Earnings call transcript Q2 2023

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Operator

Good morning, and welcome to the Hilton Grand Vacations Second Quarter 2023 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 13735180. 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]

to of call IR like Melnyk, to now Vice-President Senior and would turn over the Mark I G&A. Please go ahead, sir.

Mark Melnyk

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

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

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

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

made accounting revenues for and reported which to adopted then in results expenses Our we're under completed. those construction expenses Under construction period periods and until hold-off defer is a related the we and on revenues when all required under XXX, recognizing XXX, sales period ASC when in XXXX. project certain is the ASC rules reflect to

make comparisons, find of and you current meaningful help details earnings deferrals more TX recognitions and can historical of Table To our in our you period-to-period release.

deferrals Relations periods. can Reporting format reporting Financial website. to accounting For all on excluding results to our comments of deferral activity Excel ease Investor be the of for our discussion and our results net recognitions and the recognition our of our section The refer in complete related of will on construction real comparability today, simplify historical found adjusted estate EBITDA impact and and the

highlights will make strategy. go details Officer quarter our Chief your Mark's and Executive will Dan from quarter. company comments, addition for our Chief themselves and an current through then Mark President to After for Dan the moment Officer, Mathewes the questions. will Wang, a Mark of update the our Financial In operations in and available provide financial

Wang. that With to over Mark Mark? the and CEO, turn me let call our President

Mark Wang

and welcome and XX%. solid call. morning, to of value of business. were to out future the in critical million, with million XX% earnings continues margins flow base Good our of another into embedding member $XXX sales results. growth had $XXX report environment, was Contract Tour to and quarter set this second which EBITDA growing to happy everyone, stand our I'm we is

off beginning of their And the to paying with our recovery. and demand at investment new of buyer tours the drive the since level mix buyer transactions is new highest

remain remain of for suggesting also robust, half year improvements travel. in occupancy back the support indicators ongoing leisure last the Arrivals and year. demand support For ahead should of further

records activated progress tours the additional our buyer channel. sales, both and and the to continues the size pipeline packages setting in the with new of number made package of that in growth outpace We've new owner of

and of Honors tour we're and driving HGV source advantage our demand point further to own initiatives environment the and expansion refining more a with the approach database, large that members from platform. healthy digital the Hilton tour to The we base our high-quality our growing prioritization with sourcing see a in flow growing Max generating we indicators additional is share consumer remain from consumer So uncertain today, source, of travel the ability leisure to like new wallet. our of macro our and bit the a of of have business growth but and capabilities

environment. focus growth ability on driving our and adapt I really with overall, tour remain at confident happy I'm to NOG, our the the execution So in and to

update quarter, the and get let's into on start strategy an we with our integration Before of details initiatives.

cycle the supports buyers pillar previously, key and on we always new the since embedded to been that comes generating success the steady the of nearly strategy As of has comes in our recurring which focused of of This is high-margin NOG, us of club estimate our that owner generated mentioned the fees, a after driving value provide financing the Nearly long-term our revenue critical and EBITDA in with two-thirds form which life I've business. streams. XX positive initial points sale.

And the the substantially come follow-up generated remainder margins from which are upgrade than better sale. with sales, initial

order the ultimately downstream in on technology refocused previous our members. calls contribution We've member improve base to efforts also a lifetime our the elements. making investments buyers increase talked in build experiences value the recurring of new future and drive base, our about new and of we've high-margin post-pandemic order those value to in So on driving and through we're engagement, of

additional celebrity around of reach our context XX% us marketing With channel they're XXXX. since race since leveraging our that, number ambassadors our of we Digital marketing investments through of our Las Vegas. tournament some earned social driven the digital One and fastest-growing events me Diamond, the already And expand Formula media, tours and both helping lead a upcoming was increase the how those acquisition provide sponsorship let and in our the through with significantly like brand champions signature in and increased funnel. of

and real-time rate higher Our personalized propensity also digital our consumer based are response outcomes. behavior offers on a to more to improve and tour demographics, purchase, drive

maximizing model critical want. this guests We're promoter. product driving in-person interact in shows deploying we're a this an lifetime options, and at with us channels and membership, And type that allowing increasingly sales the years to how to they channels higher-cost top usage virtual and omnichannel with leveraging to applying member into and activation. key when the new personalization is a targeting the lower-cost engagement, retargeting turning of approach marketing of funnel, first data of is while we're Our also and for of the

