Hilton Grand Vacations (HGV) has just announced the company’s agreement to acquire Diamond Resorts International from funds managed by affiliates of Apollo Global Management Group (Apollo Funds), Reverence Capital Partners, and other Diamond stockholders. This acquisition is a stock-based transaction valued at approximately $1.4 billion and is expected to close in the summer of 2021.
Diamond Resorts is the largest independent timeshare operator and will bring 92 resorts and almost 400,000 owners to Hilton Grand Vacations’ existing 62 luxury properties and 325,000 owners.
HGV President and CEO Mark Wang was thrilled to discuss the news:
“I’m excited to announce our transformational agreement to add Diamond Resorts to the Hilton Grand Vacations family, accelerating our next phase of growth. This strategic combination will leverage the strengths of each company, positioning us to drive significant Net Owner Growth while enhancing efficiencies of scale and generating significant shareholder value. Diamond’s extensive regional, drive-to network of resorts and expanded demographics uniquely complement HGV’s best-in-class lead generation, world-class hospitality, and premier destinations backed by the strength of the Hilton brand. For our valued team members, owners and guests, this combination creates new opportunities to provide exciting destinations and memorable vacation experiences while continuing to provide exceptional levels of service.”
The combined 720,000 owners, 154 resorts, and 48 sales centers diversify Hilton Grand Vacations’ portfolio into 20 new markets. HGV will double its number of vacation options and provide a broader price range of vacation ownership opportunities for new and existing owners. Additionally, Hilton Grand Vacations will also begin slowly rebranding Diamond Resorts properties over time.
Mike Flaskey, Diamond Resorts CEO, added:
“Through this agreement, HGV and Diamond will create a new global standard of vacation ownership hospitality. Together, we will expand Diamond’s unique events and concert platform and deliver the broadest range of world-class experiences available in the industry, providing our members and owners with additional flexibility, unforgettable vacations and experiences of a lifetime. We are thrilled to join the HGV family and look forward to achieving new heights of excellence.”
HGV will be combining its point-based deeded product with Diamond’s points-based trust structure to launch an HGV-branded trust product offering with the hopes of expanding its audience and attracting new owners.
The terms of this agreement allow Apollo Funds and other Diamond stockholders to receive 34.5 million HGV common stock shares subject to customary adjustments.
The HGV management team, which includes President and CEO Mark Wang, CFO Dan Mathewes, and COO Gordon Gurnik, will remain in their current roles following the completion of this transaction. Hilton’s Board of Directors will also expand from 7 to 9 members with Apollo Funds having the ability to fill those seats following the specific equity ownership guidelines set forth in the acquisition.
To learn more about this acquisition, please visit the Hilton Grand Vacations official website.
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