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Old April 18, 2013, 03:57 PM   #1
GTStone
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Question Hilton Sales & Value

I recently wanted to pick up another unit at my home resort. I own in early August and needed more bedroom space.

There is no inventory available through online resales. So I decided to contact the sales department. They have been acquiring properties from owners who want to deed them back, or simply stop paying their fees. Its a dumb move for the owners because they could recoup some of their money on the resale market ...

The "company" has been involved in with Hilton for many years, so now almost all sales go through the Hilton program. A nice one bedroom unit, prime summer week ( across the street from the beach ) is now being sold by the Hilton people for $ 33,000. That, in my opinion, is absurd. A better unit is available through the company without the Hilton membership for $ 9,000. While some may think that is high, its actually an incredibly well maintained resort in a very good location.

So, in essence, Hilton is placing the value of their "system" at $ 24,000 per week. That would be their limited exchange opportunities ( you still have RCI without them ), their access to hotels ( which I found had no price advantage over most online booking sites ), and I guess their name.

Remember, the $ 24K does not count the price of the unit ! Could anyone explain to me why Hilton is worth that much extra ? I'm just curious !

And no, I'm not buying into the Hilton system ... but their sales reps really want me to believe they are worth it !
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Old April 18, 2013, 04:06 PM   #2
PigsDad
 
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That $24K is not the difference of being in the Hilton system vs. not. It is the difference between retail and resale. This is the same at any timeshare where there is still active sales.

You can get into the Hilton system by buying resale into one of the many HGVC properties that include HGVC membership automatically.

Kurt
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Old April 18, 2013, 04:17 PM   #3
buzglyd
 
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What are you looking at?

FL or CA?
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Old April 18, 2013, 04:44 PM   #4
GTStone
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Hilton

The property is Southern California, across from the beach. Its a great central location ... we vacation there every summer and its always a pleasure.

Regarding the resale comment. Both are resale offerings, though through 2 different departments in essentially the same company ! The ONLY difference is that the higher price reflects membership in the Hilton system. Also, there is no ongoing development on this property, nor is there room for any in the future. These are all weeks that have been taken back and are back on the market. Construction ceased many years ago !
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Old April 18, 2013, 05:23 PM   #5
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I assume you are talking about Carlsbad Seapointe. A fixed summer week yields a lot of HGVC points. In the resales department at Carlsbad Inn, you can potentially buy the resales week and have it converted to HGVC at no charge. It is considered a resale purchase, but offers everything in both systems.

When you buy the expensive week from Hilton, it is considered a retail purchase for the exact same thing. Some people don't know about resale. There are a lot of people working for Hilton and/or working for Grand Pacific Resorts who will tell you cannot buy a resale and convert it to HGVC. Yet, many people have done just that.
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Old April 18, 2013, 05:30 PM   #6
GTStone
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Hilton

Which all goes back to my original question. What actual value does Hilton represent ?

Personally, when I had the discussions, heard all about Hilton, reviewed all the materials, I found in my case, it didn't offer a significant benefit at any price !

When talking to a Hilton sales rep, they are so into the "value", but frankly I've found most of the rhetoric is unsubstantiated by TUG members. When I bring up the discrepancies between what is claimed, and what apparently is, the response is usually "well I guess you made up your mind."
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Old April 18, 2013, 05:37 PM   #7
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Quote:
Originally Posted by GTStone View Post
Which all goes back to my original question. What actual value does Hilton represent ?
For me it is about more choices. We rarely ever stay a full week anywhere. Hilton lets us book as few as 3 days if we want, down to only 2 nights if we book less than 30 days out.

I own all of the Carlsbad/HGVC resorts. I use my memberships there the most, but also have used for Hawaii and have upcoming reservations for Elara in Vegas, Club Intrawest Palm Desert and plan to go to Orlando in the next couple years. None of those are full week stays.

