was def not the sharpest knife in the drawer) - but the sales manager knew about the PP program but wasn't allowed to talk about it.

Out of approx 100 resales in KW last year, Hyatt exercised ROFR on about 10 units. Was no consistent pattern on what they took as it was a mixture of SH, BH and WP - also varied by week, some prime, some shoulder and some off season. A few of what they took back was resold on the retail market.

Their records indicate if an owner's week was a retail or resale purchase - their policy was to prohibit resale owners from attending the owner update/sales presentations - but they've changed that policy as they realized that they were hurting the sales dept more than the owners.

 

[Sapper]

...she also claimed that hyatt is exercising rofr on all resales and has been for at least a year so they can add that inventory into their new program......

I closed on a beach house unit a few months ago. Had no issue with ROFR.

 

[clotheshorse]

I also closed on beach house a few months ago and had no issue with ROFR.

 

[LurkerBee]

Last June/July there was a lot of ROFR activity. I lost a Beach House unit to ROFR, but later picked up a Coconut Plantation unit for less (and its now worth more points than the Beach House I didn't get).

 

[Tucsonadventurer]

We lost our first beach house to ROFR then tried again the next month , paid a little more and got it. Was worth 1880, now 2200 so well worth it.