Hilton Grand Vacations Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Hilton Grand Vacations Inc. filed its 2023 10-K report detailing financial performance and business operations.</b>

AI Summary

Hilton Grand Vacations Inc. (HGV) filed a Annual Report (10-K) with the SEC on February 29, 2024. Hilton Grand Vacations Inc. reported its 2023 fiscal year results on February 29, 2024. The company's primary business segments include Sales of Vacation Ownership Intervals, Sales/Marketing/Brand/Other Fees, Financing, Resort and Club Management, and Rental and Ancillary Services. Key cost categories include Cost of Vacation Ownership Intervals Sales, Sales and Marketing expenses, and Acquisition and Integration Related Expenses. The filing covers the fiscal year ending December 31, 2023, with comparative data for 2022 and 2021. The company is incorporated in Delaware and its principal business address is in Orlando, Florida.

Why It Matters

For investors and stakeholders tracking Hilton Grand Vacations Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of HGV's financial health and operational strategies for the fiscal year 2023, crucial for investors assessing its performance and future outlook. Understanding the breakdown of revenue streams and cost structures, including specific figures for sales, marketing, and acquisition expenses, is vital for evaluating the company's profitability and growth drivers.

Risk Assessment

Risk Level: medium — Hilton Grand Vacations Inc. shows moderate risk based on this filing. The filing is a standard 10-K, which is a comprehensive annual report. While it contains detailed financial information, it does not present any immediate red flags or significant deviations from typical corporate reporting that would suggest unusually high risk based solely on this header information.

Analyst Insight

Review the detailed financial statements and risk factors within the full 10-K to understand the company's performance drivers and potential challenges.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-02-29 — Filing Date (FILED AS OF DATE)
• 2023-01-01 — Fiscal Year Start (2023 FY)
• 2022-12-31 — Prior Year End (2022-12-31)
• 2021-12-31 — Prior Year End (2021-12-31)

Key Players & Entities

• Hilton Grand Vacations Inc. (company) — CONFORMED NAME
• 0001674168 (company) — CENTRAL INDEX KEY
• DE (jurisdiction) — STATE OF INCORPORATION
• Orlando, FL (location) — BUSINESS ADDRESS
• 407-722-3100 (phone) — BUSINESS PHONE
• 1934 Act (regulation) — SEC ACT
• 001-37794 (identifier) — SEC FILE NUMBER
• 24703206 (identifier) — FILM NUMBER

FAQ

Key Financial Figures

• $0.01 — nge on which registered) Common Stock, $0.01 par value per share HGV New York Stock
• $1.6 b — th total consideration of approximately $1.6 billion, inclusive of net debt. The Blueg
• $11 billion — livery or construction is approximately $11 billion at current pricing. Capital-efficient a

Filing Documents

• hgv-20231231.htm (10-K) — 3202KB
• exhibit1017damendmentno3to.htm (EX-10.17(D)) — 108KB
• exhibit211subsidiarieshgvf.htm (EX-21.1) — 174KB
• exhibit231consentofindepen.htm (EX-23.1) — 5KB
• hgv-20231231x10kex311.htm (EX-31.1) — 10KB
• hgv-20231231x10kex312.htm (EX-31.2) — 10KB
• hgv-20231231x10kex321.htm (EX-32.1) — 6KB
• hgv-20231231x10kex322.htm (EX-32.2) — 6KB
• exhibit97hgv-incentivecomp.htm (EX-97) — 46KB
• hgv-20231231_g1.jpg (GRAPHIC) — 85KB
• image_0.jpg (GRAPHIC) — 72KB
• image_1.jpg (GRAPHIC) — 44KB
• 0001628280-24-007940.txt (&nbsp;) — 17631KB
• hgv-20231231.xsd (EX-101.SCH) — 120KB
• hgv-20231231_cal.xml (EX-101.CAL) — 147KB
• hgv-20231231_def.xml (EX-101.DEF) — 687KB
• hgv-20231231_lab.xml (EX-101.LAB) — 1207KB
• hgv-20231231_pre.xml (EX-101.PRE) — 959KB
• hgv-20231231_htm.xml (XML) — 2949KB

