Hyatt Pure Points Program

[scsu_hockey_fan]

You seem to be inter mixing the Points Program and the HRC Program. They are totally independent of each other and do not cross over. The PP program points do not interchange with the HRC points. Unfortunately IMHO you can no longer buy another HRC week to supplement your existing HRC points total.

My opinion is that the trading will not likely change, but you will have to live with the points you now own.

I think the poster was referring to the situation of "trading" the deeded week in to Hyatt for a small upgrade fee to join the PPP. Where Hyatt would gain ownership of the old deeded week and enroll it into the trust program.

 

[scsu_hockey_fan]

The sales guy stresses all the great things in the HPP. Including all kinds of Hyatt Hotels, cruises, tours, Vistana resorts, & Starwood resorts. The only thing mentioned in passing was HRC resorts by ROFR and available Hyatt inventory.

The new building at Coconut and Maui developer inventory will be interesting. In order for that to be in the HPP system is if the DEVELOPER lets it go or the Trust buys it from the developer. Remember, Hyatt is not the developer.

They might include some of the Hawaii units but I wouldn't expect many based on what there mfs are. Someone posted a while ago about an earnings call and it mentioned somewhere that Hawaii was going to be kept being sold to protect the hrpp.

 

[lizap]

This is what I think they will do, ala Marriott. Not that you can trust what the phone reps say, but when I was speaking to one earlier this week (about something else), they led me to believe there would be a plan to let existing HRC owners buy into the new system (should they desire to do so).

I think the poster was referring to the situation of "trading" the deeded week in to Hyatt for a small upgrade fee to join the PPP. Where Hyatt would gain ownership of the old deeded week and enroll it into the trust program.

 

[Cropman]

This is what I think they will do, ala Marriott. Not that you can trust what the phone reps say, but when I was speaking to one earlier this week (about something else), they led me to believe there would be a plan to let existing HRC owners buy into the new system (should they desire to do so).

I'm POSITIVE they will love to have you give up your weeks, especially high point, highly desirable weeks, and pay them for the privilege of giving them your highly desired week. I'm not sure who is the better salesman, the guy who came up with the conversion idea, or the actual salesman who sells it to the unit holder.

JC

 

[Kal]

I baited the timeshare huckster that "I heard the conversion fee would be about $10K". He said he had heard the same thing. Knowing that they all had been fully trained on the PPP the prior week, there's probably something to it.

 

[Kal]

So here's the game - You give the Trust your deed and $10K and you get to pick something from the grab bag where there is little or no availability of HRC resorts. Whata Deal!!!

 

[SmithOp]

I've traded my Vistana into Hyatt in Interval, I wonder how this HPP will affect Interval inventory. I've picked up Hyatt weeks with AC that were coded as Hyatt owned deposits, I'm thinking these will go into HPP now and owner II deposits will be the only ones available. I could be wrong because I took a presentation and the salesman said they use the Hyatt deposits to get fresh meat in the door for a presentation.


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[Kal]

I've traded my Vistana into Hyatt in Interval, I wonder how this HPP will affect Interval inventory. I've picked up Hyatt weeks with AC that were coded as Hyatt owned deposits, I'm thinking these will go into HPP now and owner II deposits will be the only ones available. I could be wrong because I took a presentation and the salesman said they use the Hyatt deposits to get fresh meat in the door for a presentation.


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The system should continue to work as in the past. HRC owners can still "deposit their unit" into Interval and in doing so Hyatt weeks should still be available to Interval members. But who knows if the HPP Trust will grab those weeks for their own use.

 

[bb70]

I am about to close on a resale, and starting to get nervous. Already passed ROFR and paid about 85 cents per point on a 1400 point week so I was feeling pretty good. It was a silver seek at coconut point, but we liked the week and the resort so all was good. I knew pure points was likely coming and I knew that new development at coconut point was discussed. Just didn't expect it to happen so fast.

Now I am wondering what the week will be worth, and worried that the charming resort we fell in love with is going to change dramatically and soon.

