HGV - Earnings call transcript Q2 2022 | Hilton Grand Vacations Inc.

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Operator

Good morning, and welcome to the Hilton Grand Vacations’ Second Quarter 2022 Earnings Conference Call. A telephone replay will be available for seven days following the call. The dial-in number is 844-512-2921 and enter PIN 137-26010. At this time, all participants have been placed in a listen-only mode and the floor will be open for your questions following the presentation. [Operator Instructions] I would now like to turn the call over to Mr. President Relations, Vice and Senior Melnyk, of G&A Investor Productivity. Mark ahead, sir. go Please

Mark Melnyk

Thank Hilton to quarter welcome you, and Operator the call. XXXX Grand earnings Second Vacations’

As as by update statements. these include Statements, and to morning could discussion publicly are or materially We Forward-Looking a effective undertake statements Actual obligation only differ indicated these Statements. today. results will those from these reminder, our of revise Forward-Looking this no

to differ, a any could results For of cause section Factors the some other filings. and see that factors please of discussion of SEC XX-Q Risk the actual our applicable

also to will non-GAAP financial We measures. be referring certain

release find definitions at investors.hgv.com. on can GAAP numbers non-GAAP our such non-GAAP and as press well financial measures You in and components reconciliations today of and website as discussed of earnings our

and for in period all XXX, Under XXXX. reflect revenues and to periods adopted and construction under expenses to certain accounting project ASC we which ASC defer the reported related Our when made results a XXX, is in under in we off completed. required are rules our sales then is until deferrals release. period details expenses the those can meaningful our and recognitions of comparisons, revenues construction find of current recognizing make and you help when period-to-period Table you To TX on more historical earnings hold

our With website. a can our of historical Mathewes, operations Officer, President Dan all Excel your be company quarter Wang, section highlights Financial that, for call construction-related reporting real Chief the let themselves and of and For then our impact over deferral the quarter. go of activity will Investor we results, available In estate strategy. current results to and our on in through found our simplify on President the me comparability refer to Mark. and questions. periods. in net Relations will adjusted addition ease will and recognitions Financial A Mark the and make Mark’s Mark of the EBITDA Officer, and Wang. financial After to discussion Dan our recognition today, will of format turn and for the our an excluding comments update comments, details to for deferrals moment, Chief our our complete accounting from Mark CEO, Reporting Executive provide

Mark Wang

everyone ahead morning, set numbers call. another of second to and happy and report sales welcome the contract XXXX. of Good XX% that for of combined pro-forma quarter our results I’m our XXXX ahead produced margins. EBITDA quarter Well with strong and to we earnings over

month have nature hard of Our the the which new quarter, that integration offerings the highlights done. consistent performance in each compelling the both was of teams our work and

risk and members and in Our by remain higher despite disruptions. prices mindset, posed travel much a travel consumers very the recent fuel

spending, demand to recently Vacation rebranded we create consumer macroeconomic vacation new particularly While our at risks for Hilton to Club may high see these packages, forces continue resorts and properties.

record Our value we vacation near the remain underscoring, last quarter, in ownership. close rates of saw the proposition levels

customer Vacation of marketing with base travel us guests business collection, of strengthened with and portfolio our serve we every product have us integration of allowing We that engage our Hilton scale, wider with diversification will flexibility deepening Hilton adding relationship Diamond, And preferences to Hilton in the a help the addition are members. of high-quality honored the with Club our to environment.

in of and rest throughout trends forward solid our us the the today support to continue factors confidence year. outlook indicators giving these Importantly,

progress. our we about the highlights start last Before quarter, our and new update an talked call, program. integration our I On HGV Max strategy provide with let me for membership on

an our an streamlined journey members. and in an even to membership. what be to and means proposition benefits engage new greater increased way a We value about it our evolve provide important the to are access excited is level This through of providing HGV step member

meeting strong guests. omni-channel simplicity, members performance and and engagement, are focus and confirm expectations sales today’s on our We experiences, our benefits, resignating of VPG and with enhanced through these travelers the offerings are

