Hilton Grand Vacations' $1.5 Billion Deal

06.12.2023 - 04:15 / skift.com / Asia Pacific / Sean Oneill / Alan Woinski / Srividya Kalyanaraman

Welcome to a brand new week, folks! If you’re like me, you’re reading this and going, “what is time?” Well, it’s a thing that flies.

We have a packed bulletin today, let’s hit it. 

On the itinerary: 

Hilton Grand Vacations made an acquisition proposal to Bluegreen Vacations, two publicly traded vacation ownership companies. Hilton Grand Vacations, a 2017 spin-off from Hilton, said in the announcement it is proposing an all-cash transaction at $75 per share, totaling approximately $1.5 billion, including net debt. The merger aims to enhance Hilton Grand Vacations’ competitive standing within the vacation ownership and experiences industry, Skift Hospitality Editor Sean O’Neill wrote. 

Hilton Grand Vacations specializes in marketing and selling vacation ownership intervals and interests. The company operates resorts across the U.S., Europe, and Asia Pacific, featuring the Hilton Grand Vacations Club and Hilton Club brands. 

The company’s strategy includes boosting operating profit margins through acquisitions and to diversify its vacation/timeshare offerings. In 2021, Hilton Grand Vacations acquired Diamond Resorts, which was valued at $840 million. It aimed to attract travelers with a prominent brand. Bluegreen Vacations offers benefits from marketing partnerships with Bass Pro Shops and Choice Hotels. 

If you raised an eyebrow at the deal value, you’re not alone. 

Daily Lodging Report Editor Alan Woinski said, “There had been some rumors that a deal was in the works but the price, purchasing at more than double the stock price close on Friday, is extremely interesting,” Woinski said. “While synergies as well as the lack of liquidity in the stock trading of Bluegreen are what could justify the valuation, as compared with the closing price on Friday, it still is a really big premium for any type of deal.”

Hilton Grand Vacations Seeks $1.5 Billion Merger With Bluegreen Vacations in Timeshare Mashup

Martha’s Vineyard saw a record-breaking surge in tax revenue from short-term rentals and hotel stays in 2023, with its six Island towns collectively amassing $8.8 million in rooms tax, the Vineyard Gazette reported. 

The island currently has 3,840 registered short-term rental properties, up by over 500 from the previous year. While demand cooled from pandemic highs, a considerable growth in short-term rentals, the tally increased by 1,288 since March 2022. These properties, rented for under 30 days, must register and are subject to a tax expanded to include short-term rentals in 2019, enabling towns to impose up to a 6 percent tax.

The Buffalo Common Council enacted a temporary suspension on new permits for short-term rentals, effective until the year’s end in some council districts, Buffalo Urban Radio