Q1 2024 Hilton Grand Vacations Inc Earnings Call

May 9, 2024

Mark Melnyk: [music].

Mark Melnyk: For a discussion of some of our factors that could cause actual results to differ, please see the risk factors section of our SEC filings. We'll also be referring to certain non-GAAP financial measures. You can find definitions and components of such non-GAAP numbers, as well as reconciliations of non-GAAP and GAAP financial measures discussed today in our earnings press release and on our website at investors.hcv.com. Our reported results for all periods reflect accounting rules under ASC 606, which we adopted in 2018.

Speaker Change: Good morning, and welcome to the Hilton Grand Vacations first quarter 'twenty 'twenty four earnings conference call.

Mark Melnyk: Telephone replay will be available for seven days following the call.

Mark Melnyk: The dial in number is 84451 to two nine to one and enter pin 13743185.

Operator: A telephone replay will be available for seven days following the call. The dial-in number is 844-512-2921, and enter PIN 137-43185. At this time, all participants have been placed in a listen-only mode, and the floor will be open for your questions following the presentation. If you would like to ask a question, please press star 1 on your touchtone phone to enter the queue. If at any point your question has been answered, you may remove yourself from the queue by pressing star 2.

Mark Melnyk: At this time, all participants have been placed in a listen only mode and the floor will be opened for your questions. Following the presentation.

Mark Melnyk: If you would like to ask a question. Please press star one on your Touchtone phone to enter the queue.

Mark Melnyk: If at any point. Your question has been answered you may remove yourself from the queue by pressing star two.

Operator: If you should require operator assistance, please press star zero. If using a speakerphone, please lift your handset to allow the signal to reach our equipment. Please limit yourself to one question and one follow-up to allow the opportunity for everyone to ask questions. You may then re-enter the queue to ask any additional questions. I would now like to turn the call over to Mark Melnyk, Senior Vice President of Investor Relations. Please go ahead, sir.

Mark Melnyk: If you should require operator assistance, please press star zero.

Mark Melnyk: If using a speaker phone please lift your handset to allow the signal to reach our equipment.

Mark Melnyk: Please limit yourself to one question and one follow up to allow the opportunity for everyone to ask questions.

Mark Melnyk: Then reenter the queue to ask any additional questions.

Mark Melnyk: Under ASC 606, we are required to defer certain revenues and expenses related to sales made in a period when a project is under construction and then hold off on recognizing those revenues and expenses until the period when construction is completed. For ease of comparison and to simplify our discussion today, our comments on adjusted EBITDA and our real estate results will refer to results excluding the net impact of construction-related deferrals and recognitions for all reporting periods.

Mark Melnyk: Okay.

Mark Melnyk: I'd now like to turn the call over to Mark Melnyk, Vice Senior Vice President of Investor Relations. Please go ahead, Sir thank.

Mark Melnyk: Thank you, Operator, and welcome to the Hilton Grand Vacations First Quarter 2024 Earnings Call. As a reminder, our discussions this morning will include forward-looking statements. Actual results could differ materially from those indicated by these forward-looking statements, and the statements are effective only as of today. You undertake no obligation to publicly update or revise these statements.

Mark Melnyk: To help you make more meaningful period-to-period comparisons, you can find details of our current and historical deferrals and recognitions in Table T1 of our earnings release, and the complete accounting of our historical deferral and recognition activity can also be found in Excel format in the financial reporting section of our investor relations website. In a moment, our Chief Executive Officer, Mark Wang, will provide highlights from the quarter in addition to an update on our current operations and company strategy.

Speaker Change: Thank you operator, and welcome to the Hilton Grand Vacations first quarter 2024 earnings call. As a reminder, our discussion. This morning will include forward looking statements actual results could differ materially from those indicated by these forward looking statements and these statements are effective only.

Mark Melnyk: After Mark's comments, our President and Chief Financial Officer, Dan Mathewes, will go through the financial details for the quarter. Mark and Dan will then make themselves available for your questions. With that, let me turn the call over to our CEO, Mark Wang.

Mark Melnyk: For a discussion of some of our factors that could cause actual results to differ, please see the risk factors section of our SEC filings. We'll also be referring to certain non-GAAP financial measures. You can find definitions and components of such non-GAAP numbers, as well as reconciliations of non-GAAP and GAAP financial measures discussed today in our earnings press release and on our website at investors.hcb.com. Our reported results for all periods reflect accounting rules under ASC 606, which we adopted in 2018.

Mark Melnyk: We undertake no obligation to publicly update or revise these statements for.