participate hospitality seen I’m want events and members teams these events sporting a platform. our offer. are And platform XX% track exclusively on expand have we believe proud We offered participation and experience the for this members that how to relationships, between goal access and more. Access strong to build of on we I year, our we of capabilities deliver series, experiences expanded really this, sales concert ultimate rate this HGV premier a we our relationship experience more because a over on HGV memories, two with of guests, members access inspire and XX% to, have achieving to staying we our support in events program, connection not So the of our to overall a important and in cities including years properties and maintain results, one virtual channel. Vacations All are growing events events, there. in successful conducting even Grand have in the deepen to travel our experiences, is that coming these engaging owners properties. and or are traveling collection HGV to are major brand, they and create today, culinary the expected Hilton enhance when for from Ultimate experiences our private members

correlation high participation. seeing access VPG also are between ultimate a member and We

will are engage we expand, collecting to ability us sharpen we a further significant amount more with our of As allow to members. data that

Hilton successful already universe are are running potential Honor who of expanding we with Members customers. our on prospects Additionally, tests

suite our is become how we how in channels. virtual we The and traditional other sales sales of diversifying capability span we on our of we our experiences. as It a and with to where new of drive outside an integral especially members progress have critical significant products our as part made reach way engage incremental prospects function, customers, a is sales,

the sales We process. re-engineering the are across approach marketing

consistency drive our adhere to standards. we agents, example, provide real to AI For and our compliance now to use support time

this channel and centers year. our sales supportive the this virtual we additive about of drive our strength thinking contract sales expect of XX are million We channels as over of and both this to

majority quarter, are HGV. continue make now progress. ahead expect of maturely by excellent sales of third Since and of we is to sales vast the which our that schedule. centers, The has to we our markets selling of the more this completed is it we network rebranding which nine and to end work last rebranding, offering been new the are rebranded be seven Turning call, of Max HGV completed to in our

we eight we collection to are legacy side, Beach rebrands and physical experience our the our room keys one-third Virginia end. portfolio year high our of consistent our deliver improve members Tahoe, service target by Lake on across expect year. that our On from rebrand resorts, we the at of a in and added bringing additional this on are on with to property And continuing Scottsdale, Along our guests track properties total guest provide and also HGV property Club rebranded to to Hilton several quality Diamond ensuring standards rebranding assets, having we our us.

executing laid Then million remain but also call. on we cost details, of realize our will out upsize into to in get that cost more XXX we are We we confident synergies synergy our the ability on capture. last our

our progress pleased very with integration. of the I’m overall, So

XXX% me sales. per million performance Contract of turn forma XXXX to our let for quarter. the sales Now, combined or were XXX

basis mainland of region a XXXX points past set by a is but milestone record we the with flow great us across pleased prior as saw close segments and new also of we all last tour and it to to referencing had close recovery pace the the demand. led buyer First, geographies in rates improvements this quarter. within based move maintained quality We produced And peak, growth are quarter. XX we we broad rates new the

product mentioned our saw a with despite macro-economic guests continues month I’m growth consistency sales encouraged flow. the And I of that we As earlier, to of with resonate negative cadence quarter. steady tour in news our each in our

Turning April a having quarter. positive first business highest more end the witnessed to and trend XX% highest was typical for since we of very at and June another with stronger normal than through indicators quarter, XXXX. quarter levels cadence, demand In XX% QX the the sign our of May the of occupancy the seasonal returning to in occupancy versus a the

the owner the to continue arrivals solid trends Looking show of out fall. through our rest the year, to

And are rental arrivals trend total rest the showing room quarter. Our for on we books a with on in in nights similar the year fourth par were in are strength XXXX. with where the the particular of

us package We to visibility into buyer exceptionally see also new giving future our tour demand sales flow. continue strong

