DIAMOND RESORTS ABSORBED BY HILTON. WHAT DOES IT MEAN FOR DIAMOND OWNERS?
Hilton Grand Vacations (HGV) announce a $1.4 Billion takeover of Diamond Resorts. (Diamond) We look at what this will mean for existing Diamond owners
HGV acquire Diamond
On August the 2nd 2021, HGV completed its acquisition of Diamond’s 92 resorts. 380,000 Diamond owners now wait to find out how this will affect their membership as they are ‘welcomed into the Hilton family’
Diamond were the world’s largest independent timeshare company, but their absorption into HGV makes HGV the second biggest timeshare operator full stop. With the new additions they total 154 resorts and 725,000 members worldwide Only Wyndham is bigger.
Diamond owners will be second tier
Diamond resorts are to be rebranded as Hilton Vacation Club (as opposed to the Hilton GRAND Vacation Club – the upmarket resorts)
The Grand Vacation Club resorts, according to HGV CEO Mark Wang in a recent interview, will sell for around $20,000 more than the plain Hilton Vacation Club (HVC – former Diamond Resorts)
Observers see this as Diamond owners essentially becoming second class citizens in their new universe. Wang himself stated, “Hilton Vacation Club will be positioned just below Hilton Grand Vacation Club (HGVC), which is an upper upscale brand. And Hilton Vacation Club will be an upscale brand.”
So what can Diamond owners expect?
American Consumer Claims (ACC) CEO Andrew Cooper, believes they will either need to accept their secondary status, or pay more to upgrade.
“I’m sure HGV will find a way to present this move as beneficial for everyone, but in reality we expect that it will benefit the Hilton Gran Vacation Club owners more than the second tier former Diamond owners.
“The HGVC owners will have priority as they have paid more, and this will mean that HVC owners will only be able to choose what the HGVC leave behind. Not just in preferred resorts, but also preferred timeslots like school holidays and Christmas.
Cooper expects the former Diamond owners to be overwhelmed with new sales programs and presentations waiting for them every time they holiday.
“HGV are already boasting of their 48 sales locations and 20 new markets. They will be keen to make this move profitable by upselling the HVC owners to upgrade to full HGVC membership. It could be presented as the only choice, and we already have the figure of $20,000 quoted as the differential.
“That’s a lot of money for HGVC. All coming from Diamond owners, who have already been sold to within an inch of their lives every time they holidayed with their timeshare.
What about Diamond owners who don’t want to be part of HGV?
“There is no choice unfortunately,” explains Cooper. “This has all been done legally by those with correct voting rights. Diamond owners are now Hilton Vacation Club owners. Like it or not.”
Is there a way out? “For some people there may be.” he says. “People who bought their memberships in Spain can potentially have an escape route via compensation claims, provided they meet certain criteria. Those people can often be awarded significant compensation.
“For those who don’t meet the compensation criteria, relinquishment is usually still possible. You wouldn’t get awarded any money, but you would at least be free of the expensive membership and annual fees.”
To discuss your options about escaping the burden of a timeshare membership, get in touch with the team at ACC, for a free, no obligation chat