Hilton Grand Vacations (HGV) has announced they will acquire Diamond Resorts International (DRI), which is managed by affiliates of Apollo Global Management.
HGV said the acquisition is expected to combine the brand and culture of Hilton Grand Vacations with Diamond, the largest independent timeshare holder. DRI currently owns 92 leisure resorts, with nearly 400,000 owners. HGV currently has more than 325,000 owners over 62 properties.
“I’m excited to announce our transformational agreement to add Diamond Resorts to the Hilton Grand Vacations family, accelerating our next phase of growth,” said Mark Wang, president and CEO of Hilton Grand Vacations. “This strategic combination will leverage the strengths of each company, positioning us to drive significant Net Owner Growth while enhancing efficiencies of scale and generating significant shareholder value.”
The transaction is expected to be valued at $1.4 billion, with Diamond and Apollo stockholders receiving around 34.5 million shares of Hilton Grand Vacations stock.
“Diamond’s extensive regional, drive-to network of resorts and expanded demographics uniquely complement HGV’s best-in-class lead generation, world-class hospitality, and premier destinations backed by the strength of the Hilton brand,” Wang added. “For our valued team members, owners and guests, this combination creates new opportunities to provide exciting destinations and memorable vacation experiences while continuing to provide exceptional levels of service.”