X.X to fact, for our we the of package is despite up pipeline a drive grow quarter, to now which improvements new converting In packages. and pipeline our tours, some million buyer still QX in

drive in of year. robust should our great the our and of some a additional growth support that indicator efforts the is of owner, strong, we investment the in of continues it demand remain new economic buyer half travel second be to new to even normalization $X,XXX buyer saw mix. as nearly headwinds it face VPG So

now drove member is base, New our nearly which XXX,XXX. buyers in growth

financing of members was alongside resort business NOG half added the nearly X.X% our HGV club X,XXX Our members our in steady contributed quarter. fuel which and Diamond business, in EBITDA. new net Those performance our

synergies quarter of of of continued Our million and growth and segment EBITDA quarter last results and higher those in rental margins combination XXX business ahead produced fueled initiatives had of consistent ADRs. the ahead by our The with in strong volumes XXXX. with strength travel efficiency well along

offering improvement and normal are HGV, of me business. overall, strong pipeline. our to So high we buyer gives great have well quarter, we we to saw deliver helped The a the a a just organization cadence new very a across us of quality return had solid and macroeconomic more confidence results strength added at inventory positioned withstand We that new to we noise. consistent

our have to I’m resorts. the of with and have how date, have of we base hard the here. who addition of get us made marked have members And for also portfolio future a opposing anniversary to year week of Last prepaid diversified dedicated teams thrilled progress proud I’m vacations. we the XX the have our with acquisition. Diamond worked one loyal We their

Grand are access further our focused progress, ramping program. Hilton Looking Max, club Vacations collection, we ultimate and on forward, HGV making

which are numbers. the strong Dan of walk With All over growth. turn to continued through it that, to you I Dan. catalysts for will

Daniel Mathewes

morning, Mark you, Thank and everyone. good

deferrals sales reported XX of for pre-opening project. Before we reported sales our to quarter that start, included related note of revenue impacting results our million Maui this

those during financial deferrals, an a the net six million. will $X cash period. only deferred direct more in which accurately excluding We impact also prepared the I remarks, recorded my resulting of our of of In metrics, impact of performance expenses the dynamics million flow associated reflects from to deferral sales refer

real estate second Let’s the recurring EBITDA pro-forma mentioned. $XXX second QX quarter. line growth Total in XXX We ahead in review record to performance. the XX% levels, club was rental million than excluding million and sequential our for our QX quarter as and a the revenue XXXX, basis the quarter’s I strong EBITDA or level. results the while reported were in from deferrals combined margins was the improve a business with in saw continued trends for adjusted of of nearly pro-forma better first businesses XX% points of XXX and XXXX performance. quarter finance

synergy rate. improvements and our below favorable initiatives elevated mix normalized provision We our from continue to buyer realize and VPGs along margin with efficiency capture

quarter, of XXX million reported quarter, the our million rate XXX run is synergies. our For target million cost of and versus cost XXX synergy annualized an last

acquisition the the of new offerings. encouraged inherent both results by well really consistency the as as through of the are the attractiveness our underscores quarter, the synergies product of We which

through the of the detail. Mark as XX% levels XXX segment contract estate, million in compared sequential Within and buyer recovered saw have a for sales contract made total pro-forma we strong in owner for were quarter growth flow XXXX contract the We saw real let’s up growth sales noted. the to quarter fully QX metrics. XX% outpacing Now from Owners QX. sales combined tour talk our in and improvement our that new with

mix from owner channels new We coming from towards shift the second owing we sales toward quarter, quarter, historic from was we through additional I are elevated we buyer our mentioned half levels continue initiatives. embedding new encouraged in nearly and the by mix the is the and into improvement record buyer last VPG from results this our value down as investment half to acquisition of We XXXX. anticipate see into in new while continued XX% expect trend buyers. the results was that this headed buyer from second the buyer X,XXX for It will in QX new the post largely more the growth. the quarters, enterprise early target driving the

mark XXX million net Cost just was marketing XX XX% of the mid quarter level XX% was estate sales, than QX. which noted, of lower levels with margins we million to we was XXX quarter ratio. under our XXX gross Real range. of first target rates Real ever estate As the close held VOI estate for basis the of at product our have quarter low contract for produced highest in was saw the record and in XX% segment. expense sales, sales of profit points real the