Anyone able to talk me off the ledge?

 

[Cropman]

I really don't think it's going to affect you at all. They can't take your deeded week away from you so you will be able to go back to your resort in your unit in your week. I'm in the same boat. I bought a week at Sunset Harbor that we want to use every year. I didn't plan on trading it, just using it. I think the new system is going to really have an effect on people that trade within the system, not the people that want to use their unit. Enjoy your purchase!! No worries!!

 

[Kal]

Anyone who has gotten thru ROFR is in an excellent position. The name of the game going forward is how to get thru ROFR since the only way to buy a unit/week is through private resale. I have already talked to a number of people while I am now here at Sunset Harbor and we have come up with interesting ways to make it work.

 

[bizaro86]

Based on the conference call, I think it will be like the Sheraton flex trust. Essentially, flex owners get "home resort" privileges at all the inventory in the trust. So in Hyatt's case, they'll have access to Maui and anything new, plus whatever ROFR they take. Then at a certain point (probably somehow worked in with the CUP period) it works just like the rest of the system. Flex owners can reserve other Vistana property at 8 months, and other owners can reserve flex property at 8 months. I would expect Hyatt pure points to be the same, as they will want to pitch availability at all of the Hyatt Resorts.

It makes sense for them to put a few new Vistana units in, as that would make upgrades a way easier sell. (Even Orlando would probably be useful, and would soak up some Orlando inventory. I wonder if that is why they are building the new phase at Vistana Villages...)

The biggest thing I'm curious about is Maui. If they put it in the pure points trust, they can sell "Maui" over and over again. But they'll have to stop selling true Maui deeds now. I'm curious whether they'll take the short term pain for long term benefit. Vistana didn't do that with Nanea (their Maui resort) which was a mistake, imo.

 

[Kal]

Maui will be a key piece of it all. The developer will get paid no matter what. Hyatt will get paid for naming and resort management. The goal should have a component to protect options for the HRPP owners, the PPP will need to have some of those units available.

On Monday I will be receiving the current sales status...the percent of the resort which is unsold. That should shed some light on the Maui involvement.

 

[Cropman]

I am about to close on a resale, and starting to get nervous. Already passed ROFR and paid about 85 cents per point on a 1400 point week so I was feeling pretty good. It was a silver seek at coconut point, but we liked the week and the resort so all was good. I knew pure points was likely coming and I knew that new development at coconut point was discussed. Just didn't expect it to happen so fast.

Now I am wondering what the week will be worth, and worried that the charming resort we fell in love with is going to change dramatically and soon.

Anyone able to talk me off the ledge?

So, you haven't closed, but passed ROFR. I'm guessing ROFR has been after January 1. Just speculating here, but does that tell us Hyatt is not taking lower valued weeks and is just going to concentrate on the upper tier weeks? 1400 points at 0.85 would mean this sold for $1200. I have to believe in the new program, points are going for way more than $2 per. They could have made a lot of money by ROFR this deal, but they passed. I would bet they only ROFR diamond and platinum, maybe gold also. They can then show they have some prime inventory you can trade into for new TPP buyers. I would like to see the line item in their 2017 budget for the amount they have earmarked for acquiring units.

 

[bdh]

Just speculating here, but does that tell us Hyatt is not taking lower valued weeks and is just going to concentrate on the upper tier weeks? 1400 points at 0.85 would mean this sold for $1200.

I would bet they only ROFR diamond and platinum, maybe gold also. They can then show they have some prime inventory you can trade into for new TPP buyers. I would like to see the line item in their 2017 budget for the amount they have earmarked for acquiring units.

There is not a one to one correlation of points to dollars - the value of a week/unit varies by property as well as unit. A 1400 pt week could be $3500 at one location and $10000 at another.

The ROFR has not been concentrated on high demand/point weeks - they will take any week at any property if the price is right.

 

[Cropman]

There is not a one to one correlation of points to dollars - the value of a week/unit varies by property as well as unit. A 1400 pt week could be $3500 at one location and $10000 at another.

