Originally Posted by
underpressure
A rather interesting post....
And I can not believe that the reward stay reimbursement is $15.00. They may do something with the points that the property has to pay for and reimburse a handling charge of $15.00 but there is more going on than that. Otherwise, what is the need for different award levels.
I found this information about reimbursment on the Hilton franchise site:
How am I reimbursed for reward stays?
Each hotel is reimbursed for any reward stay accepted. The amount is determined by a monthly threshold of rooms, which is calculated by computing the number of rooms at your property X 30 days X 1.8%. This number is your threshold number of rooms per month. For months in which the number of reward rooms taken as a percentage of available rooms is less than or equal to 1.8%, you will receive a base rate (determined by brand, see below) plus tax for all reward nights (excluding rewards taken on sellout nights). For months in which the number of reward rooms taken as a percentage of available rooms exceeds 1.8%, you will receive 90% of your 2004 annualized ADR plus tax for all reward nights taken above the 1.8% threshold (with the exception of rewards taken on sellout nights). On nights when your occupied revenue rooms occupancy is at or above 96.0%, you will receive 90% of that day’s gross ADR plus tax for all HHonors rewards taken that night regardless of whether you are above or below the 1.8% threshold. For a new property, your forecasted ADR will be used.
What is the minimum reimbursement (base rate) for each brand?
$15 for Hampton, Scandic and Hilton Garden Inn
$20 for Doubletree, Embassy and Homewood
$30 for Hilton (worldwide) and Conrad
So $15 would be the minimum for a Hampton, but will vary according to how busy the hotel was with reward redemptions. It looks like a certain number have to be absorbed at this lower rate, but once exceeded the reimbursement is higher.
Regards
RedV