to leverage one-third capabilities easier preferred of to in Max our today. us effectively. our digital to our it they integrated our conversion curated vacation makes join. We're and expanding activities of our its The do and maximizing more package finally, and also is Moving we're will the inventory the conversion high-touch approach not down dates, Ultimate experiences investments improving funnel. events. customer HGV customers of and enhance once experience and value activations experience. only fragmented, our chosen select package making the we've attractiveness, but allows tailor still And continuing enhance an Over This platform rates, Access, market lifetime HGV for leading are their also improves the highly member of to the

vacation for the are programming get based through time approaching opportunity from existing new member that an of introduces brand. first our lifetime feedback, to additional and increased members the it with important because the also experiences, to supporting and which element value interest expanding that value attract We're newness us ownership It to an loyalty. is it on continuous owners, customer and member provides segments engage allows

our lead So features offering our flow, generation growth. efficiency the funnel, expanding and and ultimately, compelling of to tour investments a and the flow drive are elements maximizing of portfolio on core business, evolving membership additional member the focused tour properties of

comparisons. which of take quarter to This let highest was strong strength flow, driven VPG through our total, Now bar by new since of the against year's more quarter. difficult the by performance brought moderation sales of the buyer tour you in was mix second tours me of a another Tour in flow, offset Contract detailed quarter that the in improvement which than at two-thirds the last of more tour tour were which in our our was growth third XXXX. double new the led growth. level again owner look

HGV was well to on $X,XXX, generate ahead were able I'm generated activity. pleased quarter for XXXX despite also levels last VPG of expected Max flow, interest over a tour owner double-digit amount of launch we of that still the large the And owner moderation. in which path our of just and our spring, growth and lapping

of Looking a at performance to our of of VPG with new QX, again higher two-thirds due versus nearly driver the buyer new buyers. delta the change was the mix strong QX significant

our for since to seen quarter XXXX. we've XX% Turning strongest and was the indicators. demand the Occupancy

occupancy this travel vacation and to the tour which Our the period indicating to and rest over total well XXX,XXX willingness strength forward near-term. year marketing again quarter through in our growth packages, the of year. remain of bookings expanded last XXXX, will ahead And in consumers’ support nearly pipeline same the

non-real our profit in travel top-line demand of this in quarter drove an Looking with segments, growth at another improvement also along contribution. estate our our rental business,

for to we another Finally, members for than financing more from our results quarter XXX,XXX club during great of XXX,XXX half NOG us which business, a is was and and MAX had EBITDA. source recurring QX solid significant HGV at end. the surpassed milestone over members team brought which and of achievement total HGV. X.X% quarter, the in our We are

interest changing another rate solid from quarter also business had financing our the despite environment. We

the last million which in cumulative our we of of XX ahead from On million quarter. the in bought programs stock. billion is XXXX, shares, of our repurchase repurchased $X.X we Finally, since back $XXX basis, quarter, a nearly spring pace shares, restarting our of

So to pleased with up, wrap our I'm execution. really

investments environment, adapting buyer lead continue been these tours have done in job the great efficient driving generating refining and our and bring We've macro more channels tour in changes base. monitor successful NOG, to our focused flow, in remaining We're additional the our teams we While new while flow to in technology. a to through changes on growing member priorities. augmenting in

compelling value returns additional adding same and flow proposition features on sustainable shareholders. offers. remain These to cash the free the Max focused to generating at it of for And our long-term strengthen we're driving further time, the business value efforts and

talk With Dan that, I'll to to over through numbers. it turn the you Dan?

Dan Mathewes

good Mark, morning, everyone. you, and Thank

project. of our quarter newest GAAP note with reported deferrals, of this reduced that results Before Sesoko phase $X presales start, sale the associated our the of we which million reported for revenue included

direct We our also in benefit EBITDA $X net recorded to the reported of quarter. $X million deferrals, a million associated of resulting for expense

dynamics In our which metrics, only the reflects during performance period. prepared cash excluding financial of impact I'll accurately the to flow more refer my the of remarks, deferrals,

the just and our for margins quarter results and financing reported cost Resort EBITDA our reimbursements. X% showed in grew with over to XX% revenue year top-line All led strength prior segments million quarter. again QX the to $XXX billion. was by adjusted Club segments. excluding Turning $X XX% the versus gains year-over-year Total or second in of