When you use RCI via HGVC, you get the inventory for points as well as for weeks and there are set #'s of points for unit sizes that you are booking. For example, if your summer HGVC week is a one bedroom worth 6200 points, you could exchange into RCI for a 2 bedroom highest season, anywhere in the world for 4200 points. You will still have 2000 points leftover.

There are lot of other things HGVC offers, but none that make any difference to me. For us it's the high quality resorts and the flexibility of short stays.
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Old April 18, 2013, 05:59 PM   #8
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Interesting

Our schedule is not too flexible. We go for a full week ( 32 ) every summer because we can. Our kids now bring their families, so I have to add to my 2 bedroom ( thus adding a 1 bedroom unit same week ). Because of issues over the years, this has been a doable vacation ( we are an hour away ) we can always count on and its affordable !

Our other week is floating and it is our trading week. In some cases I might reserve a week ( because there is no option ), but we might leave early. Example: Sedona this summer, its only 18,500 points at a resort we know, and we'll only stay 4 nights, but we have the full week. Since I deposit over 68,000 points each year, that's simple. Other reservations are done for less time ( ie. Vegas for 3 nights as a gift to my daughter and her husband ). Usually I can get 2 or 3 vacation trips out of a single year deposit into RCI.

Sometimes we use the points to book back into our "home resort" for a different week. It all seems to work out.

I spent a lot of time two years ago looking at the Hilton offering but didn't se the benefit for us. Since then the prices have only gone up.

Also, I've been assured recently that Hilton is really cracking down on the outside resales regarding the full Hilton membership. I'm curious to see if this will be true in the coming year.

Thanks for the input.
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Old April 18, 2013, 06:08 PM   #9
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Quote:
Originally Posted by GTStone View Post
Also, I've been assured recently that Hilton is really cracking down on the outside resales regarding the full Hilton membership.
Let me guess -- a salesperson told you that?

Kurt
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Old April 18, 2013, 06:24 PM   #10
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Not someone selling Hilton !
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Old April 18, 2013, 06:51 PM   #11
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Quote:
Originally Posted by presley View Post
...For example, if your summer HGVC week is a one bedroom worth 6200 points, you could exchange into RCI for a 2 bedroom highest season, anywhere in the world for 4200 points. You will still have 2000 points leftover.

...
Allow me to correct this "fact" from Presley. It is 4800 points, not 4200 points.
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Old April 18, 2013, 07:11 PM   #12
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Originally Posted by PigsDad View Post
Let me guess -- a salesperson told you that?

Kurt
HGVC is cracking on Carlsbad resales a bit since they are trying to sell MarBrisa.

So getting a resale HGVC week is harder now than it was in the past.
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Old April 18, 2013, 07:19 PM   #13
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Interesting. Grand Pacific resorts essentially have a "corporate" board, meaning the majority of members work for the company. Reviewing minutes, apparently the company struck a deal with the board(s) to take all defaulting memberships, process them, then take possession and resell them. The associations receive nothing ( not even the fees in arrears ). It was a sweet deal for the company.

So, "sold out" resorts now have their recaptured inventory available to the Hilton sales force. These come with the HGVC package, and the prices are equivalent to those for Marbrisa which is still under construction. ( Unless you want a view of the LEGOLAND parking lot, I fail to see the attraction of that site ). Every 6 months they raise the prices. To protect this, it would appear HGVC doesn't want to let other owners into the system any longer ... apparently this is a more recent change ! Frankly I don't know anyone who would consider buying at those prices, but apparently some do !
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Old April 18, 2013, 09:55 PM   #14
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Quote:
Originally Posted by GTStone View Post
Interesting. Grand Pacific resorts essentially have a "corporate" board, meaning the majority of members work for the company.
Yeah, there is basically a handful of board members that have control over the organization as a whole in addition to running the boards for each resort.

I've only been to 2 owner meetings, but both times, anyone running against the boards members didn't show up to give a speech. I think the board is going to be the board forever. They are looking to add more resorts to the management company.
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