- Earnings call transcript Q3 2022

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Operator

Good morning, and welcome to the Hilton Grand Vacations Third 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 number 13726011. 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 Mark Melnyk, Vice President of Investor Relations. sir. ahead, go Please

Mark Melnyk

and earnings the call. operator, third Grand quarter XXXX welcome you, Hilton to Vacations Thank

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

of some actual the certain of discussion be of XX-Q section results Risk differ, a that also cause the applicable For could non-GAAP other see to please Factors We'll SEC our or factors financial filings. measures. to referring

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

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

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

Mark Wang

welcome Good third everyone, morning, call. and to earnings our quarter

safe, material to a Before impacted take our were our believe of any express started, company, a financial as heartfelt our impact provide to We are from partnership we all Ian. the like the by they other recover Floridians. team We'll did to our members I I'd to that sympathies know communities and not support we moment Cross get that to need. team and members, in the Red that maintaining those not many for Hurricane effective owners with as continue suffer storm, along with to members but is team who our case assistance

in EBITDA goal XXXX performance increased flow. of by Looking quarter's quarter, margins ahead ahead a another in of at tour had driven and well XX% cost with sales results, of synergy pro XXXX, recently of over our ahead produced $XXX the record strong with solid schedule. strong we forma We the contract achieved we improvement million

importantly, to trends it we're travel the exclusive of the across it we of see are We portfolio, in the and leisure prime properties sales and us our customers our major makes serving at travel markets beneficiary on a throughout immune see centers. While seeing at surveys, it not macro, resilience our our country. airports, focus the

business, produces allowed metrics The significant nature this providing to of our the us our XXXX we of some environment KPIs. while inflation. advantages So prepaid several despite the maintain in and for number across insulation members tougher also distinct macroenvironment, of product have have ahead a recurring for against outperform revenues that

environment, us our allows every sales guests marketing And our they're in engage model us leverage Additionally, quality of actively relationship to to growing with travel pool with by members. enabling are high proposition direct HGV with Hilton value compelling Ultimate and new our are buyers. Access, owners tremendous which been and enhanced has Max that gaining both and Hilton key minded traction differentiators

So to the confidence enabled we seen offering raise strength the and of and guidance business we've October, that feel again confident us the our in the in momentum for through year.

on owners start expanding me and let progress strategic made details, the to integration. engage into marketing guests. get update marketing our and initiatives our with we steady Before an our We've channels

excited channels on with it really returning tour all for We're sales And the showed for at virtual close our guests rates, with the guests access channels. the than to from tour traditional a evolve we've seen our we get their owners our only events QX number had inception. quarter of members VPG virtual from we second response again notable will of cost tour marketing improving and since platform. also the response as program. on already against planned exponential program's and to guests contract that volumes, our favorable this a upcoming expect programs continue our We've better virtual receive growth Our and quality about ultimate our incredible continued we lower

targeted across how centers making from were last overall rebranded our out of features our and we're We've getting spring acquired. to throughout the XXXX. the bringing launched fast the by HGV proposition. Since our in in further we have we and on of the members members we our Diamond to have also largest sales Max feedback continue resorts rebranded great XX And we're to and our completed great keys beyond properties and schedule benefits launch integration year, rebranding, one-third remained additional the we impressed representing value able since rebranded additional Diamond Max midst total ’XX this roll eight end over to to total selling compelling more network, enhance close. we execute the have and the against progress since sales I'm of plan. our executing with our the we rebranding than our Max our to XX joined on are nearly program. of XX,XXX Max, to all properties, By of call, Turning

for quarter. and Now the turn record were in by Contract sales flow VPG. me $XXX to strength the performance continued tour at let million, driven strong

recovery. make Our was tours with tour flow XXXX buyer as since we've tour the very level has our surpassed September progress Owner our continued and XXXX new trends. were particularly in at steady I highest flow a with pace pleased strong to

as have shown success. against moderation year and mix of conversion our efforts of our nearly tour flow buyer continued prior we’re just as the some normalize as ahead marketing close pipeline and outpaced but New owners we package to versus highs. seeing $X,XXX VPGs XXXX, expected segment rates was versus over pandemic and XXXX XX%

occupancy September network the demand occupancy XXXX, along equal improved the reached indicators, month system destination and led with broad Southern Hawaii. to to to region by in saw continued our XX% pre-pandemic we've across first We improvements our our resorts levels. with Turning trend improvement

for quarter, owners As rentals total we look of to and levels. ahead the are room our nights and XXXX fourth arrivals

packages, focus is not continue as which we and environment those robust We'll to packages set see in in travel package travel to our pipeline We monetizing Even new the business for we have our to the percentage highest pipeline, and the sign with travel over pipeline our drive embedded general. the is a since XXXX. now continue for packages monetize date another healthy value XXX,XXX our business. and on of in support demand

Southwest executing we're resorts of the Hurricane impact financial working EBITDA. direct insurers the of the any legacy sold and did earlier, that with protocols our impact sustained our repair. that members at storm's we team centers our Ian We We job mentioned storm was of estimate to I fantastic effects. get out As to have damage limited minimize the sales and our to those directly immaterial the was manage some we of affected don't and in in our region Florida, a

the well environment with of revenue travel to in another members adding bringing our business and other our remains resort also view leisure rental improvement Turning our quarter X,XXX was that growth produced supporting robust. member revenue Diamond business, NOG segments, X.X% up and new that's to club the XXX,XXX, base in our quarter, sequential

after together, Taken strong result the even EBITDA quarter benefit in really one-time a that produced excluding a factors these into. get will Dan

prior us cash flow We guidance. not repurchases of in invest well were the but enabling business, strong excess also our to to to our returning cash produced only through to also in our commitment that shareholders maintain

gave shareholders, I'll numbers. it membership to our to raise business of So books of expansion the cash on pipeline. the business our still With the XXXX remained new ultimate day. to in Dan? with us stands package our robust out you Platform to We're in monetize with excitement the cash be more us levels, The turn for our momentum and our strong return with Dan success up, marketing channels. our continues our our again. investment environment generating confidence demand travel We're have than seeing in access I'm to substantial that, ever more to progress this invest happy sum a each flow we and to to arrivals exceeding guidance Max and efforts allowing the and proposition amount more digital value around over and our quarter, free talk through

Dan Mathewes

everyone. morning, good and Mark, you, Thank

quarter note included added Before of opening million start, the that we reported phase $XX second GAAP of to Maui this of sales, due project. results reported that for revenue please to the recognitions our our

reflects of the to quarter. our those I'll prepared $XX the cash We financial sales, to also performance our of associated from of expense remarks, an recorded dynamics accurately flow a which only for million of benefit direct deferrals, reported $XX metrics more impact excluding recognitions in In resulting during my EBITDA net period. refer million the the

target released the but reached out had we considered during It third Real is reserves built quarter We review of efforts as several the results increased with sequential our would we exploration schedule. Total integration rate which cost EBITDA of proud move reported to been run that saw the the discipline those important that environment. stimulus quarter. reach and quarter, the macroeconomic million of billion. dropped QX. noise, over we We solid met as just let's $XXX quarter, have government quarter strong I'll the We QX in owners quarter. of Now a this QX the with for our a they maintain synergy across to during be speaks the model, of by forward. with gains into benefit which details of the margins point made performance of our Estate $XXX being the through during to recently our and the Despite the intend several saw ahead revenue as to to quarters that growth those prospective segment, offering, to that engage adjusted recent in team improvement ahead enables in milestone sales XX%. was million strongest one-time any well cost advantages shortly, of straight was think million really September existing of in the led get we our direct month $XX us EBITDA. the the I'm programs. revenue during upon strength of $X building the for

expense margins our profit S&F offering to gross was to VPGs was owner $XXX Real through new estate sales of walk strength of but for for our year-over-year contract target of I million stabilize was X,XXX to contract a we've of for invest XX-months, basis financing with we've million well. quarter, as to our XX% of with our led our owner new earlier, XX% discussed driving happy XX%. of continues provision quarter through this business, $XXX over segment mix. margins an the boosted roughly channel. profit again quarter improvement as normalization rest quarter additional continue buyer tour tour interest as metrics benefited third for the the million. Real buyer past our income by XX% estate, growth VPG real or of gross outpacing sales were this as remain focused total buyer of was which with bad sales that as quarter combined VOI continue year margins and sales our billion new The segment of $X.XX the we quarter recover channel efficiency mix very slightly debt seen made historic XX%, and roughly tour due new let's to VPGs levels, in the quarter points. to in continued $XX our seen were for buyer we ahead receivables roughly the The before, to $X.X net product and of owner we're we the increase for this new XX% but we've was state seen over quarter, levels, buyer improvement will estate this details. strong our flow sequential XXX to allowance Cost investments expect our million $XXX that contract net in new initiatives. Now product million. buyer lower goal $XX highs with of expected XX% towards we've billion from the from XX% XXXX mentioned flow In below We'll new the VPGs on XX%, the steady and channel toward drive was of force. of of in Within quarter, XXXX our that just

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

for of Diamond $X.X standards portfolio that $XXX $XXX billion $XXX underwriting receivables these balance a Both amounts, which on their balance. million. million bad on used million debt the acquired was Our allowance was portfolio

as rates annualized our to head achieved Our credit delinquency XXXX, than our outperform and lower portfolio XXXX. default for into remain has and normalization continued of in trends expectations levels for originated we

or our million expectation a double-digits, is Our state steady release provision sequentially one-time $XX provision adjusting I business, from which was the and but count ratio reserve normalized in was still In this our owned earlier, of sales, high-teens. contract mentioned debt resort member the X% for club bad was for of mid below QX, that consolidated our to in up XXX,XXX.

quarter. of up business, XX%. million X.X% legacy quarter $XXX during and QX at new NOG the close one-time this, we chartered into detailed was was for our Diamond's HGV's mapping the first million true-ups was Revenue quarter. net and resulting In finalized club business ledger margins at $XX members quarter. impacting fully also HGV's Looking quarter conjunction the worth X,XXX the for certain we've end Diamond with the It's added integrated resort the system. general profit where of year-to-date with noting, segment Diamond the accounts in was

growth top profit with million ancillary margins Excluding these true-ups, basis line in the norms of both historical $XX and the resort roughly and segment with profit club Rental showed approximately on million. operational XX%. and of $XXX revenues quarter were

and Our mentioned in certain impacts resulting by ancillary revenues for our true-ups, the were reduced margins that one-time similarly impacted quarter. expenses the previously

continue we and the rooms million, corporate low lowering cost rental bringing between EBITDA improve the margins will adjusted Diamond was as maintenance were and pipeline, was full-year, inventory expect EBITDA, the license anticipate year we fees and and ancillary margins synergies double-digits ancillary segment income million be we to our total through are and and For our $XX still JV G&A in Bridging that and rental to to the developer GAAP still million. as continuing gradually each rented $XX $X adjusted properties revenue rebrand fees both out. sell

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

in cash well was cash over regular XXX% negative you our rate quarter. adjusted securitization. quarter, cash impact free timing business contracted flow QX payments seasonality adjusted from owing the QX, spend, tax in of the August conversion cash will Our In higher inventory flows free and see of the to the flow of our in driving

still for with conversion XX% within feel well year-to-date confident flow EBITDA our to rate of XX% to year. is guidance conversion being the our XX%. We So cash

company repurchase something the May of XXXX. Board common $XXX additional million for $XX we've and has During of repurchased quarter, stock million shares it's $XXX the the million by million repurchased for the $XX in remaining through X.X shares of an approved X.X X, million November million plan currently has

this our are again guidance $X.XX our to for to outlook, we $X.XX the a time billion. Turning billion raising to year,

million consisted facility. position availability $XXX our liquidity billion $XXX our XX, of $X unrestricted September of sales under escrow of on million credit cash, of of and VOI deposits As revolving

