New Key West Hyatt Resort

[Cropman]

ANNOTHER NEW RESORT - The Marriott Beachside Resort is now in play too. This is located adjacent to the Hyatt Beach House. It very well might be the first announcement in the HPP's desperation to buy something.

Kal, you are certainly more in the know than me, but how does that even make sense? Not in Old Town, Beach House right there, and all the unsold inventory at what is a really nice resort at Windward. If they are going to add something, it has to be in Old Town. They can’t build from the ground up, not with all the Conchs upset about lack of affordable housing.

So, ILG could convert something or buy another timeshare. The Galleon has unsold units, but probably not enough during prime winter season. Although, it’s a slim possibility. The Banyon is sold out so, again no available units for prime season. And neither one would return the ROI.

So what to convert? The Marker? Ocean Key? Hyatt Centic (no chance)? Not a lot of choices down there. To buy something they will spend big bucks and have to sell a lot to make their ROI. They have backed themselves into a corner. Hawaii, which isn’t in the new program yet, isn’t available. Old Town Key West isn’t available because no one wants to give up their week at their ridiculous pricing. These two properties drive the program. (Some will say there are some ski weeks also.). They are starting to panic because the new program isn’t working and they are running out of options. Build or buy or do nothing?

I’m beginning to wonder if the rumors aren’t floated just to generate buzz. Anyone remember Aruba? The only way things will change is when the goofballs who thought up this program get “reassigned” and a new team comes in and lowers the barriers to entry for the HRC owners.

 

[Sapper]

Why they are even bothering with Key West? Yes, I get the snow birds from the NE like FL. However, would it not make more sense to buy out the remainder of the Hawaii property in order to give access to HPP? There is no Hyatt property in Vegas, I'm sure Blackstone would be thrilled to offload a few floors at the Cosmo. This would give HPP a center strip location in a nice tower with a low barrier to entry. I still like the idea of taking a floor from a couple of the Hyatt properties in cities, such as NY, SFO, ORD, MIA, etc.... (they could even expand this to the international hotels Hyatt has and make the HPP an international product as opposed to the HRC which would be stuck as domestic only). This could be a win / win. Hyatt would probably be ok with it as they would have guaranteed income, and ILG would be able to offer a product otherwise unavailable to HPP members while at the same time broadening their property scope they can dangle to prospective owners.

 

[Tucsonadventurer]

Why they are even bothering with Key West? Yes, I get the snow birds from the NE like FL. However, would it not make more sense to buy out the remainder of the Hawaii property in order to give access to HPP? There is no Hyatt property in Vegas, I'm sure Blackstone would be thrilled to offload a few floors at the Cosmo. This would give HPP a center strip location in a nice tower with a low barrier to entry. I still like the idea of taking a floor from a couple of the Hyatt properties in cities, such as NY, SFO, ORD, MIA, etc.... (they could even expand this to the international hotels Hyatt has and make the HPP an international product as opposed to the HRC which would be stuck as domestic only). This could be a win / win. Hyatt would probably be ok with it as they would have guaranteed income, and ILG would be able to offer a product otherwise unavailable to HPP members while at the same time broadening their property scope they can dangle to prospective owners.

I agree 5 resorts in Florida seems like it should meet the snowbird need.

 

[IslandTime]

Any news on this yet? I would love to see another Hyatt in old town.

 

[Sugarcubesea]

I wonder with Marriott purchasing IIG and consequently Hyatt that this new resort will simply never happen.

 

[bogey21]

So sad. I spent a great 3 months in Key West after my Freshman Year of College in 1954. This was before the cruise ships, Key West being "discovered" and the demolition of Boat House Row. The more development the less I liked it. Eventually I just stopped going...

George

 

[Sapper]

I wonder with Marriott purchasing IIG and consequently Hyatt that this new resort will simply never happen.

Unfortunately, at this point, I doubt that II/Mariott will build any new Hyatt branded properties. I think they will finish up construction on current projects (Wild Oak) and that's it. I hope I am wrong, I would love to have more properties in the system, I just don't see it right now.

 

[pedro47]

Nice looking Resorts of things to come. Are there that many Snowbirds in Key West from April to November???

I can understand from December to the end of March. it is cold up north.

 

[WalnutBaron]

Unfortunately, at this point, I doubt that II/Mariott will build any new Hyatt branded properties. I think they will finish up construction on current projects (Wild Oak) and that's it. I hope I am wrong, I would love to have more properties in the system, I just don't see it right now.