Mark Melnyk: For a discussion of some of them are factors that could cause actual results to differ please see the risk factors section of our SEC filings, we'll also be referring to certain non-GAAP financial measures you can find definitions and components of such non-GAAP numbers as well as reconciliations of non-GAAP and GAAP financial measures discussed today in our earnings press release and on our website at investors got it.

Mark Melnyk: <unk> Dot com.

Speaker Change: Our reported results for all periods reflect accounting rules under ASC 606, which we adopted in 2018.

Mark Melnyk: Our $86 six we are required to defer certain revenues and expenses related to sales made in the period. When a project is under construction and then hold off on recognizing those revenues and expenses until the period when construction is completed.

Mark Melnyk: Ease of comparability and to simplify our discussion today, our comments on adjusted EBITDA and our real estate results will refer to results. Excluding the net impact of construction related deferrals and recognitions for all reporting periods to help you make more meaningful period to period comparisons you can find details of our current and historical deferrals and recognitions in table T. One of our earnings release.

Mark Melnyk: To help you make more meaningful period-to-period comparisons, you can find details of our current and historical deferrals and recognitions in Table T1 of our earnings release, and a complete accounting of our historical deferral and recognition activity can also be found in Excel format in the financial reporting section of our investor relations website. In a moment, our Chief Executive Officer, Mark Wang, will provide highlights from the quarter in addition to an update on our current operations and company strategy.

Mark Melnyk: And a complete accounting of our historical deferral and recognition activity can also be found in excel format on the financial reporting section of our Investor Relations website in a moment, our chief Executive Officer, Mark Wang will provide highlights from the quarter. In addition to an update of our current operations and company strategy.

Mark D. Wang: Morning everyone, and welcome to our first quarter earnings call. Reported contract sales in the quarter were $631 million, and EBITDA was $270 million with margins of 24%, which includes just over two months of results from our recently closed Blue-Green acquisition. I'm happy with the results overall, and I'm even more encouraged when looking at the momentum that we've built over the course of the quarter. Recall that in the fourth quarter, we adjusted some marketing channels that are legacy business to optimize our tour flow, which we expected would create some follow-on effects in the first half of this year.

Mark D. Wang: After Mark's comments, our president and Chief Financial Officer, Dan Matthews, who will go through the financial details for the quarter, Mark and Dan will then make themselves available for your questions with that let me turn the call over to our CEO Mark Wang Mark.

Mark D. Wang: Morning, everyone, and welcome to our first quarter earnings call. Reported contract sales in the quarter were $631 million, and EBITDA was $270 million, with margins of 24 percent, which includes just over two months' results from our recently closed woodgrain acquisition.

Mark D. Wang: We came into the year with a goal to dial up some of our marketing activities in a thoughtful way and accelerate package activations in our tour pipeline, and these efforts began to yield results as we moved through the quarter.

Mark D. Wang: Good morning, everyone and welcome to our first quarter earnings call reported contract sales in the quarter were 631 million and EBITDA was 270 million with margins of 24%, which includes just over two months results from our recently closed acquisition of <unk>.

Mark D. Wang: I'm happy with the results overall, and I'm even more encouraged when looking at the momentum that we've built over the course of the quarter. Recall that in the fourth quarter, we adjusted some marketing channels at our legacy business to optimize our tour flow, which we expected would create some follow-on effects in the first half of this year. We came into the year with a goal to dial up some of our marketing activities in a thoughtful way and accelerate package activations in our tour pipeline, and these efforts began to yield results as we moved through the quarter.

Mark D. Wang: Happy with the results overall and I'm, even more encouraged when looking at the momentum that we felt over the course of the quarter.

Mark D. Wang: Recall that in the fourth quarter, we adjusted some marketing channels that our legacy business to optimize our tour flow.

Mark D. Wang: We expect it would create some follow on effects in the first half of 'twenty four.

Mark D. Wang: We came into the year with a goal to dial up some of our marketing activities in a thoughtful way and accelerate package activations of our tour pipeline.

Mark D. Wang: And these efforts began to yield results as we move through the quarter.

Mark D. Wang: While we started with a modest year-over-year decline in tours in January, we saw an acceleration each month of the quarter, exiting with a low single-digit positive tour growth in March, which put us solidly on track relative to our expectations for the full year. We also added more packages this quarter than any other quarter since mid-22, and our mix of activated packages is back to record levels we saw in the first half of 23. These trends speak to a consumer that remains committed to travel despite some of the macroeconomic pressures that have built up, particularly in regards to inflation.

