Hilton Grand Vacations Inc. (HGV) announced today that it had completed the acquisition of Diamond Resorts International, Inc. The purchase creates the largest upper-upscale and luxury timeshare operator in a stock-based transaction with an equity value of approximately $1.4 billion.
“The acquisition of Diamond Resorts further strengthens HGV’s position as an industry leader, and we are excited to welcome more than 380,000 new owners into our family,” said Mark Wang, president and CEO of Hilton Grand Vacations.
“Our combined 154 resorts and luxury properties will create the premier timeshare network for our members and guests while positioning us to drive long-term shareholder value.”
This strategic combination creates the most expansive industry offering, leveraging HGV’s strong brand and net owner growth along with Diamond’s diverse network of locations and strength in experiential offerings. With a total of:
- 710,000 owners
- 48 sales centers
- Over 20 new markets
HGV anticipates significant value creation from scale while the acquisition also diversifies HGV’s product offering and will drive revenue growth across an expanded customer demographic.
The combined company is expected to generate over $125 million in run-rate cost synergies within the first 24 months of operating.
Appointment of Apollo Directors
The Company’s Board of Directors is expanding from seven to nine members, with two directors designated by Apollo, David Sambur and Alex van Hoek.
David Sambur is a senior partner and co-head of Apollo Private Equity. He oversees the Private Equity portfolio and has led numerous investments across technology, media, gaming, hospitality and travel.
Alex van Hoek is a partner at Apollo, having joined the firm in 2010. He has led investments across gaming, hospitality, aerospace and retail, and will join the Venetian and Great Canadian Gaming boards upon close of pending transactions.
About HGV
Hilton Grand Vacations Inc. is recognized as a leading global timeshare company. With headquarters in Orlando, Florida, Hilton Grand Vacations develops, markets and operates a system of brand-name, high-quality vacation ownership resorts in select vacation destinations.
The company also manages and operates two innovative club membership programs: Hilton Grand Vacations Club® and The Hilton Club®, providing exclusive exchange, leisure travel and reservation services for nearly 330,000 club members. For more information, visit www.hiltongrandvacations.com.
Image: By Farragutful – Elara, Hilton Grand Vacations, Paradise, Nevada reproduced via Creative Commons Licence