A Proven Strategy
A particularly notable aspect of this acquisition pulls from the same play book as their earlier acquisition of Diamond. During my time with Hilton Club, as much as 70% of their business was owner upgrades. The Hilton Club was their marquis product – and as such – owners were more than eager to trade in a lower market product (Hilton Grand Vacations) for a more “upscale” one. Rebranding Diamond Resorts and Hilton Vacation Clubs instantly provided a lower tier of inventory to move owners through the ranks – while spending more money along the way. The acquisition of Bluegreen will provide access to 200,000 owners, many of whom will be eager to own and travel within the Hilton timeshare ecosystem.
Thoughts From HGV’s CEO
Mark Wang, President and CEO of Hilton Grand Vacations, views the acquisition as a strategic enhancement of their already robust vacation ownership and experiences portfolio. Bluegreen Vacations brings to the table a strong history of organic growth, a dedicated customer base exceeding 200,000 members, and strategic partnerships that promise to extend HGV’s reach.
Furthermore, this acquisition is aligned with HGV’s strategic growth, leveraging the infrastructure built with the Hilton Vacation Club brand and the innovative HGV Max membership offering. The HGV Ultimate Access experiential platform is also expected to gain from this consolidation.
This business combination is seen as a win-win for all stakeholders involved — from team members to shareholders and consumers — as it combines the strengths of two major players within the timeshare industry. It’s also a large expansion of resorts that will hopefully provide both existing owner bases with increased resort and destination options.
Owner Rentals: To Be or Not To Be?
Both Bluegreen and Hilton Grand Vacations have tightly restricted their owners’ right to rent their properties in recent months so it remains to be seen what this acquisition will mean for the owner rental market as a whole. What we can say is this further adds to the already aggressive consolidation that’s occurring in the timeshare industry. Marriott Vacation Club has acquired Interval International and Hyatt Vacation Club (which recently acquired Welk Resorts), while HGV owns Diamond Resorts and now Bluegreen Vacations. We, of course, know it’s all about sales in the end – but we do hope these consolidations make it easier for leaders at the top to implement and disseminate better exit and liquidity options for their timeshare owners too.