Hilton Grand Vacations (US:HGV)2022-05-09 14:59Diamond Acquisition Synergies - The Diamond acquisition is expected to generate $150 million in run-rate cost synergies within the first 24 months [2,7,9] - Approximately ⅔ of the $150 million in cost synergies are expected from headcount and other efficiencies [10] - Approximately ¼ of the $150 million in cost synergies are expected from operational efficiencies [10] - The remaining cost synergies are expected from financial efficiencies [10] Strategic Benefits of Acquisition - The acquisition diversifies HGV's portfolio by adding drive-to destinations and leveraging the Hilton network to reach a broader customer base [2] - The acquisition accelerates the launch of HGV-branded trust product offering by rebranding Diamond's properties [2] - Over one-third of targeted room keys are expected to be rebranded by year-end 2022 [8] Financial Performance and Outlook - The company is raising its 2022 Deferral Adjusted EBITDA target to a range of $960 million to $990 million [19] - The company is targeting a net leverage of 20x [19] Integration Progress - Sales centers responsible for 100% of DRI contract sales volume are being rebranded by year-end 2022 [8] - The integration of Diamond Resorts is proceeding as planned, including workforce, IT systems, and accounting/finance process integration [6]