DRI purchased by Apollo Global Management, LLC

johnrsrq · Jun 29, 2016

http://quotes.wsj.com/DRII

lucky lucky lucky dogs

nightnurse613 · Jun 29, 2016

Diamond Resorts International purchased by Apollo Global Management, LLC

From the DRI Website:
Dear Members and Owners,

Today we announced that we have entered into a merger agreement under which an affiliate of Apollo Global Management, LLC will acquire Diamond Resorts International, Inc. We wanted to reach out to you directly to assure you that this transaction will not impact your membership or ownership in any way and you may continue to look forward to a lifetime of vacation experiences with us. Our top priority remains providing our members and owners with the unparalleled vacation experiences they have come to expect, and we will continue to deliver exceptional hospitality.

We look forward to seeing you on your next vacation.

Stay happy, Stay healthy and Stay Vacationed.™

Sincerely,
Diamond Resorts International®

Diamond Resorts International®, 10600 West Charleston Boulevard, Las Vegas, NV 89135 USA

TheWizz · Jun 29, 2016

I received the same email. I just recently started the process to deed-back my three weeks I own. I sure hope this doesn't put the brakes on that... :ponder:

RLS50 · Jun 29, 2016

As a former Gold Key owner I must say I am cautiously optimistic on this announcement. I know a number of former Gold Key owners like myself that have been shocked at how slowly and poorly the takeover by Diamond has progressed and at how inadequate and lacking the Diamond internal customer support processes appear to be compared to other major brands (i.e. Marriott).

eggmansr71 · Jun 29, 2016

johnrsrq said:
http://quotes.wsj.com/DRII

lucky lucky lucky dogs

Why are they lucky with this? I'm genuinely curious.

VegasBella · Jun 29, 2016

duplicate thread
http://tugbbs.com/forums/showthread.php?t=243618

tleonard · Jun 29, 2016

Hi, Do we know anything about this Apollo Global Management, LLC ?

RLS50 · Jun 29, 2016

tleonard said:
Hi, Do we know anything about this Apollo Global Management, LLC ?

http://www.forbes.com/sites/nathanv...es-and-outmaneuvering-creditors/#268f66c6356d

Hard to say what happens going forward. Apollo is a private equity asset conglomerate, not a travel or timeshare management focused company. Interesting enough it was discussed here in the DRI forum back in Jan / Feb that Diamond's major shareholders were putting pressure on DRI management to do something to unlock the PPS value because they felt the value of the individual parts of DRI was greater than the sum.

So is this a move to transfer to Apollo who may see a way to double their investment in the DRI "asset" by breaking it up and selling off pieces to other companies?

It will be interesting to see what happens going forward.

pedro47 · Jun 29, 2016

Purchased price was 2.2 billion dollars.

pedro47 · Jun 29, 2016

Press Release from Wall Street Journal @ 11:09 AM.. Rigrodsky & Long, P.A. Announces Investigation of Buyout.

clifffaith · Jun 29, 2016

TheWizz said:
I received the same email. I just recently started the process to deed-back my three weeks I own. I sure hope this doesn't put the brakes on that...

We've been sitting on the deed-back paperwork since March, at DRI's suggestion that it didn't really need to be returned in 30 days, to safeguard a family get together in Santa Fe the third week of July. One of our chores after the 4th of July holiday is to get over to our financial advisor's office to get the paperwork notarized so we can send it off immediately upon our return. Of course we have concerns that the change will have a negative impact on us. Think we'll go ahead and submit it next week, figuring if we have to buy hotel rooms for family members that would be a small price to pay for having the paperwork completed early, although I figure it will really take several months before our forms rise to the top of the pile.

bnoble · Jun 29, 2016

RLS50 said:
So is this a move to transfer to Apollo who may see a way to double their investment in the DRI "asset" by breaking it up and selling off pieces to other companies?

That would be hard to do; what happens with The Club owners who currently have access to all of the individual pieces?

TUGBrian · Jun 29, 2016

this would explain all of the financial "scrutiny" we saw about DRI over the past 18 months or so....

RLS50 · Jun 29, 2016

bnoble said:
That would be hard to do; what happens with The Club owners who currently have access to all of the individual pieces?

It may be impossible to do, so you might be correct. Maybe they just wanted to take the whole enterprise private? I think Apollo has controlling interest in Norweigan and at one time Great Wolf Lodge (which they later flipped), so maybe they keep the entire thing under their umbrella or maybe they sell off when the right offer comes along? Hard to say really.

