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• Contract Sales: $837 million for the fourth quarter, driven by strong VPG performance.

• Adjusted EBITDA: $289 million with margins excluding reimbursements of 23%.

• VPG (Volume Per Guest): $4,026, over 20% ahead of pro forma 2019 levels.

• Occupancy Rate: 82% for the quarter.

• Member Count: 724,000 at the end of the quarter.

• Adjusted Free Cash Flow: Record $837 million for the year.

• Shareholder Returns: $432 million returned to shareholders, reducing diluted share count by 10%.

• Revenue Excluding Cost Reimbursements: $1.2 billion for the quarter.

• Real Estate Sales and Marketing Expense: $387 million, or 46% of contract sales.

• Financing Business Revenue: $153 million with segment profit margins of 61%.

• Rental and Ancillary Revenues: $174 million with a segment loss of $11 million.

• Non-Recourse Debt Balance: Approximately $2.3 billion at quarter end.

• Net Leverage: 3.77 times on a TTM basis.

• Warning! GuruFocus has detected 3 Warning Signs with HGV.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Hilton Grand Vacations Inc (NYSE:HGV) successfully closed the Bluegreen acquisition, adding nearly 200,000 members and expanding its portfolio to over 200 properties.

• The company made substantial progress towards achieving $100 million in cost synergies, enhancing sales and marketing execution.

• HGV launched HGV Max to Bluegreen members, providing access to more properties and destinations, which led to growth in transactions and contract sales.

• Record free cash flow generation was achieved, with over $432 million returned to shareholders.

• Strong performance in the APAC region, particularly in Hawaii, with high demand for new properties like Ka Haku in Waikiki.

Negative Points

• The consumer environment remains challenging due to inflation and elevated interest rates impacting spending and sentiment.

• Back-to-back hurricanes in the southern US affected tour growth, causing nearly $23 million in lost contract sales and $11 million in EBITDA.

• The addition of Bluegreen's rental business has negatively impacted rental segment profitability, particularly in seasonally slower quarters.

• The financing optimization program will increase consumer finance interest expenses by $25 million, impacting adjusted EBITDA.

• The company faces a $30 million EBITDA headwind in 2025 due to changes in license fee rates for Diamond and Bluegreen sales.

Q & A Highlights

Q: How should we think about the growth rates between tour flow and VPG in your 2025 outlook? A: Mark Wang, CEO, explained that they expect strong top-line revenue driven by growth in contract sales, with initiatives like the rollout of HGV Max and Ultimate Access. They anticipate low to mid-single-digit growth in tours and VPG. Erin Day, Acting CFO, added that they expect mid to high single-digit overall growth, despite some unique expense headwinds impacting EBITDA.