I'm not exactly sure what to make of this, so I'm simply passing this on for anyone who wants to look into it more, as I don't plan on taking advantage of this myself (I think). Buy $150 hotel gift cards for $100 The website buynowstaylater.com is selling "hotel bonds." As the initiative is described:…
Continue reading: Buy “Hotel Bonds” For Discounted Stays In 60+ Days
Share your questions, experiences, and thoughts below.
I'm assuming the maturation prevents people who know they will be staying now buying these discounts instead of paying full price. The goal is to get liquidity into the hotels, but doing that actually defeats the purpose.
Does anyone know how these purchases code in terms of bonus categories?
Thanks.
I also see the company offering this scheme is taking a “deferred commission”, so you’re essentially buying these through a third party travel agency. I’d only support this to a hotel directly.
Junk bonds...hmm they should just call up Jay Powell, Fed will buy all of them!!
Didn't even list New Mexico under USA. So no Hyatt Tamaya Resort or Hilton Buffalo Thunder.
These are the same people who charge me $35/ night to send/receive faxes, make unlimited local phone calls and print my boarding pass! LOL! The sins of the past are going to determine who survives and who doesn't. Those properties never (willingly) got my money before....now they want help from me?....yeah right@
so how do you logistically issue a "gift card" valid only in one hotel and not the entire chain?
I think things like this are great in concept, but this is a non-starter for me in terms of execution.
First off, the only reason I book internationally branded properties is because their loyalty programs bring me benefit. Even if I knew what my future travel looked like, I wouldn't buy into a property that's in no way special while also setting myself up to bypass my loyalty benefits.
Secondly, I'm not comfortable with the level of risk. I'd be (relatively) happy to inject funds into a multi-property group, with confidence that at least some of the properties would survive this, especially if I could do so confident that I'd enjoy my status perks and points accrual when I eventually stayed.
So, basically, hotel groups...meet me halfway. I know you've got liquidity issues and I know I'll stay again sometime in the future, but don't make helping you out a one sided deal.
Ben,
This seems ripe for investigation by the Federal Trade Commission, the SEC and/or FBI and/or local law enforcement at the very least.
Not saying anything about it’s legality, just that some of those agencies might
take an interest just to protect the traveling (or not yet) public.
50% for a 2 month loan is like an annualized 300% interest rate. All of these hotels can borrow money much cheaper than that.
It's good until the 3rd party selling this to you from their garage goes chapter 11...59 days from now.
Just watch. If the room "costs" less than $150, the hotels will keep the overage. They're never going to leave the extra on account toward your next stay.
A bond has an interest rate... so this seems to be in the ballpark.
It is either a zero coupon bond. Or as you are indicating, one sold at a discount to face value.
Too much risk. If a hotel wants me to part with cash *now* and accept the risk that comes with that, I'd need two things:
1. These things would have to be valid at any hotel in the chain if the hotel itself goes poof.
2. I want *way* more return than what they're offering... as in 2x to 3x face.
"Is there a commission for each bond sold?
There is no commission. The creators of the program are not taking any fees. 100% of the cost of the bond goes directly to the hotel."
The website traces back to a company called "Lion & Lamb Communications". It seems the company's target customers are the independent hotel owners instead of consumers like us. That's why the whole thing is not carried out with any hotel groups
If they guarantee the hotel rate will remain the same as now may be, what about after couple months they jack up the hotel nightly rate then people are screwed.
Dan if a hotel wants to get cash in now then they could drop their rates!
Its not a very impressive list. Ben did you even look?.
There are only 7 countries in Europe Listed . Only one hotel listed in each of France, Spain and Italy. No UK, Germany, Nordics or Netherlands,
Canada - nothing in British Columbia.
Australia - one hotel.
Japan - nothing.
Very much like a junk bond you are a taking a risk that in 60 days it won't be worth the paper it's printed on.
So how many investors have fall for this unlicensed broker.
Looking back, this is quite a pity.
For investing in a failing piece of real estate.
When marketing agencies try to get creative and sell it, we got some "bond" impostor.
When banks try to get creative and sell it, we got the subprime mortgage crisis.