Hilton Grand Vacations : HGV Investor Overview

About this update from Hilton Grand Vacations Inc.

HGV Investor Overview M A R C H 2 0 2 6 Hilton Grand Vacations at a glance >200 resorts across the globe More than 720,000 dedicated members Differentiated Ultimate Access experiential platform Powerful partnerships 2025 Key Stats $5.4B Total Revenue 1 $3.3B Contract Sales $1.2B Adjusted EBITDA 1 $756M Adjusted Free Cash Flow 2 $8.26/share Adjusted Free Cash Flow Four business lines working in harmony 2025 Segment Adjusted EBITDA 3 Mix Real Estate Generate contract sales to new and existing members Financing Provide financing for contract sales, creating mortgage receivables Rental & Ancillary Rent out unutilized inventory to offset carrying costs Club & Resort Manage member benefits and operate resort network Excluding the impact of net deferrals related to the Sales of VOIs under construction Adjusted FCF defined as net cash provided by operating activities minus capex for property and equipment and software capitalization costs, plus non-recourse debt activity, litigation settlement payment, acquisitions and integration-related expense, capitalized acquisition and integration-related costs and other one-time adjustments Segment EBITDA prior to corporate G&A, license fees, and JV income. Excludes the impact of net deferrals of revenue and direct expenses related to the Sales of VOIs under construction A premier vacation ownership and experiences company 01 02 03 Resilient business model Substantial embedded value Attractive cash flow and disciplined capital allocation -01- Resilient Business Model The vacation ownership business has a strong value proposition $ Ideal product form to cater to shift in traveler preferences featuring in-room kitchen & laundry and more square footage Dedicated focus on leisure travelers; benefitting from continued growth in experiential spend Ability to monetize unutilized 1 inventory; rental income offsets carrying costs of inventory while also generating additional tours Favorable competitive dynamics; with barriers to entry and hotel brand-affiliated players gaining share Insulated from inflationary pressures; maintenance capital expenditures and resort operating costs funded by owners each year Recurring income streams provide resilience through cycles with more predictable cash flows Includes unsold points inventory as well as owner points converted for use with partner programs Median Purchase Price 1 ~$22k ~$41k ~$75k Upscale Family-friendly vacations in drivable destinations, with relaxed settings that emphasize value and comfort Upper Upscale Resort-style amenities at upscale properties in top destinations, with spacious accommodations that provide all the comforts of home Luxury Boutique properties with exclusive amenities in immersive destinations, with meticulous attention to every detail $30k Lower Average price point Higher Three resort collections catering to a wide range of travel preferences and price points Company data; illustrative pricing HGV Max delivers a compelling consumer value proposition that links our three resort collections (Deed-based points) (Real estate trust-based points) Enables access to ~200 resorts across all three club collections with a uniform Club Points system Brings the flexibility of deed- or trust-based products to fit more price points and vacation preferences Simplifies ownership with a flat membership fee, free reservation bookings and other complimentary benefits More properties More value More amenities Combines the "best of" partner offerings from legacy clubs, while adding new, value enhancing features and benefits HGV Max provides expanded access, benefits, and value Substantial recurring EBITDA from Financing and Club & Resort businesses Member growth generates several high margin, recurring fee streams: Club membership fees Property management fees Financing fees Nearly 60% of Segment Adjusted EBITDA from recurring sources 1 New buyers and owner upgrades further grow these fee streams and create a multiplier effect 1) Segment Adjusted for net deferrals of revenue and direct expenses related to the Sales of VOIs under construction Broadest chain scale offering in the industry 1 Midscale and below Upper Midscale Upscale Upper Upscale Luxury Competitors 1 Source: STR 1) Illustrative chain scale positioning Substantial geographic diversity >200 RESORTS LOCATED IN PRIME LEISURE DESTINATIONS ~90% OF OWNERS LIVE WITHIN A 4 HOUR DRIVE OF AN HGV RESORT 1 Not Shown: Europe ( 28 ) Mexico & Caribbean (6) Japan ( 4 ) Record of tour generation with a consistent close rate 900,000 800,000 700,000 GFC Over 20 years with a 15% average close rate COVID-19 18% 16% 14% 600,000 12% 500,000 10% 400,000 8% 300,000 6% 200,000 4% 100,000 2% - 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Tours Close rate % Demonstrated resilience through cycles Performance during Global Financial Crisis 23% 20% $232M Contract Sales Adjusted EBITDA and Margins $583M $582M 25% $565M $212M $185M 2008 2009 2010 2008 2009 2010 Resilient credit performance through cycles against other sectors Timeshare ABS 61+ day delinquency rates demonstrated more stability than other core ABS/MBS sectors in prior downturns 61+ Day Delinquency Rates; ABS/MBS Sectors COVID-19 GFC 8% 7% 6% 5% 4% 3% 2% 1% Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 0% Timeshare ABS Equipment ABS Prime Autos ABS Prime Cards ABS Prime RMBS Source: Intex; asset class performance reflects the weighted-average 61+ day delinquency rates of outstanding transactions, weighted by ending period collateral balance of the set of transactions -02- Substantial Embedded Value Adding new buyers embeds substantial future value into the business The majority of a member's lifetime value is generated after the initial purchase Sales after initial purchase drive ~80% of lifetime value ~4x Initial Purchase Finance $2.3B Club & Resort $3.5B Real Estate: $2.9B Embedded Value Future Real Estate Upgrades For each $1 of initial purchase, owners will purchase an estimated $1.27 in additional upgrades over 20 years Club & Property Management 2025 average Club and Resort Management revenue per member is $1,077 Financing 63% of buyers finance their purchases, typically 10-year fixed-rate secured loans ~$8.7B Drivers of embedded value: Total Value from Initial Purchase 1 Additional Sales Club & Resort Management Financing Notes: Embedded value considers total expected nominal profit over 10-year period, not discounted; Does not account for license fees, taxes, perpetuity of club dues; assumes current cost of securitization 1) Includes the value of Club & Resort Management Fees and Financing of the initial purchase Owners are upgrading faster and more often 60.0% 50.0% % of owners with additional purchases 40.0% 30.0% 20.0% 10.0% 0.0% 0 5 10 15 20 25 Years of ownership Period of initial purchase: 1998-2001 2002-2005 2006-2009 2010-2013 2014-2017 2018-2021 2022-2025 HGV Max membership growth has been rapid, with more runway ahead Max membership mix is just over one-third of the total HGV Max Members: Upgrade earlier and more often than non-Max members Are significantly more active than non-Max members Report higher satisfaction & engagement scores Have a lifetime value >20% higher than non-Max members Rank meaningfully higher in our value- per-transaction scoring tiers ~37% +95% +34% +38% 266K 40% 300K 30% 200K 20% 100K 10% 0K 2022 2023 2024 2025 Max Members % of Total Members HGV Ultimate Access enhances membership value and drives incremental brand engagement HGV Ultimate Access - a collection of premier experiences and privileges designed exclusively for Hilton Grand Vacations Partnerships present a compelling opportunity to expand and diversify lead generation and bolster HGV's Ultimate Access offering Enhanced customer value proposition will drive increased customer engagement, retention, and embedded value → The nation's leading outdoor retailer, with approximately 200 locations across North America serving over 200M annual visitors → North America's largest family of indoor water part resorts → Strong regional network of over 20 locations across the US and Canada, serving over 10M guests per year Expand and diversify lead generation, with Bass Pro marketing as a lead source that is not levered to the lodging cycle Drive high-quality tour flow leveraging Bass Pro's robust customer database of dedicated outdoor enthusiasts Build upon existing JV by offering a premium collection of outdoor lifestyle resorts to a dedicated customer base Expand our successful Ultimate Access platform with unique new experiences and activities geared toward the outdoor lifestyle Affiliation Program allowing HGV owners to stay at Great Wolf Lodge resorts Develop cross-marketing campaigns to encourage use of combined network Utilizes Existing HGV Call Transfer and Digital infrastructure HGV Ambassadors sell vacation packages for future tours at HGV sales centers Attention : This is an excerpt of the original content. 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