Mark D. Wang: While we started with a modest year over year decline in tours in January we saw an acceleration each month of the quarter exiting with a low single digit positive tour growth in March which put us solidly on track relative to our expectations for the full year.

Mark D. Wang: We also added more packages this quarter than any other quarter since mid 'twenty, two and our mix of activated packages back to record levels. We saw in the first half of 'twenty three.

Mark D. Wang: These trends speak to a consumer that remains committed to travel. Despite some of the macroeconomic pressures that had built up particularly in regards to inflation.

Mark D. Wang: While those pressures are still leading to some hesitancy at the sales tables, our sales teams have made adjustments to help highlight the value proposition of ownership, which should result in improved close rates as we move through the year. It's also important to note the continued resilience of our owner business, which saw an acceleration in tour growth compared to the fourth quarter, along with improved close rates. The repeat nature of our dedicated owner base is a key feature of our business that drives stability and embedded value creation in our model over time. Our owners love the level of H-E-B service and the benefits offered by our MAX membership. They want to use the product more, and ultimately, that drives additional upgrade business.

Mark D. Wang: While those pressures are still leading to some hesitancy at the sales tables, our sales teams have made adjustments to help highlight the value proposition of ownership, which should result in improved close rates as we move through the year. It's also important to note the continued resilience of our owner business, which saw an acceleration in tour growth compared to the fourth quarter, along with improved close rates. The repeat nature of our dedicated owner base is a key feature of our business that drives stability and embedded value creation in our model over time. Our owners love the level of HEV service and the benefits offered by our MAX membership. They want to use the product more, and ultimately, that drives additional upgrade business.

Mark D. Wang: While those pressures are still leading to some hesitancy at the sales tables. Our sales teams have made adjustments to help highlight the value proposition of ownership, which should result in improved close rates as we move through the year.

Mark D. Wang: It's also important to note the continued resilience of our owner business, which saw an acceleration in tour growth compared to the fourth quarter, along with improved close rates.

Mark D. Wang: The repeat nature of our dedicated owner base is a key feature of our business that drive stability and embedded value creation and our model over time.

Mark D. Wang: Our owners love field level of HCV service and the benefits offered by our Max membership.

Mark D. Wang: I want to use the product more and ultimately that drives additional upgrade business.

Mark D. Wang: Nearly a third of our members are HEV Macs only two years after our launch, indicating how successful the program has been at attracting existing members as well as new buyers. And as we welcome our new blue-green owners into the HEV system over time, we're confident that the HEV Max benefits and service levels will resonate with them all very well. Speaking of blue-green, since closing our acquisition in January, we've been hard at work on our rebranding plans and integration.

Mark D. Wang: Nearly a third of our members our HCV Max only two years after our launch indicating how successful the program has been.

Mark D. Wang: At attracting existing members as well as new buyers.

Mark D. Wang: And as we welcome our new Blue Green dot or into the HCV system over time, we're confident that the HCV Max benefit and service levels will resonate with them all very well.

Mark D. Wang: Speaking of bluegrass since closing our acquisition in January we've been hard at work on our rebranding plans and integration.

Mark D. Wang: A lot of great work has been done by our teams, and I'm very pleased with how they're executing and coming together over the last few months. There's still a lot of work left ahead of us, but the foundation of our business is better than ever. I'm also excited about our recently announced partnership with Great Wolf Lodge, which will create a new source of lead flow that we think will be a great fit with the HCV family of our end.

Mark D. Wang: A lot of great work has been done by our teams I'm very pleased with how they're executing in coming together over the last few months.

Mark D. Wang: There's still a lot of work left ahead of us, but the foundation of our business is better than ever. I'm also excited about our recently announced partnership with Great Wolf Lodge, which will create a new source of lead flow that we think will be a great fit with the HCV family of brands. So, we have a number of positives coming out of the quarter that leaves us optimistic.

Mark D. Wang: There's still a lot of work left ahead of us, but the foundation of our business is better than ever.

Mark D. Wang: I'm also excited about our recently announced partnership with Great Wolf Lodge, which will create a new source of lead flow that we think will be a great fit with the HCV family of brands.

Mark D. Wang: So, we have a number of positives coming out of the quarter that leaves us optimistic. While we're still a few quarters out from reaping the benefits of dialing up our activations over the last few months, I'm happy with the trends we're currently seeing in the business and our team's execution. And we remain confident in our guidance for the year. Turning to our integration efforts, let's start with a quick update on Diamond. Through the end of the first quarter, we rebranded 36 properties, representing over 9,600, or two-thirds of the total keys.

