Acquisition expected to be accretive in 2017 to Total Adjusted EBITDA
and EPS
ORLANDO, Fla.--(BUSINESS WIRE)--
Hilton
Grand Vacations Inc. (NYSE: HGV) (“HGV” or “the company”) announces
the formation of a joint venture with affiliates of Blackstone Real
Estate Partners VIII L.P., which purchased Elara, a Hilton Grand
Vacations Club. With 1,201 units, Elara is one of the world’s largest
timeshare resorts. HGV will assume a 25 percent stake in the joint
venture for approximately $40 million, which is expected to be accretive
to HGV’s total adjusted EBITDA and EPS.
“Today’s acquisition advances one of our key strategic priorities that
is growth through opportunistic business ventures, which allows us to
continue to maximize shareholder value,” says Mark Wang, president and
CEO, Hilton Grand Vacations. “By taking an ownership stake in Elara,
which has more than 500 units of sellable inventory remaining, we are
receiving a strong-performing consumer loan portfolio and unfinished
penthouse floors.”
In addition to its ownership stake, HGV will continue to market, sell
and manage Elara under existing fee-for-service agreements.
The joint-venture structure allows HGV to generate strong returns while
maintaining flexibility for additional growth opportunities. The
transaction is expected to be funded by existing cash on HGV’s balance
sheet.
Elara is located on East Harmon Avenue in Las Vegas and opened as the
largest, single timeshare resort in the world in 2009. The property
offers adjoining access to the Miracle Mile Shops, offering more than
200 stores and restaurants. The upscale, 15,000-square-foot, grand lobby
overlooks a 40,000-square-foot elevated tropical pool with two hot tubs,
pool bar and grill and 33 private cabanas.
In addition to the 1,201 units, there are four penthouse floors with
more than 82,000 square feet, among other undeveloped areas including
2,300 square feet of retail space fronting East Harmon Avenue and more
than 17,000 square feet of ballroom space.
Forward-Looking Statements
This document contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. These statements
include, but are not limited to, statements related to our expectations
regarding the performance of our business, our financial results, our
liquidity and capital resources and other non-historical statements. You
can identify these forward-looking statements by the use of words such
as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,”
“will,” “should,” “could,” “seeks,” “approximately,” “projects,”
“predicts,” “intends,” “plans,” “estimates,” “anticipates” or the
negative version of these words or other comparable words.
Such forward-looking statements are subject to various risks and
uncertainties, including, among others, risks inherent to the timeshare
industry, macroeconomic factors beyond our control, competition for
timeshare sales, risks related to doing business with third-party
developers, performance of our information technology systems, risks of
doing business outside of the U.S. and our indebtedness. Additional
factors that could cause our results to differ materially from those
described in the forward-looking statements can be found under the
sections entitled “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” in our Annual
Report on Form 10-K for the fiscal year ended December 31, 2016 and our
Quarterly Report on Form 10-Q for the fiscal quarter ended March 31,
2017, filed with the Securities and Exchange Commission (“SEC”), as such
disclosures may be updated from time to time in our periodic filings
with the SEC. These documents are accessible on the SEC’s website at www.sec.gov.
Accordingly, there are or will be important factors that could cause
actual outcomes or results to differ materially from those indicated in
these statements. These disclosures should not be construed as
exhaustive and should be read in conjunction with the other cautionary
statements that are included in this release and in our filings with the
SEC. We undertake no obligation to publicly update or review any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as required by law.
About Hilton Grand Vacations Inc.
Hilton Grand Vacations Inc. (NYSE: HGV) is recognized as a leading
global timeshare company. With headquarters in Orlando, Fla., 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 more
than 270,000 Club Members. For more information, visit www.hgv.com
and www.hiltongrandvacations.com.
About Blackstone
Blackstone is one of the world’s leading investment firms. We seek to
create positive economic impact and long-term value for our investors,
the companies in which we invest, and the communities in which we work.
We do this by using extraordinary people and flexible capital to help
companies solve problems. Our asset management businesses, with over
$360 billion in assets under management, include investment vehicles
focused on private equity, real estate, public debt and equity,
non-investment grade credit, real assets and secondary funds, all on a
global basis. Further information is available at www.blackstone.com.
Follow Blackstone on Twitter @Blackstone.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170719006310/en/
Hilton Grand Vacations Inc.
Investor Contact:
Robert LaFleur,
407-613-3327
RLafleur@hgvc.com
or
Media
Contact:
Erin Pagán, 407-613-3771
EPagan@hgvc.com
Source: Hilton Grand Vacations Inc.