We lower expect that billion for X.X the which in million. quarter from net segment a due was were normalize XX than second financing and income mix margins allowance. the was XX%, anticipated million the billion our will carry continue receivables levels, And to new combined buyer of channel X.X of with sales, profit in of buyer half of In or gross margins investment interest quarter higher XX to owner new sales. these our margins year second our business,

portfolio of premium interest a includes our non-cash that was the million acquired revenue the from an Diamond with during originated XX.X%, Our $XX associated while amortization XX.X%, for the contra portfolio we of weighted average receivables interest portfolio had acquired and rate acquisition. rate average weighted a

used portfolio bad for very XXX billion debt these balance amounts, portfolio, the that Delinquencies remain million. Diamond million Our receivables their of allowance Of million was at which on XXX a acquired on was standards XXX and underwriting programs, X.X to from low but into ample normalization credit, XXXX. home a which previous comments, levels, benefited with government consistent strength other continued our access of consumer, and equity of we expect rising reflecting credit the has balance. trends stimulus

Our our annualized portfolios default originated rate X.XX%. for was

X% expected million was contract sales. Our provision Diamond it owned being amortization, from But almost lower and portfolio due another to better the than in lower modeling. owning provision bankruptcies, anticipated. lower credit remains our receivables consumer provision full seasoning related teens of to a our for or This mid reflected of was XX quarter than portfolio bad and QXs high debt the target rate to than impairments of point up performance,

our higher We of are a also cash seeing which transactions, for debt. full provision bad mix still lowers

million was towards to and provision, In expect way club legacy to begin new with XXX,XXX also end members looking We these Diamond of X.X% was Revenue quarter. NOG teams normalize our profit and the count quarter the HGVs in quarter, XX continue business, to at for of resort trends to the during member margins the added our XXXX segment at XXX million was target. working mid and our net high business, was quarter the its consolidated XX%.

rental inventory, up was revenues to the from and built latter QX. uptick quarter XX%. margins we in level profit from XXX million half segment Segment from quarter. The million corporate developer which of total in of and were million. were and fees. revenues million our GAAP, with the the due project between on new strong Bridging were was in adjusted sell lower saw income the a QX ancillary EBITDA, XX% adjusted expense EBITDA was XX carries margins XX improvement maintenance combined first Rental million with G&A strong fees seasonal Turning the was of loads through upon XX to license four JV headwind

XX free spending Our million. million, acquisition in of related million inventory costs XXX XX and which cash included the excludes of was adjusted quarter

rate was the Our due XX% for below timing Along solely conversion project. flow well Year-to-date, our next rate warehouse within quarter. flow was of the payment confident of year. to our the EBITDA of Sesoko associated phase for to guidance XX% conversion still the EBITDA to timing facility and XX% for being our to range our a feel is XX% our free cash with of the of we cash with with securitization. repayments the This target of spring

XXX of million two At the remaining stock million During of the quarter, XXX plans. $XX.XX. approved repurchase million and an our we XXth, average nearly common purchase of was price repurchase authorization June shares our

to this our quarter. strong feel comfortable we of as the the And quarter, which XXX we the outlook, half mentioned, for fall well of we year our I to Owing last guidance upper XXX and XXX At conversion this maintaining of million range. million, liquidity we to EBITDA facility. are target cash expect range to our results free produced unrestricted the our of consisted June XXth, with XX% Turning adjusted raised of we XX%. flow of within to to under XXX cash of availability position credit revolving million

had debt we our XXX first in had XXX remaining as mortgage securitize of XXX notes. billion We following certain to was Our comprised eligible and quarter and available billion. end warehouse debt another deeding such of we of of milestones, of end, non-recourse of corporate which debt anticipate recording. million capacity of balance million balance quarter one million X.X miles being facilities notes At and a payment, customary at

Turning a Company’s to on the giving all times of leverage our QX, of basis. perform leveraged synergies credit times anticipated not two including anticipated metrics. pro-forma to effect basis synergies, was At pro the X.X TTM are total end net a TTM at on

to turn now to operator we Operator. will the questions. We the over and look call your forward

Operator

Thank proceed with question And line first Securities. from of our Patrick comes with Scholes your [Operator you. Please Truist question. the Instructions]

Patrick Scholes

morning good everyone. Hi

into some quarter, I the did continue share repurchases think actually you those XQ? now in did

Daniel Mathewes

Yes.

