HGV Investor Overview M A R C H 2 0 2 6 Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements convey management's expectations as to the future of HGV, and are based on management's beliefs, expectations, assumptions and such plans, estimates, projections and other information available to management at the time ...

Company Overview - Hilton Grand Vacations Inc. develops, markets, sells, and manages vacation ownership resorts and points-based vacation clubs primarily under the Hilton Grand Vacations brand, leveraging its affiliation with the Hilton brand and broad property portfolio for competitive advantage in the leisure and hospitality sector [4] - The company operates at scale with a diversified revenue stream centered on vacation ownership and resort management, generating revenue through real estate sales, financing of timeshare purchases, resort operations, club management, and rental of inventory available through ownership exchanges [5] - The primary customer base consists of individuals and families seeking vacation ownership opportunities, with approximately 333,000 members across its club programs [6] Financial Performance - As of February 13, 2026, the share price was $46.22, reflecting a 9.3% increase over the past year, although it underperformed the S&P 500 by 2.5 percentage points [2] - The market capitalization of Hilton Grand Vacations is $3.44 billion, with a trailing twelve months (TTM) revenue of $4.51 billion and a net income of $81 million [3] Revenue Model - Hilton Grand Vacations employs a vacation ownership model that generates revenue through timeshare sales and ongoing monetization of its owner base, differing from traditional hotel operators that focus on occupancy and room rates [7] - The company's performance is primarily dependent on vacation ownership sales influenced by consumer demand and conversion rates, with secondary reliance on financing income from those sales [9] - Financing purchases directly provides an income stream but exposes the company to consumer credit risk, while revenue from resort operations and club management offers stability, albeit not eliminating the cyclical nature of new sales [9] Recent Developments - Brightlight Capital Management Lp reduced its stake in Hilton Grand Vacations by 79,500 shares, resulting in a decrease of $2.43 million in the fund's quarter-end position value, which includes trading activity and share price changes [1] - Post-sale, the stake represents 9.65% of 13F assets under management [2]

Core Viewpoint - The Schall Law Firm is investigating potential fraud claims against Marriott Vacations Worldwide Corporation, focusing on possible violations of securities laws related to misleading statements and undisclosed information [1] Financial Performance - Marriott Vacations reported Q3 2025 financial results on November 5, 2025, indicating a revenue miss and a year-over-year decline in contract sales, which led to a decrease in EBITDA [1] Shareholder Impact - Following the financial report, shares of Marriott Vacations experienced a significant decline, prompting the investigation into the company's disclosures and communications with investors [1]

Core Insights - Hilton Grand Vacations (HGV) reported a 35% growth in HGV Max memberships, driven by the introduction of Max to Bluegreen members and upgrades from the legacy member base [1] - The company achieved a 10% growth in contract sales and an adjusted EBITDA of $1.15 billion for 2025, reflecting a 4% year-over-year increase [2][7] - HGV returned over $600 million to shareholders in 2025, with plans for continued capital returns as a primary use of free cash flow [1][17] Financial Performance - For the fourth quarter, total revenue reached $1.3 billion, up 1%, with adjusted EBITDA to shareholders of $324 million, marking a 12% increase [12] - The real estate segment saw contract sales grow by 2% to $852 million, with tours increasing by 9% year-over-year to 225,000 [13] - The financing segment reported revenue of $134 million and profit of $81 million, with a 60% margin [14] 2026 Outlook - HGV's guidance for 2026 targets adjusted EBITDA between $1.185 billion and $1.225 billion, with low single-digit contract sales growth anticipated [6][18] - The company expects expense headwinds of approximately $15 million to $20 million from license fee step-ups and $10 million to $15 million from financing optimization [6][18] - HGV plans to maintain a disciplined approach to leverage, with an ending net leverage of approximately 3.78x and over $1 billion in liquidity [20] Operational Highlights - The company achieved a $100 million cost synergy target ahead of schedule and expanded its marketing efforts by opening 41 new sites with partners [9][2] - HGV Max adoption has increased the lifetime value for Max members by over 20% compared to non-Max members [9] - The company is evaluating its inventory strategy, particularly regarding acquired properties that may not align with its long-term vision [21] Shareholder Returns - In 2025, HGV returned $600 million to shareholders through share repurchases, reducing the float by over 20% [17] - The company has repurchased an additional 1.9 million shares for $89 million in early 2026, with plans to continue repurchasing approximately $150 million per quarter [18] Member Dynamics - HGV has over 720,000 members, with 266,000 being Max members, of which 175,000 are new buyers from the last four years [21] - The company noted that the Max membership skew is relatively newer, contributing to a higher lifetime value [21]

Core Insights - The company achieved a 10% growth in contract sales in 2025, marking the highest growth since 2022, driven by a 35% increase in HGV Max memberships and effective execution across owner and new buyer channels [1] - The company realized a $100 million cost synergy target from the Bluegreen acquisition ahead of schedule, contributing to a 250 basis point expansion in adjusted EBITDA margins [1] - For the first time, the company surpassed pro forma 2019 tour flow levels, supported by the opening of 41 new marketing sites in partnership with Hilton, Bass Pro, and Great Wolf [1] - The financing business was optimized by introducing timeshare ABS to the Japanese market, which improved cash flow and increased securitized receivables to 73% [1] - HGV Max adoption has increased the lifetime value of members by over 20% compared to non-Max members, with sustained demand from both legacy and new owners [1] - The company maintained a stable consumer environment where travel remains a top priority, although it expects Q1 2026 performance to be flat to slightly down due to challenging comparisons from prior year product launches [1]

Core Insights - Marriott Vacations Worldwide Corporation (VAC) reported mixed results for Q4 2025, with adjusted earnings exceeding estimates while revenues fell short, both metrics declining year over year [1][4]. Financial Performance - Adjusted earnings per share (EPS) for Q4 was $1.86, surpassing the Zacks Consensus Estimate of $1.72 by 8.1%, but down from $1.98 in the same quarter last year [4]. - Quarterly revenues totaled $1.323 billion, missing the consensus mark of $1.325 billion by 0.1% and decreasing by 0.3% year over year [4]. Segment Performance - Vacation Ownership segment revenues (excluding cost reimbursements) decreased by 3% year over year to $792 million, with consolidated contract sales at $458 million, down 4% year over year [5]. - Exchange & Third-Party Management revenues fell by 5% year over year to $47 million, with adjusted EBITDA down 13% to $19 million [6]. Profitability Metrics - Adjusted EBITDA for Q4 decreased by 3% year over year to $186 million, maintaining a margin of 21.7% [7]. - Adjusted operating income fell to $95 million, marking a 10% decrease [7]. Balance Sheet and Liquidity - The company ended Q4 with $1.4 billion in liquidity, which includes $406 million in cash and equivalents and $787 million in available credit [8]. 2025 Highlights - Total revenues for 2025 reached $5.03 billion, an increase from $4.97 billion in 2024, with adjusted EBITDA at $751 million compared to $736 million in 2024 [11]. 2026 Outlook - For 2026, Marriott Vacations projects contract sales between $1,745 million and $1,815 million, with adjusted EBITDA expected to range from $755 million to $780 million [12]. - Adjusted net income is anticipated to be between $255 million and $285 million, with adjusted diluted EPS estimated at $7.05 to $7.80 [12].

Financial Data and Key Metrics Changes - In Q4 2025, contract sales declined by 4% year-over-year, with Adjusted EBITDA at $186 million [9][20] - For the full year, contract sales totaled $1.8 billion, down 3% from the previous year, with Adjusted EBITDA at $751 million [9][20] - VPG decreased by 60 basis points year-over-year, while tours were down 3% [20][21] - Total owner sales declined by 2% year-over-year, although owner VPG increased for the first time since 2024 [21] Business Line Data and Key Metrics Changes - Commercial rentals profit decreased by 26% to $25 million due to higher inventory costs [23] - Management and exchange profit increased by 9% to $92 million, while financing profit rose by 10% to $53 million [23] - Development profit declined by 8% to $94 million, with product cost as a percentage of development revenue decreasing by 90 basis points [22][23] Market Data and Key Metrics Changes - Sales were up in Las Vegas, Hilton Head, and Myrtle Beach, but declines were noted in Orlando, Hawaii, and Asia Pacific [20] - International sales were down 10% year-over-year [20] Company Strategy and Development Direction - The company is focused on improving profitability and free cash flow, emphasizing operational performance and disciplined capital allocation [11][14] - A strategic decision was made to reduce tours in the Asia Pacific region to enhance profitability and cash flow [13] - The company aims to monetize non-core assets, with a target of generating $200 million-$250 million from asset sales over the next two years [15][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in the first half of the year but expressed optimism about seeing benefits from strategic changes in the second half [18] - The company is committed to fostering a growth-oriented culture and improving cash flow and profitability [17][18] Other Important Information - The company ended Q4 with $3.2 billion in net corporate debt and repaid $575 million in convertible notes [23] - Non-cash impairments of $546 million were recorded in Q4, affecting inventory and goodwill [24] Q&A Session Summary Question: Sales force commentary and rebuilding efforts - Management noted that approximately 1,000 sales executives are currently in the system, with efforts to recruit back top performers who had left [34][36] Question: Vacation ownership business and VPG initiatives - Management discussed investments in training new hires and improving tour quality to enhance VPG [45][46] Question: Long-term EBITDA target and growth strategy - Management emphasized a focus on cost structure and growth opportunities, aiming for a culture of growth to drive EBITDA [53][54] Question: Technology initiatives and digital transformation - Management highlighted ongoing modernization spending, particularly in technology and digital capabilities, to enhance customer engagement [63][64] Question: Owner growth and upgrade potential - Management indicated that growing the owner base and enhancing engagement with existing owners are key to sustainable growth [99]

