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Apollo Group looking to buy HGVC [Merged]

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Tamaradarann

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@Tamaradarann What data have you seen that supports that this has had a negative effect on the HGVC timeshare sales?

IMHO we are getting WAAY over our skis based on a tabloid rumor article. I'll bet these companies talk all the time about acquisition possibilities. This may be no different except it got leaked to the street.

I don't have any data. Just like with the Stock Market uncertainty is not good for market. I got this feeling in conversations with other HGVC timeshare owners one that said they were thinking about buying but would wait, another that said that maybe it is good that we got out of HGVC, others that said that they were thinking about selling.
 

escanoe

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He is all man spread during his infomercial too. You know it is an infomercial too by the footage of the timeshares showing while they are speaking in studio. Real news does not do that. IM<HO
 

CalGalTraveler

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He is all man spread during his infomercial too. You know it is an infomercial too by the footage of the timeshares showing while they are speaking in studio. Real news does not do that. IM<HO

LoL...he slouched too. Looked more like a sales guy trying to be cool instead of a serious CEO.

Although interviewer asked about resale values it felt scripted and insincere.
 
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mrharris03

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dayooper

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HGV shares just shot up intraday to a new 52-week high. Did some quick searching It is being reported that HGV is exploring “strategic alternatives,” including a potential sale, and have hired investment bankers to assist in the process.

https://m.nasdaq.com/article/hilton...le-following-takeover-interest-20190829-00726

Interesting. There’s definitely smoke around something happening. Besides a potential sale, I wonder what the alternatives are? Any ideas?
 

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My guess is some kind of going private transaction. Reuters is also picking up the story I linked. Preliminary bids have purportedly been requested to be submitted in September. A pure-play PE firm taking HGV private is preferable (IMO) to some sort of DRI-related merger, given the already-discussed risks to the Hilton long-term license agreement (which has to be driving some of the value for HGV).
 

dayooper

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That Hilton license was the thing that gave me pauses the DRI takeover. I wonder if there is another alternative to a sale that’s eluded to in the article.
 

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According to the license info posted previously, they would lose their Hilton license if merged or acquired by MVC et al and Wyndham. Diamond, DVC, Bluegreen not listed.
 
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escanoe

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According to the license info posted previously, they would lose their Hilton license if merged or acquired by MVC et al and Wyndham. Diamond, DVC, Bluegreen not listed.

My main take away from the legal language posted earlier on the licensing agreement is that it makes Hilton a stakeholder in negotiating any merger IF the new entity wants much assurance that they can keep the Hilton branding.
 

JIMinNC

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My main take away from the legal language posted earlier on the licensing agreement is that it makes Hilton a stakeholder in negotiating any merger IF the new entity wants much assurance that they can keep the Hilton branding.

That was my take as well. If Hilton Corp thought a "merger" with Diamond in some fashion would harm its brand, they could require that the Hilton name be removed. So, any potential deal would have to consider that possibility and, if they want to keep the Hilton brand, insure that Hilton is on board.
 

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IMO...Even though Diamond has some nice properties and decent local management which could add to the HGV portfolio, Diamond's smarmy corporate management reputation and stories I am hearing about how poorly it treats customers concerns me.

It gives me comfort that Hilton Hotels could say no to protect their brand.

Of course a new entity could operate without the Hilton brand, but I doubt Hilton would tolerate non-Hilton brands operating inside it's flagship resorts and hotels such as HHV, Midtown Manhattan, Waikoloa/Ocean Towers, the District/Embassy Suites, Chicago, Hilton Cabo etc. The hotel side will have a large say in the outcome because they hold the license key (aka value) to the deal and will not want to risk their excellent brand reputation with any player who could poison the well.
 
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CalGalTraveler

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BTW...I hope none of these scenarios happens. Love HGVC as it is today :( and hope Blackstone and Hilton Hotels can help preserve with HGV management in charge.
 