Sapper, you're a wealth of good information on these boards (and the Hyatt board, in particular), but I'm not sure I agree with you on this one. Marriott knew what they were buying when they acquired ILG--and it included the smaller collection of uniformly high-end Hyatt properties that populate the HRC portfolio. Would it make strategic sense for Marriott to put all of its new development capital into Marriott resorts and leave the Hyatt owners twisting in the wind? I don't think so. In a separate thread, many of us weighed in on the implications of Marriott's ILG acquisition and concluded that Marriott would be wise to carve out different brand identities for the Marriott, Vistana, and Hyatt systems. I still think this makes the most sense--and Marriott has famously done so with its vast collection of hotel brands. Once those brand personalities are developed and articulated, I can definitely see Marriott investing in new properties. I don't think this will happen anytime soon--and probably not for another 2-4 years--but I am guessing there will be more growth and development.

That said, I also think there's a very high probability that Marriott re-names the Hyatt system. It makes no sense for Marriott to invest in and promote the Hyatt name when--on the hotel side of things--Hyatt is a strong competitor to Marriott and its family of hotel brands.

 

[Kal]

I wonder with Marriott purchasing IIG and consequently Hyatt that this new resort will simply never happen.

Last winter there was speculation that Hyatt would purchase the Marriott property adjacent to the Hyatt Beach House. (That property was originally a time share unit at the get go.) Then the conversation shifted to another existing quality hotel property. Now it would deserve consideration that the Marriott owned Hyatt time share system might lean toward rolling in that Marriott Hotel IF they indeed think another property in Key West makes sense. My guess is there will be no new Key West properties to add to the system.

 

[Sapper]

Sapper, you're a wealth of good information on these boards (and the Hyatt board, in particular), but I'm not sure I agree with you on this one. Marriott knew what they were buying when they acquired ILG--and it included the smaller collection of uniformly high-end Hyatt properties that feel within the HRC portfolio. Would it make strategic sense for Marriott to put all of its new development capital into Marriott resorts and leave the Hyatt owners twisting in the wind? I don't think so. In a separate thread, many of us weighed in on the implications of Marriott's ILG acquisition and concluded that Marriott would be wise to carve out different brand identities for the Marriott, Vistana, and Hyatt systems. I still think this makes the most sense--and Marriott has famously done so with its vast collection of hotel brands. Once those brand personalities are developed and articulated, I can definitely see Marriott investing in new properties. I don't think this will happen anytime soon--and probably not for another 2-4 years--but I am guessing there will be more growth and development.

That said, I also think there's a very high probability that Marriott re-names the Hyatt system. It makes no sense for Marriott to invest in and promote the Hyatt name when--on the hotel side of things--Hyatt is a strong competitor to Marriott and its family of hotel brands.

Thank you for the polite discourse, you are agreeable even while in disagreement. Haha. I agree with much of what you have said, as it falls inline with my comment. I stated no new Hyatt branded properties. You state that Marriott will probably end the branding agreement with Hyatt, which I also agree with. I believe the change in branding will occurr prior to Marriott creating any new projects, hence no new Hyatt branded properties. That being said, I also think that it is plausible that what ever system the existing Hyatt properties become, we legacy HRC owners may not have access to new properties. I say this because I believe that Marriott will restrict new development to a points based system (rebranded HPP?) in order to sell over priced points packages.

 

[WalnutBaron]

Thank you for the polite discourse, you are agreeable even while in disagreement. Haha. I agree with much of what you have said, as it falls inline with my comment. I stated no new Hyatt branded properties. You state that Marriott will probably end the branding agreement with Hyatt, which I also agree with. I believe the change in branding will occurr prior to Marriott creating any new projects, hence no new Hyatt branded properties. That being said, I also think that it is plausible that what ever system the existing Hyatt properties become, we legacy HRC owners may not have access to new properties. I say this because I believe that Marriott will restrict new development to a points based system (rebranded HPP?) in order to sell over priced points packages.

You're probably right, Sapper. And that would be a terrible shame. On the other hand, it makes us weeks owners within the legacy HRC the holders of an increasingly valuable asset: direct access to the properties presently comprising HRC. I'm guessing Marriott has conducted a pretty thorough review of the dismal failure of the HPP program and are trying to figure out how to provide more value in order to lure weeks owners to convert to points. For me, longer reservation windows and options to convert to Marriott Rewards Points (or the rather ridiculous "Marriott Bonvoy" program, as it's rumored to be called in the very near future) are not nearly reason enough to cough up five figures in order to "enhance" my ownership. Unfortunately, Marriott will probably snag a lot of unsuspecting newbies. The HRC program is a great value, but getting access to new resorts through anything but a points program may very well be an accurate analysis.