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captiivated

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Reply with quote  #1 

This is such a fascinating development I thought it might deserve its own thread.

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captiivated

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Reply with quote  #2 
Attached is a report by Gary Gentile of Forbes Magazine.

http://www.forbes.com/feeds/ap/2007/07/03/ap3883059.html?partner=email
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kenzie

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Reply with quote  #3 

My first thought is that this is good news.

1.  LXR is now in the Hotel/Resort/Interval management business (HGVC) not just Hotel ownership business.

2. Our Association Directors may have an additional incentive to retain another Resort Management Company such as Four Seasons so as to avoid the conflict of interest problems of using LXR (HGVC) to negotiate on our behalf with LXR.  This may also bring all the Associations together as a unified negotiating party.

3.  The possibility of LXR selling their SW Florida properties sooner seems more likely.  Blackstone will want to focus on the Hilton properties rather than dilute management time on properties of little consequence eg. SSIR.  Moreover, my guess is that they could sell the SSIR for at least double what they paid.

4.  LXR is now in the timeshare ownership business.  Will they expand that by building timeshare properties along side the Hotels where they have the land to do so or convert the top floors of urban hotels into condos?  I think both are definite possibilities.

5. Blackstone/Hilton could bring a lot of European vacationers to the SSIR, many of these will be interested in buying Inerval Ownership.

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DonFromSLC

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Reply with quote  #4 

Ok now this is getting really wierd.  kenzie and captiivated are talking to each other!

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kenzie

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Reply with quote  #5 

Don, you don't get it, we are each other.  We are one.  Sorry for the confusion.

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kenzie

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Reply with quote  #6 
As you can see, MarisStar was one of Blackstone/LXR's smallest investments.  See Attached:

http://www.blackstone.com/real_estate/portfolio.html
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captiivated

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Reply with quote  #7 

Importantly, that included a lot more in SE Florida than just the SSIR.

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suziq45

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Reply with quote  #8 
Kenzie - Does Harry work for our Associations or does he work for Hilton?
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kenzie

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Reply with quote  #9 

suzig45;  Harry is employed by Hilton (HGVC) and it is retained by the various IO Association Boards to manage the respective properties.  Harry is HGVC on site manager at the SSIR.

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captiivated

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Reply with quote  #10 
Attached is the WSJ's comments on Blackstone's acquisition of Hilton. Worth reading.

http://online.wsj.com/article/SB118355083729757288.html?mod=home_whats_news_us
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suziq45

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Reply with quote  #11 
Thanks Kenzie - I know Harry has be there forever. But how long has Hilton been managing our prooperties?
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kenzie

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Reply with quote  #12 

The below paragraphs from the WSJ article suggests LXR wants to be in the Hotel/Resort management business for its fee revenue generation potential.

 

 

"Like its peers, Hilton focuses on making money through management fees it charges third-party owners to operate the hotels. Now the company is planning to expand some of its U.S. brands overseas in two categories -- select-service hotels such as Hilton Garden Inn and luxury properties such as Waldorf."

"I think Blackstone embraces our strategy, and they're looking at this as an opportunity to grow," said Stephen F. Bollenbach, Hilton's co-chairman and chief executive.

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captiivated

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Reply with quote  #13 

A quick profile on Hilton Hotels

Profile

The Company's principal activities are to own, manage and develop hotels, resorts and timeshare properties and franchise lodging properties. The Company operates in three business segments: Hotel Ownership, Managing and Franchising and Timeshare. At 30-Sep-2005, the Company's system contained 2,357 properties & 370111 rooms. The hotel brands include Hilton, Hilton Garden Inn, Doubletree, Embassy Suites, Hampton, Homewood Suites by Hilton and Conrad. In addition, the Company develops and operates timeshare resorts through Hilton Grand Vacations Company and its related entities. The Company has hotel properties in Belgium, Egypt, England, Hong Kong, Ireland, Mexico, Puerto Rico, Singapore, Thailand and Turkey and franchised hotel properties in Canada, Colombia, Costa Rica, Dominican Republic, Ecuador, Mexico, Peru, Puerto Rico and Venezuela

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captiivated

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Reply with quote  #14 
The "street talk" is that Blackstone/LXR may view Hilton as a strategic investment, not a buy it cheap, fix it and sell it property.  If so, that could be good news for TS's at LXR properties.  LXR will very likely use HGVC as it own world wide Interval International with special exchange benefits for TS's on all of its properties.

That is a nice "benny" for us.  See you in Hong Kong.
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CaptivaIrene

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Reply with quote  #15 
From what I remember, HGVC was formed in the 1990's - approx 1992.

Although I do not remember the exact start up details, it was a joint venture involving Mariner who had always been the onsite manager of the IO associations. (Mariner was also the developer of the ts units.)  

Harry has probably worked at SSIR for 25 years +/-. 
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