were KPIs. total new given tours another strong with efforts to difficult resulted segments. were our growth, of which we Core impressive shy to of lapping record in very another XX% nearly estate, up million that very tours be sales quarter overall, of and comparison with contract real of encouraging in that year's was last to our growth levels, XX% continues Within just buyer Turning drive channel. $XXX

tour sustain growth. to a which help in the solid mix of size further of will We package buyer packages, pipeline and our also pace saw tour improvement of the new activated

which total, quarter the the the of For of since was contract buyer up quarter, the sales made sales of third buyer highest new XXXX. mix XX% new

just for year, plus settle was VPG of and will Year-to-date, of the net The down $X,XXX to where in against but out. VPGs VOI XXXX for QX mix VPG XX% XX% of year, also over which XX% range the ahead was recoveries. to quarter, was quarter think was prior inventory the XXXX. the ahead of the last versus nicely we Cost puts XX% VPG our and sales sales or this of of incremental near-record last low-cost XX% owing product favorable quarter, lower

to note $XXX sales. marketing the to to sales change future expense. like QX of million XX% contract and transparency, the second in made was quarter and for quarter to disclosure expense S&M in calculation year. a and estate an XX% or pause effort the and current we've improve of of in XX% compares I'd that last and here This Real

metrics comparable earnings our resulted that current has models. were non-GAAP the will disclosed change S&M to change addition what have make release. in in in number not historical you This of the expense The your several

impact this an EBITDA Before we segment, the Real the of margin Estate optics on or note to consolidated it net specifics, has while the income. into get please impact will adjusted no adjusted have

segment. view a Estate more operational Historically, we our of Real have disclosed

rental our sales and expense. generated revenue EBITDA. was business, as HGV of and an expense the the at ultimately in ancillary These offset the our and the real netting stays had marketing effect marketing reported revenues estate but adjusted to consolidated viewed included also eliminated which business. were package sales Specifically, from when down properties in marketing

profit to in add-back our basis sales margin resulted general, have margin estate and reported expense, we Estate forward, eliminated which points marketing the Going lower Real in several segment. of versus XXX this for prior real

was ultimately change. eliminated, business the As and were adjusted our margins consolidated it impacted not by overall EBITDA of this

financials million file new marketing on our profit new making in this models provided have profit sales in basis is adjustments was real of the the estate updated and information for prior the In provide estate we the order to to that marketing to a with adjust sales the reflect site. calculation, Relations like-for-like aforementioned Real expense. That calculation XX% both $XXX your XX% and historical margins we Investor versus our year, tab. to quarterly

In our expense the adjustments, these sales first-half of and this of year, contract was including XX% sales. marketing

move we of XXX expect year. prior points margins of the segment our As improvement basis versus further second XX% several year, we profit the in into and million, margins financing million, ratio was of half an see $XX $XX expense business, in of efficiency. back the improve our with sales was In this as quarter XX% revenue we to

allowance, and interest for receivables were gross was the million. $X.XX $X.X of Combined billion net $XX our income or billion quarter

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

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

for rate and default X.XX%. Diamond portfolio, annualized underwritten Our was the including consolidated acquired portfolios

Rental owned was for was year. bad up a X.X% $XXX contract versus profit profit and $XX in $XXX of revenues of or year. million of and quarter segment XX% versus million with XX% segment were for million debt the million versus $XX last $XX with provision X.X% Our margins of quarter margins X% Revenue year. the last XX% million and was XX% sales last ancillary of

change of timing benefits As for we expense mentioned Diamond. impact a the member last quarter, QX margins reflect in to

the this shift the timing to which of $X resulted expenses, neutral in expenses, During quarter, shift million timing half the we headwind second will still with a drive the million year, line second In to impact of quarter's year-over-year benefit our in this that the to back year-over-year timing the a year. was $XX shift expectations. making the expect

maintenance segment-adjusted million EBITDA for while maintain business. elevated our adjusted rental ancillary added and and expenses $X Corporate JV the owing year was G&A to license total million. expect inventory, were developer in $XX the between to EBITDA. And double-digit we was remain and EBITDA newly margins adjusted $XX million, Bridging fees gap

