Resorts & Development

HGV unveils financial results for 2016

Hilton Grand Vacations Inc (HGV) has reported its fourth-quarter and full-year 2016 results, the first to be unveiled since it became an independent publicly-traded company earlier this year.

Highlights include:

  • EPS was $0.38 for the fourth quarter and $1.70 for the full year
  • Net income was $38 million for the fourth quarter and $168 million for the full year
  • Adjusted EBITDA was $101 million for the fourth quarter and $402 million for the full year
  • Real estate sales and financing segment Adjusted EBITDA was $89 million for the fourth quarter and $348 million for the full year
  • Resort operations and club management segment Adjusted EBITDA was $50 million for the fourth quarter and $189 million for the full year
  • Contract sales increased 14.2 per cent for the fourth quarter and 9.7 per cent for the full year
  • Fee-for-service contract sales as percentage of total contract sales were 46 per cent in the fourth quarter and 56 per cent for the full year
  • Net Owner Growth was 19,219, or 7.7 per cent for the full year
  • In 2016, HGV welcomed The District by Hilton Club in Washington, D.C., Ocean Oak Resort by Hilton Grand Vacations Club in Hilton Head, SC and Las Palmeras by Hilton Grand Vacation Club in Orlando, FL to the company’s portfolio

Overview

For the three months ended 31 December 2016, EPS was $0.38 compared to $0.49 for the three months ended 31 December 2015. Net income was $38 million for the three months ended 31 December 2016, compared to $49 million for the three months ended 31 December 2015, and Adjusted EBITDA was $101 million for the three months ended 31 December 2016, compared to $103 million for the three months ended 31 December 2015.

For the 12 months ended 31 December 2016, EPS was $1.70 compared to $1.76 for the 12 months ended 31 December 2015. Net income was $168 million for the 12 months ended 31 December 2016, compared to $174 million for the 12 months ended 31 December 2015, and Adjusted EBITDA was $402 million for the 12 months ended 31 December 2016, compared to $373 million for the 12 months ended 31 December 2015.

Mark Wang, president and chief executive officer of Hilton Grand Vacations, said: “We are pleased to begin this new phase as an independent, publicly-traded company. In the past year we’ve welcomed more than 19,000 net new owners to the HGV family, representing net owner growth of nearly eight per cent.

“Contract sales grew 10 per cent last year, again demonstrating the power of HGV’s sales and marketing platforms and the benefits of our strong alliance with Hilton.

“This year’s results continued to demonstrate we are a leader in capital efficiency in the timeshare industry, as almost three-quarters of our contract sales came from inventory developed by third parties in either fee-for-service or just-in-time arrangements.

“As we have successfully completed our transition to an independent, public company, we are well positioned to continue delivering on our value proposition to all stakeholders while finding innovative ways to deploy capital to extend our growth profile.”

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