KEYWORDS: Diamond Resorts, Hilton Grand Vacation Inc, Apollo Funds, Apollo Global Management, Colony Capital, AccorInvest, Palms Casino Resort, San Manuel Sovereign Fund
DEAL FEATURED (Diamond Resorts)
Hilton Grand Vacations Inc. (NYSE:HGV) (“HGV” or “the Company”) announced on March 10 that it has entered into a definitive agreement to acquire Diamond Resorts International, Inc. (“Diamond”) from funds (the “Apollo Funds”) managed by affiliates of Apollo Global Management, Inc. (NYSE:APO) (together with its consolidated subsidiaries, “Apollo”), funds managed by affiliates of Reverence Capital Partners (“Reverence”), and other Diamond stockholders, in a stock-based transaction with an equity value of approximately $1.4 billion. Under the terms of the agreement, the Apollo Funds and other Diamond stockholders will receive 34.5 million shares of HGV common stock, subject to customary adjustments.
The acquisition will combine the strength of HGV’s brand and culture with Diamond, the largest independent timeshare operator. Diamond’s 92 leisure resorts and nearly 400,000 owners uniquely complement HGV’s 62 upscale and luxury properties and over 325,000 owners, and the combination will create the premier vacation ownership company with the broadest offering in the industry.
About Hilton Grand Vacations:
Hilton Grand Vacations Inc. (NYSE:HGV) is recognized as a leading global timeshare company. With headquarters in Orlando, Florida, Hilton Grand Vacations develops, markets and operates a system of brand-name, high-quality vacation ownership resorts in select vacation destinations. The Company also manages and operates two innovative club membership programs: Hilton Grand Vacations Club® and The Hilton Club®, providing exclusive exchange, leisure travel and reservation services for more than 325,000 club members.
About Diamond Resorts:
Diamond Resorts offers destinations, events and experiences to help members make a habit of breaking from the routine. From unforgettable getaways to exclusive concert series to VIP receptions and dinners, members turn to Diamond to recharge, reconnect and remind each other what matters most. Our focus on quality resorts, customer service and flexibility means members can return to a favorite resort, book a cruise to explore new countries or attend a once-in-a-lifetime event with the same level of confidence and anticipation. With access to a world of entertainment and activities, a Diamond membership ensures that people are always looking forward to vacation.
About Diamond Resorts CEO:
Mr. Michael Flaskey serves as Chief Executive Officer at Diamond Resorts. He previously held the position of Executive Vice President and Chief Sales and Marketing Officer for Diamond Resorts from 2014 to 2016, and Executive Vice President of Sales and Marketing, North America for Diamond Resorts from 2010 to 2014. Throughout Mr. Flaskey’s tenure at Diamond Resorts, the Company has achieved unprecedented growth both organically and through strategic acquisition integration, as he has shifted the traditional timeshare marketing and sales model to a hospitality-infused process that includes a high-touch upstream engagement stance, providing guests with a service-first approach to marketing and sales. Prior to Diamond Resorts, Mr. Flaskey held key senior executive roles with Starwood Vacation Ownership and Fairfield Resorts (now Wyndham Vacation Ownership). Mr. Flaskey has also successfully negotiated many strategic ambassadorial alliances with world-famous artists, Hall of Famers from Major League Baseball and the National Football League, Super Bowl MVPs, NASCAR legends and current PGA, LPGA and Champions Tour stars. Most notably, he is also the Founder and Executive Director of the Diamond Resorts Invitational.
DEALS (OTHER DEALS)
Colony Capital (Hospitality Business Portfolio):
The Hospitality Business Portfolio of Colony Capital was acquired by Cerberus Capital Management and Highgate Hotels through a $2.8 billion LBO on March 25, 2021.
The company received EUR 954 million of development capital from Saudi Arabia’s Public Investment Fund, Government of Singapore Investment Corporation (GIC), Crédit Agricole Assurances, Colony Capital and Amundi on March 24, 2021. As a part of the transaction, EUR 477 million of debt financing in the form of a state-guaranteed loan was provided by the existing banking partners.
Palms Casino Resort:
The company has entered into a definitive agreement to be acquired by San Manuel Sovereign Fund through a $650 million LBO on May 4, 2021. Previously, the company was acquired by Red Rock Resorts (NASDAQ: RRR) for $312.5 million on October 3, 2016. The company is being actively tracked by PitchBook.