$XX targeted million achieving the was and low Our quarter adjusted the free cash of of included flow which inventory to remain for in million. costs $XX excludes spending also the of a acquisition-related of use conversion XX% our We XX% range million, $XX in year. confident end

to which During In a XXXX, the stock of common repurchase Board shares of million shares two-year period, the company of approved share repurchase $XXX the a program $XXX Directors repurchase company authorizing repurchased for addition common of May the prior to outstanding to quarter, aggregate is our million. authorization. up an X.X its in new over million

of as availability under our million of spend million $XXX had with targeting per under of was And the level we we consistent which repurchase repurchase remaining the share million are plan, repurchase roughly XXXX June, of plan. $XXX of $XXX quarter. As prior repurchase programs,

to our outlook. Turning

We guidance are reiterating XXXX $X.XX $X.XX our of to adjusted billion billion. EBITDA

our June XX, cash position under and our $XXX roughly million, $XXX of availability was of consisting As facility. million million credit unrestricted of revolving $XXX liquidity of

of debt $X.X balance of at nonrecourse million comprised quarter debt end corporate of Our $XXX balance million. a debt was and

of first $XXX certain warehouse $XXX we we anticipate payment which milestones, mortgage such million had end, and being recording. dating another available had notes eligible quarter capacity securitize At following and in of customary as remaining to notes $XXX million of we facility, our of million

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

noticed, filed Lastly, we you a may have XG. recently

the market We are currently and in ABS future. the $XXX approximately expect with million in to an deal of it close near

So around some in flow quarter utilization metrics were the free and collateral of due timing. generation lower to the cash

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

Operator

Please time the your Scholes question. with session. the proceed question Patrick Truist Our you. is conducting question-and-answer line from be Thank [Operator first Instructions] At this of with Securities. will coming we

Patrick Scholes

and Hi, good morning Mark Dan.

Mark Wang

Good morning.

Patrick Scholes

Good Mark prepared I interesting found one very morning. in remarks. your thing

don't And this to some contrast vacation you ownership compare do sometimes you as I'll to have other that say timeshare opposed and what or other hotel what and reported. companies say, companies

for You is never back, of still really half Or didn't return Thank you domestic call back? the folks? to folks. out tough you. Japanese back the different year fully the certainly what's for comps different the it it fact as relates that for I'm wondering might be you what coming leisure. Is

Mark Wang

the year of is seeing at the same you recovery, Arrivals back. when Patrick, we year, think, on on outlook, coming just we in I kind back Japanese XX% But the are [Technical a of really Difficulty] feel the owners versus the our books hit on so the think good. half I last Well, especially all, Yes. are first up of I of books strong. we everything see And time really right? look

booking. Our owners are

up are XXX%. owners Our

marketing are to package the done, really Our our our great activating XXX%, pipeline. up have packages and due that's teams work

have of over We industry-leading packages XXX,XXX through Hilton. sold those all pipeline to-date, the sourced and are

line really gives us a that sight. So good of

been to the HGV the in all, opportunity think we in great flow. have for good XXX,XXX inventory a us. members now. We capitalize in on tour year a over with all So really a position grow we're exceeded And great Max our has I just success surely and

to our buyer tour our tour say new good I'd will So expectation flow and about continue than grow flow owners. we feel is really faster

range. XX% moderation that VPG be we and XX% around in think still QX, to a going there's we are that to We saw seeing that in it's

a on year. side through difficult as go the do there, are easier little the get VPG but you comps there So they

new our of recovering that on really is part captured it's valued the revenue think buyer reminder, important. system, first such because XX% important it's look, of you we're an long-term into about as But focused tours, a strategy. When our our embeds on our Approximately sale.

the it's after So continue XX% we know the in initial add to get and driving essence, value to owner of those buyers that -- sale, that's important we really through system. tied new

think we And our about last XX% were transactions. I of quarter,

Diamond, -- XX-XX, acquired tours. get were had So them, they to and out XX,XXX taken is when XX%. up back we're about they to goal our we

a and So we climbing we climb steep are had then it.

back if a the more you give know in good so I don't looking really I all, Dan bit all for. you're covers And And can about pretty feel half. color… what that

Patrick Scholes

color little more A on the Japanese...

