The below Frequently Asked Questions are available to help answer questions you may have regarding Hilton's next steps for Hilton Grand Vacations to become an independent, publicly traded company. For additional inquiries, please submit your question to AskHGV@hgvc.com. Read the Hilton Worldwide announcement here.
IS HILTON GRAND VACATIONS STILL A PART OF HILTON WORLDWIDE?
Once the process is complete, Hilton Grand Vacations (HGV) will become an independent, publicly traded company. HGV will benefit from a long-term affiliation and license agreement with Hilton allowing continued access to Hilton’s commercial services and brand.
WILL HILTON GRAND VACATIONS RETAIN ITS NAME?
The Hilton Grand Vacations brand will not change. The Hilton values and standards are cornerstones of our business and critical elements in both our historical and future successes. To ensure we maintain strong connections with the Hilton brand, our company will operate with an exclusive, long-term license agreement with Hilton.
WHO WILL BE THE LEADER OF THE NEW COMPANY?
Mark Wang, Hilton Grand Vacations' current President, will serve as President and CEO of the new company. Mark brings decades of timeshare leadership experience and success.
WHEN WILL THIS CHANGE TAKE PLACE?
The transaction is on track to be completed by year-end 2016.
WHY IS THE COMPANY CHOOSING TO TAKE THIS ACTION?
These transactions will simplify Hilton to become a capital-light, fee-based business while fully activating our real estate and timeshare businesses as stand-alone companies. We expect to unlock growth opportunities that are embedded within the three businesses and take advantage of capital market and tax efficiencies that couldn’t be achieved as one company.
WILL HGV PROPERTIES STILL BE LISTED ON HILTON.COM?
HGV properties will still be listed on hilton.com.
HOW WILL MY CLUB MEMBERSHIP BE IMPACTED?
We anticipate you will see no change to your Club benefits.
WHAT WILL HAPPEN TO MY ABILITY TO USE HILTON HONORS POINTS?
You will continue to be able to convert your ClubPoints into Hilton Honors points.
WILL I STILL BE ABLE TO STAY AT HOTELS IN THE HILTON PORTFOLIO?
You will continue to have the same advantages of Club Membership, including access to Hilton's more than 4,600 hotels through the award-winning Hilton Honors program.
WILL THERE BE ANY CHANGES TO MY FEES?
There will be no changes to your fees attributed to this transaction.
WILL ANY OF THE CLUB MEMBER BENEFITS BE TAKEN AWAY OR ENHANCED?
No Club benefit will be taken away due to HGV becoming a public company.
WILL OUR RCI AFFILIATION BE CHANGED IN ANY WAY DUE TO HGV BECOMING A PUBLIC COMPANY?
It will not change.
AS A CLUB MEMBER, CAN I PARTICIPATE IN THE IPO?
This transaction is not an initial public offering (IPO) because Hilton Grand Vacations is not a private company becoming a public company. Hilton Grand Vacations is a subsidiary of Hilton, which is a public company, and is being spun off into an independent, public company. Therefore, all current Hilton stockholders will first receive shares in the new Hilton Grand Vacations public company, then the Hilton Grand Vacations stock will become available for anyone to purchase on the open market.
AS A CLUB MEMBER, WILL I BE ELIGIBLE TO RECEIVE SHARES IN THE NEW COMPANY OR PURCHASE SHARES AT A DISCOUNT?
Club Membership entitles you to all the great benefits as outlined in your current Membership documents. These benefits do not include stock or stock at a discount.
DOES THIS ANNOUNCEMENT CHANGE THE VALUE OF MY PROPERTY?
The ClubPoints assigned to your ownership interest do not lose their current value.
WHAT IS THE BENEFIT OF THIS TRANSACTION TO ME AS A CLUB MEMBER?
As a publicly traded company, we will have a dedicated management team and resources specific to the timeshare business that allow opportunities for growth, including adding properties to our offerings to Club Members, as well as other Club Membership enhancements.
HOW CAN WE BE ASSURED THAT THE TIMESHARE PROPERTIES WILL CONTINUE TO BE MAINTAINED TO THE SAME LEVEL OF QUALITY?
We maintain the Hilton brand and the same high level of standards that meet or exceed expectations. Each property has agreements in place that require adherence to standards set by the Hilton brand.
WILL THE SPIN-OFF AFFECT MY MAINTENANCE FEES?
The annual maintenance fee at each property is set based on the actual cost to operate that property. The day-to-day operating and capital improvement expenses are determined based on the operating and reserve budgets of each homeowner's association. The annual budgets are set by the association's board of directors and will fluctuate based on the actual cost of operating the property.