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Monday 15 March, 2021
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Hilton Grand Vacations pays $1.4bn for Diamond Resorts International purchase
US: Hilton Grand Vacations [HGV] has announced the purchase of Las Vegas timeshare operator Diamond Resorts International in a transaction worth up to $1.4 billion.
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EDITOR'S COMMENT
15•03•21 Welcome to the latest ShortTermRentalz newsletter!
• This year has already seen high-profile investments in timeshares and vacation ownership resorts, from Wyndham Destinations acquiring Travel + Leisure to Marriott Vacations buying Welk Resorts for $430 million, but Hilton Grand Vacations' staggering $1.4 billion purchase of Diamond Resorts International is the clearest example yet of confidence returning for leisure travel.
The latest transaction, which is expected to close this summer, will expand Hilton's resort portfolio in over 20 new markets, at a time when major hotel brands are hoping the pent-up demand for post-vaccination travel will offset their unused spaces from the last 12 months.
Timeshares are particularly appealing to families, because they offer longer booking windows, as well as kitchens and extra bedrooms, and their resurgence in popularity means operators may even have to reduce their rental activity to make availability for existing owners.
• After we predicted back in December that the start of 2021 would be marked by significant M&A activity, Portland-based vacation rental property management platform Vacasa has snapped up one of its primary competitors, TurnKey Vacation Rentals, in a move that will bolster the former's portfolio by 6000+ properties.
Vacasa, which has raised in the region of $630 million in private equity funding to date, will have access to premium destination US markets, including Los Angeles and Napa in California, and Santa Fe, New Mexico, and will maintain the TurnKey brand when the merger is finalised by the end of the year.
The acquisition is being touted by some investors as a pre-emptive move for an initial public offering [IPO] when the Covid-19 pandemic dissipates, which could lead the company to adapt its business model or revisit its international growth plans. Vacasa has also previously been suggested as an acquisition target by Airbnb, while the likes of Natural Retreats [full service] and Evolve [a la carte services] are operators who may follow suit this year.
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