Dan Mathewes

Sure.

the mentioned jump Mark rental to we cover XXX%, They're marketing being Before on up Japanese, up over arrivals. and just being arrivals up. are off arrival club up XXX%. XXX% is XXX%-plus. also arrivals The

So XXXX, compare the shore just components. the the to you we're off arrivals up seeing half for of three it all back when year to

Yes. it's really the Japanese side, seeing a in we're then both Japan to our on And -- coming Japanese Hawaii. and recovery

-- provided were was point, it under This a of we all a calls Oahu it XX%. were at data last Japanese about just think, XX%. that into or was made HGV-related. Now arrivals a Island the two I ago quarter, Pre-pandemic, I seeing I of call XX%

the good So news, Japanese. the coming the than general our owners faster of are back population

amount get Hawaii, there. obviously we buyer business because a to a business, good we do to more of want good Now traveling new Japanese

It's to take But just come it's going longer. to going back.

almost the see Our fully by we for year's in back to XXXX some movement arrival. levels expectations recovers. good it's be We're be 'XX expecting is quarter now to and did to into But end. before well going really that

a Japanese really just domestically. the like aren't recovering. then There's Japan They're with is of also Japanese traveling So traveling. domestic. not the in we're seeing there. pleased what It's And heavily lot business

occupancies Sesoko, property And -- great so that's new in we're with there. that Okinawa, our seeing

to back all in finally. coming business see that happy all, So we're

Patrick Scholes

to lot Thank for leisure a so listen leisure of company. quarter. the Okay. half easiest impressive to at best a of the sounds the Certainly, cruise would for trends back of for company, domestic earnings have least calls for you, To say, you I the next have which far domestic me, this probably a it like year lines, this going easy comps. you. you And

those spending and the customer legacy the financial a HGV My legacy legacy Diamond. or demographic, follow-up habits HGV customers? propensity historically market spend differences about more to certainly, you're When I legacy in now question. for in two tour? seeing Thank customers, spending Diamond right And -- the you. think between take the anything the sort mass leisure customer higher Any of

Mark Wang

there seeing difference. say we're of would whole not I -- a Yes. lot is

I bit -- encouraging to would advantage pretty little room think the stronger property HGV trends a coming for across those of of say But side and diamond a the purchase I we're there's now owners XX,XXX is less this members the less destinations point. probably we're through that across that -- are two coming demand really occupancy coming HGV maybe on on consistency to sets. back MAX seeing back MAX seen good what's portfolio. new members the at offers the we've taking the back nights customer where

Dan, encouraged we're really a I differences is know, similar that. all on in the standpoint, any about think all, propensity-to-buy don't delinquencies? across from there So seeing the trends I But board. pretty

Dan Mathewes

if flat, default actually was add worth than portfolio and from improved on No, materially When also we're much. very versus but greater with, points portfolio, we default but And XXX, the improvement on calls, it's look repeating. you definitely sequentially. perspective. rate what Diamond I relatively It's you even it's XX-days basis pre-acquisition, a said pleased see sequentially at plus Diamond improved, look it's going I've XXX to previous this not the on just

propensity combined back HGV is So that, side with historical borrow on norms the to our to being encouraging.

side, fact pre-acquisition, it virtually but we've that that's our the eliminated really still trails driven payment low down by program. diamond XXX% the On

to a down program, has people the So purchase from a than delinquency which payment perspective. we do just underperformed low-turn default historically are upon payment enforcing rather original allowing down XX%

strong a very diamond on So HGV perspective. is just much the to from really akin side and the movement resiliency

So that's encouraging.

Patrick Scholes

Appreciate me. it from you. That’s Okay. color. the Thank

Operator

Thank you.

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

Brandt Montour

my for the Thanks Hey, comments question. and taking everybody.

me. for one Just

the mix. that into It more peers July. versus had lot. it a rates and like looks to normalizing called It a your softening common last throughout out due timeshare maybe felt your like was close were year, VPG quarter down of One was

curious to owner I'm close close quarter the close throughout So quarter? close rates comment of rates sort versus just sort owner then if of rates new rates just on throughout you -- new the want owner owner versus and

Mark Wang

Yes.

look, we I what then to to think, I'd down, at break owners Brandt, robust above would what continue say moderating right? XXXX very really up levels, I quicker don't So that will are saw And but really call down at we levels. in you historical a trade that rate say new historical buyers back

So in VPGs, healthy -- above but ‘XX. in where we're we still, very all all, still XX% were

And And it look, buyers. evolve harder the it's tours a And us it with buyer the today so approximately bit new has right continues to today XX backdrop the obviously, buyers. is in -- us nine taken generate new new now sale evolves. environment -- yes, took a it's if to

nice the bookings talking though Even at with still continue a forward driver that we're It's difference be biggest we one going Even a the while. very to to fall for be tours. the the that the I buyer we're tours we percentage will we all, lot that see feel all close buyer It of on new all, with tours. last the owner out at side. XX%, But And And to tours will XX% though in quarter have cadence comfortable performance. think, But overall there. range pretty in about significant full-employment really we've than our still way material pretty XX% had new in see to based settle pleased you that think in a growth buyer to going on all grew I new probably range. been noise a grow in environment. of on

Brandt Montour

consistent, super then at the helpful. sort in? of came you see of That's more quarter, Was rates? close exit when an Or just throughout sort it a follow-up. the do rate you And than normalized of, sort a Okay.

