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kenzie

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Reply with quote  #16 
Interesting WSJ article on the diffference between Hotel stays vs a Residence Club stays.

http://online.wsj.com/article/SB118367667688858557.html?mod=at_leisure_main_reviews_
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captiivated

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Reply with quote  #17 
Steve Schwarzman, Blackstone founder just offered to buy Donald Trump's home in Palm Beach Florida for $90.0 million.  Offering price is $125 million so "The Donald" turned him down. I think "The Donald" paid $41 million for the property in mid 1990's.

The Donald and now "The Susan" are probably the only two people to ever reject Schwarzman.  Good company Susan.  You can change your posting name to "The Susan" if you want.
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Susan

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Reply with quote  #18 

Only if "The Donald" goes to my hairdresser! Ha! Ha!

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reebop

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Reply with quote  #19 
Not to get totally off the subject, but what odd-ball mutation of American pop-culture allowed Donald Trump to morph into a celebrity?

I really didn't need that to occur.

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kenzie

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Reply with quote  #20 

Billions can do that...take it you don't like comb-overs either?

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Susan

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Reply with quote  #21 

Same thing that made made Paris Hilton and Anna Nicole Smith celebrities.  At least he has a brain.

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suziq45

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Reply with quote  #22 
Attended a cocktail party last night and heard from someone in the know that Hilton shareholders are suing to block the Blackstone acquisition.
Learned another interesting tidbit - did you know that approximately 70% of the Hilton hotels are franchises?
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kenzie

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Reply with quote  #23 
What is the basis of the law suit, the price seemed generous and now there is a breakup fee of I think, over $800 million if the acquisition does not happen?

That 70% franchise number is interesting and the reason I was surprised by the acquisition.  It is also the reason I think Blackstone will consider the acquisition strategic as opposed to it's typical buy, fix and sell strategy. 

Much if not most of Hilton's revenue will be generated by the operating and management fees derived from franchise owners which will be taxed as income not capital gains to partners.  That is a big change for the Partners.  Interestingly, this puts HGVC at the heart of the LXR business...Resort Management for a fee.  Harry has to love it!
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CaptivaBound

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Reply with quote  #24 
The question is will timeshare owners love it?!  I've never paid attention to how much we pay HGVC to manage our timeshares.  Anyone know?  Will Blackstone raise the fee?  If so, will the boards consider going out for bid to another management company?  Or will we get better treatment from Blackstone now, since we are one big happy family (although probably not all as rich as the partners).  
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captiivated

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Reply with quote  #25 

CaptivaBound please see Kenzie post 7/4/07 this thread...It responds to most of your questions and some.

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CaptivaBound

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Reply with quote  #26 
Sorry, I don't really see the answers to my questions in the 7/4 posting.  For example, does anyone know how much we pay HGVC to manage our timeshares.  I've never noted on the financial statements how much we pay.  I've never noted in the board minutes that the boards have asked for bids from other management companies.  Blackstone could jack up the management fee considerably.  Blackstone could fire Harry, as they did a number of key employees at SSIR, and replace him with staff of their choosing.  Of course I'm hoping good things come as a result of Blackstone's purchase of Hilton, but my expectation is clearly for more price increases to the timeshare owners.           
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cmch

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Reply with quote  #27 
With regard to fees, you should check the annual budget that you receive in the mail each year.  If you did not retain it, HGVC (Harry) could send you anither copy.  With regard to other bids, the SSC board solicited a competitive bid several years ago & it was not very competitive.  Look on the HGVC/SSC web page.  There is a copy of the SSC/HGVC management agreement.  The termination provisions require a vote of the members to replace management companies.  There is a clause, however, that requires Board consent to an assignment of the agreement to a a successor company.  This may not be applicable if HGVC Management Company stays intact although with a new parent. 

Hope this helps with some of your questions.


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captiivated

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Reply with quote  #28 
Kenzie's point is that it is irrelevant what HGVC charges the IO's because the various association Boards will have to replace HGVC as its on site Manager.  The Boards all use Harry and HGVC to negotiate with the Resort and LXR on their behalf.  It would clearly be a breach of the Directors fiduciary duty to let LXR (HGVC) negotiate on the Association's behalf with LXR.

Regarding the other point, when the Associations retain another outside manager to replace HGVC it will very likely be at a considerably higher cost. For example, to get Four Seasons to take on the task would probably increase the the cost by 50%.  That increase, however, may well be worth it, and be more consistent with the direction the Resort is taking...luxury, if we want it or not. 

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Susan

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Reply with quote  #29 

This assumes Blackstone/LXR doesn't sell SSIR and remains the owner and also therefore is the management company.  If they sell  the resort, they just remain as the management company, and we're back to square one.  That's still a possibility, isn't it? If they remain as owners Captivated is correct; there is a real conflict of interest and we will be at their mercy.

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captiivated

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Reply with quote  #30 

Susan, Great point, but Blackstone is not in the bunisess of losing...not sure they ever have! As I have said they probably will sell SSIR soon (2007-08) but the Directors will probably have to take action before that.

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