Hilton Grand Vacations Inc. has recently released its 10-Q report, detailing its operations and financial performance. The company, founded in 1992 and headquartered in Orlando, Florida, is primarily engaged in developing, marketing, selling, managing, and operating timeshare resorts, timeshare plans, and ancillary reservation services under the Hilton Grand Vacations brand. It operates through two segments: Real Estate Sales and Financing, and Resort Operations and Club Management.
In the 10-Q report, Hilton Grand Vacations Inc. disclosed that it completed the acquisition of Bluegreen Vacations Holding Corporation on January 17, 2024. As of June 30, 2024, the company boasts approximately 200 properties located in the United States, Europe, Mexico, the Caribbean, Canada, and Asia. The report also highlighted the company's efforts to rebrand many of the Diamond properties and its anticipation of rebranding the majority of Bluegreen properties to the Hilton Grand Vacations brands and Hilton standards.
The Real Estate Sales and Financing segment of the company offers deeded vacation ownership intervals and interests (VOIs) and trust VOI products. Hilton Grand Vacations Inc. sources VOIs through developed properties and fee-for-service and just-in-time agreements with third-party developers. The company also provides financing for members purchasing its developed and acquired inventory and generates interest income on the loans. As of June 30, 2024, the estimated contract sales value related to the inventory available for sale was $12.8 billion at current pricing.
The report also detailed the company's marketing and sales activities, which include targeted direct marketing and a highly personalized sales approach. Hilton Grand Vacations Inc. sells its vacation ownership products primarily through its distribution network of both-in-market and off-site sales centers, with approximately 100 sales distribution centers in various domestic and international locations. The company's marketing and sales activities also include marketing relationships with nationally-recognized consumer brands, such as Bass Pro and Choice Hotels, as a result of the Bluegreen Acquisition.
The 10-Q report also provided insight into the company's financing propensity, interest rates on loans, and the quality of tour flow, which impacts key metrics such as close rate and volume per guest (VPG). The report highlighted that for the six months ended June 30, 2024, 71% of the contract sales were to existing owners, and the financing propensity was 65%.
As a result of these announcements, the company's shares have moved -7.1% on the market, and are now trading at a price of $35.77. If you want to know more, read the company's complete 10-Q report here.
