Owners at Starwood Vacation Club (SVC) can now breathe a collective sigh of relief, as the planned merger with Interval Leisure Group, in the works since February 2015, is now complete. A letter recently sent to owners confirmed the completion and announced that SVC is now officially Vistana Signature Experiences Inc., one of the industry's largest providers of world-class vacation experiences.
Starwood Benefits Will Stay the Same
Chief Operating Officer of Starwood Hotels & Resorts, Stephen G. Williams wrote to owners, "This is an exciting time, and we look forward to our continued relationships with Westin and Sheraton as we remain their exclusive provider of vacation ownership." He also assured owners that they would be able to enjoy their timeshares as always, and still receive the same valuable benefits, branded experiences and preferred access to the Starwood Preferred Guest program (SPG).
More Opportunities for Owners
Bigger picture mergers often mean more opportunities for owners and this latest one sounds good. Williams says Vistana is committed to adding more resorts and products. Opening in the summer of 2017 on North Ka'anapali Beach in Maui is the newest resort, Westin Nanea Ocean Villas. In the Caribbean, poolside buildings are being converted to villas at the Westin St. John Resort & Villas providing more availability in 2017.
Five new "upper-upscale" resorts have been added as part of the transaction. Scheduled to reopen in second quarter 2017, after renovations following Hurricane Odile, is the Weston Resort & Spa Los Cabos. The Weston Resort & Spa Cancun, Westin Resort & Spa, Puerto Vallarta, Sheraton Kaua'i Resort and Sheraton Steamboat Springs, are expected to provide additional villa accommodations over time, but until then owners can continue to access them through the SPG program.
Commitment Continues
Williams ends the owner letter with a promise of continued commitment to creating memorable vacation experiences and giving owners a better way to see the world.
Starwood Hotels and Resorts will spin off Starwood Vacation Ownership (SVO) into a stand-alone public company. Starwood took the first steps in the spin-off process on June 16, by filing the initial Form 10 Registration Statement. Form 10 makes financial and other information about the company public for the first time, and is a pivotal step in the spin-off process expected to be completed in fourth quarter 2015. At completion of the spin-off transaction, the property will encompass nineteen vacation ownership resorts and three fractional residence properties with additional hotel asset inventory transferred from Starwood.
Vistana Signature Experiences
After much consideration, the name chosen for the new company is Vistana Signature Experiences. Previous owners from 1980-1999 called the property Vistana Resort, and when Starwood acquired it in 1999 it became SVO. According to Matthew Avril, Chief Executive Officer-Elect of Vistana, "The new yet familiar name builds on our 35-year history and recognized reputation for excellence. While our name is familiar, our new look represents the exciting future opportunities that exist for our owners, associates, guests and investors, as we continue to deliver exceptional experiences that our travelers have come to expect."
How will the spin-off affect owners and potential owners?
- SVO will explore new development and growth opportunities to offer more options and flexibility to owners to enhance their vacation experiences.
- Owners will benefit from additional anticipated inventory at the Westin Los Cabos, Westin Cancun, Westin Puerto Vallarta, Sheraton Kauai and Sheraton Steamboat.
- SVO resorts will continue to operate as a Westin or Sheraton brand and provide the same level of quality and experiences expected.
- Services and amenities will continue to be developed, operated and maintained according to highest standards of quality and customer service in the industry.
- Owners will still receive the same Starwood Vacation Network benefits, and have privileged access to the Starwood Preferred Guest program.
- Annual maintenance fees and the mortgage process will remain the same, as will websites and telephone numbers to contact SVO.
- All existing confirmed reservations will remain unchanged.
More Changes for Starwood
Starwood is looking for a new CEO to replace Frits van Paasschen who resigned in February under pressure for failing to move quickly enough to increase the number of hotels in the Starwood system through franchise or management agreements, says Starwood Chairman Bruce Duncan. Since van Paasschen resigned, Adam Aron, a Starwood director since 2006 has been acting CEO and is reported to be interested in the position.
According to the Wall Street Journal, Starwood has struggled to make its mark in the limited-service hotel sector where its rivals' midmarket brands such as Courtyard by Marriott and Hilton Garden Inn, have helped power earnings and drive growth. Starwood's exploration of strategic alternatives to create value, have sparked speculation about a possible sale, and the potential for broader merger activity in the hotel industry.
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Owners at Starwood Vacation Club (SVC) can now breathe a collective sigh of relief, as the planned merger with Interval Leisure Group, in the works since February 2015, is now complete. A letter recently sent to owners confirmed the completion and announced that SVC is now officially Vistana Signature Experiences Inc., one of the industry's largest providers of world-class vacation experiences.