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The company reached a definitive agreement to acquire Gores Metropoulos II for an estimated $500 million through a reverse merger on April 30, 2021, putting the company’s pre-money valuation at an estimated $2.2 billion. Concurrently, the company is in talks to receive $200 million of development capital from Principal Global Investors, Senator Investment Group, Atreides Management, Fidelity Management & Research, BlackRock, and Moore Capital Management through a private placement. Previously, the company raised $209 million of Series E venture funding in a deal led by WestCap Group, Inovia Capital, and Fidelity Investments on May 1, 2020. TELUS Ventures, Kemmons Wilson Companies, Valor Equity Partners, Tao Capital Partners, Spark Capital, Greenoaks Capital Partners, Greylock Partners, Alate Partners, Flight Ventures, and Atreides Management also participated in the round. The funds will be used to expand operations and its business reach, including new functions, services, and partnerships.
The company was acquired by Marriott Vacations Worldwide (NYS: VAC) for $485 million on April 1, 2021. The acquisition will enhance Marriott Vacations’ growth opportunities and Hyatt Residence Club footprint by 50%.
|Companies||Post Valuation||Current Financing Status|
|Colony Capital (Hospitality Business Portfolio)||2,800.00||Private Equity-Backed|
|Diamond Resorts||1,400.00||Private Equity-Backed|
|Palms Casino Resort||650.00||Formerly PE-Backed|
|Welk Resorts||485.00||Corporate Backed or Acquired|
|Grand Hotel Stockholm||418.53||Private Equity-Backed|
|Tropicana Las Vegas||308.00||Private Equity-Backed|
|B&B Hotels||Private Equity-Backed|
|Live! Casino & Hotel Richmond||Corporate Backed or Acquired|
|Sunce Hoteli (ZAG: SUKC)||173.30||Formerly PE-Backed|
|Morrison Hotel||96.53||Corporate Backed or Acquired|
|Red Lion Hotels||90.00||Corporate Backed or Acquired|
|Stoke Park||78.66||Corporate Backed or Acquired|
|Fuller, Smith & Turner (LON: FSTA)||371.42||Corporation|
|Hilton Hotels (Embassy Suites)||33.10||Pending Transaction (PE)|
|Inn Collection Acquisition||Private Equity-Backed|
|Cheeky Monkey’s Restaurant & Bar||13.50||Pending Transaction (M&A)|
|HKC Europe||6.88||Corporate Backed or Acquired|
|The Old Bell Hotel||5.20||Corporate Backed or Acquired|
|88 Rooms Hotel||5.00||Corporate Backed or Acquired|
|Hothorpe Hall||4.95||Corporate Backed or Acquired|
|Far East Hotels & Entertainment (HKG: 00037)||Corporation|
|Saddleback Mountain||Private Equity-Backed|
|Hoteli Zivogosce (ZAG: HZVG)||62.78||Corporation|
|Bornholmtours||Corporate Backed or Acquired|
|Boston Trade International||Private Equity-Backed|
|Bucharest Majestic Hotel||Corporate Backed or Acquired|
|Cambridge Beaches Resort & Spa||Corporate Backed or Acquired|
|Crown Resorts (ASX: CWN)||6,179.57||Corporation|
|Eastern & Oriental||Corporation|
|Ephémère Catering and Consulting||Corporate Backed or Acquired|
|Extended Stay America (NAS: STAY)||6,000.00||Formerly PE-Backed|
|Fletcher Hotels||Private Equity-Backed|
|Grand Harbor Golf & Beach Club||Corporate Backed or Acquired|
|Gwel an Mor||Corporate Backed or Acquired|
|Hilo Seaside Hotel||Corporate Backed or Acquired|
|Hilton Garden Inn Beaufort||Private Equity-Backed|
|Hotel Restaurant PAX||Private Equity-Backed|
|Hotel Ullensvang||Private Equity-Backed|
|HSM Madrigal||Corporate Backed or Acquired|
|Kintetsu (Eight Hotels)||Private Equity-Backed|
|Michel Hotel Lohr am Main||Corporate Backed or Acquired|
|Niagara Jet Adventures||Private Equity-Backed|
|Portscatho Holidays||Private Equity-Backed|
|Seafood Pub Company||Corporate Backed or Acquired|
|Silver Sands Motel||Corporate Backed or Acquired|
|Surfair Beach Hotel||Corporate Backed or Acquired|
|Tesipro Solutions||Corporate Backed or Acquired|
|The Crusoe Hotel||Corporate Backed or Acquired|
|The Frenchmen Hotel||Corporate Backed or Acquired|
|The Grange Hotel York||Corporate Backed or Acquired|
|The Old Inn, Crawfordsburn||Corporate Backed or Acquired|
|The Park Hotel (Tynemouth)||Private Equity-Backed|
|The Wateredge Inn||Private Equity-Backed|
|The Zetter Group||Corporate Backed or Acquired|
|Village Realty||Private Equity-Backed|
|Vwnh Hospitality||Private Equity-Backed|
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EDITOR AND CHAIRMAN: JD Morris