Hyatt Residence Club Portfolio Program Being Rolled-Out - Overview of Program Included
The Hyatt Residence Club is undergoing a momentous change in the way that their program is structured. Instead of a hybrid system where you have a deeded week that you can either use or convert to points, the new system will be solely a points based system.
I have discussed the various rumors of the program here.
I had the opportunity to review the new program which is being called the Hyatt Residence Club Portfolio Program.
I wrote up an overview of the program here. There are still many questions to be answered but this overview provides some good information on the program.
If you have additional details or thoughts on the program, please leave your comments below.
In other posts, I will go through some of the pros and cons of the new system
Hyatt's HPC Club Program (a/k/a Hyatt Pure Points) - Additional Details of Hyatt's Newest Program
DISCLAIMER: THIS INFORMATION HAS NOT BEEN CONFIRMED AND CAN BE CHANGED. THIS INFORMATION SHOULD STILL BE CONSIDERED RUMORS.
As had been rumored, the Hyatt Residence Club has apparently rolled out their new points program called HPC Club which has been previously referred to in the rumors as the Hyatt Pure Points program. While this in not the official name of the program, it is currently how it is being referred to outside of the official documentation. Reports have come in that some of the Hyatt sales centers have been discussing this program but a lot of specific details and important facts have not been disclosed at this time.
The Marriott Vacation Club entered into a similar program in 2010 where the various properties and weeks were deeded into a Land Trust. Instead of buying deeded weeks, Marriott Vacation Club now only sells points which are exchangeable into nightly or weekly stays.
Following on the footsteps of the Marriott Vacation Club, the Hyatt Residence Club is pursuing a similar strategy. Details of the new Hyatt Pure Points program are still being rolled out but here in the information that is currently available. I will update this as necessary as further details on information is disclosed.
Unfortunately, some of the material information that has not been divulged is the exchange charts, differences in tiers, exchange charts for Interval International (the likely exchange partner), further details on the effects to existing owners, pricing and what, if any benefits, are being offering for legacy owners to contribute their weeks to the new Pure Points Program.
Here are the rumored details as currently known. These can be clarified or altered as additional details are known.
The Hyatt Residence Club has created a HPC Club Declaration of Vacation Ownership Plan (the “HPC Club”). The HPC Club will govern the Pure Points program. The HPC Club and the Hyatt Residence Club (“the Legacy Program”) will operate independently and are considered distinct and different programs.
Structure of HPC Club
Hyatt has or will transfer various weeks to the Trust. All developer owned inventory at these properties will be considered property of the Trust. Owners who purchase the HPC Club Points will be given a deed conveying a Vacation Ownership Interest in the Trust Association. The Vacation Ownership Interest grants the owner the ability to use Trust property, subject to the terms and conditions of the HPC Club.
Similar to the Legacy System, the HPC Club will allow owners to reserve accommodations using points which are being called “HPC Club Points”. They are also allowed to sell fixed weeks where owners have the right to use a specific week at a specific property. Owners will also have access to the External Exchange Program (almost definitely, Interval International), the World of Hyatt program (Hyatt’s hotel loyalty program) and the HPC Club Benefits Program (no details on this program yet but apparently will be some type of travel benefits)
Request Lists and Wait Lists
As with the Legacy System, Owners will have the ability to put in requests for various accommodations.
Membership Tier Levels
The current Membership Tier Levels are Elite, Premier, Executive, Classic and Non-Authorized Resale.
The various Membership Tier Levels will provide different rights for the following:
(1) Reservation Window restrictions based upon the number of nights in the Vacation Period;
(4) Points Discounts;
(5) Owner Rental Discounts;
(6) World of Hyatt provisions, including conversion rates;
(7) Points Transfer Provisions;
(8) Wait Lists for HRC Resorts;
(9) Request Lists;
(10) Wait Lists for the HPC Club;
(11) Cancellation Provisions;
(12); Guest Certificate Rights;
(13) Rental Opportunities;
(14) Point Rental;
(15) Fixed Reservation Rights; and
(16) Room Attribute Guaranty rights.
I am very concerned about the Non-Authorized Resale category. That obviously does not sound good and can be very detrimental depending on the various penalties or restrictions being implemented for resale owners.
Assessments / Maintenance Fees
Through December 31, 2017, the assessment will be calculated as $0.9314 per Ownership Point.
Since we do not know the required amount of points to reserve weeks, this figure does not mean much at this time.
As with the Legacy Program, Hyatt has maintained its right of first refusal.
Interestingly, the following disclaimer is included in HPC Club documents:
The purchase of an interest in a multisite timeshare plan should be based on its value as a vacation experience or for spending leisure time, and not considered for purposes of acquiring an appreciating investment or with an expectation that the interest may be rented or resold.
In other words, this is not an economic investment!!
Overall, with the information disclosed at the present, it is difficult to make an informed decision on whether this will be a beneficial change and the overall effects on the Legacy System and the existing owners. I assume that there will be some benefits but the likely desire to move into this type of system is the ability to sell more inventory and make more money. I am slightly concerned at the moment but will wait to make my opinion until the further details are disclosed.
Does anyone else have any more details of this program? Have you been to a sale presentation recently that has discussed the roll-out?
Provide any more details below in the comments.