How Hilton Grand Vacations Turned Formula 1 Into the Ultimate Luxury Vegas Experience | Mark Wang Interview

Alex Harrington | 3 Hours Ago

Hilton Grand Vacations Elara / HGV

I was taken up to the very top of the Elara Hotel and peered between the letters mounted outside the 52nd floor's windows, looking over a windy Las Vegas. Look down, and the Formula 1 circuit winds its way past the feet of the building. During the day it's part of a busy network of taxis and supercars, but at night it's shut off, glowing from overhead lighting and home for a short week to some of the greatest racing drivers the world has ever seen.

The Elara's proximity to the track is bewildering. It was a stroke of luck that the track was confirmed to be built on its doorstep, and Hilton Grand Vacations have most certainly utilized the opportunities they've been given.

Elara Las Vegas / HGV

However much I wanted to continue gazing out over a desert of penny slots and private jets, I had much more important work to do. I was there to interview Mark Wang, the CEO of Hilton Grand Vacations, about his love for the sport and how his company would celebrate the second Grand Prix of the city.

"With very little money in my pocket I actually moved to Hawaii, and that's kind of where I got my start," he told me on how he began in the hospitality industry. "Spent 27 years there Started a couple of companies before Hilton recruited me, so I've been with the company now for 25 years.

"I actually took a big risk when I went to Hawaii. I'd worked for a small company and, and I just felt like at that time, you know, I wasn't married, didn't have any children, no dad... let's go see what Hawaii could bring in and it worked out really well."

Under an exclusive licensing agreement with Hilton Worldwide, Hilton Grand Vacations is growing rapidly. When Wang first began with the company, it had 15,000 members. "25 years later, we have over 700,000 members," the CEO confirmed.

"I think we have 13 properties in Hawaii now, and when I started with the company we had three, and today we have 200 [in total]. So it's been a lot of growth and I was very fortunate in 2008, the company was bought by Blackstone. It was taken private and then went back out to the public markets at the end of 13.

Flo Rida performing at the Elara / HGV

"And then in 2017, they decided the best value creation for all the shareholders was to create three separate companies, and so they took our vacation ownership business, timeshare business, and they spun that off into a separate company. They took all the real estate and created a new lodging rig. And then the main Hilton, which today has over 20 brands and does franchising management... it's the one most people are familiar with. And we signed a hundred-year license agreement with Hilton for the name and then access to the data and customers."

The HGV brand is no joke. But neither is the likes of Formula 1 and its behemoth of a fanbase. Fortunately, we're in good hands with Wang, who has been in love with the sport for over 40 years.

"I first was introduced to F1 in 1980. Went to my first race in Long Beach. It was a Long Beach Grand Prix. And second race was in 1982: the Las Vegas Grand Prix. I was here in 1982.

"When they won the Las Vegas Grand Prix, it was in the Caesars' Palace parking lot. And it was in October and it was scorching hot. I think that's part of the reason they have it in November at night. They don't want to race in the heat of the summer here.

"So I've been to 29 races now. This is my 29th race. And I've been very fortunate. I became a fan since the first time I experienced it in Long Beach. So bringing Formula One back to Las Vegas makes so much sense. Because Formula 1 has changed a lot, right? It's become world-renowned as the highest quality and the fastest cars and it just fits Vegas really well.

"And we were very fortunate when I heard that Formula 1 had acquired the land behind our property here and were building our permanent pits. I was like, 'man, we have a chance that the track could be right along our property.' And as soon as we heard the news I pulled together the team."

Elara Las Vegas / HGV

HGV boasted 400 feet of elevated trackside viewing for fans of the sport who wanted to get up close and personal with their favourite drivers at the Clubhouse. With a view of the pit entry and the sound of the cars at full chat on the East Harmon Avenue straight, it was a sight to behold as we checked out the space. The venue was flooded with incredible food curated by the best chefs, drinks from all over the world, and a live showing from hip-hop artist Flo Rida ahead of Saturday's race. The free-flowing Red Bull pushed me through the jet lag.

"People have different levels of interest and experience with that one. And I think what we have created here is really an opportunity for people of all levels of interest by really focusing on just the overall experience," Wang continued.

Because at the end of the day the world, I think it's transformed into this experiential platform, right? And people are looking for new things, new experiences. And for us to be able to create a space where they can not only get up and close to the track, but also enjoy great culinary experience, the teams I thought have done a really good job this year.

"We have the simulators, right? We have the concert series. We have a lot of activities that are going on around the race because the race is two hours at the end of the day and then qualifying is one an hour or so. So it's three hours, but they're here for. Most of the time, three or four days, right?

