Originally Posted by
serfty
Hampton's get a minimum of $15 plus tax according to this post:
The HWV would get a minimum of $30.
If in any month the average number of rooms occupied on award stays exceeds 1.8% of the available rooms, the Property receives 90% of their annualized annual daily rate.
(Interesting part of that thread is that the property pays HHonors 5% of revenue bookings of HHonors members).
Very interesting from that post:
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 [current year] 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 my read is that for any month where award rooms exceed 1.8% of available rooms the HWV recieves 90% of their average room rate for every award room above the 1.8% threshold. So once that threshold is crossed, the HWV starts to make decent money on award rooms.
It seems to me a reasonable assumption that the HWV will exceed 1.8% award occupancy pretty regularly (maybe all the time). In that light, having an "excess" of award customers can be a good thing. Given the tough times in the hotel biz and in Hawaii in particular this means that HWV should be actively encouraging award stays and boosting award benefits to try to bring in more award customers.
Ed, if you're willing to go to this level of detail (and if the Hotel is willing to go there with you) perhaps you can discuss award occupancy levels with them?