Mark D. Wang: So we have a number of positives coming out of the quarter that leaves us optimistic.

Mark D. Wang: While we're still a few quarters out from reaping the benefits of dialing up our activations over the last few months, I'm happy with the trends we're currently seeing in the business and our team's execution. And we remain confident in our guidance for the year. Turning to our integration efforts, let's start with a quick update on Diamond. Through the end of the first quarter, we rebranded 36 properties, representing over 9,600, or two-thirds of the total keys. We expect that we'll rebrand 12 properties this year for an additional 2,500 keys, bringing us to over 70% of the total by year-end. The remainder of the properties will be completed between 2025 and 2026.

Mark D. Wang: While we are still a few quarters out from reaping the benefits of dialing up our activations over the last few months.

Mark D. Wang: Happy with the trends, we're currently seeing out of the business and our teams execution and we remain confident in our guidance for the year.

Mark D. Wang: Turning to our integration efforts, let's start with a quick update on diamond through the end of the first quarter, we rebranded 36 properties representing over 9600 or two thirds of the total keys.

Mark D. Wang: We expect that we'll rebrand 12 properties this year for an additional 2,500 keys, bringing us to over 70% of the total by year-end. The remainder of the properties will be completed between 2025 and 2026. We're happy with the results of the rebrand thus far, but more importantly, our guests are happy.

Mark D. Wang: We expect that we're rebrand 12 properties. This year for an additional 2500 keys, bringing us to over 70% of the total by year at.

Mark D. Wang: The remainder of the properties will be completed between 2025 and 26.

Mark D. Wang: We're happy with the results of the rebrand thus far, but more importantly, our guests are happy. We continue to receive positive feedback, and our occupancy levels and package sales trends remain strong at those rebranded resorts. We're also making steady progress integrating our technology with several key module launches this year that will move us toward a unified system for our DEED and TRUST products, which we'll also leverage as we move through the Blue-Green integration process.

Mark D. Wang: We're happy with the results of the rebrand thus far but more importantly, our guest are happy we continue to receive positive feedback and our occupancy levels and package sales trends remained strong at those rebranded resorts.

Mark D. Wang: We continue to receive positive feedback, and our occupancy levels and package sales trends remain strong at those rebranded resorts. We're also making steady progress integrating our technology with several key module launches this year that will move us toward a unified system for our DEED and TRUST products, which we'll also leverage as we move through the Blue-Green integration process. These enhancements will not only enable our sales teams to transition more seamlessly between product offerings, improving efficiency and the likelihood of conversion, but they'll also enable us to seamlessly grow in the future.

Mark D. Wang: We're also making steady progress integrating our technology with several key module law change this year that will move us toward a unified system for our deed and trust products, which will also leverage as we move through the Blue Green integration process.

Mark D. Wang: These enhancements will not only enable our sales teams to transition more seamlessly between product offerings, improving efficiency and the likelihood of conversion, but they'll also enable us to seamlessly grow in the future. And importantly, they'll also create a smoother customer experience, helping owners engage and retain customers. Moving to BlueGrain, as I mentioned, we've been working diligently to integrate our teams over the past several months. Throughout the process, I've been thoroughly impressed with the Blue Green team at all levels of their organization.

Mark D. Wang: And importantly, they'll also create a smoother customer experience, helping owners' engagement and retention. Moving to BlueGrain, as I mentioned, we've been working diligently to integrate our teams over the past several months. Throughout the process, I've been thoroughly impressed with the Blue Green team at all levels of their organization. At the same time, we've been fully engaged to drive growth with our new partners, Bass Pro, Choice, and NASCAR, and have also continued working toward finalizing our rebranding plans ahead of a kickoff later this year. I also want to spend a minute talking about our new relationship that we announced a few weeks ago with Great Wolf Lodge.

Mark D. Wang: And importantly, they will also create a smoother customer experience, helping owners engagement and retention.

Mark D. Wang: Moving to Blue Green as I mentioned, we've been working diligently to integrate our teams over the past several months throughout.

Mark D. Wang: Throughout the process I've been thoroughly impressed with the Blue Green team at all levels of their organization.

Mark D. Wang: At the same time, we've been fully engaged to drive growth with our new partners, Bass Pro, Choice, and NASCAR, and have also continued working toward finalizing our rebranding plans ahead of a kickoff later this year. I also want to spend a minute talking about our new relationship that we announced a few weeks ago with Great Wolf Lodge.

Mark D. Wang: At the same time, we've been fully engaged and drive growth with our new partners SaaS Pro choice and NASCAR.

