Hilton Grand Vacations (HGV) has announced its intent to acquire Bluegreen Vacations (BVH) in a $1.5 billion deal. The acquisition, aimed at attracting younger clientele and expanding the timeshare offerings of Hilton Grand Vacations, comes at a time when the industry faces challenges amid high inflation evolving travel patterns, and more informed consumers aware of timeshare pitfalls and lies.
The deal, structured to include debt, involves Bluegreen Vacations’ shareholders receiving $75 in cash for each share held, representing a significant premium over the stock’s closing price on Friday and valuing the company at $1.28 billion. This move is a strategic response to the changing dynamics of the travel industry, particularly in the wake of increased inflation affecting domestic travel in the United States.
Mark Wang, the CEO of Hilton Grand Vacations, emphasized the board’s unanimous approval of the deal, positioning Bluegreen as a quality strategic opportunity in the vacation property space. The acquisition is seen as a means to tap into a younger customer demographic, with approximately 75% of Bluegreen Vacations’ customer-owners belonging to Generation X.
“We’re excited that we’re going to be able to track a solid customer at an earlier stage in their life,” Wang stated, highlighting the company’s anticipation of capturing a new and dynamic market segment. Timeshares have been struggling in to connect to younger consumers due to the increased awareness of the pitfalls, highlighted by shows like South Park, SpongeBob Square Pants, and, most recently, a scathing segment on Last Week Tonight with John Oliver. Hilton Grand Vacations seeks to expand its reach along the U.S. East Coast and diversify its portfolio with outdoor and ski destinations to appear more attractive to potential owners.
The deal, expected to close in the first half of 2024, is projected to significantly boost Hilton Grand’s membership base from over 525,000 to more than 740,000. Additionally, the resort portfolio is set to expand from 150 to nearly 200 properties.
While the acquisition unfolds, it’s noteworthy that Hilton Grand Vacations has adjusted its 2023 adjusted core earnings forecast, reflecting a cautious approach in light of evolving economic conditions. The owners of timeshares are aging, and the industry wants to appeal to younger generations to stay alive, but with increased brand awareness, and the massive problems with timeshare ownership, the effectiveness of this acquisition is still uncertain. And for owners of either resort who have had enough and just want out you can contact The Timeshare Law Firm for a free case evaluation and Attorney advisement regarding the relevant jurisdiction and specific laws involved that are designed to protect timeshare consumers. You can get an appointment here: https://theabramsfirm.com/get-started/ or call us at (321)-224-1111
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