Hilton Grand Vacations Seeks $1.5 Billion Merger With Bluegreen Vacations in Timeshare Mashup

Hilton Grand Vacations has offered to acquire Bluegreen Vacations, two publicly held vacation ownership companies said on Monday.

Hilton Grand Vacations, which was spun off from Hilton in 2017, will offer $75 a share in an all-cash transaction. It says the total value represents about $1.5 billion, including net debt.

The goal of the merger is to create a more competitive position in the vacation ownership and experiences sector.

“Bluegreen Vacations has a strong track record of demonstrated organic growth, a dedicated customer base of more than 200,000 members, and boasts key lead-generating strategic partnerships that will broaden our reach and diversify our tour flow,” said Mark Wang, president and CEO of Hilton Grand Vacations, in a statement.

Hilton Grand Vacations is a timeshare company that focuses on marketing and selling vacation ownership intervals and vacation ownership interests. It runs resorts mainly in the U.S., Europe, and the Asia Pacific under the Hilton Grand Vacations Club and Hilton Club brands.

The company’s strategy has been to expand its operating profit margins partly through an acquisition strategy that allows it to develop a more diversified hotel offering. In 2021, Hilton Grand Vacations team floated the idea of an all-stock acquisition of Diamond Resorts at an equity value of $840 million. It believes that travelers will be drawn to the familiarity of a major hotel brand when picking among timeshare operators to work with.

Bluegreen Vacations also leverages marketing relationships with Bass Pro Shops and Choice Hotels. These partnerships allow the company to offer vacation stays to shoppers and hotel guests, exposing them to the advantages of becoming vacation club members.

As part of the proposed merger, Hilton Grand Vacations will now benefit as well from Bluegreen Vacations’ exclusive marketing agreement with Bass Pro Shops. Hilton Grand Vacations also said that it has signed a new 10-year exclusive marketing agreement with Bass Pro Shops.