Showing posts with label starwood. Show all posts
Showing posts with label starwood. Show all posts

Merger of Starwood Vacation Club with Interval Leisure Group Complete

5/18/2016 Unknown
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.

To get the full picture visit the new website at www.vistana.com 




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It’s a Big Deal - $12.2 Billion Marriott Starwood Merger Creates World’s Largest Hotel Company

11/18/2015 Unknown
In our November 2nd blog, we mentioned a couple different scenarios after the announcement of Starwood's spin-off of its Vacation Ownership division to Interval International Group. Chinese companies were interested in Starwood, which would have been the largest-ever Chinese takeover of a U.S. company, and it was rumored that Hyatt Hotels was in merger talks with Starwood. Now we find out that it is Marriott who has sealed the deal.

It's a Big Deal!

Monday’s announcement of the merger of Marriott and Starwood creates the largest hotel company - 1.1 million rooms in more than 5,500 hotels across more than 100 countries. The overall value of the deal is $12.2 billion. That's $11.9 billion in Marriott stock and $340 million in cash. Starwood investors can expect to receive $2.00 in cash for each share of stock, and 0.92 shares of Marriott priced at $72.08 per share. Friday closing stock prices showed Marriott at $72.74 and Starwood at $75.00.

Combination of Distribution and Strengths Creates Value

Current Marriott CEO, Arne Sorenson will remain president and CEO of the combined company. He commented in a quote from the Business Insider, "this is an opportunity to create value by combining the distribution and strengths of Marriott and Starwood, enhancing our competitiveness in a quickly evolving marketplace. This greater scale should offer a wider choice of brands to consumers, improve economics to owners and franchisees, increase unit growth and enhance long-term value to shareholders."

Starwood Timeshare Business Not Part of the Deal

Interval Leisure Group will maintain ownership of Starwood's Vacation Ownership division, which it acquired in the recent spin-off.  According to Marriott management, shareholders will separately receive consideration from the spin-off of the timeshare business, which has an estimated value of $1.3 billion or about $7.80 per Starwood share. The timeshare transaction is expected to close before the Marriott-Starwood merger closes.

When the spin-off of Starwood's timeshare division was first announced, a letter to owners offered assurances that things would stay the same and perhaps even offer more choices of unique vacation experiences. The letter further stated that Starwood would continue to be the exclusive provider of vacation ownership for Westin and Sheraton brands, and would provide all the features and benefits of current ownership. Access to Starwood Preferred Guest® (SPG) program, current guidelines and fees, exchange rules reservation rights and all exchange options would remain the same. Hopefully, all involved stand by their promises.

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Spin-off Puts Starwood at the Top of the Industry

11/04/2015 Unknown
Last Tuesday, October 28, Starwood Vacation Ownership announced that the big spin-off had gone through. Starwood Vacation Ownership will be acquired by Interval Leisure Group (ILG) who also owns exchange subsidiary, Interval International. The transaction was not a total surprise. Starwood Hotels & Resorts, the parent company of the Westin, Sheraton and W Hotel brands, had announced in February 2015, that they would be looking to spin off its vacation-ownership business into a separate company. In a just released letter to owners, the company stated that the spin-off would, "put Starwood at the forefront of the industry, and would offer owners even more choices for unique and memorable vacation experiences."

Starwood offered assurances in a letter to owners that they will continue to be the exclusive provider of vacation ownership for Westin and Sheraton brands, and will still provide all the features and benefits of current ownership. Access to Starwood Preferred Guest® (SPG) program, current guidelines and fees, exchange rules reservation rights and all exchange options will all remain the same.

The letter also stated that five transferring Starwood properties are part of the transaction: The Westin Resort & Spa, Los Cabos; The Westin Cancun Resort & Spa; The Westin Resort & Spa, Puerto Vallarta; Sheraton Kauai Resort; and Sheraton Steamboat Resort. These resorts are anticipated to provide additional inventory for owners over time.

Starwood says ILG is committed to invest in new Westin and Sheraton properties. In 2016, the Westin St. John Resort is scheduled to convert 96 poolside hotel rooms into vacation ownership villas. The Westin Nanea Ocean Villas on Ka’anapali Beach in Maui, is currently under construction and due to open in 2017.

On the same day that Starwood made its spin off announcement, the Wall Street Journal ran an article that stated, "at least three big Chinese companies are competing to win Beijing's approval to bid for Starwood Hotels & Resorts Worldwide Inc. According to people with knowledge of the discussions, it could be the largest-ever Chinese takeover of a U.S. company." The article said that the Chinese government might discourage bidding for Starwood if the price is considered too high. The interest in Starwood is the latest sign of China's global ambitions in the hospitality sector. The report sent Starwood stock soaring.

In related events, around the time the spin off was first announced in February 2015, Starwood Chief Executive Frits van Paasschen, left under pressure. Paasschen failed to move quickly enough to increase the number of hotels in the Starwood system through franchise or management agreements, according to Starwood Chairman Bruce Duncan. In April 2015, Starwood hired investment bank Lazard to help the company explore strategic alternatives such as a sale or merger. Its decision to explore strategic alternatives to create value, sparked speculation of the potential for broader merger activity in the hotel industry. 

The latest news on Thursday, October 29, showed shares of Starwood Hotels and Resorts Worldwide continuing to soar following a report by CNBC that Starwood is in merger talks with Hyatt Hotels and a deal could be a week away. Hyatt management would take control of the combined company if the deal goes through. We can't wait to see what happens next! Whatever the future brings for the company, it looks like big changes are in the works.
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Hospitality Industry Weathers China Currency Devaluation

8/26/2015 Unknown
Recent stock reports show minor down trending in the hospitality industry in the weeks following China's currency devaluation when compared to industries such as commodities, oil companies, and those industries involved with foreign currency and marketing products to China.


A Look at a Few Major Hospitality Groups

We looked at a few of the major publically traded timeshare companies to get an idea of how their stocks are trending, comparing today's rate to one month ago. Today (August 24) the S&P 500 was down 3.94 percent compared to the Friday before.

August 24 July 24

Starwood         70.53            81.89

Wyndham  74.75 83.06

Hilton 23.88 27.90

Bluegreen/BBX Capital   15.77 15.86


Though the industry is experiencing some of the effects of the overall economic conditions, it's typical of other mainstream businesses and much less than those companies more directly involved with China.  

The China Effect

To give you a little idea about how China's devaluation of their currency affects us all we consulted Investopedia.com, "A country's economy and is currency is impacted by the flow of funds between countries. The more money leaving a country, the weaker the country's economy and currency. Countries like China who predominantly export physical goods or services continually bring money into their countries. This money can be reinvested to stimulate the financial markets within the country." China has historically kept tight control of its currency with favorable exchange rates boosting exports and manufacturing over time, and forcing the U.S. government put up with China's artificially lowered rates.

Industry in a Good Position

The hospitality industry is in a good position to weather this current affront from China. Our industry has grown exponentially over the past few years as the economy improved. But also largely due to nature of the industry. We offer joy, fun, comfort, relaxation and entertainment. We offer the ability to experience other countries and other people, and the ability to adventure away from our everyday lives. What other industry can claim to do all that? 


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SVO Files Form 10 - Announces New Company Name

7/10/2015 Unknown
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.


For more information or to view a video on Vistana Vacation Experiences visit: starwoodvacationownership@starwoodvo.com

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