Mark D. Wang: <unk> also continued working towards finalizing our rebranding plan ahead of the kick off later this year.

Mark D. Wang: I also want to spend a minute talking about our new relationship that we announced a few weeks ago with great Wolf Lodge.

Mark D. Wang: Partnerships are a critical component of our strategy to engage new customers and deepen the relationship with existing members through experiential offerings. And this partnership with Great Wolf furthers that proposition, serving over 10 million guests annually with a focus on families with young children, which is a priority growth segment for us. Together, we're able to engage a broader spectrum of vacations and age ranges, as well as provide HEV families with increased flexibility in their vacation options.

Mark D. Wang: Partnerships are critical component of our strategy to engage new customers and deepen our relationship with existing members through experiential offerings.

Mark D. Wang: And this partnership with Great Wolf furthers that proposition.

Mark D. Wang: Serving over 10 million guests annually with a focus on families with young children, which is a priority growth segment for us.

Mark D. Wang: Together, we're able to engage a broader spectrum of vacations and age ranges as well as provide HCV families with increased flexibility in their vacation options.

Mark D. Wang: In the coming months, HEV members will begin their vacation at Great Wolf Lodge Resort using their Club Points while also benefiting from exclusive discounts during their stay. In addition, Great Wolf Lodge guests will have the opportunity to receive curated offers to explore HEV's network of properties. HGV will have a presence in 18 Great Wolf Lodge resorts, with more locations to be added as Great Wolf Lodge continues its expansion.

Mark D. Wang: In the coming months HGV members will begin to vacation at Great Wolf Lodge resorts using their club point, while also benefiting from exclusive discounts during their stay.

Mark D. Wang: In addition, Great Wolf Lodge guests will have the opportunity to receive curated offers to explore HEV's network of properties. HGV will have a presence in 18 Great Wolf Lodge resorts, with more locations to be added as Great Wolf Lodge continues its expansion. The partnership also includes call transfer and digital marketing programs, enabling us to generate new lead flow across multiple channels. Above all, these partnerships are about bringing people together to create memorable experiences, and I'm thrilled to be collaborating with CEO John Murphy and the entire Great Wolf team, who share a similar passion for hospitality and for delivering high-quality vacations that bring families together.

Mark D. Wang: In addition, great Wolf Lodge guests will have the opportunity to receive curated offers to explore H T V's and network of properties.

Mark D. Wang: H T V will have a presence in 18, great Wolf resorts with more locations to be added as great Wolf continues their expansion.

Mark D. Wang: The partnership also includes call transfer and digital marketing programs, enabling us to generate new lead flow across multiple channels. Above all, these partnerships are about bringing people together to create memorable experiences, and I'm thrilled to be collaborating with CEO John Murphy and the entire Great Wolf team, who share a similar passion for hospitality and for delivering high-quality vacations that bring families together. Now let's take a look at our operational performance, assuming that we own Blue-green for the entire quarter to make things simpler. Combined contract sales using that full-quarter basis were $656 million, with steady tour growth and a decline in BPG.

Mark D. Wang: The partnership also includes call transfer and digital marketing programs, enabling us to generate new lead flow across multiple channels.

Mark D. Wang: Above all these partnerships are about bringing people together to create memorable experiences and I'm thrilled to be collaborating with CEO, John Murphy and the entire great Wolf team, who share a similar cash in for hospitality and for delivering high quality vacations that bring families together.

Mark D. Wang: Now let's take a look at our operational performance, assuming that we own blue-green for the entire quarter to make things simpler. Combined contract sales using that full-quarter basis were $656 million, with steady tour growth and a decline in BPG. Both HCV and Blue-green demonstrated very similar growth trends for TORS and BPG, and were largely in line with our expectations.

Mark D. Wang: Now, let's take a look at our operational performance, assuming that we own blue green for the entire quarter to make things simpler.

Mark D. Wang: Combined contract sales using that full quarter basis were $656 million with steady tour growth and a decline in V. P. G.

Mark D. Wang: Both HCV and blue-green demonstrated very similar growth trends for TORS and BPG and were largely in line with our expectations. As I mentioned earlier, I was very pleased with the trajectory of our tour flow as the quarter progressed, along with the resilience of our owners. And as we move into the back half of the year, we expect to see our pipeline continue to drive improved tour trends as well. Combined BPG for the full quarter was $3,575, down about 5% driven by lower close rates.

Mark D. Wang: Both HCV and Blue Green demonstrated very similar growth trends for tours and B P. G and were largely in line with our expectations.