Just capital to allocation. touch base on

as organic stool, then transactions obviously you As growth shareholders recall, so a to looking leg speak. third to the have on accretive capital we are materially and shareholders on M&A then at returning that of focused historically secondarily and our

the XX repurchases end XX going commit cash in where because we left. into translated through So cash million actually out door just the share did of the to the quarter, of

are through plan purchase shareholders capital capital XXX allocation via as we today. we and continue, when you right did forward, million we see that share primary July going XXst. And capital as through about to the but do use of returning July of at accounts, think bank Our about

evenly So I period, that year which last XX.X quarter. million we across about the quarter was XXX spread rather two think, talked being

So we going clearly being of mark available as to would exceeding exceeded well. it forward that in And us. the anticipate first that I quarter

Patrick Scholes

Okay. Thank you.

half you. You point. the back had XXXX the at given how encouraging speak about Anything first is can of say of thoughts Thank some about, this trending half year. to you

Mark Wang

our and this books sector pace First we would the say is would half line positions our especially all we that side very and in out. is of the advantages a are on key to on well. Patrick room have strong I the compared owners, watching owners of one around XXXX. really I metrics we book and look look, around and booking days nights position, and What continue to of They out. among average XXX have further our lodging say

to out rentals. typical is that days for So compared XX

now, So we goes good book revenue as owners year, holding have to are year. far as our continue very the were I up things would got and be sideline very and the they well. say a like collected of up beginning on club the well. this fees at really management is side, recurring our expectations XXXX will

that expectations very well. will up our So hold

defaults remarks, and in low mentioned on Dan’s think he remain I delinquencies our portfolio.

So good. upgrade seeing that record levels. are is we owners And at

with especially and HGV Max. strong in interest very So,

Our expectations to in this members are new about year Max XX,XXX going have HGV is we total.

well. really rollout So gone that has

regard looks from the increase New the buyer from a better continue XX% up, growth in QX first to had half QX, tour year half than a and that flow of back the to standpoint. in pick we

that leisure and in are XXXX. going XXX% That in contract on really overall our at. shift were I So But we were kind margins. they looking of think sales our that to looks of is some mainland that good, where travel pressure put look, is VPG mix

Mainland the to business really look continues So strong.

waiting our the year. still XX% Japanese for are the and right we but by in hopefully about We back are next middle of expectations now, is to come APAC just

will Japanese. We seeing the a more with start normal cadence

all-in-all about where going. are things So feel good

Patrick Scholes

Okay. Thank you.

Operator

Thank you.

Brandt your Our Please Barclays. line next question proceed of is from the question. Montour with with

Brandt Montour

taking my and questions. morning good Hey everybody for thanks

VPG that in dig well just and your in outlook understood. can on quarter the bit were the back the of we the more maybe on a So, comments and little

sequentially is would helpful what close between tiny be break a a well year-over-year, Your mix and bit bit Maybe as trends out repeat get Diamond. to it VPGs new done between shift. and legacy little a of HGV near-term just as and is were sort I rate

Mark Wang

was were Yes Brandt for versus XXXX. QX against they at XXXX against QX, actually, sequentially XX% up were while so XX% down, VPGs and which still

downward So some pressure of VPG. that seasonality, created on

to board, So have Max, we members. breakdown I at I a substantial don’t a upgrading would Diamond, value through that at owners go HGV and available our think the of are I record has pace. HGV to amount paces but a the look, record legacy across mentioned say,

levels. so significant are And trading up at lot we seeing of a and

excited about And so on there. is what are we going really really,

It this people vacations. - or value accentuating environment, think, future I hedging of their the is today’s inflationary it is environment, cost creating are enhancing proposition. our