The ROFR has not been concentrated on high demand/point weeks - they will take any week at any property if the price is right.

I agree, it's not correlation, however, IMHO, not only does Hyatt need prime weeks, they need points. The TPP is going to sell points. I don't think it will be like DVC where points are sold for different dollar amounts, depending upon your home resort. I think they will pure points that you can use where you can find openings. Those 1400 points for that resort for that week may be priced correctly for the legacy program. I just think they are going to sell points for a flat rate and way more than a few bucks per point. I would guess $12 minimum. Under my scenario Hyatt left a lot of money on the table and are going to concentrate on the higher demand weeks. For instance if Hyatt owns unit weeks that equal 1,000,000 points, they can't sell 2,000,000 to the public unless they acquire more units. So, Hyatt by passing on this one, either still has a ton of inventory to move or has a budget that is limited to having to go after higher demand weeks. Maybe both. It would be really interesting to hear what Hyatt exercises ROFR on.

 

[tahoeJoe]

My guess is they will offer current Hyatt owners an opportunity to buy into the points system, similar to what Marriott did. \QUOTE]
.

What advantage is there to legacy owners to "buy in" into HPP if the current points program is unchanged? Marriott did not have an existing points program so there were advantages for some Marriott owners to buy in. Excluding Maui, Hyatt has not built any NEW, real inventory in a decade. This leads me to believe that initially most availability will be in San Antonio and Bonita Springs IF they restart construction. Maui is a maybe if the DEVELOPER, (who is NOT Hyatt or Interval) decides Hyatt can use their unsold inventory in HPP.

 

[bdbrecheen]

I just found this site today and my eyes are not believing some of what I'm seeing. I've been an owner with Hyatt since 2004. I have actually been actively looking to add more points by purchasing another unit from a private party. Since we are already at 13 February, and the comments I'm reading on here state Hyatt is going to change things as of February 21, my question is how come they have not notified the Hyatt owners? In addition, we bought into the point system so that we could exchange it at other Hyatt resorts. We never stay at our deeded week, we never intended to. So, may I ask a couple of questions of you who seem to have a great deal of knowledge. Would you advise me buying another Hyatt unit now? Are they completely doing away with the point system as it currently works now? Can they legally do that with old owners? What is the best way to handle the situation? Thank you so much for sharing your wisdom with those of us who are not near as savvy.

 

[bdh]

I just found this site today and my eyes are not believing some of what I'm seeing. I've been an owner with Hyatt since 2004. I have actually been actively looking to add more points by purchasing another unit from a private party. Since we are already at 13 February, and the comments I'm reading on here state Hyatt is going to change things as of February 21, my question is how come they have not notified the Hyatt owners? In addition, we bought into the point system so that we could exchange it at other Hyatt resorts. We never stay at our deeded week, we never intended to. So, may I ask a couple of questions of you who seem to have a great deal of knowledge. Would you advise me buying another Hyatt unit now? Are they completely doing away with the point system as it currently works now? Can they legally do that with old owners? What is the best way to handle the situation? Thank you so much for sharing your wisdom with those of us who are not near as savvy.

While the new Pure Points Program (PPP) doesn't roll out until 2/21/17, it is expected to be different system than the current HRC point system used for internal Hyatt exchanges and for external Interval International. No reason for you to be alarmed with what you own.

While you won't be able to buy HRC deeded weeks from Hyatt in the near future, there are lots of current HRC deeded week owners that you can buy from in years to come.

 

[theo]

What / who is your source? Remember 90+ percent of what comes out of the mouth of sales people at time share presentations is FUD.

Can't speak for Kal, but when it comes to Hyatt he da man, IMnsHO. He wouldn't be taking any sales weasel drivel to the bank.