Mark D. Wang: As I mentioned earlier, I was very pleased with the trajectory of our tour flow as the quarter progressed, along with the resilience of our owners. And as we move into the back half of the year, we expect to see our pipeline continue to drive improved tour trends as well. Combined BPG for the full quarter was $3,575, down about 5% driven by a lower close rate. However, close rates in our legacy business improved from the fourth quarter, leaving us optimistic that our efforts and initiatives are producing results and leaving us on track for the year. Looking at our four demand indicators, occupancy in the quarter was flat at 79 percent, although last year's numbers included the full complement of Maui rooms.

Mark D. Wang: As I mentioned earlier I was very pleased with the trajectory of our tour flow as the quarter progressed, along with the resilience of our owners and.

Mark D. Wang: And as we move into the back half of the year, we expect to see our pipeline continued to drive improved tour trends as well.

Mark D. Wang: Combined D. P. G for the full quarter was $3575 down about 5% driven by lower close rates.

Mark D. Wang: However, close rates in our legacy business improved from the fourth quarter, leaving us optimistic that our efforts and initiatives are producing results and leaving us on track for the year. Looking at our four demand indicators, occupancy in the quarter was flat at 79 percent, although last year's numbers included the full complement of Maui rooms. As I mentioned, we made great progress with our package activations this quarter, and our arrivals on the books for the rest of the year are ahead of 23, with strength in our marketing and rental arrivals owing to our success in driving increased package activations.

Mark D. Wang: Looking at our four demand indicators occupancy in the quarter was flat at 79%, Although last year's numbers included the full complement of Maui rooms.

Mark D. Wang: As I mentioned, we made great progress with our package activations this quarter, and our arrivals on the books for the rest of the year are ahead of 23, with strength in our marketing and rental arrivals owing to our success in driving increased package activations. Moving to our non-real estate segments, we continue to see great trends in our transient rental business, led by higher available room nights and higher ADRs. Our rental nights on the books remained very strong through the rest of the year, and some regions where we had seen softer trends, such as Orlando and Hawaii, also showed signs of improvement this quarter, which also bodes well for future performance.

Mark D. Wang: As I mentioned, we made great progress with our package Activations this quarter and our arrivals on the books for the rest of the year, our head of twenty-three with strength in our marketing and rental arrivals owing to our success in driving increased package activations.

Mark D. Wang: Moving to our non-real estate segments, we continue to see great trends in our transient rental business, led by higher available room nights and higher ADRs. Our rental nights on the books remained very strong through the rest of the year, and some regions where we had seen softer trends, such as Orlando and Hawaii, also showed signs of improvement this quarter, which also bodes well for future performance. In our recurring club and resort business, NOG and our legacy business was 2%, and the addition of Blue Green enabled us to reach a member count of 718,000, which led to another strong quarter of EBITDA generation.

Mark D. Wang: Moving to our non real estate segments, we continue to see great trends at our transient rental business led by higher available room nights and higher <unk>.

Mark D. Wang: Our rental nights on the books remained very strong through the rest of the year and some regions, where we had seen softer trends such as Orlando and Hawaii also showed signs of improvement this quarter, which also bodes well for future performance.

Mark D. Wang: In our recurring club and resort business, NOG and our legacy business was 2%, and the addition of Blue Green enabled us to reach a member count of 718,000, which led to another strong quarter of EBITDA generation. And our financing business had a solid quarter of growth with improved margins owing to the addition of the Blue Green portfolio and good receivable generation. We also maintained our commitment to capital returns this quarter, repurchasing 2.3 million shares for $99 million.

Mark D. Wang: And our recurring club and resort business Noggin are legacy business was 2% and the addition of Blue Green enabled us to reach a member count is 718000, which led to another strong quarter of EBITDA generation.

Mark D. Wang: And our financing business had a solid quarter of growth with improved margins owing to the addition of the blue-green portfolio and good receivable generation. We also maintained our commitment to capital returns this quarter, repurchasing 2.3 million shares for $99 million.

Mark D. Wang: In our financing business had a solid quarter of growth with improved margins owing to the addition of the blue Green portfolio and good receivable generation.

Mark D. Wang: We also maintained our commitment to capital returns this quarter.

Mark D. Wang: Purchasing two 3 million shares for $99 million.

Mark D. Wang: So, all in all, I'm very pleased with this quarter. We performed in line with our expectations, and our trends through the quarter leave us optimistic that we're on track to achieve our guidance for the year. More importantly, I think we're really set up well for the long term. I believe that we're building the most talented team that we've ever had in my 25 years at HEV, and I'm excited to share our Blue-Green integration plans with you as we get them finalized. Before I turn it over to Dan, I'd like to congratulate him on being named president along with continuing his duties as CFO.

