News has just broken that HGV is to acquire Bluegreen Vacations for a reported $1.5B. After the recent takeover of Diamond Resorts, there seems to be no stopping the expansion programme of HGV in the world of timeshare.
Bluegreen has 49 resorts across 19 States which no doubt will be merged into and be renamed as HGV. That said, in the recent Diamond takeover, former Diamond resorts became part of the Hilton Vacation Club, as opposed to the higher tier Hilton Grand Vacations.
The properties to be added to HGV’s portfolio are in 14 new areas and eight new states for the company. In a statement, HGV President and CEO Mark Wang called the joining of the two companies a “highly complementary combination.”
HGV said the acquisition will broaden its offerings and reach to create “a premier vacation ownership and experiences company,” increasing its membership base by more than 200,000 and expanding its resort portfolio from 150 to nearly 200 properties. The transaction is expected to close in the first half of 2024, following stockholder and regulatory approvals.
TCA comment
It will be interesting to see how this one turns out. As mentioned above, with the Diamond takeover, HGV created a two tier membership. This effectively put a one way street into the system, HGV owners can book stays in former Diamond resorts but to go the other way Diamond owners have to stump up more money.
So the question would be “where will Bluegreen owners fit into the hierarchy in the future?”
Wyndham Destinations is the largest timeshare ownership business on the planet, with more than 245 resort locations across the globe. HGV are now tugging on their shirt tails with 200 resorts.
Are these sorts of acquisitions and mergers good for the industry? Two pronged answer, 1) for the industry, yes. 2) for the consumer, no. In all walks of life competition stimulates better service, better costs and of course, greater choice. When any industry comes down to a handful of players then all of the benefits as stated above disappear and sorts of cartels start to exist.
Imagine what the timeshare industry would look like if Wyndham and HGV held hands doesn’t bear thinking about. Probably never happen as the Federal Trade Commission Bureau of Competition may have something to say about that.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk