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Hilton Grand Vacations And Blackstone Form Joint Venture To Purchase Timeshare Resort Elara

Thursday, July 20, 2017
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Hilton Grand Vacations / Hilton Worldwide
Hilton Grand Vacations / Hilton Worldwide

ORLANDO--Hilton Grand Vacations Inc. (NYSE: HGV) (“HGV” or “the company”) announces the formation of a joint venture with affiliates of Blackstone Real Estate Partners VIII L.P., which purchased Elara, a Hilton Grand Vacations Club. With 1,201 units, Elara is one of the world’s largest timeshare resorts. HGV will assume a 25 percent stake in the joint venture for approximately $40 million, which is expected to be accretive to HGV’s total adjusted EBITDA and EPS.

“Today’s acquisition advances one of our key strategic priorities that is growth through opportunistic business ventures, which allows us to continue to maximize shareholder value,” says Mark Wang, president and CEO, Hilton Grand Vacations. “By taking an ownership stake in Elara, which has more than 500 units of sellable inventory remaining, we are receiving a strong-performing consumer loan portfolio and unfinished penthouse floors.”

In addition to its ownership stake, HGV will continue to market, sell and manage Elara under existing fee-for-service agreements.

The joint-venture structure allows HGV to generate strong returns while maintaining flexibility for additional growth opportunities. The transaction is expected to be funded by existing cash on HGV’s balance sheet.

Elara is located on East Harmon Avenue in Las Vegas and opened as the largest, single timeshare resort in the world in 2009. The property offers adjoining access to the Miracle Mile Shops, offering more than 200 stores and restaurants. The upscale, 15,000-square-foot, grand lobby overlooks a 40,000-square-foot elevated tropical pool with two hot tubs, pool bar and grill and 33 private cabanas.

In addition to the 1,201 units, there are four penthouse floors with more than 82,000 square feet, among other undeveloped areas including 2,300 square feet of retail space fronting East Harmon Avenue and more than 17,000 square feet of ballroom space.

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