Mark D. Wang: So all in all I'm very pleased with this quarter, we performed in line with our expectations and our trends through the quarter leave us optimistic that we're on track to achieve our guidance for the year.

Mark D. Wang: More importantly, I think we're really set up well for the long term.

Mark D. Wang: I believe that we're building the most talented team that we've ever had in my 25 years at H E B and I'm excited to share our Blue Green integration plans with you as we get them finalized.

Mark D. Wang: Before I turn it over to Dan, I'd like to congratulate him on being named president along with continuing his duties as CFO. He's done a great job over these last five years, helping to navigate our business through markets that were turbulent at times, all while maintaining a commitment to shareholder value creation and risk management. And I know that he'll continue to maximize the value of our business and financial model in the years ahead. With that, I'll turn it over to Dan to talk you through the numbers. Dan?

Mark D. Wang: Before I turn it over to Dan I'd like to congratulate him on being named President along with continuing his duties as CFO.

Mark D. Wang: He's done a great job over these last five years helping to navigate our business through markets that were turbulent at times, all while maintaining a commitment to shareholder value creation and risk management. And I know that he'll continue to maximize the value of our business and financial model in the years ahead. So with that, I'll turn it over to Dan to talk you through the numbers. Dan?

Dan: Done a great job over these last five years, helping to navigate our business through markets there were turbulent at times.

Dan: While maintaining our commitment to shareholder value creation and risk management.

Dan: And I know that he'll continue to maximize the value of our business and financial model in the years ahead.

Mark D. Wang: With that I'll turn it over to Dan to talk you through the numbers.

Daniel J. Mathewes: Thank you, Mark, and good morning, everyone. Before we start, note that our reported results for this quarter included $2 million of sales recognition, which increased reported GAAP revenue and was related to the opening of the most recent phase of our Sissoko project. We also recorded $1 million of associated direct expense recognition. Adjusting for these two items would decrease the EBITDA reported in our press release by $3 million to $270 million. In my prepared remarks, I'll only refer to metrics excluding net deferrals, which more accurately reflects the cash flow dynamics of our financial performance during the period.

Daniel J. Mathewes: Thank you, Mark, and good morning, everyone. Before we start, note that our reported results for this quarter included $2 million of sales recognition, which increased reported GAAP revenue and was related to opening the most recent phase of our SISOCO project. We also recorded $1 million of associated direct expense recognition. Adjusting for these two items would decrease the EBITDA reported in our press release by $3 million to $270 million.

Dan: Thank you Mark and good morning, everyone.

Daniel J. Mathewes: Before we start note that our reported results for this quarter included $2 million of sales recognition, which increase reported GAAP revenue and were related to opening the most recent phase of our <unk> project. We also recorded $1 million of associated direct expense recognitions adjust.

Daniel J. Mathewes: Adjusting for these two items would decrease the EBITDA reported in our press release by $3 million to $270 million.

Daniel J. Mathewes: In my prepared remarks, I'll only refer to metrics excluding net deferrals, which more accurately reflects the cash flow dynamics of our financial performance during the period. I'd also note that our results today also include the financial results of Blue Green, which we acquired on January 17th. Turning to our results for the quarter, total revenue excluding cost reimbursements in the first quarter was $1.03 billion, and adjusted EBITDA was $270 million, with margins of 26%, also excluding cost reimbursements.

Daniel J. Mathewes: In my prepared remarks, I'll only refer to metrics, excluding net deferrals, which more accurately reflects the cash flow dynamics of our financial performance during the period.

Daniel J. Mathewes: I'd also note that our results today also include the financial results of Blue Green, which we acquired on January 17th. Turning to our results for the quarter, Total revenue excluding cost reimbursements in the first quarter was $1.03 billion, and adjusted EBITDA was $270 million with margins of 26%, also excluding cost reimbursements. Ibeda included $11 million of blue-green cost synergies recognized during the quarter for a run rate of $53 million annualized, putting us nicely on the path of achieving the targeted $100 million of cost synergies within 24 months.

Daniel J. Mathewes: I'd also note that our results. Today also include the financial results of <unk>, which we acquired on January 17th.