 

[Kal]

I agree, it's not correlation, however, IMHO, not only does Hyatt need prime weeks, they need points. The TPP is going to sell points. I don't think it will be like DVC where points are sold for different dollar amounts, depending upon your home resort. I think they will pure points that you can use where you can find openings. Those 1400 points for that resort for that week may be priced correctly for the legacy program. I just think they are going to sell points for a flat rate and way more than a few bucks per point. I would guess $12 minimum. Under my scenario Hyatt left a lot of money on the table and are going to concentrate on the higher demand weeks. For instance if Hyatt owns unit weeks that equal 1,000,000 points, they can't sell 2,000,000 to the public unless they acquire more units. So, Hyatt by passing on this one, either still has a ton of inventory to move or has a budget that is limited to having to go after higher demand weeks. Maybe both. It would be really interesting to hear what Hyatt exercises ROFR on.

Remember, the new PPP will include resorts other than Hyatt, Hyatt Hotels, Cruises, tours and what ever else they can peddle for points. So don't limit your numbers to simply the HRC $ to points arithmetic. It will be interesting to see the PPP membership fee and their schedule for using those points (expiration dates, tier levels and maintenance fees).

 

[alexadeparis]

You seem to be inter mixing the Points Program and the HRC Program. They are totally independent of each other and do not cross over. The PP program points do not interchange with the HRC points. Unfortunately IMHO you can no longer buy another HRC week to supplement your existing HRC points total.

My opinion is that the trading will not likely change, but you will have to live with the points you now own.

Kal, can you elaborate why you think that combining weeks for points will no longer be effective? I know you know a TON about Hyatt, so I would love to hear your perspective. Thanks in advance.

 

[bdbrecheen]

Hyatt will roll out the new Pure Points Program on Feb. 21st. After that date you can no longer purchase a resort unit from Hyatt. Any purchase will be into the Points Program and be for points only. Today's legacy system will be unchanged for current owners. Hyatt claims they will take any owner sales on ROFR.

Details for the Points Program will be announced soon, but IMHO, it will be extremely difficult to obtain a Points Program reservation at just about any legacy resort.

Obviously, the value of legacy resorts has increased.

So, would it be advantageous or not in your opinion to go through with the purchase of the timeshare I am looking at? We were basically doing it so that we would have more points to work with for booking higher value properties such as Carmel. When we first purchased, we were able to go every year. Since they changed the point structure we no longer have enough points to stay for a week there.

 

[Sapper]

Just a thought as I read through this thread. Does the Hyatt PPP entity own or control a large quantity of Key West units? If so, what better way to increase the number of points in the point program than to change the point value of a unit you own. A former 1400 point unit is now a 2000 point unit. They just increased the number of points available for sale by 30-40%.

While I agree with Kal in that this new PPP does nothing for me, I am concerned that over time (years), as people trade their unit + $ in to join the PPP and as they exercise ROFR, the available inventory for trading in the legacy system will be reduced. Long term, this will make the legacy system less useful / valuable for people who want to trade, and will make the unit I (and others here) own less valuable overall.

Also, some people, such as "bdbrecheen", were sold on the point system. In the one Hyatt sales presentation I went to, the sales guy pushed the whole points system pretty hard. Might someone be able to make a legal case that Hyatt sold a system as well as the individual unit, and that the points associated with their unit represent an interest in the system as a whole. Further, by removing units and points from the legacy system is a breach of contract because it negatively impacts this system. The remedy for which would be to either pay ALL legacy unit holders for the loss of value to their points / unit value, or to block the PPP from being able to utilize any points / units from the legacy system?

To be clear, I am not a lawyer, and have not been involved with timeshares for very long. I'm just asking a question.

 

[Kal]

Kal, can you elaborate why you think that combining weeks for points will no longer be effective? I know you know a TON about Hyatt, so I would love to hear your perspective. Thanks in advance.

The best thing about the Hyatt legacy program is the ability to combine points from owned weeks. The problem is that it will be difficult to buy more unit/weeks. Overall I just have the feeling that it will be a little more difficult to make those points work in getting reservations. Mostly because of supply and demand and the difficulty in buying more weeks.