Hilton Grand Vacations (HGV) Barclays 19th Annual Global Consumer Conference summary

Business transformation and product evolution

• Expanded from 60 to over 200 properties, mainly through Diamond and Bluegreen acquisitions, broadening the consumer base and product range.

• Now offers three main products: entry-level, core, and luxury, with a focus on simplicity for consumers.

• Shifted from heavy inventory commitments and low free cash flow to a model targeting 55%-65% EBITDA conversion and efficient inventory management.

• Enhanced offerings include unique experiences through the Ultimate Access platform, such as LPGA, Formula 1, and NASCAR events.

• Lowered average interval price from $50,000 to $25,000, increasing accessibility.

Consumer trends, credit risk, and portfolio management

• Despite geopolitical volatility and inflation, travel demand remains robust, especially in domestic and drive-to markets.

• Over 75% of owners live within a four-hour drive of a resort, mitigating fuel price impact.

• Eliminated risky low down payment programs, improving credit quality and reducing defaults by 700 basis points on Diamond loans.

• Enhanced underwriting on Bluegreen, requiring higher down payments and reducing early-stage delinquencies.

• Originated Bluegreen portfolios now outperform acquired ones, reflecting improved risk management.

Sales strategy, operational cadence, and financial outlook

• Focused on growing new buyers, with high single-digit growth in new buyer transactions in Q1 and Q2.

• Transitioning to a more algorithmic, balanced approach between new and repeat sales, expecting normalized growth by 2027.

• Inventory spend is set to decline from $400M+ to $300M by next year, with integration spend dropping from $200M in 2025 to $75M in 2027.

• Operational missteps in two major Bluegreen markets led to leadership changes; VPGs down 8.6% in Q2 with further declines expected in Q3.

• Maintained EBITDA guidance for the year through cost-saving initiatives despite revenue challenges.