Should we upgrade from legacy to Hyatt pure points

[lizap]

At the presentation this week, they stated that in Key West they are NO longer selling weeks, only points - no other option - but who knows....I would buy resale now while you can. But it anywhere....

Once PPP is introduced, deeded weeks will no longer be sold by Hyatt. However, you will still be able to buy deeded resale weeks.

 

[WalnutBaron]

At the presentation this week, they stated that in Key West they are NO longer selling weeks, only points - no other option - but who knows....I would buy resale now while you can. But it anywhere....

I agree. Once PPP is rolled out, owners of fixed weeks in the legacy program will, in my opinion, be in the catbird's seat. Let's face it: despite what the sales weasels will tell you, ILG is not motivated to create a new program that benefits owners. PPP is for the benefit of the company's shareholders, which means that owners of the legacy program will have something of increasing value and scarcity--especially as Hyatt continues to buy more desirable weeks through ROFR to place into the PPP inventory.

I also find it interesting that Hyatt has delayed the rollout at least twice since PPP was first being "whispered" by the sales weasels. I wonder if they're having trouble acquiring enough legacy inventory or if they are also struggling with creating enough of a value proposition for legacy owners to be tempted to make the conversion.

 

[lizap]

I don't know why the delay(s) have occurred, but I'm sure there is a definitive plan for the rollout of PPP and what it will involve for new as well as existing legacy owners.

 

[Cropman]

Cripes, this thing has better secrecy than the White House.

 

[WalnutBaron]

Cripes, this thing has better secrecy than the White House.

And enough speculative misinformation (courtesy of the sales weasels) to make any politician proud.

 

[bdh]

I agree. Once PPP is rolled out, owners of fixed weeks in the legacy program will, in my opinion, be in the catbird's seat. Let's face it: despite what the sales weasels will tell you, ILG is not motivated to create a new program that benefits owners. PPP is for the benefit of the company's shareholders, which means that owners of the legacy program will have something of increasing value and scarcity--especially as Hyatt continues to buy more desirable weeks through ROFR to place into the PPP inventory.

I also find it interesting that Hyatt has delayed the rollout at least twice since PPP was first being "whispered" by the sales weasels. I wonder if they're having trouble acquiring enough legacy inventory or if they are also struggling with creating enough of a value proposition for legacy owners to be tempted to make the conversion.

Legacy owners that use their deeded week have absolutely nothing to fear with PPP - sit back and enjoy the movie. Legacy owners that never use their deeded week may have some concern with PPP - but that may vary by property. With SH being an older long ago sold out property, expect there would be limited access by the PPP - so legacy owners exchanging in shouldn't experience significantly more difficulty than they do now getting in (however its obviously not an easy task now). But even with all new units at Wild Oak and Coconut Plantation being in the PPP, I still don't see a significant legacy exchange concern as there should still be plenty of access via the current deeded week buildings. Will have to see how it plays out at the various HRC properties. Agree with WB in that legacy owners will be fine and there is no need to rush out and sign up or buy into the PPP.

HRC's ROFR decision process has always been cloaked in secrecy - add in their mercurial thoughts as to what and when they buy and its close to a total crap shoot. If they were serious about acquiring deeds via ROFR for the PPP, why in the world would they have let the sale of a 2200 pt WP week clear ROFR at $6350 six weeks ago?

The delay in the roll out is expected to have been due to legal issues (approval by the state/s).

 

[theo]

... better secrecy than the White House.

I'd really love to jump in to expound on this, but don't want be admonished or spanked for offering prohibited political commentary.

 

[scsu_hockey_fan]

Legacy owners that use their deeded week have absolutely nothing to fear with PPP - sit back and enjoy the movie. Legacy owners that never use their deeded week may have some concern with PPP - but that may vary by property. With SH being an older long ago sold out property, expect there would be limited access by the PPP - so legacy owners exchanging in shouldn't experience significantly more difficulty than they do now getting in (however its obviously not an easy task now). But even with all new units at Wild Oak and Coconut Plantation being in the PPP, I still don't see a significant legacy exchange concern as there should still be plenty of access via the current deeded week buildings. Will have to see how it plays out at the various HRC properties. Agree with WB in that legacy owners will be fine and there is no need to rush out and sign up or buy into the PPP.

HRC's ROFR decision process has always been cloaked in secrecy - add in their mercurial thoughts as to what and when they buy and its close to a total crap shoot. If they were serious about acquiring deeds via ROFR for the PPP, why in the world would they have let the sale of a 2200 pt WP week clear ROFR at $6350 six weeks ago?

The delay in the roll out is expected to have been due to legal issues (approval by the state/s).

I think the reason for the inconsistent rofr is pretty simple to see and understand. If they take back everything that will only drive the prices up which means less profit for them.

 

[Kal]

How could it be explained that in May 2017, Hyatt passed on a Sunset Harbor unit where the selling price was $3,250? That would leave more than sufficient profit to Hyatt. Prospective buyers would not see that as prices being driven up.

