Core Points - Rasmussen University has formed a corporate alliance with Hilton Grand Vacations (HGV) to provide educational benefits to HGV team members, including up to 100% tuition coverage for select online programs [1][3] - The alliance aims to enhance career growth opportunities for HGV employees by reducing financial barriers to education [3][4] - Eligible HGV team members can also receive up to a 20% tuition reduction for other qualified programs at Rasmussen University [2] Company Overview - Rasmussen University is an accredited institution committed to providing innovative, career-ready higher education and healthcare education, with a history of 125 years in transforming lives and strengthening communities [7][9] - The university offers a range of undergraduate and graduate programs both online and in-person across 20 campuses in the U.S. [7] Educational Programs - The programs offered by Rasmussen University are designed to help working adults advance their skills and careers through flexible, career-focused education [3][6] - The curriculum is developed with input from industry professionals, ensuring relevance to current job market needs [6] Employee Development - HGV emphasizes the importance of personal and professional growth for its team members, and the partnership with Rasmussen University is seen as a way to enhance employee development and retention [3][4] - The alliance is expected to attract significant interest from HGV employees, indicating a strong demand for educational opportunities [3]

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Company Performance - Marriott Vacations reported a revenue decline of 3.2% year-over-year to $1.26 billion, missing analyst estimates of $1.32 billion [2] - Adjusted EBITDA was $170 million, nearly 8% below consensus expectations, raising concerns about profitability [2] - The company’s adjusted earnings per share of $1.69 exceeded expectations by 5.6%, but the market focused on revenue weakness and a decline in conducted tours [2] Market Reaction - Shares of Marriott Vacations fell 20.8% in the morning session following the mixed third-quarter results [1] - The stock has shown volatility, with 14 moves greater than 5% over the past year, indicating significant market impact from this news [4] - The previous notable stock movement occurred 27 days prior, when shares dropped 3.2% due to concerns over trade relations with China [4] Industry Context - The leisure industry, which includes travel, entertainment, and hospitality, is sensitive to economic sentiment and discretionary spending [5] - Recent comments from President Trump regarding China have increased market volatility, particularly affecting leisure stocks [5] - China's new export controls on rare earth materials, essential for high-tech goods, have raised concerns about economic headwinds and potential impacts on consumer spending [5]

Business Overview - The company operates with iconic brands, approximately 120 resorts, and serves around 700,000 owner families[9] - The company's business model includes timeshare and exchange products, multiple brands, perpetual sales centers, and a capital-efficient development model[10] - Approximately 40% of the company's Adjusted EBITDA comes from recurring sources[12, 75] Financial Performance and Guidance - In 2024, the Segment Adjusted EBITDA for Exchange and Third-Party Management was $102 million, with a 46% margin[20] - The company anticipates $150 million to $200 million in annualized Adjusted EBITDA benefits by 2026 through strategic modernization[27, 75] - The company's full year 2025 guidance includes contract sales of $1,760 million to $1,780 million, Adjusted EBITDA of $740 million to $755 million, and Adjusted Free Cash Flow of $235 million to $270 million[70] Growth Strategies - The company aims to drive vacation ownership growth by leveraging strong license relationships[45] - The company is investing in digital capabilities to drive sales and efficiency, with 49% of 2024 tour packages sold digitally and 14% of 2024 contract sales sold non-traditionally[48, 49] - The company is focused on adding first-time buyers, with approximately 95,000 first-time buyers added in the last 5 years[57]

