HGV Q2 2021 Earnings

Call Details

• Call Title: Hilton Grand Vacations Q2 2021 Earnings Call
• Date: July 29, 2021 at 3:00 PM UTC
• Management Team:
  • Mark Melnyk (Vice President of Investor Relations)
  • Mark Wang (Chief Executive Officer)
  • Dan Mathewes (Chief Financial Officer)

Call Summary

Financial Performance

• Contract sales for the quarter were $259M, up 86% versus last quarter.
• BTG for the quarter was just under $4,400, which was reported as up 29% compared to 2019.
• Average occupancy for the quarter was 81%, up from 50% in Q1 and below the 89% reported in Q2 2019.
• Contract sales ended June at 80% of 2019 levels systemwide, and excluding Hawaii and urban markets recovered to 92% of 2019 levels by June.
• EBITDA margins were described as several hundred basis points ahead of 2019 on lower levels of contract sales.
• Net owner growth (NOG) returned to growth at 50 basis points in the quarter.
• The rental business generated revenue only a few million dollars shy of 2019 revenue levels while developer maintenance fees kept expenses elevated.

Guidance

• The company expects to achieve 2019 run-rate EBITDA as it exits the year.
• The company expects the beginning of a return of Japanese tourism to Hawaii starting in Q4 2021 with ramping through the first half of 2022.
• The company expects VPGs to normalize over time as mix shifts toward a more balanced mix of owners and new buyers.
• On-the-book occupancy in key markets was stated to be equal to 2019 through the remainder of the year, supporting near-term visibility.
• The Diamond acquisition is expected to close in early August and is factored into forward planning.
• No specific numeric forward revenue, EPS, or GAAP earnings guidance was disclosed on the call.