"And so, you got to keep them entertained. And I think our business - we've always had the spirit of service. But really over the last four or five years, our focus has really been how do we create the spirit of experiences? For us, our mission is about putting people first.

"And not only our guests, but our team members. And we really have invested in this ultimate access platform that we've developed. I know we did 3600 events last year. Not all of them are at the scale of this. This is probably our second largest event just behind our tournament of champions that we partner up with the LPGA.

"But we do over 60 live concerts during the year and we have a lot of culinary experiences. And so, our teams have really done a great job building upon this, you know, what I think is this transformation that's going on around the world, particularly here in the U. S. Where people will pay for great experiences, and they want to be able to have those opportunities.

"And for us to be able to open these experiences up to our members, it's super rewarding because You know, a lot of the people that are going to be with us here, our guest members, they've never experienced Formula One before, right? And so we're opening their eyes to a new experience that they haven't seen."

Hilton Grand Vacations has been partnered with Formula 1 since last year to extract as much from the race week as possible. But what does this partnership entail?

"This year that partnership has really evolved. Early on last year, I think we were all kind of feeling each other out trying to figure out what's the best way to position this race to our consumer.," Wang confirmed.

"I think the relationship with Formula One really improved this year. I think, in a way, and you've heard this from other people, I think they overshot what the expectations were for Vegas. When I first heard the pricing that they wanted us to achieve here, I told the teams, 'I'm not sure that we're going to be able to do that.'

"Because at the end of the day, there's only so many people that have the wherewithal to make an investment like this. But I think the adjustments went well and we're really pleased with the relationship."

Formula 1 is the most popular it's ever been thanks to the likes of Drive to Survive which saw an explosion of interest especially within the US market. But what happens when, inevitably, fans start to lose interest and the next phase of F1 begins? Does this partnership between HGV and F1 weather such a storm?

"I think it really rides on the feedback we get. From our guests, right? Obviously, we're investing a substantial amount to create this experience. And, we'll see. Our KPIs are really: what was the level of participation?

"So what demand? How many people bought tickets from us? How many people enjoyed it so much that they decided they wanted to upgrade their program with us, with Hilton Grand Vacations? That's really important. How many new customers did we attract to our brand during this week? So those are all the high-level KPIs that we look at."

HGV Zone Elara / HGV

I talked to a number of Vegas residents in the lead up to the race weekend, and each had the same opinions on their new home race. Clearly, it isn't being enjoyed with yet more logistical issues and road closures become thorns in their sides. One resident who I talked with on a plane from LA to Vegas admitted to me that her car had been damaged as a result of the work on the roads. She was not pleased.

"At the end of the day the revenue that's generated and the taxes that are created from that are beneficial for all the residents here," Wang told me.

"Of course, there's always going to be certain circumstances where the road closures or the track could impede on somebody's business. That's very unfortunate. I don't know if there's a way to compensate for that. But for the most part, I would say, well, more than the majority, it's been a positive outcome for Las Vegas."

The Elara is a gorgeous hotel with 5000 rooms looking out through the mirrored facade of the building. But there are no casinos within its footprint, allowing a moment of peace when its guests return throughout the day. This is unique in Vegas, and something that the brand is wanting to utilize in its value proposition to its guest.

"They like the fact that they can come back to our property and they don't have the crowds or the smoke or the hustle bustle. It's a lot more relaxing here. They can come back, rejuvenate, have a good night's rest and then go back out into it. Vegas is great because it's a real mecca for entertainment and it's evolving all the time.

"So it's great. We leverage off of those assets and then they benefit from us because we have our members coming back year over year. It's kind of a win-win for everyone.

"Our teams are just doing just a spectacular job of hosting our guests and our members and I think people feel at home here. We have guests that are members that will come to Vegas three or four or five times a year."

It's clear that guests of the Elara are in good hands with Mark Wang at the helm. But on a Formula 1 weekend? I'm not sure it gets better. I continued my conversation with Wang, one that continued almost into the next hour, discussing things like tire temperatures, track-specific upgrades, and Hot Laps. He was due a hot lap the evening before alongside me and my colleague Lydia Mee, but a postponement meant he had to relinquish his opportunity to his lucky son. When I told him I was driven by Mick Schumacher, his eyes lit up.

This enthusiasm for the sport was reflected in what HGV had to offer that weekend, something that's not always evident at a place like Vegas. If you're an F1 fan, the Elara by Hilton Grand Vacations is the place to be.