Hilton Grand Vacations Acquires Diamond Resorts International
On March 10, 2021, Hilton Grand Vacations purchased Diamond Resorts International for $1.4 billion in an exchange of stocks and funds. As Hilton Grand Vacations acquires Diamond Resorts International, the latter company’s stockholders will receive some 34.5 million shares of Hilton Grand Vacations common stock. Hilton Grand Vacations shareholders retain 72 percent of the company, while Apollo and other Diamond shareholders receive a 28-percent share.
Per the Hilton Grand Vacation’s press release, “The acquisition will combine the strength of HGV’s brand and culture with Diamond, the largest independent timeshare operator.” Diamond Resorts International oversaw 92 leisure resorts and around 400,000 owners. These will combine with Hilton’s 62 properties and 325,000 owners. The press release further stated that “the combination will create the premier vacation ownership company with the broadest offering in the industry.”
According to the Diamond Resorts International site: “The introduction of a trust product allows for lower barriers to ownership, reduced inventory delivery volatility and inventory recycling, enabling smoother sales and upgrades while providing buyers and owners network and pricing flexibility.”
Post-Lockdown Reaction
According to reports from other industry news media, the deal and expansion result from the downturn in occupancies during the COVID-19 pandemic and the inevitable uptick in vacationing once travel restrictions relax and vaccines are more widely available. The desire to travel and stay at hotels and resorts is likely to increase exponentially, leading Hilton Grand Vacations and other international hotel chains to expand their offerings and services, vis-à-vis hotel rooms and timeshares, to facilitate a more rapid economic recovery.
Biggest Timeshare Company
With its multiple properties, Diamond Resorts International was one of the larger, if not the largest, timeshare companies in operation. It remains to be seen what will happen under Hilton Grand Vacations control, though the Hilton brand will undoubtedly move to the forefront.
Locations
Hilton Grand Vacations currently has properties in Hawaii, Las Vegas, and New York City, while Diamond Resorts International properties currently reside in 23 states and several countries. Hilton Grand Vacations will expand into more than 20 new markets as a result of the deal. Hilton is one of several other hotel chains that have expanded into the timeshare market over the past few years, especially in 2020.
What About Your Current Timeshare?
After Hilton Grand Vacations acquires Diamond Resorts, it’s still uncertain what will happen next for current contract-holders. Regardless of ownership, timeshares are a notoriously poor investment. You can consult any number of timeshare cancellation companies about getting out of your timeshare contract, but please consider contacting us first!