Mark Wang

Yes.

make is And these rate to the of acceleration think up bit ramp the short-term an point talked Brandt, channel in prepared saw then off second like new the I really digital significantly. and efficient we of it channel. a actually got I my We remarks, new potential. in it's trade it's we time, to now, great of that out channels too, work has our about one willing and want And quarter. close little think out in that them So to channel, largest buyer we things I as over our continue coming more grown we're tour

in channels. it's challenged But has to it generating on at cost but day, generate it bit than VPG, -- also lower is is investment. end the is an that the a little of tour us it this other But the of

to trade-offs And through that And period to so sometimes like ramp. make going I get of that's said, we're kind the some we're going right now.

Brandt Montour

lot. Great. That’s a helpful color. Thanks all

Mark Wang

you. Thank

Operator

Rita is Jefferies. Chan [Operator with Please line your question Instructions] you. the question. of coming proceed with from next Thank Our

Rita Chan

my particularly can and wondering Hi, trends seen, just thank you've and bit more taking talk dynamics come inbound on I’m we you that for consumer the back little travel if around a outbound travel? questions.

Mark Wang

about time the at same that's what year. the and I back last on tours already seeing we're is levels. books our arrivals -- And think, think I think versus levels, about historical what think of above are that the I because I arrivals I for year, historical talked seeing are we back are fact owner -- balance XX% up Look, actually Yes. you when can the

fact we that keep again building our buyer XX% the new of were reflection to activation tours our that we of continues is where and in 'XX, a and are Our pipeline approaching grow.

at side. our very year. have So have rental off leisure seen travel strong. on some the rate all And on last in When really gains all, I big some we teams after the done the feel backdrop job over side, rental remains the good for growth a you like leveling look

And remaining every on were have to in its in demand -- And and where outperform we our We demand owners supply books, part tend taking performance, of highest to have. outperform ADRs I we market. But nights, STR. able we you nights our on remember, And pipeline up our look of to got markets. that have you were think, better always pressure -- for by, on creates piece to almost nice our our when supply fine our we've QX year. on looking because over are we're still and But yield marketing still. STR this ADRs manage of last able the built-in there. looks And the another track that's model limited ultimately, is second we then XXX% supply our half and we room inventory. But it rental And the then at we in almost tend rental. our up own ADR some again, to the we're showing, we XX% for the that's saw in from room

Dan Mathewes

think And mean, people is various and the XX%. is out to up utilize the may only in Yes. I'd we the consistent. bad. -- add I highlighted really haven't good which I geographies, have my are those just XX%, prepared about really or the one at nothing Mark packages. really if It's talked or stands that look as I had thing year-over-year, even leading the indicator relatively you those packages packages activated a year-to-date, this to it's that that but willing obviously thing remarks, And improved

So some some really there and growth good demand. solid strong really

Mark Wang

today. compelling ever value packages high are -- than they've I'd even And are stronger our right, that think environment argue And these rate been. high more I this those vacation proposition packages, in Yes. inflationary of packages the

Dan Mathewes

the $XXX,XXX, put highest of of percent the pipeline into things that spend is level just since And XXXX, actually perspective. to activated

Rita Chan

for the Great. color. Thank you much so

Operator

Thank you.

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

Mark Wang

thank and team going our above Well, to speaking and experiences Thank vacation thanks with you, give I us everyone look and for we want to Yes. to our members guests, soon. today. a to for you. joining and to beyond forward you outstanding deliver special thank members

Dan Mathewes

Take care.

Operator

conclude and lines for and participation, webcast. today's Thank you this may you. teleconference Ladies and We gentlemen, your at this your thank you disconnect does time.

Hilton Grand Vacations (HGV) 3 Aug 232023 Q2 Earnings call transcript