– Business

Item 1 – Business 2

– Risk Factors

Item 1A – Risk Factors 16

– Unresolved Staff Comments

Item 1B – Unresolved Staff Comments 47

– Cybersecurity

Item 1C – Cybersecurity 47

– Properties

Item 2 – Properties 48

– Legal Proceedings

Item 3 – Legal Proceedings 49

– Mine Safety Disclosures

Item 4 – Mine Safety Disclosures 49 PART II 50

– Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5 – Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 50

- [Reserved]

Item 6 - [Reserved] 51

– Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operations 52

– Quantitative and Qualitative Disclosures About Market Risk

Item 7A – Quantitative and Qualitative Disclosures About Market Risk 72

– Financial Statements and Supplementary Data

Item 8 – Financial Statements and Supplementary Data 74

– Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9 – Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 127

– Controls and Procedures

Item 9A – Controls and Procedures 127

– Other Information

Item 9B – Other Information 128

– Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C – Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 128 PART III 129

– Directors, Executive Officers and Corporate Governance

Item 10 – Directors, Executive Officers and Corporate Governance 129

– Executive Compensation

Item 11 – Executive Compensation 129

– Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12 – Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 129

– Certain Relationships and Related Transactions, and Director Independence

Item 13 – Certain Relationships and Related Transactions, and Director Independence 129

– Principal Accountant Fees and Services

Item 14 – Principal Accountant Fees and Services 129 PART IV 129

– Exhibits and Financial Statement Schedules

Item 15 – Exhibits and Financial Statement Schedules 129

– Form 10-K Summary

Item 16 – Form 10-K Summary 129 EXHIBIT INDEX 130

SIGNATURES

SIGNATURES 137 Table of Contents PART I Cautionary Note Regarding Forward-Looking Statements This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). 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 Annual Report on Form 10-K 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, including, related to the acquisition and integration of Bluegreen Vacations Holding Corporation ("Bluegreen"). 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, including those related to HGV's acquisition of Blue

Business

ITEM 1. Business Our History On January 3, 2017, HGV became an independent publicly traded company as a result of Hilton Worldwide Holdings Inc.'s ("Hilton") tax-free spin-off of each of HGV and Park Hotels & Resorts Inc. ("Park"). As a result of the spin-off, HGV became an independent publicly traded company with common stock listed on the New York Stock Exchange under the symbol "HGV." Following the spin-off, Hilton did not retain any ownership in our company. In connection with the spin-off, we entered into agreements with Hilton and other third parties, including licenses to use the Hilton Grand Vacations brand. For more information regarding these agreements, see "— Business—Key Agreements with Hilton Worldwide Holdings. " On August 2, 2021, we completed the acquisition of Dakota Holdings, Inc. ("Diamond"), the parent of Diamond Resorts International (the "Diamond Acquisition"), by exchanging 100% of the outstanding equity interests of Diamond for shares of HGV common stock. As a result of the Diamond Acquisition, certain funds controlled by Apollo Global Management Inc. ("Apollo") and other minority shareholders, which previously owned 100% of Diamond, held approximately 28% of HGV's common stock at the time the Diamond Acquisition was completed. On January 17, 2024 (the "Bluegreen Acquisition Date"), we completed the acquisition of Bluegreen Vacations Holding Corporation (the "Bluegreen Acquisition") in an all-cash transaction, with total consideration of approximately $1.6 billion, inclusive of net debt. The Bluegreen Acquisition is expected to broaden HGV's offerings, customer reach and sales locations, creating a premier vacation ownership and experiences company. Our Business We are a global timeshare company engaged in developing, marketing, selling, managing and operating timeshare resorts, timeshare plans and ancillary reservation services, primarily under the Hilton Grand Vacations brand. Our operations primarily consist of: selling vacation o

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View this 10-K filing on SEC EDGAR