NYSE:HGV
Hilton Grand Vacations Inc.
A premier US-based vacation ownership company operating a robust portfolio of timeshare and club condominium resorts under the Hilton brand.
Key Metrics
Investment Thesis
Bull Case
Investors may favor HGV due to its stable recurring revenue model driven by timeshare membership renewals, the potential for margin expansion as property portfolios mature, and the strategic advantage of being part of the global Hilton hospitality group which drives cross-selling opportunities.
Bear Case
Concerns exist regarding the decline in net income from $352M in 2022 to $99M in 2025, high goodwill exposure of $1.99B that could face impairment risks, and a heavy reliance on interest-bearing debt evidenced by substantial cash flow from financing outflows which limits financial flexibility.
About Hilton Grand Vacations Inc.
Hilton Grand Vacations Inc. (HGV) is a leading vacation ownership operator that manages timeshare and club condominium resorts primarily across the United States and internationally. The company provides branded vacation experiences through its network of properties, leveraging the Hilton hospitality ecosystem to drive guest loyalty and revenue growth.
Analysis
Management Discussion
The company demonstrated resilient financial performance with revenue reaching $5.05B in 2025 compared to a net profit of $99M, reflecting improved operational efficiency despite high depreciation costs of $273M. Cash flow from operations of $300M indicates strong liquidity generation, though significant cash outflows for financing ($338M) and investing activities ($146M) suggest ongoing capital deployment or debt restructuring.
Industry Overview
The vacation ownership industry is characterized by long-term membership contracts and a focus on destination resorts, offering stable cash flows but facing headwinds from changing consumer preferences toward flexible short-term rentals and economic volatility affecting luxury travel demand.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $3.83B | $3.98B | $4.98B | $5.05B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $3.83B | $3.98B | $4.98B | $5.05B |
| Operating Expenses | $3.35B | $3.53B | $4.84B | $4.87B |
| Operating Income | $481.0M | $449.0M | $136.0M | $175.0M |
| G&A | $212.0M | $194.0M | $199.0M | $215.0M |
| Stock-Based Comp | $46.0M | $40.0M | $47.0M | $64.0M |
| D&A | $244.0M | $213.0M | $268.0M | $273.0M |
| Amortization | $192.0M | $163.0M | $216.0M | $216.0M |
| Other OpEx | $3.14B | $3.33B | $4.65B | $4.66B |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Interest Expense | $142.0M | $178.0M | — | — |
| Pre-Tax Income | $481.0M | $449.0M | $136.0M | $175.0M |
| Income Tax | $129.0M | $136.0M | $76.0M | $76.0M |
| Continuing Ops | $352.0M | $313.0M | $60.0M | $99.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $352.0M | $313.0M | $60.0M | $99.0M |
| Minority Interest | $0 | $0 | $13.0M | $18.0M |
| Net to Common | $352.0M | $313.0M | $47.0M | $81.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Cash & Equivalents | $223.0M | $589.0M | $328.0M | $239.0M |
| Accounts Receivable | $511.0M | $507.0M | $315.0M | $270.0M |
| PP&E (Net) | $798.0M | $758.0M | $792.0M | $859.0M |
| Goodwill | $1.42B | $1.42B | $1.99B | $1.99B |
| Operating Leases | $76.0M | $61.0M | $84.0M | $72.0M |
| Total Assets | $8.00B | $8.69B | $11.44B | $11.54B |
| Total Liabilities | $5.85B | $6.57B | $9.55B | $10.10B |
| Shareholders' Equity | $2.15B | $2.12B | $1.90B | $1.44B |
| Retained Earnings | $529.0M | $593.0M | $352.0M | $34.0M |
| AOCI | $39.0M | $17.0M | $0 | $-22.0M |
| Treasury Stock | $272.0M | $640.0M | $1.55B | — |
| Total L&E | $8.00B | $8.69B | $11.44B | $11.54B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $352.0M | $313.0M | $60.0M | $99.0M |
| Non-Cash Adjustments | $-188.0M | $-325.0M | $-214.0M | $-865.0M |
| Working Capital Changes | $583.0M | $324.0M | $463.0M | $1.07B |
| Cash from Operations | $747.0M | $312.0M | $309.0M | $300.0M |
| Capital Expenditures | $58.0M | $31.0M | $42.0M | $70.0M |
| Cash from Investing | $-97.0M | $-158.0M | $-1.57B | $-146.0M |
| Share Buybacks | $272.0M | $368.0M | $432.0M | $600.0M |
| Cash from Financing | $-782.0M | $183.0M | $1.16B | $-338.0M |
| FX Effect | $-8.0M | $-7.0M | $-13.0M | $-11.0M |
| Net Change in Cash | $-140.0M | $330.0M | $-119.0M | $-195.0M |
| Beginning Cash | $695.0M | $555.0M | $885.0M | $766.0M |
| Ending Cash | $555.0M | $885.0M | $766.0M | $571.0M |
Frequently Asked Questions
How does Hilton Grand Vacations Inc. make money?
The company derives revenue from membership sales, resort usage fees, property management services, and franchise royalties associated with its extensive network of timeshare clubs and vacation properties.
What are the main risks for HGV?
High capital intensity requiring significant property management investments, sensitivity to discretionary travel spending during economic downturns or inflationary periods, regulatory scrutiny regarding timeshare sales practices, and competition from alternative short-term rental platforms.
What is HGV's competitive advantage?
Strong brand association with Hilton Hotels & Resorts, a diverse geographic portfolio of high-quality resort locations, and a scalable operating model that leverages shared back-office infrastructure to manage large-scale vacation communities.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.