So, today’s in regard. really environment I helping us is think that

pleased far what new new As we with buyer’s we side. the are seeing buyers as really go, are in on

Hilton we Importantly, the customer from the customers packages the markets to rebranded. legacy over of to we a which up have now locations, to-date booked opened going base Hilton are being Diamond have and XX,XXX number

So, tour improvement and in flow. all-in-all, continued VPG great performance sequential

Brandt Montour

you up reiteration line for you great. thanks mix it VPGs as that to be, marketing do the was if as guidance does back a or Okay, contract think a sales It going well more shift. the of softer your sales? The more show full-year. are show some to year is seem it to like the baking of guess, in of going half I in as in little bit and sequentially, gross would percentage I going the is question up for interpret and

Daniel Mathewes

of Dan. is is Brand, going be Hey, a it to It actually combination both.

mix. to are mix, buyer primarily to that And costly. the with are on VPG more side tours new the see You then going due compression

half the upped million of is in we today. of you at where couple beginning compression a hundred that points And When margin potentially. sit the we of expect XXX to would year is the guidance, at material, midpoint. million. we out We the the what a with that came but not year, XXX about So basis in think a the our back midpoint

that So beat in it that the you the us to And midpoint into is and the feel QX of QX really you as consideration the we gets of in XXX beat taking to kind XXX. XXX XXX, but we in is you modest ballpark, upside heard to thought that in there saying that feel us my just that gets some prepared comfortable through walk to comments, process XXX there. to our

Brandt Montour

helpful. much guys. Thanks Super so

Operator

Our from next line David Please with proceed is of your Katz question. question the Jefferies. with

David Katz

apologize doubling you is question, function Hi is that it of had about keeping year and sort good the sort driver taking flattish, the it a loan margin there shift nothing the one-off bunch morning. other for of talked is of loss on there. that for of in any a in or a And year come just Thanks mix back then items and the of half this looking up front I of of beat. my about, will have back entirely some and sort stuff sort of of the we morning back up but half into

is the sure really make beaten. to Just issue

Mark Wang

No of entity. anticipated, the we loss side, tried let below this for problem. do well from multiple and the we that Outside times, you have we HGV VPG legacy but provision, and averages have a the loan what are real see historical combined thing to estate reiterate alone other on

ramp. we some And mid-teens provision high on to that XX% We to teens, are point the and sub be in at we and level. that expect expect

over by that and Part reasons. driven - XX-months ramp that the XX-months accounting pure probably is would of in between timeframe. next that Now

opening acquired against reserve balance we put we portfolio Diamonds large the instance, of For at time loans. that those existing a sheet,

- we not that our does provision So PNL not are hit today.

new product, we have As three addition a COVID. of a Vacation to driven provision. from Diamond what by down ramping is to then quarters government certain over I lower - is owners, in we seen a been lot feel in the it to to is start particular from that the propensity extent legacy we that that want impact that, continue and that Club has Hilton sell will to last obviously stimulus buyers been and borrow now to the say And

down, your that lower to increase, propensity own lower a provision as have as contract the obviously but of will also loans, lower to ramp that So continues believe you we levels, at which sales. borrow percent

year the with two is. those half what will real financing is estate from the really But come a So dynamics to back - perspective. that into of combined it

last, David, been the we want quarters. to effectively same for I So story say the three have saying

David Katz

okay back I think in it queue. for Thanks. jump me. that may Got is it. I the

Mark Wang

Okay. Thanks.

