Hilton Grand Vacations (HGV) Investor presentation summary

Business overview and key statistics

• Generated $4.0B in total revenue and $1.0B in adjusted EBITDA for 2023, with over 710,000 members and more than 200 resorts globally.

• Operates four synergistic business lines: real estate, rental & ancillary, financing, and club & resort management.

• Segment adjusted EBITDA mix: 41% real estate, 34% club & resort, 16% financing, 8% rental.

• Partnerships with major brands like Hilton Honors, Bass Pro Shops, and Great Wolf Lodge expand reach and lead generation.

Business model resilience

• Focuses on leisure travelers, offering in-room amenities and larger accommodations to match shifting preferences.

• Monetizes unutilized inventory through rentals, generating additional tours and offsetting carrying costs.

• Maintains strong recurring income streams from club dues, property management, and financing fees, providing stability through cycles.

• Demonstrated resilience during downturns, with sales and EBITDA margins outperforming industry averages in crises.

• Geographic diversity with over 200 resorts, 90% of owners living within a 4-hour drive of a property.

Growth and embedded value

• Wide range of products and price points broadens the addressable market, increasing the core market by over 31%.

• Embedded value of $6.9B from future owner upgrades, club management, and financing, with 63% of buyers financing purchases.

• Owners are upgrading faster and more often, driving incremental revenue.

• Inventory optimization and recapture strategies provide future cash flow support, with ~$1B of inventory readily convertible to cash.

• Recent acquisitions (Diamond, Bluegreen) expected to deliver $250M in cost synergies and significant revenue synergies through rebranding and integration.