It has been announced this week that Apollo Global Management, the company that bought over Diamond Resorts in the latter part of 2016, will be making the company public. This comes less than 2 years after consolidating the purchase of the entity. A very quick turnaround from purchase to trading again in the public markets.
However, this is not the first time that Apollo has tried to turn around a recently purchased company to the public as fast. In January the group Apollo made ADT Inc public with an IPO of $14 per share. Closing April 24th with a price of $8.99 a 36% drop in less than four months. This has not put Apollo off the offering of Diamond on the public markets, which is expected to start trading late June, early July. The confidentiality for Diamond Resorts has already been filed with the Securities and Exchange commission to acquire the IPO and place Diamond Resorts in the markets to begin trading.
Diamond Resorts is a worldwide timeshare and holiday accommodation company that has had its ups and downs in the last few years. We reported recently that the group may be steering away from the timeshare industry with the new cancellation policies that have been brought in for the timeshare owners, which have not been followed through by their online booking for non-owners. Making it increasingly more difficult for the timeshare owners to holiday using their points.
We have heard from several of these owners that they are disgruntled about the new cancellation policies, as they now must cancel three months prior to arrival if they want to redeem the points in full that they used to make the booking. Whereas, non-owners can book directly online and pay cash on arrival in a lot of cases.
It will be interesting to see what changes the shares trading on the public market will make to the company wide goings on, also to see if the resorts stay timeshare focused, or start to turn further away from the timeshare market and develop more of a holiday rental company to the wider public.
Posted on: April 25, 2018
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 0203 519 3808 or email: info@TimeshareConsumerAssociation.org.uk