 

[dagger1]

How could it be explained that in May 2017, Hyatt passed on a Sunset Harbor unit where the selling price was $3,250? That would leave more than sufficient profit to Hyatt. Prospective buyers would not see that as prices being driven up.

Kal, do you have any idea why Hyatt would pass on this unit at that price? What a deal!!

 

[Kal]

Kal, do you have any idea why Hyatt would pass on this unit at that price? What a deal!!

No idea how Hyatt makes those decisions. It clearly shows that Hyatt is NOT agressively taking ROFRs, especially at the highest occupancy rated resort in the system. It would probably be freightening to see their sausage making process. More than likely it's simply supply and demand where there's not much demand to purchase something at Hyatt retail prices.

But at the end of the day, we should all congratulate the Tugger who had the intestinal fortitude to make the resale purchase offer!

 

[Tucsonadventurer]

No idea how Hyatt makes those decisions. It clearly shows that Hyatt is NOT agressively taking ROFRs, especially at the highest occupancy rated resort in the system. It would probably be freightening to see their sausage making process. More than likely it's simply supply and demand where there's not much demand to purchase something at Hyatt retail prices.

But at the end of the day, we should all congratulate the Tugger who had the intestinal fortitude to make the resale purchase offer!

It truly seems random how they decide. I think they actively buy back some months and put their attention elsewhere other months

 

[scsu_hockey_fan]

How could it be explained that in May 2017, Hyatt passed on a Sunset Harbor unit where the selling price was $3,250? That would leave more than sufficient profit to Hyatt. Prospective buyers would not see that as prices being driven up.

There is an on and off switch as people have observed with no apparent rhyme or reason. Over the long run this is better for their bottom line. It keeps the brokers guessing. If there was a certain knowen threshold, the brokers would only present offers above that and then hyatt would not get them. Or have to pay more if they wanted to buy it back. So they might pass on a low price occasionaly, but their thinking long term. Did I explain that ok?

 

[dahntahn]

Friends who own at SH just returned and attended a sales presentation there on the new points system. They were told that the minimum points purchase by a legacy owner would be 400 points costing $ 7800. Without making this purchase they would have no access to any new inventory open to points owners.
The worrisome detail for legacy owners who relinquish their weeks to trade into other HRC resorts, rather than use their deeded week, is this:

Pure points owners will have top priority in booking the relinquished weeks before legacy owners can. So when I try to trade my BH points to go to Sedona, the pure points people will have the opportunity to book there before I will. So as more pure points owners buy in, the competition for being able to trade within HRC is going to steadily increase. Supposedly, buying 400 points will make a current legacy owner equal in priority for reserving at HRC resorts, as well as any new inventory added to or outside the HRC.

This stinks and is unfair to all us legacy owners out there, but unless you pony up the $ 7800, you are getting screwed. What else is new?

So if you use your deeded week you are fine. If, like us, you trade to other HRC resorts, it looks like it will get steadily more difficult to do so. It may result in more of us using Interval with our Hyatt points.

Of course this is still unofficial but our friends have a brother who is a HRC owner who just yesterday received a letter from Hyatt outlining these terms. I will see if I can get a copy to post here.

 

[Cropman]

It will be interesting to see how much time is given to pure points owners to book over legacy owners. Also, do you have to give up your deeded week forever or can you do it year to year? $19.50 a point. The equivalent of almost $43k for a diamond week. I bet I can buy a deeded week anywhere, including Hawaii, for this amount or a lot less. Still a lot of questions to be answered but this system is going to be better for us than Marriott's?!?! Not sounding like it.

 

[scsu_hockey_fan]

Friends who own at SH just returned and attended a sales presentation there on the new points system. They were told that the minimum points purchase by a legacy owner would be 400 points costing $ 7800. Without making this purchase they would have no access to any new inventory open to points owners.
The worrisome detail for legacy owners who relinquish their weeks to trade into other HRC resorts, rather than use their deeded week, is this:

Pure points owners will have top priority in booking the relinquished weeks before legacy owners can. So when I try to trade my BH points to go to Sedona, the pure points people will have the opportunity to book there before I will. So as more pure points owners buy in, the competition for being able to trade within HRC is going to steadily increase. Supposedly, buying 400 points will make a current legacy owner equal in priority for reserving at HRC resorts, as well as any new inventory added to or outside the HRC.

This stinks and is unfair to all us legacy owners out there, but unless you pony up the $ 7800, you are getting screwed. What else is new?

So if you use your deeded week you are fine. If, like us, you trade to other HRC resorts, it looks like it will get steadily more difficult to do so. It may result in more of us using Interval with our Hyatt points.

Of course this is still unofficial but our friends have a brother who is a HRC owner who just yesterday received a letter from Hyatt outlining these terms. I will see if I can get a copy to post here.

It will be very interesting to see how this all pans out. Especially with regards to any possible new restrictions on people who buy lagacy weeks resale and pure points resale in the future. No new restrictions would by really nice to help protect current and future owners to hold resale values from going down any further, or worse yet, can't find any buyers and then be stuck with it.

 

[Cropman]

I wonder if resale pts or converted weeks to points will transfer in a sale without having to buy back into the system.