Xolodno · Jun 29, 2016

RLS50 said:
It may be impossible to do, so you might be correct. Maybe they just wanted to take the whole enterprise private? I think Apollo has controlling interest in Norweigan and at one time Great Wolf Lodge (which they later flipped), so maybe they keep the entire thing under their umbrella or maybe they sell off when the right offer comes along? Hard to say really.

I suspect they have no intention of keeping any business they acquire long term. Its first and foremost an investment company. But like you inferred, breaking up Diamond would be a huge legal and costly nightmare. Plus doesn't make any sense, company probably is more valuable on the whole. Furthermore, any company buying one of the collections knows the TS owners will be pissed for losing access to the rest of the resorts and are more likely to walk away than pay those maintenance fees.

Do they still own a chunk of Caesars? If its ready to emerge from Chap 11, I could easily see them folding that together and selling it as a package. Maybe having Diamond in the portfolio will alleviate the loss they have on Caesars?

Bill4728 · Jun 29, 2016

IMHO If another TS company had bought DRI then that might be news BUT if some investment company buys DRI, I'd guess that all that is going to happen is the owners will get paid and nothing else will change at DRI.

jeffrapp · Jun 29, 2016

DRI was acquired

I just received this email:

Dear Members and Owners,

Today we announced that we have entered into a merger agreement under which an affiliate of Apollo Global Management, LLC will acquire Diamond Resorts International, Inc. We wanted to reach out to you directly to assure you that this transaction will not impact your membership or ownership in any way and you may continue to look forward to a lifetime of vacation experiences with us.

Does anyone know anything about this?
Is it likely their statement bout nothing changing is true?
Does anyone know if DRI is still accepting deed backs?
Thanks!

ronparise · Jun 29, 2016

Apollo Global Management, LLC and its subsidiaries ("Apollo") is a leading global alternative investment manager. We are contrarian, value-oriented investors in private equity, credit and real estate, with significant distressed expertise. We operate our businesses in an integrated manner which we believe distinguishes us from other alternative investment managers. We have applied this investment philosophy over our 26-year history, deploying capital across the balance sheet of industry leading businesses, and seeking to create value for our investors throughout economic cycles.

so I would expect any changes to be changes that will benefit Apollo's investors

jeffrapp · Jun 29, 2016

ronparise said:
Apollo Global Management, LLC and its subsidiaries ("Apollo") is a leading global alternative investment manager. We are contrarian, value-oriented investors in private equity, credit and real estate, with significant distressed expertise. We operate our businesses in an integrated manner which we believe distinguishes us from other alternative investment managers. We have applied this investment philosophy over our 26-year history, deploying capital across the balance sheet of industry leading businesses, and seeking to create value for our investors throughout economic cycles.

so I would expect any changes to be changes that will benefit Apollo's investors

Thanks for the reply.
I was concerned about any changes that may impact DRI members, not Apollo's investors.

ronparise · Jun 29, 2016

jeffrapp said:
Thanks for the reply.
I was concerned about any changes that may impact DRI members, not Apollo's investors.

I was thinking raising the management fee and cutting services, would impact the DRI owners and benefit the investors

bogey21 · Jun 29, 2016

ronparise said:
........so I would expect any changes to be changes that will benefit Apollo's investors

Agree 100%. Guys like this have a singular purpose;i.e. to maximize their own bottom lines.

George

RLS50 · Jun 29, 2016

ronparise said:
I was thinking raising the management fee and cutting services, would impact the DRI owners and benefit the investors

I am not sure how much more DRI can do that? They already have entire owner support departments that are so understaffed that you can never reach them on the phone or by email, and not even get the promised callback in 24-48 hours...even trying for days or weeks at a time.

In my opinion DRI already provides the least value added owner services and communication while at being one of the most expensive in costs of any timeshare company we currently own with. Could it get worse?

kathi · Jun 29, 2016

Do others have the sense that the DRI fees will increase?

johnrsrq · Jun 29, 2016

rescue remedy

eggmansr71 said:
Why are they lucky with this? I'm genuinely curious.

because their stock price bounced from a downward spiral and exit plan revealed.

Now, those pesky filings and external pressures will be reduced.

I expect no change to fees or operations as a result of this. Good for those who held including the Chinese.

johnrsrq · Jun 29, 2016

one last thought

thinking out loud it (which can be dangerous).....

there's probably a due diligence period when Apollo looks at the books and all things financial. I wonder if there's any unreported significant material fact which would cause a rethink. I guess those private equity guys know what they getting... or do they. The joys of being public.

DRI purchased by Apollo Global Management, LLC

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