HGV agrees to purchase BlueGreen Vacations

[Mowogo]

What is the largest system left standing outside the big three (Marriott, HGV, Wyndham)?

I had felt fairly confident that Vacation Village was not likely to be absorbed into something else, but not so much anymore.

Yeah, this is pretty much putting a freeze on acquiring any more of their properties as I'm not sure who they are going to be swept up by. And right now, I'm still not convinced by HGV management that I can really want them taking over Vacation Village given the poor rollout of MAX.

 

[rickandcindy23]

This is a repeat.

 

[cdrusnret]

There are two locations in New Orleans, The Marquee and Club La Pension. I heard Marquee was nice, but I never visited. I stayed at La Pension, and while the location was convenient we had problems with the units. I say units because they had to move us after my wife turned on the shower and the shower head shot off of the wall at her. The unit they moved us to, the door lock malfunctioned before we could even move in and it took a couple of hours to fix. Plus both the common areas and units felt small and cramped, although they did have some interesting, funky N.O.-vibe decor.

La Pension also seems to have chronic hot water problems. I've only stayed at the Marquee and it was very nice, in great shape, a tremendous view from the roof patio, a roof swimming pool that is about hot tub sized, and a couple block walk to the French Quarter.

 

[dioxide45]

Correct, in Bluegreen you can exercise your Priority Use Period (PUP - the resort / room / week or partial week listed on your contract that underlies your points) from 13 months to 11 months and one day out. Doing so consumes those points. If you don't exercise your PUP, at 11 months you get the points deposited in your account.

I found this thread about Bluegreen. It seems very confusing with different trust types and such. What I don't understand is if you own in a Trust Type, do you also have access to a deeded week and unit or are those deeded week and units really from an older system that Bluegreen had before creating the new trusts?

 

[Daytripz]

I would love to stay at the Bass Pro Shops Big Cedar Lodge property. The resort is gorgeous. I can skip the lodge at the top of the Memphis pyramid - although that place stays booked months out - so it’s the right fit for someone.

 

[cdrusnret]

There are two locations in New Orleans, The Marquee and Club La Pension. I heard Marquee was nice, but I never visited. I stayed at La Pension, and while the location was convenient we had problems with the units. I say units because they had to move us after my wife turned on the shower and the shower head shot off of the wall at her. The unit they moved us to, the door lock malfunctioned before we could even move in and it took a couple of hours to fix. Plus both the common areas and units felt small and cramped, although they did have some interesting, funky N.O.-vibe decor.

La Pension also seems to have chronic hot water problems. I've only stayed at the Marquee and it was very nice, in great shape, lots of "funky N.O.-vibe decor" also, a tremendous view from the roof patio, a roof swimming pool that is about hot tub sized, and a couple block walk to the French Quarter. La Pension (as you know) is on the French Quarter.

Looks like HGV is taking a different approach than Delta. Delta has really been focused on the Delta 360, first class passenger folks, where HGV seems to be more focused on the Bass Pro Shop/NASCAR crowd.....not that the two crowds don't intersect but probably a very small intersection of the Venn diagram.

Bluegreen makes a big deal about their NASCAR events, especially the Daytona 500 since they have multiple resorts on Daytona and Ormond beach. Every time I've gone to The Fountains in Orlando there has been a NASCAR race car on display outside the clubhouse.

 

[Zenichiro]

there was a comment on the BG Facebook page. Apparently BG owners received an email stating this is to expand HGV Max. Not that we didn’t expect this but

 

[brp]

La Pension also seems to have chronic hot water problems. I've only stayed at the Marquee and it was very nice, in great shape, lots of "funky N.O.-vibe decor" also, a tremendous view from the roof patio, a roof swimming pool that is about hot tub sized, and a couple block walk to the French Quarter. La Pension (as you know) is on the French Quarter.

Since neither is close to the Fairgrounds, this would not work as well for out main NoLA annual visit. But could be good for other stays.

Cheers.

 

[dioxide45]

Bluegreen makes a big deal about their NASCAR events, especially the Daytona 500 since they have multiple resorts on Daytona and Ormond beach. Every time I've gone to The Fountains in Orlando there has been a NASCAR race car on display outside the clubhouse.

Bluegreen is the official vacation ownership partner of NASCAR. They are even title sponsors of a pre-season qualifying event in Daytona. I am sure they are paying a lot of money for this so it makes sense they are making a big deal out of it.

Bluegreen Vacations Extends NASCAR® Agreement

BOCA RATON, Fla., February 15, 2023--BLUEGREEN VACATIONS EXTENDS NASCAR® AGREEMENT

finance.yahoo.com

 

[Jeddy]

HGV buys out Bluegreen (BVH). Hilton paid a 100% premium over the market price for the stock ($37 -> $75), so it seems that Hilton sees considerable value in the BVH real estate holdings. Thinking like an investor, Hilton seems to figure that inflation will stay persistent for the next few years, and that real estate (land and buildings) is a better investment than the stock market or buying back its own shares.
Old investment saying: They ain't making any more land.
As a Bluegreen VOI owner, I'm waiting for the announcement from BVH about what this deal means to me.

 

[dioxide45]

As a Bluegreen VOI owner, I'm waiting for the announcement from BVH about what this deal means to me.

I doubt it means much unless you make a new developer purchase to get access to HGV Max. For prior Diamond owners, there is really no change other than a new name on some of the resorts.

 

[escanoe]

If Hilton forces owners of BG managed resorts to use RCI, I will dump that week.

I will bet you are safe on this front for a while. No reports of HGV doing anything to take II away from the DRI owners that have access to it.

 

[cdrusnret]

I found this thread about Bluegreen. It seems very confusing with different trust types and such. What I don't understand is if you own in a Trust Type, do you also have access to a deeded week and unit or are those deeded week and units really from an older system that Bluegreen had before creating the new trusts?

Deeded week owners own timeshares that pre-date the creation of the points system. There relatively few of them left, but they don't have Right of First Refusal so continue to trade unless sold through Bluegreen's authorized resaler, Pinnacle Vacations, where buyer & seller sign a contract that allows Bluegreen to exercise ROFR on the deeded week. For the points owners there are a number of different Trust Funds, but the vast, vast majority are in Trust Fund E. The trust fund type dictates how maintenance fees are calculated. Points owners have their points underwritten by deeds that are in the trust fund. You can utilize that deed in exchange for not getting those points that year.

 

[rickandcindy23]

I wonder how Hilton will treat deeded week owners in resorts that are managed (badly) by Bluegreen. We have seen huge fee increases and special assessments at Blue Ridge Village, NC, since Bluegreen took over management. It's been terrible for us as owners, but we only own the one week, which I am keeping for now because it trades into DVC through II (even the 2 bedrooms). If Hilton forces owners of BG managed resorts to use RCI, I will dump that week.

I am hoping the fees stop increasing. Right now, the fees on our 2 bedroom are higher than our two bedrooms at Sheraton Broadway Resort in Myrtle Beach. Myrtle Beach is very rentable, even away from the ocean, but BRV is not rentable for even MF's.

Wyndham has quite a few so-so properties, but in locations no other company has wanted to be. Think Pagosa Springs, a town that was nothing when Fairfield started building. It was in nowheresville in the 1980's, and we know because we toured it. Now it is a booming area and very expensive. We watched this transition with awe. But then there is Fairfield Bay, AR, a place still in the boonies. And of course the Fairfield in Villa Rica, GA, which is truly an old property in need of updated. All are Wyndham, which started as Fairfield.

It can very greatly from property to property. Some are in fantastic shape and are great quality. Others, not so much.

 

[dioxide45]

I will bet you are safe on this front for a while. No reports of HGV doing anything to take II away from the DRI owners that have access to it.

Generally once a week is affiliated with an exchange company, they can't take it away. The only way it could be lost if the week was enrolled into some type of system or internal exchange program. Look at the small number of Marriott resorts still able to exchange through RCI.

 

[DRIless]

Hilton Grand Vacations to Acquire Bluegreen Vacations

Hilton Grand Vacations to Acquire Bluegreen Vacations

www.businesswire.com

Not sure what to think of this. With the exception of a rumor, this out of nowhere. I really don’t think this will effect us much, but maybe a merger with the HVC/ DRI system?

I’m not sure how this will even work.

HGV Agrees to Purchase BlueGreen Vacations

https://www.businesswire.com/news/home/20231105290916/en/Hilton-Grand-Vacations-to-Acquire-Bluegreen-Vacations Huge news. Welcome to HGV. Interested to see how this all works out. Link to the HGVC forum: https://tugbbs.com/forums/threads/hgv-agrees-to-purchase-bluegreen-vacations.358096/

tugbbs.com

HGVC acquisitions rumors

A few years back there was some talk of Diamond purchasing Bluegreen, it didn't happen. I've heard that HGVC is looking to purchase Bluegreen.

tugbbs.com

Well, I called this on 19Oct2023 and all anyone on TUG did was make snide comments and nonsense posts.

From Mark Wang President & CEO Hilton Grand Vacations

At Hilton Grand Vacations, we believe an important part of what makes us different is our passion for creating new and exciting travel experiences. Whether it’s a Member or Owner who joins us again and again at their favorite travel destination or jumps at an incredible experience through HGV Ultimate Access, we love to provide you with more options to explore on each and every trip.

For us, it’s about finding the people who share our love for adventure and bringing them the unique and exceptional moments that make the journey. That’s why I’m excited to share we’ve found a partner who will help us take an important step forward in the experiences we offer.

Today we’re announcing our plans to acquire Bluegreen Vacations, expanding HGV’s offering with the addition of 48 managed resorts in 14 new destinations such as Nashville, New Orleans, San Antonio and Vail, and in eight new states. The acquisition will bring our new total Members to over 740,000 worldwide.

Why It Matters

With Bluegreen Vacations, we will enhance our spirit of experiences with new partners and broaden our HGV Ultimate Access platform. This includes entering into a new, long-term exclusive marketing agreement and joint venture with Bass Pro Shops as its official vacation ownership provider, which includes four wilderness lodges.

Further, by adding Bluegreen Vacations to the HGV family, Members with HGV Max benefits will have access to more vacation options across an even larger portfolio — from 150 resorts to nearly 200 properties — as opportunities to make reservations across the combined portfolio become available.

What It Means

Our combination with Bluegreen Vacations isn’t just another acquisition — it’s a milestone for HGV’s future. With Bluegreen Vacations, we’ll move into a new space, transforming our business from a leader in the vacation ownership industry to a leader in premier travel experiences that build on our proud legacy of adventure, innovation and exploration.

While integrating Bluegreen Vacations will be a multi-year, phased initiative, you will continue to receive the same level of service you’ve come to expect from us, and access to your vacation ownership, usage rights and membership will stay the same. In addition, we’ll never stop striving to improve our offerings and services to all Owners and Members as we move forward with the acquisition and after.

Why Bluegreen Vacations

I also believe acquiring Bluegreen Vacations is the right decision because of their commitment to quality and service. Like us, Bluegreen Vacations is guided by its core values and is passionate about acting with excellence, integrity and trust. Together, I firmly believe that we’ll create an even stronger HGV culture of hospitality and care for our Owners, Members, Guests and Team Members.

Next Steps

Today is an exciting moment, and it’s the first step in this journey. For more information, you can read the announcement press release and the Frequently Asked Questions below.

This process will take time and is subject to regulatory approvals and customary closing conditions. We anticipate closing in the first half of 2024. Until then, both organizations will continue to remain two independent, public companies.

Through the acquisition of Bluegreen Vacations, we have the chance to start a new adventure, explore new partnerships and bring new travel options to you — our loyal Owners and Members. I can’t wait for what’s ahead.

Mark Wang
President & CEO
Hilton Grand Vacations

+ Frequently Asked Questions

About the Acquisition
1. Why is Hilton Grand Vacations acquiring Bluegreen Vacations?
Hilton Grand Vacations’ acquisition of Bluegreen Vacations unites two highly complementary businesses, further enhancing our vision to become a premier vacation ownership and experiences company and growing to over 740,000 Members worldwide. We remain committed to providing our Owners and Members with a diverse range of vacation options to last for generations, in addition to premier exclusive events and travel experiences:
More Vacation Options
By adding Bluegreen Vacations to the HGV family, Members with HGV Max benefits will have access to more vacation options in the future across an even larger portfolio — from 150 resorts to nearly 200 properties — as opportunities to make reservations across the combined portfolio become available.
More Destinations
Bluegreen Vacations 48 managed resorts will add 14 new destinations and eight new states — Louisiana, Massachusetts, Michigan, New Hampshire, Pennsylvania, Georgia, Texas and Wisconsin — while continuing to expand our resort portfolio in states like Colorado, Florida, Missouri, North and South Carolina and Tennessee.
Unparalleled Service and Access
While integrating Bluegreen Vacations into the HGV family will be a multi-year, phased initiative, you will continue to receive the same level of service you’ve come to expect from us, and access to your vacation ownership and membership will stay the same. In addition, we’ll never stop striving to improve our offerings and services to all Owners, Members and Guests as we move forward with the acquisition.
2. When will the acquisition take place?
HGV’s agreement to acquire Bluegreen Vacations is anticipated to close during the first half of 2024, pending all necessary and required approvals and customary closing conditions.
3. Will HGV remain a publicly traded company?
HGV will continue to be traded on the New York Stock Exchange (NYSE) under the ticker symbol “HGV.”
Timeshare Ownership
4. Will the acquisition of Bluegreen Vacations affect Owners and Members?
Your vacation ownership and access rights will stay the same. Owners and Members also will continue to have access to their existing resort exchange and/or membership programs. As cross-booking opportunities become available, HGV Max Members will have access to more resorts across the larger portfolio without having to make an additional purchase. Members who are not part of HGV Max still have the option to join the program through an additional purchase or enjoy the many features and benefits of their existing Club membership.
5. I’m an HGV Max Member. Will I have to make a new purchase to access Bluegreen Vacations resorts?
Members with HGV Max benefits will not have to make an additional purchase to access Bluegreen Vacations resorts that become part of the larger portfolio and as cross-booking opportunities become available.
6. Will Bluegreen Vacations resorts become available to Members without HGV Max benefits?
Bluegreen Vacations resorts that become part of the larger HGV portfolio will be available for booking to Members with HGV Max benefits only. Members who are not part of HGV Max still have the option to join the program through an additional purchase or enjoy the many features and benefits of their existing Club membership.
7. Will the terms of my current timeshare ownership change? Will my 2024 fees go up due to the acquisition?
Your vacation ownership will remain the same and you will continue to make reservations the same way you do now. There will be no changes to any 2024 Club Dues, Resort Dues, maintenance fees or management charges because of the acquisition. While 2024 fees and dues have increased in some areas, these changes were the result of external factors, such as higher insurance, external labor costs and property taxes, which are unrelated to the acquisition.
8. Will I be able to merge my ownership interests?
Each company’s vacation ownership interests cannot be merged. Access to your timeshare will stay the same.
9. Can I transfer my existing timeshare ownership to Bluegreen Vacations?
Each company’s vacation ownership interests cannot be transferred. Access to your timeshare will stay the same.
10. Will HGV buy my Bluegreen Vacations timeshare?
HGV is unable to buy any timeshares from Bluegreen Vacations Members. Access to your vacation ownership will stay the same.
11. Will HGVClub, The Club or Extraordinary Escapes Members automatically become part of Bluegreen Vacations Member program?
No; your Member program affiliation will stay the same and all the features and benefits you enjoy today, as well as access to your vacation ownership, will not change. Bluegreen Vacations resorts that become part of the larger HGV portfolio will be available in the future for booking to Members with HGV Max benefits only. Members who are not part of HGV Max still have the option to join the program through an additional purchase or enjoy the many features and benefits of their existing Club membership.
12. Will HGV continue to sell deeded and trust products?
HGV will continue to sell its deeded and points-based trust products as it does today. If new membership products become available in the future, we’ll be sure to communicate these with you.
Inventory Availability, RCI & Destination Xchange Access
13. Will the acquisition impact inventory availability?
You will continue to access available inventory the same way you do now. To access inventory that is not owned or managed by HGV, you will need to do so through RCI or Destination Xchange, based on your existing resort exchange and the rules of the respective membership programs. As cross-booking opportunities become available, HGV Max Members will have access to more resorts in the future across the larger portfolio without having to make an additional purchase. Members who are not part of HGV Max still have the option to join the program through an additional purchase or enjoy the many features and benefits of their existing Club membership. As always, Members are encouraged to book as far out as reservation windows allow. Please refer to your membership program rules for more details.
14. Can I use my points to access Bluegreen Vacations resorts?
Currently, you may access Bluegreen Vacations resorts through RCI or Destination Xchange. As cross-booking opportunities become available, HGV Max Members will have access to more resorts across the larger portfolio without having to make an additional purchase. Members who are not part of HGV Max still have the option to join the program through an additional purchase or enjoy the many features and benefits of their existing Club membership.
15. Will Bluegreen Vacations resorts be available to book through rental sites like Hilton.com, Hilton Grand VacationsResortsandHotels.com or our Member websites?
For the time being, Bluegreen Vacations resorts will continue to be available for rental reservations in the same way they are now. As Bluegreen Vacations resorts are rebranded under the HGV umbrella, they will be available for rental on Hilton.com. Also, as cross-booking opportunities become available, HGV Max Members will have access to more resorts across the larger portfolio without having to make an additional purchase. Members who are not part of HGV Max still have the option to join the program through an additional purchase or enjoy the many features and benefits of their existing Club membership.
16. I’m thinking of joining HGV Max. How will this impact my purchase?
Bluegreen Vacations resorts will be available in the future to Members with HGV Max benefits. Current HGV Max Members will not have to make an additional purchase to access these resorts in the future. HGV Max Members will have access to more vacation options across the larger portfolio — from 150 resorts to nearly 200 properties — as cross-booking opportunities are available.
17. I heard that you’re working with Bass Pro Shops as part of the acquisition. What does this mean for Members?
We will keep you informed as more details become available. Please stay tuned.
Relationship With Hilton
18. Will HGV’s relationship with Hilton change, including Hilton Honors Points conversions?
Our existing long-term agreement with Hilton remains, including access to more than 7,200 resorts and hotels globally. HGVClub Members and those with HGV Max benefits also will continue to have the option to convert their points to Hilton Honors Points at the current ratios, based on the rules of their membership program. For details, please review the rules of your membership program, which are available on your Member website.
19. Will HGV retain the Hilton brand?
Hilton Grand Vacations will remain one of Hilton’s many brands. The Hilton values and standards are cornerstones of our business and critical to our future success.
Brand Standards
20. Will Bluegreen Vacations resorts meet HGV’s brand standards?
Over time, the vast majority of Bluegreen Vacations resorts will be rebranded into the HGV family of brands. The rebranding of Bluegreen Vacations resorts will take place over a phased, multi-year period. We will communicate details about any rebranding efforts as they are finalized.
Updates & Communications
21. How will I be notified of upcoming changes?
As details are finalized, we will communicate with Owners and Members to keep you informed along the way. HGV will continue to leverage existing communication channels, including updates via email, Member website notifications and announcements posted in our Club Traveler newsletter.
22. Who can I contact with additional questions or concerns related to the acquisition?
Once the acquisition closes and as details are finalized, we will communicate with Owners and Members to keep them informed.

 

[rickandcindy23]

Generally once a week is affiliated with an exchange company, they can't take it away. The only way it could be lost if the week was enrolled into some type of system or internal exchange program. Look at the small number of Marriott resorts still able to exchange through RCI.

I am always watching for these Marriott resorts in RCI. I am tired of the fees RCI allows exchangers to be charged at check-in and Marriott doesn't do that. Trying to use up my trading power in RCI. I still have enough TPU's to book at least 20 weeks.

 

[dioxide45]

HGVC acquisitions rumors

A few years back there was some talk of Diamond purchasing Bluegreen, it didn't happen. I've heard that HGVC is looking to purchase Bluegreen.

tugbbs.com

Well, I called this on 19Oct2023 and all anyone on TUG did was make snide comments and nonsense posts.

Well, when you don't indicate your source. you are going to get stuff like that. It also isn't that you called it, you apparently were told this by someone else who "called it".

 

[cdrusnret]

Aruba has a green dot. That must mean something different and harder to book?

Green dots are Associate resorts, not managed by Bluegreen, where Bluegreen owns a limited number of rooms. You can still book there using points in the same process you book at a Bluegreen resort. Many associate resorts have a very limited number of rooms in the Bluegreen Vacation Club. Bluegreen has a relatively large number of rooms at the La Cabana Beach and Racquet Club in Aruba compared to some other associate resorts.

 

[cdrusnret]

there was a comment on the BG Facebook page. Apparently BG owners received an email stating this is to expand HGV Max. Not that we didn’t expect this but

I haven't received that email yet, and there are no announcements on the owner website.

 

[CalGalTraveler]

I am shocked this was an all cash deal. At double the price in the stock market. They could have made this a stock or partial stock deal and kept their cash powder dry for renovations.

Could be properties but also fresh sales meat. Management fees and rental potential on Hilton.com also add to the topline. Perhaps they envisioned synergies in property management. They are very efficient IMO and this is a strength. Nascar and Bass Pro also adds to their entertainment platform

 

[cd5]

Aruba has a green dot. That must mean something different and harder to book?

La Cabaña Beach Club, across the road from Eagle Beach. Beautiful beach and resort is a great location, short bus ride to Palm Beach where all the bigger players are (Marriott, etc). The rooms are nothing special. Weird floor plans and not been reno'd for many years. Location is what it's got going for it. Not too hard to book on an exchange.

 

[dioxide45]

Well, HGV stock is down about 10% while Bluegreen is up over 100%. Seems kinds normal in these types of situations. I just don't understand why HGV would pay such a premium. Perhaps there were others interested and it became a bidding war.

 

[Jeddy]

Here's my guess: the closing is 'estimated' to take place 1H2024, so it makes sense that BG will continue to operate as a 'wholly own subsidiary' of HGV for about a year, until HGV management gets a hands-on sense for the BG business.
So I would expect to see any changes in the BG VOI ownership terms &tc kick in in 2H2024 or 1H2025.

 

[Jeddy]

Well, HGV stock is down about 10% while Bluegreen is up over 100%. Seems kinds normal in these types of situations. I just don't understand why HGV would pay such a premium. Perhaps there were others interested and it became a bidding war.

My guess: HGV saw value of BVH real estate holdings, looked at interest rates and inflation, and decided to 'bulk up' its RE portfolio.
Old investment saying: Buy land; they ain't making any more of it.