HGV Third Quarter 2019 Results

[Mizzou39]

Just keep in mind that those acquisitions were where Diamond was clearly acquiring a smaller player and the Diamond management team was still in charge. In this case, Apollo appears to technically be the acquiring entity, and they plan to merge HGV with Diamond. As @mjm1 noted, the key will be which management team survives. If the HGV team survives, then maybe they can repair Diamond. If the Diamond team winds up being in charge...not good at all.

Unfortunately with most corporate transactions it is the acquirer's management team that survives. Typically the management of the acquired entity has change in control provisions that provide a parachute for executives as they look for their next opportunity. It may be different since Apollo (not Diamond) is the acquiring entity but I am not hopeful.

That said an acquisition is NEVER completed with the purpose of destroying the value of the acquired entity. The goal is to maximize the value of the entire enterprise inclusive of the acquired company. So I think they will try to increase the value of the company. As long as they have license to utilize the Hilton name they will want to do so since it has great brand recognition and a perception of quality. If quality declines then Hilton presumably will want to protect their name by withdrawing use or requiring improvement. Seemingly the best way to maximize enterprise value is by utilization of the Hilton name. Because of this as an owner I am less concerned about the potential acquisition.

 

[terces]

I wish I could assess this better. With our 21,000 points we are running out and almost ready to start borrowing from 2021. I have been on the cusp of buying another unit. Something tells me that to own the deeded weeks that we now own could be like gold when and if Apollo attempts to force us into a straight trust arrangement. Is anyone else going through the same dilemma with acquiring more points now?

 

[jabberwocky]

I was just about to pull the trigger on acquiring an HGVC resale - just looking for the right deed.

That plan is now changed - glad to have dodged a bullet. I'll go back to building up my Vistana portfolio - Marriott doesn't seem to be messing things up too badly there.

 

[GT75]

Something tells me that to own the deeded weeks that we now own could be like gold when and if Apollo attempts to force us into a straight trust arrangement. Is anyone else going through the same dilemma with acquiring more points now?

I think that is still way to early to predict what will happen at this time. Secondly, if Apollo does purchase HGVC and combines it into Diamond, Diamond doesn’t have a good reputation in the TS industry.