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

leverage TTM the Turning on QX, to forma a X.X company's net credit of times. the at total end our was metrics, basis pro

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

Operator

question line Credit Chaiken with Our first Thank with question. [Operator of comes your the from you. -- Instructions] Please next proceed Suisse. Ben our question

Ben Chaiken

morning. good Hey,

completed it the sales So Any sounds like just about can the Diamond would helpful. super customers? centers, guys there color Max be with talk you the of rebranding receptivity the of you

Mark Wang

Mark. with is first only positive, very Look, this HGV this program the Ben received the we've members, as feedback also Sure, membership is with but new reception our members. in really with that from rolled very been out reminder, pleased we've Yes. good not feedback decades the has and Diamond a Max,

features. to to around lot you, a a levels our Vacation HGV, point we've the recalibrated program, across go any we common members and portfolios, Max of the so go the added importantly, remind allowed when right, of and just Club Hilton portfolio to for which But we currency, added created new the So flexibility different HGV we across most lot portfolio. destinations,

Beach, didn't and Oahu York, in same HGV for Washington members those Virginia like our portfolio. are new Diamond members added now D.C. and Lake the before in Hawaii. we the New Arizona can get have locations Tahoe, And So destinations that

So got positively benefits XX,XXX since far, to anyways also new has members, good April in so we've by achieve Hilton, more rollout achieved year-end. there received expect reception and some from than we've the it we been since nearly which XX,XXX and

most So done. the fast with all how rollout. were really And about all, good to really our I'm pleased this feel in importantly, able teams get

that If we achieve able big, out hurdle in a teams it. did August to it closed great about really the you were and we a job roll April, that and big we had to think with in was

Ben Chaiken

quick package, one, just exposed this package gave occupancy the really ‘XX for more more about rentals and around I thinking am That's reasons, for helpful. pipeline correctly, you like so your then And it limiting sounds some -- the owners one existing to commentary stores. was packaged obvious

tailwind So way a ’XX, as the fair versus package we up it? ‘XX opens ‘XX to and occupancy because that buildup, create on think is frame about tours that should of pipeline

Mark Wang

-- I our think of strong all, it's really we think packages, just think Yeah, when about indicator great demand. first of I a

the were So level activations the quarter our highest had. we've during

So dated is, what actual we had I mean we've reservations by since have with than people that more ‘XX.

really So to to to back growth picked and you go sequential QX. QX we good activations from up when saw really have some QX

our while up, pipeline picked increased too. actual activations actually Now our

segment just really capitalizing tours demand Hilton the those that work on to order been with in leisure So to we investing we're tools into on our side packages. and with to that's staffing continue we've those activate and out improving and there the generate

to we year. rent point place is from of on and more where should really demand rooms thousands available from standpoint get a tens we're rooms, of availability a we there given a have than rooms, good in So any Hilton we of of

So the monetize ability of to we to have meet that supply pipeline. plenty

trajectory good on and bring to really now feel back the buyers. all-in-all, the about path right So new we're

Ben Chaiken

helpful. you. Okay, that super Thank makes sense. That's

Operator

Thank you.

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

David Katz

look about deals it, rest at taking any do my Dan, more question. thoughts morning, the talk if you you near-term. for do but Thanks Good missed the the expect like? did of securitizations everyone. what on for Apologies year or those all I could to and

Dan Mathewes

for just both great quite do speak timing plan roll deals ABS are a to great year, XX% done frankly, sure the a would at into without some recent I'm fall, over we you've with basis, noticed had the completed still we earlier from given Hey, some most X.XX% we've month and advance where There we fact deal is securitization a to lot a two time, us, would a just deal, one and done. this this demand I rate. available doubt. next timeshare probably to sub-X%, where timeshare quite did just the not rates securitization to at just year, specifically competitors collateral David deal not of our ago, year, so we it for But of rates recently we getting a thanks. another honest, to next do if have wanted in of in some we where or anticipated but be the fortunately QX enough that execution gone. get clearly given higher completed deal be they're interest done clearly anyone of the

be it's that demand of So clearly robust interest consumers, we we so partial have quarterly will looking we normally some not fully, likely going as mitigate we rates, at perspective what it's and look to at future to a the but at do compression bit most able to where have more charge well. a little of near to in we're basis, the rates when our this our raise on lead wiggle offset, to rates would but gone from in very look least we be still room margin, the that consumers

David Katz

and double-digits expecting was the by to was loan terms of a normal. in those then rate get what up, that one benefited be in might would you're have about one-timer quarter, I follow about, back really sounds of had the like to magnitude loss which -- ask detail talked any but hoping been increases other you it to to and order bit was Just low I

there that I noise to garner we some in that's this bit a some there can to well, So involvement some right? or what's number, that is Diamond the of as that there even in quarter? unpacking that, evolution assume learnings is -- is though sort of that Just combined a

Dan Mathewes

Sure.

David Katz

realize there? lot Yes. in there's I a

Dan Mathewes

problem. no Yes,

more question for interest -- the part it's points, first of to basis XX basis magnitude it's increasing order regards points. So It’s unfortunately of of the your points XX on of basis triple with rates. us order magnitude to not

excess we've portfolio, news to a partial side in our HGV default were basis, of in with basis still it's a regards on XXX the XXXX better, in XX close -- outperforming points still good points to around than and offset basis again better. basis a XXXX, only XXX levels. XXX levels closer excess points Diamond With perspective ‘XX delinquency the from last better compared in they So if just points basis HGVs better seen year, than XXXX is, basis rates, where On that to ABS better the materially what Diamond of under regards in still look the not just default spread we at to we're to markets. to is but

slowly that just back acquisition time portfolio the of now, certain meaning, we're the demographics of the seen. packages over impacted stimulus anticipate just spot, maybe in better that a of associated perform bit we to our naturally revert do we But continues of in mortgage that some the well, little a good with portfolio. termination cetera, the the et the in dynamics but the government historically reserve was extremely right virtual, and did be integration, release to so remains to given will given things do these So than XXXX we

the back of of of at in where set in XXXX $XX portfolio employment cetera. that performed win us that's the is end and up levels we the that clip that to this quarter a that the was million it all So day reserves one-time et to the tied back COVID beginning at came the

still there, would but in some is that probably material the this see. there’s I So chunk to last amounts nominal you lingering that's expect

David Katz

Got it.

be out and still into So onwards? want we next year to mid-teens

Dan Mathewes

that's building up I to ultimately think mid-teens, correct.

David Katz

the for Thanks it. Appreciate extra Okay. questions.

Dan Mathewes

course. of No,

Operator

Thank you.

of the Truist Patrick Scholes with question. Our your with question next Securities. comes from proceed Please line

Patrick Scholes

good everyone. Hey, morning,

Mark Wang

Good morning, Patrick.

Patrick Scholes

Japanese of on going back. on and certainly initially could thoughts thoughts the Mark, the that? -- are us if Good your wonder you. to What your starting morning. return latest but come really latest observations Thank customer expected, I that's give slower you perhaps slow than

Mark Wang

Yes, sure.

invested from are only back recent So expect our our market, are that in owners not look Japan nice in to those compares continued Hawaii dominance the positive great all a that HGV in out Japan of We're the their to Hawaii out back, guests beneficial traveling has to we're October is in get and Well, really not entirely back had product five for X to to X.X, who really now. impact restrictions quality estimating one really in a a have what XXXX, years related of been seeing. that approximately market it's that which desire we XX recovery and demand but we of that homes lift from the move on one shows XX months. for

to XX% look full now yen, also and necessary as really in its initiatives We've XX-months that return, we to the when recovery, what on need get were where to we about of QX you rolled at, help await our some it's Japan we is said, in on have at the the way. we'll ‘XX's that expect right weakness take coming, books airlift slope about and arrivals of the we're all airlift we continuing were out So of the light to is but owners we return XX%. in

get has our But to back So but it to all-in-all, ‘XX, during Japanese not there, restrictions, demand and the push artificial teams the was really restrictions. pleased members them, expectations and cancel change will back are is demand into it how we'll we've reservations, in the the COVID, the would get clearly, it more a was news with well normal and cadence years, there. making through they moving due but back, all is the even seen we we're over an with right this direction, been on it's good our

