More changes in timeshare USA
Following on from the news that Diamond Resorts has been acquired by the Hilton brand, it appears that consolidation of the timeshare industry in the States is gathering momentum.
Marriott Vacations Worldwide, the company which oversees not only the Marriott timeshare operation but also timeshares under brands such as Sheraton, Westin and Hyatt, has announced the completion of its acquisition of Welk Resorts. The $485million buy out will add eight Welk timeshare resorts and its 55,000 owners to the Hyatt Residence Club, which will increase to 24 vacation ownership resorts.
Marriott plans to rebrand the Welk timeshare resorts as Hyatt Residence Club beginning later this year. Overall, the Marriott Vacations Worldwide network includes 120 resorts and 700,000 owners across its portfolio of timeshare brands. The company also owns exchange provider Interval International.
What does this mean?
Much like the Diamond acquisition it is difficult to state for certain what the ramifications are for owners. One thing is certain, as quoted above; ownership will be transferred to the Hyatt Residence Club brand, effectively wiping the Welk brand from the face of the planet.
After the Hilton Diamond announcement, Mark Wang CEO of Hilton stated that he saw a two division ownership within the group with Diamond effectively being relegated to the second division. Quite how former Welk owners will be integrated seems to be clear and on the surface they will benefit.
Welk owners will be able to experience a greater location choice, Hyatt have resorts in Florida, Puerto Rico, Hawaii, Texas and Arizona which currently don’t exist in their portfolio choice. Hyatt owners will be able to include Mexico, currently not in the Hyatt portfolio. Crossover occurs in California and Colorado as both groups have resorts there, different of course.
Conclusion
Our research suggests that both Hyatt and Welk have superior accommodations with little to choose between qualities so there should be no complaints from owners. When looking at the sales process, firstly we should say that all timeshare resorts use similar high pressure sales techniques. Internet reviews seem to indicate that Welk have a worse reputation that Hyatt, in fact there are virtually no negative comments regarding Hyatt but “buy on the day” methods will undoubtedly still be used.
On the surface this joining together will prove benefits to both parties and owners as well, but only time will tell. It does however make us wonder how many developers will be left, in say 5 years, with smaller groups being gobbled up by the big players. Just out of interest here are the top 6 USA players:
- HGVC – Hilton Grand Vacations Club.
- Disney Vacation Club.
- Marriott Vacation Club Destinations.
- World Mark by Wyndham.
- Wyndham Vacation Ownership.
- Hyatt Residence Club.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk