Hilton Grand Vacations Reports Fourth Quarter and Full Year 2024 Results

Business Wire 27-Feb-2025 7:30 AM

Hilton Grand Vacations Inc. (NYSE:HGV) ("HGV" or "the Company") today reports its fourth quarter and full year 2024 results.

Fourth quarter of 2024 highlights¹

• Total contract sales were $837 million.
• Member count was 724,000. Consolidated Net Owner Growth (NOG) for the year ended Dec. 31, 2024, was 1.1%.
• Total revenues for the fourth quarter were $1.284 billion compared to $1.019 billion for the same period in 2023.
  • Total revenues were affected by a net deferral of $90 million in the current period compared to a net deferral of $21 million in the same period in 2023.
• Net income attributable to stockholders for the fourth quarter was $20 million compared to $68 million for the same period in 2023.
  • Adjusted net income attributable to stockholders for the fourth quarter was $49 million compared to $111 million for the same period in 2023.
  • Net income attributable to stockholders and adjusted net income attributable to stockholders were affected by a net deferral of $49 million in the current period compared to a net deferral of $12 million in the same period in 2023.
• Diluted EPS for the fourth quarter was $0.19 compared to $0.62 for the same period in 2023.
  • Adjusted diluted EPS for the fourth quarter was $0.49 compared to $1.01 for the same period in 2023.
  • Diluted EPS and adjusted diluted EPS were affected by a net deferral of $49 million in the current period compared to a net deferral of $12 million in the same period in 2023, or $(0.49) and $(0.11) per share in the current period and the same period in 2023, respectively.
• Adjusted EBITDA attributable to stockholders for the fourth quarter was $240 million compared to $270 million for the same period in 2023.
  • Adjusted EBITDA attributable to stockholders was affected by a net deferral of $49 million in the current period compared to a net deferral of $12 million in the same period in 2023.
• During the fourth quarter, the Company repurchased 3.2 million shares of common stock for $125 million.
  • Through Feb. 20, 2025, the Company has repurchased approximately 1.6 million shares for $66 million and currently has $361 million of remaining availability under the 2024 share repurchase program.

Full Year 2025 Outlook

• The Company expects full-year 2025 Adjusted EBITDA attributable to stockholders excluding deferrals and recognitions to be in a range of $1.125 billion to $1.165 billion.
  • Guidance includes an estimated $25 million of incremental consumer financing interest expense attributable to a planned increase in non-recourse borrowing activity associated with the Company's Financing Business Optimization, as detailed below.
  • The Company intends to increase its average quarterly share repurchase goal to $150 million per quarter, from the current $100 million per quarter, to take advantage of the increased cash generated from its Financing Business Optimization program, and will continue to evaluate its share repurchase strategy with its Board of Directors on a routine basis.

"We're excited to report a strong finish to another productive year, highlighted by the successful closing and integration of our Bluegreen Vacations acquisition," said Mark Wang, CEO of Hilton Grand Vacations. "Over the past year, we made meaningful improvements to our cost base and organizational structure, introduced HGV Max to Bluegreen members, and produced record free cash flow while returning over $430 million to shareholders. This was on top of the work we are constantly doing to enhance the value of HGV ownership for our members. Looking ahead, we're well positioned to capitalize on our current momentum as we continue to leverage our scale, partnerships, and other strategic initiatives to drive further growth in 2025 and beyond."

Overview

On Jan. 17, 2024, HGV completed the acquisition of Bluegreen Vacations Holding Corporation ("Bluegreen" or "Bluegreen Vacations").

For the quarter ended Dec. 31, 2024, diluted EPS was $0.19 compared to $0.62 for the quarter ended Dec. 31, 2023. Net income attributable to stockholders and Adjusted EBITDA attributable to stockholders were $20 million and $240 million, respectively, for the quarter ended Dec. 31, 2024, compared to net income attributable to stockholders and Adjusted EBITDA attributable to stockholders of $68 million and $270 million, respectively, for the quarter ended Dec. 31, 2023. Total revenues for the quarter ended Dec. 31, 2024, were $1.284 billion compared to $1.019 billion for the quarter ended Dec. 31, 2023.

Net income attributable to stockholders and Adjusted EBITDA attributable to stockholders for the quarter ended Dec. 31, 2024, included a net deferral of $49 million relating to the completion of projects under construction in Hawaii during the period.

Consolidated Segment Highlights – Fourth quarter of 2024

Real Estate Sales and Financing

For the quarter ended Dec. 31, 2024, Real Estate Sales and Financing segment revenues were $769 million, an increase of $178 million compared to the quarter ended Dec. 31, 2023. Real Estate Sales and Financing segment Adjusted EBITDA and Adjusted EBITDA profit margin were $170 million and 22.1%, respectively, for the quarter ended Dec. 31, 2024, compared to $191 million and 32.3%, respectively, for the quarter ended Dec. 31, 2023. Real Estate Sales and Financing segment revenues results in the fourth quarter of 2024 increased primarily due to a $99 million increase in sales revenue and a $71 million increase in financing revenue.

Real Estate Sales and Financing segment Adjusted EBITDA reflects a net construction deferral of $49 million for the quarter ended Dec. 31, 2024, compared to $12 million net construction deferral for the quarter ended Dec. 31, 2023, both of which reduced reported Adjusted EBITDA attributable to stockholders.

Contract sales for the quarter ended Dec. 31, 2024, increased $265 million to $837 million compared to the quarter ended Dec. 31, 2023. For the quarter ended Dec. 31, 2024, tours increased by 36.1% and VPG increased by 7.9% compared to the quarter ended Dec. 31, 2023. For the quarter ended Dec. 31, 2024, fee-for-service contract sales represented 18.3% of contract sales compared to 20.3% for the quarter ended Dec. 31, 2023.

Financing revenues for the quarter ended Dec. 31, 2024, increased by $71 million compared to the quarter ended Dec. 31, 2023. This was driven primarily by an increase in the weighted average interest rate of 10 basis points for the originated portfolio and an increase in the carrying balance of the timeshare financing receivables portfolio as of Dec. 31, 2024, compared to Dec. 31, 2023.

Resort Operations and Club Management

For the quarter ended Dec. 31, 2024, Resort Operations and Club Management segment revenue was $399 million, an increase of $52 million compared to the quarter ended Dec. 31, 2023. Resort Operations and Club Management segment Adjusted EBITDA and Adjusted EBITDA profit margin were $162 million and 40.6%, respectively, for the quarter ended Dec. 31, 2024, compared to $146 million and 42.1%, respectively, for the quarter ended Dec. 31, 2023, primarily due to the inclusion of Bluegreen's resort and club business.

Inventory

The estimated value of the Company's total contract sales pipeline is $12.7 billion at current pricing.

The total pipeline includes $10.1 billion of sales relating to inventory that is currently available for sale at open or soon-to-open projects. The remaining $2.6 billion of sales is related to inventory at new or existing projects that will become available for sale in the future upon registration, delivery or construction.

Owned inventory represents 91.1% of the Company's total pipeline. Approximately 80.9% of the owned inventory pipeline is currently available for sale.

Fee-for-service inventory represents 8.9% of the Company's total pipeline. Approximately 60.2% of the fee-for-service inventory pipeline is currently available for sale.

Balance Sheet and Liquidity

Total cash and cash equivalents were $328 million and total restricted cash was $438 million as of Dec. 31, 2024.

As of Dec. 31, 2024, the Company had $4.6 billion of corporate debt, net outstanding with a weighted average interest rate of 6.14% and $2,318 million of non-recourse debt, net outstanding with a weighted average interest rate of 5.24%.

As of Dec. 31, 2024, the Company's liquidity position consisted of $328 million of unrestricted cash and restricted cash of $438 million. Restricted cash primarily consists of escrow deposits received on VOI sales and reserves related to non-recourse debt.

As of Dec. 31, 2024, the Company had $715 million remaining borrowing capacity under the revolver facility.

As of Dec. 31, 2024, HGV has $423 million remaining borrowing capacity in total under the Timeshare Facility. As of Dec. 31, 2024, the Company had $1.2 billion of notes that were current on payments but not securitized. Of that figure, approximately $749 million could be monetized through either warehouse borrowing or securitization while another $291 million of mortgage notes HGV anticipates being eligible following certain customary milestones such as first payment, deeding and recording. The Grand Islander and Bluegreen Timeshare Facilities were terminated in the first quarter of 2024.

Free cash flow was $48 million for the quarter ended Dec. 31, 2024, compared to $(28) million for the same period in the prior year. Adjusted free cash flow was $883 million for the quarter ended Dec. 31, 2024, compared to $255 million for the same period in the prior year. Adjusted free cash flow for the quarter ended Dec. 31, 2024, and 2023, includes add-backs of $88 million and $49 million, respectively, primarily for acquisition and integration related costs.

As of Dec. 31, 2024, the Company's total net leverage on a trailing 12-month basis, inclusive of all anticipated cost synergies, was approximately 3.77x.

Financing Business Optimization

In light of HGV's recent capital markets consolidation and strong track record of execution in securitization markets, the Company intends to take advantage of its significant excess liquidity position by optimizing its securitization strategy through increased use of non-recourse credit markets, generating incremental cash flow that can be deployed for additional capital returns and business reinvestment.

Subsequent Events

On Jan. 31, 2025, HGV amended its Revolver Credit Facility ("Revolver") and both of its Term Loan B due 2028 and Term Loan B due 2031. The terms of the Revolver were amended to reduce pricing spreads, expand covenants, reset certain incurrence baskets and extend maturity to January 2030. The Term Loan B due 2028 was repriced to SOFR plus 2.00%, down from SOFR plus 2.50%. The Term Loan B due 2031 was repriced to SOFR plus 2.00%, down from SOFR plus 2.25%. Additionally, the Term Loan A, due January 2028, was repriced to SOFR plus 1.65%, down from SOFR plus 1.75%.

Total Construction Deferrals and/or Recognitions Included in Results Reported Under Accounting Standards Codification Topic 606 ("ASC 606")

The Company's Adjusted EBITDA as reported under ASC 606 includes construction-related recognitions and deferrals of revenues and related expenses as detailed in Table T-1 below. Under ASC 606, the Company defers revenues and related expenses pertaining to sales at projects that occur during periods when that project is under construction until the period when construction is completed.

Conference Call

Hilton Grand Vacations will host a conference call on Feb. 27, 2025, at 11 a.m. (ET) to discuss fourth quarter and full year 2024 results.

To access the live teleconference, please dial 1-877-407-0784 in the U.S./Canada (or +1-201-689-8560 internationally) approximately 15 minutes prior to the teleconference's start time. A live webcast will also be available by logging onto the HGV Investor Relations website at https://investors.hgv.com.

In the event of audio difficulties during the call on the toll-free number, participants are advised that accessing the call using the +1-201-689-8560 dial-in number may bypass the source of audio difficulties.

A replay will be available within 24 hours after the teleconference's completion through March 13, 2025. To access the replay, please dial 1-844-512-2921 in the U.S. (+1-412-317-6671 internationally) using ID#13751065. A webcast replay and transcript will also be available within 24 hours after the live event at https://investors.hgv.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements convey management's expectations as to the future of HGV, and are based on management's beliefs, expectations, assumptions and such plans, estimates, projections and other information available to management at the time HGV makes such statements. Forward-looking statements include all statements that are not historical facts, and may be identified by terminology such as the words "outlook," "believe," "expect," "potential," "goal," "continues," "may," "will," "should," "could," "would," "seeks," "approximately," "projects," "predicts," "intends," "plans," "estimates," "anticipates," "future," "guidance," "target," or the negative version of these words or other comparable words, although not all forward-looking statements may contain such words. The forward-looking statements contained in this press release include statements related to HGV's revenues, earnings, taxes, cash flow and related financial and operating measures, and expectations with respect to future operating, financial and business performance and other anticipated future events and expectations that are not historical facts.

HGV cautions you that our forward-looking statements involve known and unknown risks, uncertainties and other factors, including those that are beyond HGV's control, which may cause the actual results, performance or achievements to be materially different from the future results. Any one or more of these risks or uncertainties, could adversely impact HGV's operations, revenue, operating profits and margins, key business operational metrics, financial condition or credit rating.

For a more detailed discussion of these factors, see the information under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in HGV's most recent Annual Report on Form 10-K, which may be supplemented and updated by the risk factors in HGV's quarterly reports, current reports and other filings HGV makes with the SEC.

HGV's forward-looking statements speak only as of the date of this communication or as of the date they are made. HGV disclaims any intent or obligation to update any "forward-looking statement" made in this communication to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

Non-GAAP Financial Measures

The Company refers to certain non-GAAP financial measures in this press release, including Adjusted Net Income or Loss, Adjusted Net Income or Loss Attributable to Stockholders, Adjusted Diluted EPS, EBITDA, Adjusted EBITDA, Adjusted EBITDA Attributable to Stockholders, EBITDA profit margin, Adjusted EBITDA profit margin, Free Cash Flow and Adjusted Free Cash Flow, profits and profit margins for HGV's key activities - real estate, financing, resort and club management, and rental and ancillary services. Please see the tables in this press release and "Definitions" for additional information and reconciliations of such non-GAAP financial measures.

The Company believes these additional measures are also important in helping investors understand the performance and efficiency with which we are able to convert revenues for each of these key activities into operating profit, both in dollars and as margins, and are frequently used by securities analysts, investors and other interested parties as one of common performance measures to compare results or estimate valuations across companies in our industry.

The Company refers to Adjusted EBITDA guidance excluding deferrals and recognitions, which does not take into account any future deferrals of revenues and direct expenses related to the sales of VOIs under construction that are recognized, only on a non-GAAP basis, as the quantification of reconciling items to the most directly comparable U.S. GAAP financial measure is not readily available without unreasonable effort due to uncertainties associated with the timing and amount of such items. These items may create a material difference between the non-GAAP and comparable U.S. GAAP results. We define Adjusted EBITDA Attributable to Stockholders as Adjusted EBITDA excluding amounts attributable to the noncontrolling interest in HGV/Big Cedar Vacations in which HGV owns a 51% interest ("Big Cedar").

About Hilton Grand Vacations Inc.

Hilton Grand Vacations Inc. (NYSE:HGV) is recognized as a leading global timeshare company and is the exclusive vacation ownership partner of Hilton. With headquarters in Orlando, Florida, Hilton Grand Vacations develops, markets, and operates a system of brand-name, high-quality vacation ownership resorts in select vacation destinations. Hilton Grand Vacations has a reputation for delivering a consistently exceptional standard of service, and unforgettable vacation experiences for guests and approximately 720,000 Club Members. Membership with the Company provides best-in-class programs, exclusive services and maximum flexibility for our Members around the world.

For more information, visit www.corporate.hgv.com. Follow us on Instagram, Facebook, LinkedIn, X (formerly Twitter), Pinterest and YouTube.

HILTON GRAND VACATIONS INC.

DEFINITIONS

EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders

EBITDA, presented herein, is a financial measure that is not recognized under U.S. GAAP that reflects net income, before interest expense (excluding non-recourse debt), a provision for income taxes and depreciation and amortization.

Adjusted EBITDA, presented herein, is calculated as EBITDA, as previously defined, further adjusted to exclude certain items, including, but not limited to, gains, losses and expenses in connection with: (i) other gains, including asset dispositions and foreign currency transactions; (ii) debt restructurings/retirements; (iii) non-cash impairment losses; (iv) share-based and other compensation expenses; and (v) other items, including but not limited to costs associated with acquisitions, restructuring, amortization of premiums and discounts resulting from purchase accounting, and other non-cash and one-time charges.

Adjusted EBITDA Attributable to Stockholders is calculated as Adjusted EBITDA, as previously defined, excluding amounts attributable to the noncontrolling interest in Big Cedar.

EBITDA profit margin, presented herein, represents EBITDA, as previously defined, divided by total revenues. Adjusted EBITDA profit margin, presented herein, represents Adjusted EBITDA, as previously defined, divided by total revenues.

EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders are not recognized terms under U.S. GAAP and should not be considered as alternatives to net income or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. In addition, our definitions of EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders may not be comparable to similarly titled measures of other companies.

HGV believes that EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders provide useful information to investors about us and our financial condition and results of operations for the following reasons: (i) EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders are among the measures used by our management team to evaluate our operating performance and make day-to-day operating decisions; and (ii) EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders are frequently used by securities analysts, investors and other interested parties as a common performance measure to compare results or estimate valuations across companies in our industry.

EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders have limitations as analytical tools and should not be considered either in isolation or as a substitute for net income, cash flow or other methods of analyzing our results as reported under U.S. GAAP. Some of these limitations are:

• EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders do not reflect changes in, or cash requirements for, our working capital needs;

• EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders do not reflect our interest expense (excluding interest expense on non-recourse debt), or the cash requirements necessary to service interest or principal payments on our indebtedness;

• EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders do not reflect our tax expense or the cash requirements to pay our taxes;

• EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders do not reflect historical cash expenditures or future requirements for capital expenditures or contractual commitments;

• EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders do not reflect the effect on earnings or changes resulting from matters that we consider not to be indicative of our future operations;

• EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders do not reflect any cash requirements for future replacements of assets that are being depreciated and amortized; and

• EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders may be calculated differently from other companies in our industry limiting their usefulness as comparative measures.

Because of these limitations, EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Stockholders should not be considered as discretionary cash available to us to reinvest in the growth of our business or as measures of cash that will be available to us to meet our obligations.

Adjusted Net Income, Adjusted Net Income Attributable to Stockholders and Adjusted Diluted EPS Attributable to Stockholders

Adjusted Net Income, presented herein, is calculated as net income further adjusted to exclude certain items, including, but not limited to, gains, losses and expenses in connection with costs associated with acquisitions, restructuring, amortization of premiums and discounts resulting from purchase accounting, and other non-cash and one-time charges. Adjusted Net Income Attributable to Stockholders, presented herein, is calculated as Adjusted Net Income, as defined above, excluding amounts attributable to the noncontrolling interest in Big Cedar. Adjusted Diluted EPS, presented herein, is calculated as Adjusted Net Income Attributable to Stockholders, as defined above, divided by diluted weighted average shares outstanding.

Adjusted Net Income, Adjusted Net Income Attributable to Stockholders and Adjusted Diluted EPS are not recognized terms under U.S. GAAP and should not be considered as alternatives to net income or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. In addition, our definition may not be comparable to similarly titled measures of other companies.

Adjusted Net Income, Adjusted Net Income Attributable to Stockholders and Adjusted Diluted EPS are useful to assist our investors in evaluating our ongoing operating performance for the current reporting period and, where provided, over different reporting periods.

Free Cash Flow and Adjusted Free Cash Flow

Free Cash Flow represents cash from operating activities less non-inventory capital spending.

Adjusted Free Cash Flow represents free cash flow further adjusted for net non-recourse debt activities and other one-time adjustment items including, but not limited to, costs associated with acquisitions.

We consider Free Cash Flow and Adjusted Free Cash Flow to be liquidity measures not recognized under U.S. GAAP that provide useful information to both management and investors about the amount of cash generated by operating activities that can be used for investing and financing activities, including strategic opportunities and debt service. We do not believe these non-GAAP measures to be a representation of how we will use excess cash.

Non-GAAP Measures within Our Segments

Sales revenue represents sales of VOIs, net, and Fee-for-service commissions and brand fees earned from the sale of fee-for-service VOIs. Fee-for-service commissions and brand fees represents sales, marketing, brand and other fees, which corresponds to the applicable line item from our consolidated statements of income, adjusted by marketing revenue and other fees earned primarily from discounted marketing related packages which encompass a sales tour to prospective owners. Real estate expense represents costs of VOI sales and Sales and marketing expense, net. Sales and marketing expense, net represents sales and marketing expense, which corresponds to the applicable line item from our consolidated statements of income, adjusted by marketing revenue and other fees earned primarily from discounted marketing related packages which encompass a sales tour to prospective owners. Both fee-for-service commissions and brand fees and sales and marketing expense, net, represent non-GAAP measures. We present these items net because it provides a meaningful measure of our underlying real estate profit related to our primary real estate activities which focus on the sales and costs associated with our VOIs.

