Hyatt purchased ALG, including the Unlimited Vacation Club, in November 2021. At the time of the purchase, Hyatt already had a loyalty program called World of Hyatt (WoH). With the acquisition of ALG, they suddenly had two: UVC, which was specific to AMResorts properties, and WoH, a broader program that gives its members discounted prices at almost all Hyatt properties, including AMResorts properties. Did Hyatt need two loyalty programs? Did they want two?
Apparently, not.
In February 2024, Hyatt issued a press release reporting their 4th Qtr 2023 results. Buried in the report, is this bit on UVC:
Transactions and Capital Strategy
On February 14, 2024, the Company completed a transaction that resulted in the restructuring of the entity that owns our Unlimited Vacation Club (“UVC”) business by selling 80% of the entity to an investor unaffiliated with Hyatt for $80 million. Hyatt will continue to manage the Unlimited Vacation Club business under a long-term management agreement and license and royalty agreement, ensuring a seamless transition for colleagues, UVC members and hotel owners. As a result of the transaction, the Company will receive management fees and royalty fees in relation to the exclusive arrangement between the Hyatt Inclusive Collection brands and UVC, and the Company will no longer report Net Deferrals and Net Financed Contracts.
The official explanation for the sale was investor confusion. Apparently, the Unlimited Vacation Club business required accounting that Hyatt's hotels business didn't and that confused investors. Hyatt's sale of their majority interest in UVC apparently ended the need for the confusing accounting. That's what they told us anyway.
Hyatt maintains a 20% ownership interest in UVC and continues to manage the club. However, Hyatt's revenue from UVC, as it is with most of its businesses, is now derived primarily from management fees rather than sales.
I don't know the deal the new majority owner has with Hyatt, but part of that deal seems to be the majority owner remains on the sidelines and lets Hyatt run the UVC business. The majority owner hasn't even been named in any press release I've read. He seems happy on the sidelines. He's a silent majority owner. Hyatt still runs UVC. In their social media accounts, UVC continues to identify itself as a "Hyatt Company."
Here's one example from the UVC-Unlimited Vacation Club Facebook page:
Here's another from Instagram:
Legally, the Unlimited Vacation Club business and Hyatt are two different companies with different owners, but there is no practical distinction between them. They act as one organization. Hyatt is UVC. UVC is Hyatt.