Operator

next question Ben with line Please Suisse. of your Our is with from the proceed Credit question. Chaiken

Benjamin Chaiken

others. also with one I’m that a about talking Then centers said have are packages Hey customers, guess, kind taking Diamond some some thanks but sales there kind stepping talk I portfolio. - into of of about Like back for resonate the my gave centers I for XX a for can the the bit, sold Max think on you color and upgrading - question. just I HGV of you the I guess you XX,XXX But Hilton sales the members. guess product, early have the HGV the for you the little selling to rebranded, is Max? I two results Honors of customer seeing Diamond you or

Mark Wang

Yes.

are legacy positive So both board sales, the in I that very from we or would legacy seeing say have across and HGV over. results been those converted Diamond that

the selling. of And for moved on the in of that have all propping And Ben, we all is something down a road. we organization so doing getting up things significant and lot be started so amount and we one of had this have Obviously, up, the change Max cross of a doing not will the technology.

a And they allowing best historically. happen. and been well. But And selling very both have focused we on have are doing cross-selling our trust where so teams we of some deed of that bit are to cross-selling we little what kept are and seeing

other really some on product. demand we strong We But And launched testing trust into from desire product moved are we the Legacy about single you in on are HGV it, seeing currency the only to deeded earlier into a side, seeing areas. very a [Max] year upgrade Ultimately, if we centers. we strong sales few before everything in are that think (Ph). the our

both worked our now. deed right so trust points And and product across the great

So And get out think our I resignating another of it all-in-all, occur be tailwind that selling potential more I as farther think with the product to we into think guests is cross very XXXX, each us. we when will well. for we allow XXXX,

Benjamin Chaiken

to that Got think Is there Hilton a mentioned honors product. about being over - about, sold to possible, maybe think bit but to this I the just if I way don’t the pinpoint, and little conversion? I is know legacy you. think used members, help hard likely to to be us -. And packages like but XX,XXX bracket, that any primarily then maybe timeframe then like how guess, you like Diamond package

Mark Wang

yes. Sure,

the So markets. just eight were we the XX,XXX anyway, package saw into side, so on

markets So, around still is so typically have those very time travel on. the packages months after it the been rebranded early you sell and are that six and

coming quality the is So have we confident and upgraded, the we upgraded still the of down door what identical pretty put a of some out rebranded product there. that really been your that in been haven’t centers are technology’s yet. through HGV sales much Hilton been Legacy customers sales cases, Hilton has step seen that but centers, the bit to Vacation that many meets Club that those and But is very we a

of the So record up. now going our expectations a sits customers. Activations those pick sales are that package And XXX,XXX. our as it go pipeline pipeline, to amount continue at well relates to are to to

mix half that from which throughout new in we As was of today. flow to we and QX what that mentioned, up about versus the the momentum our we that QX by part tour XX% earlier back continues is can see up, have of shift talked saw year, is pick all indications I

Benjamin Chaiken

owners I Got one the very clear, you quick versus just one, were to and new you mentioned of think that XX% and transactions? dollars sales then is mix XQ, that is or XX% be

Daniel Mathewes

Yes, that is sales dollars.

to around that think to opportunities we more across and to opportunity as HGV well get the through pleased sales type that net as is Diamond in Diamond Legacy, mix there we we we before acquired and marketing those but the up goal was to there And So new will again, new where the pandemic gain pretty back is NOG those through if sell XXXX about customers, new XX/XX. up had are running about new and company, sales month, running it back XX/XX, packages you centers. start we members packages run additional it around XX/XX historically has legacy our we every we HGV And propping XX/XX, still drive with about Hilton are come are, is XX/XX centers, to used Legacy XXXX is or X.X%. when running customers we XX,XXX Diamond Diamond legacy the shift. about And the back

Mark Wang

actually And owners new Hey, I is to clarification, just think make XX% Ben, it buyers, just XX% you for said sure.

Benjamin Chaiken

Got you it. Thank very much.

Operator

you. Thank

for turn to back Mr. Before we will call over Wang. Mr. the I any now Mark end, remarks, Wang closing

Mark Wang

outstanding owners’ Well, create for vacation to special everyone a allowing memorable to also us give thank to want and meet make vacation and today. themselves members experiences. and experiences a to who going their needs our delivering Alright. priority thanks team and our being by thanks joining to us beyond our owners I want trusts And for above families. us for I

great So a day. have

Operator

This concludes safe conference.

Thank at your disconnects you may lines for your time. participation. this You

Hilton Grand Vacations (HGV) 9 Aug 222022 Q2 Earnings call transcript