Real estate profit represents sales revenue less real estate expense. Real estate margin is calculated as a percentage by dividing real estate profit by sales revenue. We consider real estate profit margin to be an important non-GAAP operating measure because it measures the efficiency of our sales and marketing spending, management of inventory costs, and initiatives intended to improve profitability.

Financing profit represents financing revenue, net of financing expense, both of which correspond to the applicable line items from our consolidated statements of income. Financing profit margin is calculated as a percentage by dividing financing profit by financing revenue. We consider this to be an important non-GAAP operating measure because it measures the efficiency and profitability of our financing business in connection with our VOI sales.

Resort and club management profit represents resort and club management revenue, net of resort and club management expense, both of which correspond to the applicable line items from our consolidated statements of income. Resort and club management profit margin is calculated as a percentage by dividing resort and club management profit by resort and club management revenue. We consider this to be an important non-GAAP operating measure because it measures the efficiency and profitability of our resort and club management business that support our VOI sales business.

Rental and ancillary services profit represents rental and ancillary services revenues, net of rental and ancillary services expenses, both of which correspond to the applicable line items from our consolidated statements of income. Rental and ancillary services profit margin is calculated as a percentage by dividing rental and ancillary services profit by rental and ancillary services revenue. We consider this to be an important non-GAAP operating measure because it measures our ability to convert available inventory and unoccupied rooms into revenue and profit by transient rentals, as well as profitability of other services, such as food and beverage, retail, spa offerings and other guest services.

Real Estate Metrics

Contract sales represents the total amount of VOI products (fee-for-service, just-in-time, developed, and points-based) under purchase agreements signed during the period where we have received a down payment of at least 10% of the contract price. Contract sales differ from revenues from the Sales of VOIs, net that we report in our consolidated statements of income due to the requirements for revenue recognition, as well as adjustments for incentives. While we do not record the purchase price of sales of VOI products developed by fee-for-service partners as revenue in our consolidated financial statements, rather recording the commission earned as revenue in accordance with U.S. GAAP, we believe contract sales to be an important operational metric, reflective of the overall volume and pace of sales in our business and believe it provides meaningful comparability of HGV's results the results of our competitors which may source their VOI products differently. HGV believes that the presentation of contract sales on a combined basis (fee-for-service, just-in-time, developed, and points-based) is most appropriate for the purpose of the operating metric; additional information regarding the split of contract sales, included in "—Real Estate" included in Item 7 in the Annual Report on form 10-K for the year ended December 31, 2024. See Note 2: Summary of Significant Accounting Policies in HGV's consolidated financial statements included in Item 8 in the Annual Report on form 10-K for the year ended December 31, 2024, for additional information on Sales of VOIs, net.

Developed Inventory refers to VOI inventory that is sourced from projects developed by HGV.

Fee-for-Service Inventory refers to VOI inventory HGV sells and manages on behalf of third-party developers.

Just-in-Time Inventory refers to VOI inventory primarily sourced in transactions that are designed to closely correlate the timing of the acquisition with HGV's sale of that inventory to purchasers.

Points-Based Inventory refers to VOI sales that are backed by physical real estate that is or will be contributed to a trust.

Net Owner Growth ("NOG") represents the year-over-year change in membership.

Tour flow represents the number of sales presentations given at HGV's sales centers during the period.

Volume per guest ("VPG") represents the sales attributable to tours at HGV's sales locations and is calculated by dividing contract sales, excluding telesales, by tour flow. HGV considers VPG to be an important operating measure because it measures the effectiveness of HGV's sales process, combining the average transaction price with closing rate.

HILTON GRAND VACATIONS INC.

FINANCIAL TABLES