Definitely a devaluation overall, especially for desirable properties in California, Hawaii, and New York.
(PHNY, GH Manchester, Andaz Maui, Ventana Big Sur, Pretty much everywhere in SF etc.)
I have a Stay for example at a Cat 5 Andaz in April, currently the cash rate is $980 and there is still award availability at 20k per night. There’s no doubt this would be considered “peak” under the new program implementation meaning 25k nightly. Which for a multi night stay really does add up.
The only thing I like is that this in no way impacts Category Certificates because weather peak or off peak the hotel is still within the same category. I wish they’d test the off peak market for a year before adding the peak market in to see how it works for them, a guy can dream right?
I know this will be beneficial for Chicago Properties which from December through March have really low cash rates, but still are Category 3-6 properties. I’ve seen Thompson Chicago at $90, even though it’s a Category 4. With the new system I’m guessing it would be a 10k redemption during those periods?
(1,500 less per category up to 5,000 total) That’s my understanding.
I’m wondering also how they’ll determine “peak or off peak”, will that be tied to the cash rate? I know it’s not dynamic like Hilton where it changes in live time and there’s a set calendar than cannot be changed (it says).
For example - I’ve stayed at HH in Texas where it’s a Cat 1 but the Cash Rate is $118. Personally I would consider this “standard” so hopefully no change.
One last thing - Will all properties have Peak, Off Peak and Standard? Or will some just be Standard for the entire year (those with fair occupancy, but not booming and not low occupancy).