Hilton Grand Vacations has entered into a definitive agreement to acquire Diamond Resorts International in a stock-based transaction value of $1.4 billion.
Under terms of the agreement, Apollo Funds and Diamond stockholders will receive 34.5 million shares of HGV common stock, subject to customary adjustments.
The combined company will have approximately 720,000 owners and 154 resorts, a move which increases HGV’s portfolio of luxury hotels and resorts and introduces them to at least 20 new markets.
“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. 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. 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.”
“Through this agreement, HGV and Diamond will create a new global standard of vacation ownership hospitality,” said Mike Flaskey, CEO of Diamond Resorts. “Together, we will expand Diamond’s unique events and concert platform and deliver the broadest range of world-class experiences available in the industry, providing our members and owners with additional flexibility, unforgettable vacations and experiences of a lifetime. We are thrilled to join the HGV family and look forward to achieving new heights of excellence.”
Read the Hilton Grand Vacations press release here.
Since the announcement by Hilton Grand Vacations, there has been an increase in the activities of rogue claims businesses targeting Diamond Resorts members. See further information here.