Patrick Scholes

the Okay, great. and question, $XXX talked above million? beyond could follow-up synergies. it Thank possible cost And you. you and the you then one about $XXX achieving that go run Is rate million

Mark Wang

Dan the time originally we of the synergies million maybe we top originally out, ability jump -- there just we we that, Yes. realized say, Look, laid can our of mean, you said. pleased in to of took million our what we the part quarters on close. $XXX three $XX ahead then out. with we I'll really first of put achieve in We and raised achieved take of recall out we million, XX-months early one, that number just savings we were cost this pandemic, $XXX here. I that if that took And part I that we

So much all-in-all, know to add our you don't more productive efficient now, want -- but are than we're Dan more that, to teams I efficient if business ever. and

Dan Mathewes

I to basically the acquisition have of shifted, it this associated level of hilton.com very they the to booking.com the well, build go plan discipline organization discipline save expenses we like with So what's me on all about see notably cost is on savings. an lose, interesting will and teams without go it when for business our more not to to where are the some important maybe just changes of everything realized going hey, due the doubt significant you've has that this know, your talked that and but yet absolutely, you within benefits lower not COVID the and rebrand There something also bookings build harder is in up, with mindset, a is, will the your The it's through clearly but the that go right? to most coupled than really a committed cost some to doubt. integrated to mean, Yes, million, what you resorts impressive in a What past, the without to interesting, that done it's and we as at will be resorts $XXX we've have was, as forward, basis. dramatically say, we acquisition. you go is shutdown OTAs,

forward, and that acquisition. going just will going point, increased maintaining really really difficult -- to on specifically most for is that and synergies, at to that to we'll obviously organization combined come the important cost mind, as but initiatives focus to hey, be associated but this a me that, So contribute to highlight further If discipline anything this it's cost going does forward. us the say, thing it's is material with

Patrick Scholes

you I'm all that. on for thank Okay, set. the clarity

Operator

[Operator from with question. Instructions] question Barclays. next proceed comes Montour you. of line Brandt Thank your the Please Our with

Brandt Montour

for Good everybody. questions. my Thanks Hey, taking morning.

looking be would Japan and you like you to flow, lift back were similar in aren't maybe calling really flow the on sort back the way in or that we Japan all else to absolute channel backwards, looks comes when to be ‘XX going very anywhere it come or Japan about numbers? tour is is all channel some of, the ‘XX? at churn nice way ‘XX comes to ‘XX side back, quarter-over-quarter back Or that way our on tour all one or had when in Diamond there first coming on going expect So tour flow versus work and talking should,

Mark Wang

of Patrick. that's pandemic look gate, We from owners you a I the guest the number into paid back that if we to took took question, was I of, mentioned commitment you, a brand. the were put and as to From new one, good and and objective now has owners made our and exceeding -- lot coming I in our talked our out latter or recovery, previous on and perspective, exceeding long-term a really tour care they've at trajectory owners our Brandt at the we're we've about and the think lot ‘XX. buyer of Japanese off a the spend the during our Yes. time question a where our of you get back primary think flow of kind look

time of So half expectations back a ‘XX. into back by get the is normal we that the our pace to more gets

Grand the that that generating Vacations far that just we're at on Diamond and replacing area the of during starting as incremental the centers. locations we're one arrive we've and out is sales tours new sold packages now the side on buyer those to XX,XXX side. those rebranded on, recovering XX,XXX actually Hilton tours took Diamond less part took as and have they see efficient early to tours and tours, Now been our pandemic, Diamond out legacy pre-acquisition

drive been increase right it's I tour to outpacing overall, nice saw during new it's buyer pipeline. owner pipeline flow new converting the now tour think we flow, our grew a despite growing, our buyer we our and growth in So tours quarter,

more and front in that that. indicator a invest opportunities us in out that's we've to got we So great of continue

the continue be we've our and You expectations staffing on maybe with side, earlier where buyer and and our that levels were tools, know, in new owners get least digital I talked the improved buyers our we've we'll about those we're packages, ahead hard ‘XX is it back invested are, in thinking at investing more going to back of our processes new to to ‘XX. activate and we be we'll in working to so