Core Insights - Morgan Stanley raised its price target on Travel + Leisure Co. (NYSE:TNL) to $80 from $68, maintaining an Overweight rating, indicating confidence in the company's performance despite muted sector fundamentals in 2025 [1] - The company generated net income of $111 million, or $1.67 per diluted share, on net revenue of $1.04 billion in Q3 2025, reflecting operational discipline and sustained consumer demand [3] - Travel + Leisure's Vacation Ownership segment saw a 6% year-over-year revenue growth to $876 million, supported by a 10% increase in volume per guest, highlighting the strength of its core membership base [3] Company Overview - Travel + Leisure Co. was founded in 2006 and is headquartered in Orlando, Florida, focusing on vacation ownership properties under various brands [4] - The company's asset-light, membership-driven model provides recurring cash flow visibility and leverages resilient leisure demand trends [4] Strategic Initiatives - The company returned $106 million to shareholders through dividends and share repurchases, demonstrating a commitment to shareholder returns [3] - Travel + Leisure advanced its multi-brand strategy with the launch of the Eddie Bauer Adventure Club and the announcement of a Sports Illustrated Resort in Chicago, which broadens brand reach and diversifies revenue streams [3]

Core Insights - The company's performance was significantly supported by the vacation ownership business, which converted high owner engagement into recurring demand and predictable cash flow [1] Vacation Ownership Business - The company achieved an 8% growth in gross vacation ownership sales, driven by a 6% increase in Volume Per Guest (VPG) and a peak in tour flow during the fourth quarter [1] - Sustained consumer demand is attributed to a strategic shift towards higher-quality demographics, with average FICO scores above 740 and household incomes exceeding $100,000 [1] Multi-Brand Strategy - The multi-brand strategy, which includes brands like Sports Illustrated and Eddie Bauer, aims to broaden the addressable market and attract new travel segments beyond the traditional Wyndham and WorldMark brands [1] Resort Optimization Initiative - The Resort Optimization Initiative was launched to remove 17 aged, low-demand resorts and replace them with newer, high-demand locations to enhance system-wide financial health [1] Travel and Membership Segment - The performance of the Travel and Membership segment was affected by ongoing exchange headwinds, leading management to implement strict cost controls to align expenses with the current revenue profile [1]

Financial Data and Key Metrics Changes - In 2025, the company achieved revenue of $4.02 billion, an increase of 4% year-over-year, and EBITDA of $990 million, up 7% year-over-year [17][18] - The fourth quarter revenue was $1.026 billion, with EBITDA of $272 million, reflecting an 8% year-over-year growth [15][18] - Earnings per share (EPS) for the year was $6.34, representing a 10% increase year-over-year [17][18] Business Line Data and Key Metrics Changes - The Vacation Ownership segment saw gross sales rise by 8% year-over-year, driven by a 5% increase in tour flow in the fourth quarter, the strongest level of the year [16][18] - The Travel and Membership segment reported fourth quarter revenue of $148 million, down 6% year-over-year, with EBITDA of $47 million, down 10% [17][18] Market Data and Key Metrics Changes - The company noted strong leisure demand as a key driver for its Vacation Ownership business, with a loyal owner base contributing to predictable cash flow [6][8] - The average FICO score for new originations remained above 740, indicating high-quality loans [17][18] Company Strategy and Development Direction - The company is focused on brand expansion and optimizing its resort portfolio to drive sustainable, profitable growth [6][7] - A Resort Optimization Initiative is underway, which involves closing lower-performing resorts and replacing them with higher-demand properties [12][21] - The company aims to enhance owner experiences through technology investments and partnerships, such as those with Live Nation and Authentic Brands [11][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for leisure travel and the company's ability to deliver another year of revenue growth and EBITDA margin expansion in 2026 [14][26] - The company expects EBITDA for 2026 to be in the range of $1.03 billion to $1.055 billion, reflecting 4%-7% year-over-year growth [14][24] Other Important Information - The company returned $449 million to shareholders in 2025 through dividends and share repurchases, with a new $750 million share repurchase authorization approved [19][20] - The company is committed to maintaining a disciplined capital allocation strategy while investing in organic growth [20] Q&A Session Summary Question: Can you elaborate on the optimization initiative and its long-term impact on EBITDA? - Management indicated that 2025 was a catch-up year for the optimization initiative, with expectations for a return to normal growth in subsequent years [30][31] Question: How is the consumer demographic performing currently? - Management noted continued strong demand from consumers, with household incomes above $100,000 and improved FICO scores, reinforcing the value of vacation experiences [39][40] Question: What are the expectations for the Travel and Membership business moving forward? - Management expects the Travel and Membership segment to follow a consistent trend with disciplined cost management, contributing to EBITDA growth [93] Question: What is the anticipated loan loss provision for 2026? - Management expects the loan loss provision to decrease to around 20%, with a long-term goal of settling into the high teens [90][91] Question: Can you provide insights on the new brand launches and their expected contributions? - Management anticipates that new brands like Sports Illustrated and Eddie Bauer will grow as a percentage of overall sales, contributing positively to future growth [72][74]