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Old Jan 21, 10, 11:21 am   #1
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Cost to GP for free night

I don't know how to search this topic- sorry.
I am at a resort today and the bill on my TV for the free night reported the bill to GP for the FFN: $172!
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Old Jan 21, 10, 11:44 am   #2
 
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I just took a look at my folio for the Hotel Victor and the rate showed $271 for a FFN night.
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Old Jan 21, 10, 11:56 am   #3
 
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I'm not sure where GP gets the funds to supply the hotel with money for the award nights. I'm guessing each hotel pays a % to GP for every guest that stays at that hotel on a paid stay, and then GP redistributes this to hotels that have people stay on award reservations?
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Old Jan 21, 10, 3:59 pm   #4
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This is up significantly from a few years ago - I remembered $60 ish for one of the more expensive US Hyatts - I haven't seen a folio in a while with the number on it.
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Old Jan 21, 10, 4:17 pm   #5
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Originally Posted by peteropny View Post
This is up significantly from a few years ago - I remembered $60 ish for one of the more expensive US Hyatts - I haven't seen a folio in a while with the number on it.
This probably makes sense now since hotels have to open much larger inventory for award stays (all standard rooms). Imagine how the hotel management would feel if in the high season half of the hotel was booked on award stays bringing in only $$ when they could sell those rooms for $$$.
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Old Jan 21, 10, 4:29 pm   #6
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Originally Posted by 90minfromJFK-CDG View Post
I just took a look at my folio for the Hotel Victor and the rate showed $271 for a FFN night.
It's all over the board. Was the hotel busy -- nearly fully booked -- when you were staying there?

PH Buenos Aires FFN billed for something like AR$295, c. US$78, during an off-peak day.
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Old Jan 21, 10, 4:32 pm   #7
 
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Not sure about how GP does it, but for HH & SPG, normally hotels are reimbursed a flat rate for each award night, the flat rate is determined by category. However, once the occupancy rate reaches a certain percentage (90 %?), hotel will be reimbursed at close to the prevailing rate.
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Old Jan 21, 10, 4:32 pm   #8
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Originally Posted by crystak View Post
I'm not sure where GP gets the funds to supply the hotel with money for the award nights. I'm guessing each hotel pays a % to GP for every guest that stays at that hotel on a paid stay, and then GP redistributes this to hotels that have people stay on award reservations?
It works something like that but it's more akin with some kind of offset from the management and/or booking fees that Hyatt collects or is due from the property.
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Old Jan 21, 10, 4:38 pm   #9
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Originally Posted by rdchen View Post
Not sure about how GP does it, but for HH & SPG, normally hotels are reimbursed a flat rate for each award night, the flat rate is determined by category. However, once the occupancy rate reaches a certain percentage (90 %?), hotel will be reimbursed at close to the prevailing rate.
Yes, something like that is pretty much industry standard for the US-based players. Reimbursement for an award stay rarely involves a transfer of cash from Hyatt to the property because the hotel property owes Corporate for management and/or booking fees and other affiliation-related supplies.
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Old Jan 21, 10, 5:16 pm   #10
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It's all over the board. Was the hotel busy -- nearly fully booked -- when you were staying there?
Completely sold out - we were there for the same 3 nights also on FFNs.
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Old Jan 21, 10, 5:26 pm   #11
 
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Still don't understand the mechanics of two $71 stays at a Summerfield Suites geting you a free night at the Park Hyatt Paris Vendome (well over $500). But mine not to reason why.....

Then again, I never understood how I could transfer 65,000 Starwood points to get 80,000 airline miles and a Business Class trip to Europe. Or more for a First Class ticket.

But apparently I'm just ignorant since they all do it and they certainly seem happy!
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Old Jan 21, 10, 5:46 pm   #12
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Completely sold out - we were there for the same 3 nights also on FFNs.
Like I was expecting. That's pretty much why the noted amount is so much higher than it would be if done on a hurricane season slow day.
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Old Jan 21, 10, 5:51 pm   #13
 
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I remember talking to a staff at an sheraton hotel, based on category, they get paid certain $ for each night. the category is derived based on average revenue per available room i think
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Old Jan 22, 10, 12:49 pm   #14
 
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My FFN stay at PH DC last year cost the hotel $71 per night (they sent me the wrong e-mail statement). From what I've been told, only when occupancy goes over like 90% then they are reimbursed the full value of the room, the $71 basically covers the housekeeping cost for the hotel.
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Old Jan 22, 10, 11:32 pm   #15
 
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I stayed at the PH Beaver Creek - and the TV folio showed a comp room rate line of $71 (and some change).

Considering the room goes for an average of $500 / night, I don't know how they could survive with many FFN guests.
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