Myrtle Beach Area Blue green Vacations are now under new ownership as Hilton Grand Vacations purchased the entire world wide vacation group for a total of $1.5 billion ten days ago. The deal officially closes in Spring 2024.
Many of the higher end Bluegreen Vacations resort locations, with the exception of Sea Glass Towers, are offered in the area’s preferred City of North Myrtle Beach. Sea Glass Towers is in the City of Myrtle Beach.
In an effort to attract younger customers for its timeshare properties and expand offerings, Hilton Grand Vacations (HGV.N) announced on November 6th that it would buy Bluegreen Vacations (BVH.N) for $1.5 billion, including debt.
In the deal, Bluegreen Vacations shareholders will receive $75 in cash for each share held, more than double the stock’s Friday, November 3rd closing price, which valued the company at $1.28 billion.
Following the lifting of COVID-related lockdowns, high inflation has begun to weigh on domestic travel in the United States.
Mark Wang, chief executive of Hilton Grand Vacations, told Reuters, “Our board approved this deal unanimously. Bluegreen is our last quality strategic opportunity.”
Both Hilton Grand and Bluegreen Vacations market and sell timeshares, or vacation ownership interests, in which multiple owners share exclusive use of a property.
On Monday, Bluegreen Vacations stock closed at $73.45 up 110%, while Hilton Grand stock closed at $34.25.
According to Hilton Grand Vacations, the deal is expected to close during the first half of 2024, increasing Hilton Grand’s membership base to more than 740,000, and its resort portfolio from 150 to nearly 200.
The majority of Bluegreen Vacations’ customers are Generation X, many of whom are in their 40s and 50s.
The ability to track a solid customer at an earlier stage in their life is exciting,” he said.
A number of outdoor and ski destinations will also be added to Hilton’s U.S. East Coast presence.
In addition to signing a 10-year marketing agreement with outdoor retailer Bass Pro Shops, Hilton Grand said it had spun off into a publicly traded company in 2017.
A major challenge for an independent Vacation Ownership company like BVH is that they lack a well-known brand like HGV (Hilton) does, which means their customer acquisition costs are higher.
In addition, the company cut its adjusted core earnings forecast for 2023 from $1.09 billion to $1.12 billion to between $1 billion and $1.02 billion.
Bluegreen Vacations is advised by Credit Suisse Securities and Wells Fargo, while Hilton Grand Vacations is advised by BofA Securities.