Core Insights - The travel and leisure sector has seen a surge of over 15% due to better-than-expected earnings and an increase in vacation ownership and spending in Q3, with the stock up approximately 38% year-to-date [1] Company Performance - The company is focused entirely on leisure travel and vacation ownership, with strong brands such as Windom, Accore, Sports Illustrated, and Margaritaville, indicating a robust demand from leisure consumers to continue traveling [2] - Approximately 800,000 members are part of the ownership base, with nearly 80% having already paid for their ownership, which supports ongoing travel demand [3] - The company anticipates strong demand for Q4, supported by a 90-day booking window, reflecting confidence in continued leisure travel [3] Market Trends - Leisure travel has proven to be resilient, as it is one of the last activities consumers give up during economic downturns and one of the first to rebound [4] - High inflation has led consumers to appreciate the value of their ownership, allowing them to enjoy vacations at a fraction of hotel prices [5] - Demand remains consistent across regions, with notable popularity in destinations like the Smoky Mountains, Las Vegas, and Southeast Beach locations [6][7][8] Future Outlook - The company expects 2026 to be a significant year for cruises, indicating a positive outlook for the broader travel industry [8] - Overall, demand remains steady with a preference for drive-to destinations over long-haul flights, reflecting consumer behavior trends [9]

Financial Data and Key Metrics Changes - Total company revenue in Q3 2025 was $1,044 million, up 5% year over year [11] - Adjusted EBITDA was $266 million, up 10% year over year, with an adjusted EBITDA margin expanding 100 basis points to 25% [11][12] - Adjusted EPS increased by 15%, reflecting earnings expansion and the impact of share repurchases [11] - Adjusted free cash flow grew 23% year over year, with an expectation to generate approximately $500 million for the full year [15] Business Line Data and Key Metrics Changes - Vacation Ownership segment revenue grew 6% to $876 million, with adjusted EBITDA increasing 14% to $231 million [12] - Gross VOI sales accelerated to $682 million, supported by a 2% tour flow growth and a VPG of $3,304, up 10% [12] - Travel and Membership segment revenue was $169 million, up 1% year over year, while adjusted EBITDA was $58 million, down 6% [14] Market Data and Key Metrics Changes - Tour flow remained healthy at 200,000 tours, indicating strong consumer appetite for travel [5] - The company reported that almost 70% of new buyers come from Gen X, Millennial, and Gen Z households, reflecting a shift in demographics [8] Company Strategy and Development Direction - The company is focused on expanding its brand portfolio, enhancing owner and guest experiences, and driving operational discipline [6][8] - New brand developments include Sports Illustrated Resorts and Eddie Bauer Adventure Club, targeting distinct traveler profiles [6][7] - The company aims to deepen engagement with younger and more diverse travelers while maintaining a disciplined approach to capital allocation [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of leisure travel demand and the resilience of the customer base [4][8] - The company raised its adjusted EBITDA guidance midpoint to $975 million for the full year, reflecting strong Q3 performance [17] - Management noted that booking pace remains consistent with the prior year, indicating stable consumer behavior [8] Other Important Information - The company returned $106 million to shareholders during the quarter, including $36 million in dividends and $70 million in share repurchases [15] - The liquidity position remains strong, nearing $1.1 billion, with net leverage expected to be below 3.3 times by year-end [16] Q&A Session Summary Question: What is driving the strong performance in the VOI business? - Management attributed the strong performance to investments in digital tools and improved customer experiences, leading to higher satisfaction scores and increased household income among customers [21][23] Question: Are there additional opportunities for Sports Illustrated Resorts? - Management indicated that urban locations, particularly in sports towns, present significant opportunities for conversions rather than new developments [25][27] Question: What changes contributed to the 30% increase in travel club transactions? - Management highlighted refined strategies and a focus on profit-producing clubs as key factors driving transaction growth [30][31] Question: How does the company view the loan loss provision moving forward? - Management expects the long-term provision rate to settle back in the upper teens, with no signs of deterioration in delinquencies or defaults [85][86] Question: What is the outlook for new owner sales and margins? - Management anticipates that new owner sales will fluctuate but remain disciplined to keep margins in the 22% to 25% range [50][51]

Core Insights - Travel + Leisure Co. has successfully completed a term securitization transaction, issuing $300 million in asset-backed notes with a weighted average coupon of 4.78% [1] - The advance rate for this transaction was 98.00%, indicating strong investor confidence in the company's vacation ownership business [1] Company Summary - The transaction marks the third term securitization completed by Travel + Leisure Co. in 2025, showcasing the company's ability to attract investment [1] - The successful completion of this securitization reflects the quality and reliability of the company's vacation ownership offerings [1]