 

[Tucsonadventurer]

And you will be giving up any chance of trading into Hawaii by buying into it

 

[Tucsonadventurer]

Friends who own at SH just returned and attended a sales presentation there on the new points system. They were told that the minimum points purchase by a legacy owner would be 400 points costing $ 7800. Without making this purchase they would have no access to any new inventory open to points owners.
The worrisome detail for legacy owners who relinquish their weeks to trade into other HRC resorts, rather than use their deeded week, is this:

Pure points owners will have top priority in booking the relinquished weeks before legacy owners can. So when I try to trade my BH points to go to Sedona, the pure points people will have the opportunity to book there before I will. So as more pure points owners buy in, the competition for being able to trade within HRC is going to steadily increase. Supposedly, buying 400 points will make a current legacy owner equal in priority for reserving at HRC resorts, as well as any new inventory added to or outside the HRC.

This stinks and is unfair to all us legacy owners out there, but unless you pony up the $ 7800, you are getting screwed. What else is new?

So if you use your deeded week you are fine. If, like us, you trade to other HRC resorts, it looks like it will get steadily more difficult to do so. It may result in more of us using Interval with our Hyatt points.

Of course this is still unofficial but our friends have a brother who is a HRC owner who just yesterday received a letter from Hyatt outlining these terms. I will see if I can get a copy to post here.

Is the inventory for legacy still desperate from pure points inventory

 

[Tucsonadventurer]

Is the inventory for legacy still desperate from pure points inventory

Separate not desperate,,sorry

 

[dahntahn]

The understanding I have is that they remain separate, but pure points owners will have access to the legacy inventory, while legacy owners will not have access to the points only inventory.

 

[WalnutBaron]

As Cropman has pointed out above, "this thing has more secrecy than the White House"--which means the rest of us are forced to stumble around in speculation and confusion until Hyatt Pure Points Program is formally announced. That said, my understanding is different: PPP inventory will be separate and distinct from the Legacy program. PPP owners will not be able to reserve within the legacy program, and vice versa, unless legacy owners decide to purchase separately into the PPP. There have been comments here about PPP and Hyatt exercising ROFR to buy attractive high demand inventory and place it into the PPP, effectively moving that inventory from the legacy program into the PPP. That is being done and has been underway for some time.

Does this potentially limit the attractiveness of the legacy program in terms of owners being able to trade within the legacy system using their points? Potentially, yes--especially if Hyatt gets much more aggressive in buying up those prime weeks and moving them to PPP. But as Kal has pointed out, Hyatt does not appear to be on a mad buying spree, and so I remain optimistic that the legacy owners will continue to have ample opportunities to trade within the HRC system for years to come.

That said, my advice to HRC owners is to avoid "owner's updates" like the plague. The sales weasels will be conjuring up scare tactics like we haven't seen before, with doomsday stories of the demise of HRC and all of the attractions of Hyatt Pure Points, allowing a one-time conversion special of only $xx,xxx in order to make the switch before the HRC program collapses. Just ignore them, enjoy your HRC vacations, and pay attention to the TUG boards to get more realistic information.

 

[lizap]

As Cropman has pointed out above, "this thing has more secrecy than the White House"--which means the rest of us are forced to stumble around in speculation and confusion until Hyatt Pure Points Program is formally announced. That said, my understanding is different: PPP inventory will be separate and distinct from the Legacy program. PPP owners will not be able to reserve within the legacy program, and vice versa, unless legacy owners decide to purchase separately into the PPP. There have been comments here about PPP and Hyatt exercising ROFR to buy attractive high demand inventory and place it into the PPP, effectively moving that inventory from the legacy program into the PPP. That is being done and has been underway for some time.

Does this potentially limit the attractiveness of the legacy program in terms of owners being able to trade within the legacy system using their points? Potentially, yes--especially if Hyatt gets much more aggressive in buying up those prime weeks and moving them to PPP. But as Kal has pointed out, Hyatt does not appear to be on a mad buying spree, and so I remain optimistic that the legacy owners will continue to have ample opportunities to trade within the HRC system for years to come.

That said, my advice to HRC owners is to avoid "owner's updates" like the plague. The sales weasels will be conjuring up scare tactics like we haven't seen before, with doomsday stories of the demise of HRC and all of the attractions of Hyatt Pure Points, allowing a one-time conversion special of only $xx,xxx in order to make the switch before the HRC program collapses. Just ignore them, enjoy your HRC vacations, and pay attention to the TUG boards to get more realistic information.

I agree with this. I am highly skeptical of this report and strongly suspect it came from a salesperson.

 

[Kal]

I agree with this. I am highly skeptical of this report and strongly suspect it came from a salesperson.

OMG, are you suggesting that a salesperson (a.k.a. huckster) would not be tellling the whole truth and nothing but the truth??? I'll believe it when I see it that PPP people have direct access to legacy points.

 

[dahntahn]

I protest. I am NOT a sales weasel, simply reporting what friends told me. I am a legacy owner of 3 weeks at BH and one at CP. and I very much hope that Kal is right.