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HGVC to spin off into its own publicly traded company
- Thread starter TUGBrian
- Start date
- Joined
- Jul 10, 2008
- Messages
- 3,664
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- Location
- Las Vegas, NV
- Resorts Owned
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Marriott: Resorts and Abound Points;
Westin Kierland Villas;
HGVC Flamingo & Blvd;
Hyatt Pinon Pointe
This doesn't come as a great surprise, since Marriott and Starwood did the same thing. It will be interesting to see how HGV moves forward as a separate company.
Mike
Mike
- Joined
- Jun 17, 2010
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- 7,945
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- Location
- Huntington Beach, CA
- Resorts Owned
- HGVC King's Land 2BR Premier 23.040K Points.
Not much really since they licensed the use of the Hilton brand for 100 years. If they pay dividends buy some stock in your portfolio to offset your maint fees?
Sent from my iPad using Tapatalk
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- Apr 28, 2011
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- Location
- Sacramento, CA
- Resorts Owned
- Vacation Internationale, HGVC - NYC, Worldmark, Shell Vacations, Sedona Pines, RCI Points, Starwood (Avon, CO)
They have been telling us this was coming for quite some time. Looks like we are finally there.
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- Resorts Owned
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Marriott Grande Vista
Marriott Harbour Lake
Sheraton Vistana Villages
Club Wyndham CWA
Exactly. I think they announced this back in June or July. With this, they just announced the official date of the spin-off.
nuwermj
TUG Member
Here is an article by Robert Shaw published at Seeking Alpha.
Hilton Timeshare Spin-Off: Attractive IPO Or Acquisition Target?
Jul. 6, 2016
http://seekingalpha.com/article/3986690-hilton-timeshare-spin-attractive-ipo-acquisition-target
(The website may require you to sign-up for their news feeds in order to see the entire article.) Between 1997 and 2015 Shaw was the Accounting Officer at Orange Lake Resorts and Hilton Grand Vacations. Here is the conclusion:
"Where Hilton appears to separate itself from its peer group is in the area of salable inventory acquisition. Hilton has clearly gone "all in" on the capital-efficient inventory acquisition model that others in its peer group are utilizing, but to a considerably lesser degree. In particular the fee-for-service model wherein it acts as the sales and marketing agent on behalf of a third party developer. ...
"In general, Hilton's operations compare favorably to its peer group and so an investment in Hilton's timeshare operations becomes a case, at least in the near to intermediate term, of investor confidence in the fee-for-service model in an industry that for the majority of its history has been more vertically integrated. Hilton will be a timeshare developer focused largely on the fee-for-service business model along with just-in-time acquisitions.
"Both these models ultimately split the revenue with the third party developer and this reduces net profit on an equivalent sale basis. Its overall performance outcome will be dependent on increased sales, negotiated commission rates and their ability to control operating costs to retain operating margins. This model is much different than the rest of its peer group. ...
"With the recent consolidation in the industry, the biggest question becomes whether Hilton will be a public timeshare company competing against its peer group or a very attractive acquisition target for private equity or another timeshare developer similar to Interval and its recent acquisition of Vistana (previously owned by Starwood) or Apollo Global Management LLC and its recently announced acquisition of Diamond."
Hilton Timeshare Spin-Off: Attractive IPO Or Acquisition Target?
Jul. 6, 2016
http://seekingalpha.com/article/3986690-hilton-timeshare-spin-attractive-ipo-acquisition-target
(The website may require you to sign-up for their news feeds in order to see the entire article.) Between 1997 and 2015 Shaw was the Accounting Officer at Orange Lake Resorts and Hilton Grand Vacations. Here is the conclusion:
"Where Hilton appears to separate itself from its peer group is in the area of salable inventory acquisition. Hilton has clearly gone "all in" on the capital-efficient inventory acquisition model that others in its peer group are utilizing, but to a considerably lesser degree. In particular the fee-for-service model wherein it acts as the sales and marketing agent on behalf of a third party developer. ...
"In general, Hilton's operations compare favorably to its peer group and so an investment in Hilton's timeshare operations becomes a case, at least in the near to intermediate term, of investor confidence in the fee-for-service model in an industry that for the majority of its history has been more vertically integrated. Hilton will be a timeshare developer focused largely on the fee-for-service business model along with just-in-time acquisitions.
"Both these models ultimately split the revenue with the third party developer and this reduces net profit on an equivalent sale basis. Its overall performance outcome will be dependent on increased sales, negotiated commission rates and their ability to control operating costs to retain operating margins. This model is much different than the rest of its peer group. ...
"With the recent consolidation in the industry, the biggest question becomes whether Hilton will be a public timeshare company competing against its peer group or a very attractive acquisition target for private equity or another timeshare developer similar to Interval and its recent acquisition of Vistana (previously owned by Starwood) or Apollo Global Management LLC and its recently announced acquisition of Diamond."