Core Viewpoint - Hilton Grand Vacations Inc. announces an impressive entertainment lineup for the 2026 Hilton Grand Vacations Tournament of Champions, which will take place at Lake Nona Golf & Country Club from January 29 to February 1, 2026, featuring LPGA champions alongside celebrity athletes, musicians, and TV personalities for a high-level competition and memorable experiences [1]. Company Summary - Hilton Grand Vacations Inc. is positioned as a leading company in vacation ownership and experiences, enhancing its brand visibility through high-profile events like the Tournament of Champions [1]. Industry Summary - The event marks the LPGA Tour season opener, indicating the significance of such tournaments in promoting women's golf and attracting diverse audiences through the inclusion of celebrities [1].

Financial Data and Key Metrics Changes - Adjusted EBITDA for the quarter was $203 million, reflecting a 29% increase year-over-year with margins improving by 360 basis points [5][18] - Contract sales were down less than 1% for the quarter, showing improvement compared to Q1, with first-time buyer sales up 6% [7][16] - Total company rental profit declined by $7 million or 16% to $35 million, driven by increased unsold maintenance fees and marketing expenses [17] Business Line Data and Key Metrics Changes - Owner sales declined by 4% year-over-year due to lower VPGs, while owner tours remained flat [16] - Management exchange profit increased by 3% to $98 million, attributed to increased revenue in the vacation ownership segment [17] - Financing profit increased by 7% to $53 million [17] Market Data and Key Metrics Changes - Resort occupancy was nearly 90%, with strong performance in Maui, Coastal Florida, and The Caribbean, while Las Vegas showed relative weakness [6] - First-time buyers represented one-third of total contract sales, up 200 basis points from a year ago [8] Company Strategy and Development Direction - The company is focused solely on the upper upscale segment of the vacation ownership market, targeting owners with a median annual income of $150,000 [6] - A modernization initiative is expected to deliver $150 million to $200 million in run-rate benefits by 2026, with half from revenue initiatives and half from cost savings [7][11] - The company aims to grow tours and VPG in the low single digits and leverage fixed costs to improve margins [14] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model and the continued prioritization of leisure travel by consumers [5][13] - Loan delinquencies are trending down, with the lowest levels in two years, and management expects maintenance fees to remain flattish next year [12][19] - Despite macroeconomic uncertainties, management remains optimistic about long-term growth potential [14][42] Other Important Information - The company ended the quarter with leverage of 3.9 times and $800 million in liquidity [18] - Adjusted free cash flow is expected to be between $270 million and $330 million for the year, excluding one-time cash costs related to modernization initiatives [20] - The company acquired 52 completed timeshare units in Cowalack, Thailand for $43 million during the quarter [20] Q&A Session Summary Question: Contract sales performance in June and July - Management confirmed that July contract sales were up slightly from June, with June showing a 3% year-over-year increase [26][27] Question: Loan loss provision expectations - The loan loss provision is expected to be 12.5%, which is about half a point higher than previous guidance, reflecting ongoing improvements in delinquencies [28][30] Question: Expanded owner benefits and EBITDA impact - The expanded owner benefit provides more options for owners but is not expected to significantly impact EBITDA growth [35][36] Question: Share buyback restrictions - Management indicated that there were blackout periods that precluded share buybacks, but they plan to be opportunistic in the future [39] Question: Inventory efficiency and cost implications - Management aims to reduce inventory levels to one to two years on hand, with a slight increase in product costs expected over the next few years [48][49] Question: Recovery in Maui post-wildfire - Maui showed strong year-over-year contract sales, with transient occupancies and rates up, although sales remained flat compared to last year [62]

Core Viewpoint - Hilton Grand Vacations (NYSE: HGV) has underperformed in the past year, with a loss of approximately 7% in value due to rising credit losses in its timeshare loan portfolio [1] Company Performance - The company has faced increasing credit losses on its timeshare loan portfolio, which has contributed to its poor stock performance [1] Analyst Perspective - The analysis is based on over fifteen years of experience in making contrarian bets and focusing on stock-specific turnaround stories to achieve favorable risk/reward profiles [1]