Hilton Grand Vacations Might Experience a Bidding War


Apollo made an offer for HGV, will Blackstone follow?

Hilton Grand Vacations may soon experience a bidding war from two private equity titans.

Apollo Management has reportedly made an offer for the Orlando0based timeshare company. Early reports suggest a price of $40 per share. Its competitor Blackstone may also make an offer for the company.

No public disclosures have hit the market. However, sources close to the potential bidders have said that the bidding is underway, according to Bloomberg News. Activist investor Paul Singer accumulated a position in the stock recently in his hedge fund Elliot Management. He has pushed for a sale of the company.

We reported in August that the firm was considering strategic options. At the time, Apollo had reportedly made a private offer. However, that bid wasn’t confirmed until Monday.

About Hilton Grand Vacations

The company owns 54 resorts comprising 8,888 units. Furthermore, these assets are located in the Hawaiian Islands, New York City, Orlando, Washington D.C., and Las Vegas; and Europe.

The company cut its revenues and profit outlook back in August. That downward revision weighed on the shares. However, rumors of a sale of the company and activist pressure have pressed it higher in recent weeks.

Meanwhile, Apollo is very familiar with the Time-Share business. The private equity giant bought Diamond International in 2016. Diamond is a Las Vegas-based Time-Share company that owns 79 vacation destinations in 35 countries around the world. Adding the two portfolios together would make the new entity a force in the industry.

Finally, Time-Share sales can be cyclical and may well operate better without the pressure of the quarterly reporting duties of being a public company. Furthermore, the cost saving of two combined Time-Share firms would make Hilton Grand vacations a perfect target for a private equity buyout.

[Related: Can Apollo Get a Win with ADT after Canadian Services Sale]

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News

FinTech: Lloyds To Acquire Stake In Loyalty App Bink
January 4, 2022     FinTech, News

Lloyds Banking Group (LON: LLOY), Britain’s biggest mortgage provider, will acquire a minority stake in loyalty app Bink, according to a report by Sky News for an undisclosed amount that…

Digital Assets: Coinbase CEO Armstrong Said To Have Splurged $133M On Home In LA
January 4, 2022     Digital Assets, News, Real Estate

An iconic property in Bel Air, Los Angeles, designed by internationally acclaimed English architect John Pawson changed hands last month for $133 million and the buyer was Coinbase (NASDAQ: COIN)…

Alternative Investments/ESG: VegTech Invest Launches Plant-Based Innovation & Climate ETF

VegTech Invest advisory has launched the VegTech Plant-based Innovation & Climate ETF (Ticker: EATV), its first financial product. The ETF offers exposure to publicly traded companies actively innovating with plants…

Venture Capital: Chinese AI Startup Parametrix Raises $100M, Turns Unicorn
January 4, 2022     Artificial Intelligence, News, Venture Capital

Chinese AI company Parametrix.ai has raised $100 million in a Series B round led by Sequoia China and joined by existing investors 5Y Capital and Gaorong Capital. Though the valuation…