Brandt Montour

of XX% VPG, Thanks about XX% to maybe great. us for for confident that you of ‘XX, what's number it sort is on is is are that that. then in the guys there, when you're, what's Great, rates, there right, why Dan can to that close hold. to makeup Can is that's it think the normalize? And you pricing, sort looking you you where of, versus reiterated that remind things hold level anything, XX%, XX% and as number you

Dan Mathewes

you thanks know, that. for Yes,

XX% supporting notably in close the that Cabo, the little combined some regards You Charleston HGV also as XX% across acquisition right? several Marley, the to bringing XXXX. metrics with were the over product be club that that with a Sesoko XX% with are to level through of transaction we driven standalone, it's transferred online product which synergies, revenue higher rate price. XX% were know, to

Mark Wang

algorithm customers better spending, Yes. I'd is we and not and that a lot our we traveling, We also think -- is advance. those just our traveling. not insight who add putting focus have around know we who ever Brandt resources than is who our have know before, I around into is is has who traveling our to spending, more we that gotten that are

to adding All-in-all, period then way proposition along HGV have customer. a So Dan just we want much mentioned. of better gotten that a we on Access go after. I to precise I with of the during And identify more did in value a we've identifying than just this Max manner customers and better time we the Ultimate what better much value with think also just proposition think the

Brandt Montour

that want system, guys two to are the businesses your each in for are the think less and when that in levels. here if Do if systems not on that's mid reading some be to delinquency these a -- to loan to a rates -- maybe the then the that And I'm have great. think seem prior good to reversion much the your correctly And Okay, of of if of less terms portfolio Dan, a so portfolio product so than point? because prior just to that the could words ever guess to, value in added guy loss likely I hit not cycle it do you give provisions, maybe high-teens of made you one obviously of squeeze back likely more assumes complete individual customers, up, sort could of, might outperforming, might outperform? you get do like cycle you is bit you there normalization of continues it you I you a

Dan Mathewes

it's look I for just, something it. not to definitely because it's would on recognize along say with we think What mean put -- generally things front, on that to very have A go important default, putting I not just will does of someone right? I to a people brand that, the brand do. lot

customer, the what to individuals? standards, we We're our seriously. the very out very brand being Hilton rebranding and how do But that the so -- sales does the sold that XX-months I process delivering, completely Diamond you protectors vision. experiences see into the go, And Vacation are know, the the at of integration. we base, rolls are that the only up as as actually do you upside you to you as day, by brand take but of you've treat as potential end Club, how and consumer living So we that high promises gained try to also live up to are the

benefit So at to a we near ultimately $XX million air caution it's just the where XX% go which quarter this provision, reason of where you’ve exclude XX% are that if XX%, you for is the back of area. is may under to where

Brandt Montour

for Thanks Good guys. everything Okay. quarter.

Dan Mathewes

Thanks.

Operator

Thank question-and-answer for concludes back gentlemen, to you. any floor turn the Mr. Ladies comments. our session. I'll and Wang final that

Mark Wang

to today. the a All passion culture members I'm beyond in the our thanks deliver to and I most want all XXX driven for of appreciate members above joining a unique that guests. give team HGV fifth we and experiences were named day. most the It's right. loved for that we here you, for have Thank to going everyone top vacation our also Newsweek's members Well, you us and thanks dedication do. amazing to and and special proud at number our company. workplaces team one, and creates that our and values great really outstanding

Operator

Thank This conference. today's you. concludes

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

Hilton Grand Vacations (HGV) 10 Nov 222022 Q3 Earnings call transcript