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escanoe

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Based on what we have seen and heard and the Reuter's story -- I am at least at 85% certain that HGV is going to be bought by someone. I think that the market believes that it has more value as part of something else than by itself. Apollo for sure read all of the licensing language from the public filings before making a bid and has some strategy they are confident can be used to overcome related concerns. At the end of the day he who makes the biggest offer is who is likely to own HGV. HGV management MAY still be in charge after the merger, and whoever may buy it will intend to create more value of what exists. If current owners are treated poorly, they will have a greater challenge making the value of their investment grow. I am not thrilled about this, but far from panic ... and there is some possibility we may eventually better off.
 

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October will be an interesting month. Marriott announces their plans for their Vistana program integration on Oct 4. HGV may have a new direction too. HGV will have to figure this out quickly because FUD will cause buyers to hold off on plans and Wall St. won't tolerate a hiccup in sales.
 

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October will be an interesting month. Marriott announces their plans for their Vistana program integration on Oct 4. HGV may have a new direction too. HGV will have to figure this out quickly because FUD will cause buyers to hold off on plans and Wall St. won't tolerate a hiccup in sales.

Having an "owner's update" this coming Sunday as part of a bounceback offer will be interesting. Will certainly be easy to shorten the presentation based on the FUD, even without the "end my presentation early" t-shirt that I'll be wearing.

Cheers.
 

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@brp Yep FUD is a great way to get out of a preso especially now that it is documented in the press. Let us know if you learn anything new about the NYC properties including the Quin and whether the Hilton Cabo property will be bHC.
 

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This article confirms the veto power of Hilton hotels:

..."These agreements would give Hilton a veto on any sale of the company it would deem detrimental to its brands."

Does Hilton own a stake in HGVC? If not, Hilton Hotels will be impartial to any offer because they don't benefit financially from selling, so the highest bidder may not necessarily be the winner. They will evaluate it from a brand reputation, hotel synergy and licensing revenue stream perspective.

This impartiality could be good for owners unless the buyer pays the Hotel side off handsomely to counter brand or operational concerns. For example, bringing some or all of the Diamond properties under the Hilton brand could translate into more licensing revenue for the Hotels. Despite this, Hilton will pay particular attention to the brand effect at shared landmark hotels and resorts. It will also cost money to bring Diamond properties up to the Hilton brand standard.

How this 3-way deal will be structured will be interesting. Sure Apollo could acquire the shares on the open market, but without the blessing of Hilton Hotels and attracting HGVC management to fix Diamond, they won't get the reputational boost and brand/lead multiplier Apollo needs to get the Diamond albatross off their neck.
 
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I have not read one review on the DRI site that talks about the wonderful experiential experiences with music and baseball training camp, that this Mr. Slick talks about. I sure hope HGVC doesn't fall into his hands.

Timeshare companies have offered mini-vacation (like 3-day, 2-night) packages for a long time. As we all know they're a marketing tool to funnel people into sales centers. The Diamond entertainment events are similar. Most of them are offered at a discounted price (like the mini-vacations) and a sales presentation is mandatory (otherwise the person is charged full retail value of the event).
 

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Timeshare companies have offered mini-vacation (like 3-day, 2-night) packages for a long time. As we all know they're a marketing tool to funnel people into sales centers. The Diamond entertainment events are similar. Most of them are offered at a discounted price (like the mini-vacations) and a sales presentation is mandatory (otherwise the person is charged full retail value of the event).

Indeed. We leave tonight for one of these in NYC. Great deal for a NYC stay and worth the 15-30 minutes that the presentation will last, plus the 200 ER dollars :)

These can be quite nice as we've done several across TS companies.

Cheers.
 

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I don't have any data. Just like with the Stock Market uncertainty is not good for market. I got this feeling in conversations with other HGVC timeshare owners one that said they were thinking about buying but would wait, another that said that maybe it is good that we got out of HGVC, others that said that they were thinking about selling.
More HGVC list

https://www.cnbc.com/2019/08/29/hil...-following-takeover-interest-sources-say.html
 
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