Daniel J. Mathewes: IBADA included $11 million of blue-green cost synergies recognized during the quarter for a run rate of $53 million annualized, putting us nicely on the path of achieving a targeted $100 million of cost synergies within 24 months. Turning to our segments, within real estate, reported contract sales were $631 million for the quarter, including a partial quarter of Blue Green ownership. Assuming that we own Blue-green for the entire quarter, contract sales would have been $656 million versus pro forma combined sales in the prior year of $692 million.

Daniel J. Mathewes: Turning to our results for the quarter.

Daniel J. Mathewes: Total revenue excluding cost reimbursements in the first quarter was 1.03 billion and adjusted EBITDA was $270 million with margins of 26% also excluding cost reimbursements.

Daniel J. Mathewes: EBITDA included $11 million of blue-green cost synergies recognized during the quarter for a run rate of $53 million annualized putting us nicely on the path of achieving targeted $100 million of cost synergies within 24 months.

Daniel J. Mathewes: Turning to our segments, within real estate, reported contract sales were $631 million for the quarter, including a partial quarter of Blue Green ownership. Assuming that we owned Blue Green for the entire quarter, contract sales would have been $656 million versus pro forma combined sales in the prior year of $692 million. Blue Green produced $161 million of that $656 million in sales on the full quarter basis. New buyers comprised 27% of legacy contract sales in the quarter, improving nearly 200 basis points from the fourth quarter level.

Daniel J. Mathewes: Turning to our segments within real estate reported contract sales were $631 million for the quarter, including a partial quarter of <unk> ownership.

Daniel J. Mathewes: Assuming that we own blue green for the entire quarter contract sales would've been $656 million versus pro forma combined sales in the prior year of $692 million.

Daniel J. Mathewes: Blue Green produced $161 million of that $656 million in sales on a full quarter basis. New buyers comprised 27% of legacy contract sales in the quarter, improving nearly 200 basis points from the fourth quarter level. Reported tours for the first quarter were just over 174,000.

Daniel J. Mathewes: Blue Green produced $161 million of that $656 million in sales on a full quarter basis.

Daniel J. Mathewes: Buyers comprise 27% of legacy contract sales in the quarter, improving nearly 200 basis points from the fourth quarter level.

Daniel J. Mathewes: Reported tours for the first quarter were just over 174,000. Assuming a full quarter of blue-green ownership, TORs of $182,000 were roughly flat in the quarter on a proforma basis, with owner TORs again growing at a solid mid-single-digit rate, offset by a decline in new buyer TORs. As Mark mentioned, the decision to pull back on some channels in the fourth quarter also had an effect on our tour pace this quarter.

Daniel J. Mathewes: Reported tours for the first quarter were just over 174000.

Daniel J. Mathewes: Assuming a full quarter of blue-green ownership, tours of 182,000 were roughly flat in the quarter on a pro-forma basis, with owner tours again growing at a solid mid-single-digit rate, offset by a decline in new-buyer tours. As Mark mentioned, the decision to pull back on some channels in the fourth quarter also had an effect on our tour pace in this quarter. But having re-accelerated our packages and our tour efforts in Q1, we do expect to see a benefit from those efforts later this year as they cycle through our marketing pipeline.

Daniel J. Mathewes: Assuming a full quarter of Blue Green ownership tours of 182000 were roughly flat in the quarter on a pro forma basis with owner tours again growing at a solid mid single digit rate offset by a decline in new buyer tours.

Daniel J. Mathewes: As Mark mentioned the decision to pull back on some channels in the fourth quarter also had an effect on our tour pace in this quarter, but having re accelerated our packages and our to our efforts in Q1, we do expect to see a benefit from those efforts later this year as they cycle through our marketing pipeline.

Daniel J. Mathewes: But having re-accelerated our packages and our tour efforts in Q1, we do expect to see a benefit from those efforts later this year as they cycle through our marketing pipeline. BlueGreens tours for the full first quarter of just under $52,000 displayed similar trends to our legacy business during the quarter, with flattish growth in tours driven by low single-digit owner tour growth offset by a similar level of decline in new buyer tours.

Daniel J. Mathewes: Blue Grin's tours for the full first quarter, of just under $52,000, displayed similar trends to our legacy business during the quarter, with flattish growth in tours driven by low single-digit owner tour growth offset by a similar level of decline in new buyer tours. Reported VPG for the quarter was $3,600.

Daniel J. Mathewes: <unk> for the full first quarter of just under 52000 displayed similar trends to our legacy business during the quarter with flattish growth in tourist driven by low single digit owner tour growth offset by a similar level of decline in new buyer tours.

Daniel J. Mathewes: The reported VPG for the quarter was $3,600. However, assuming a full quarter of blue-green ownership, VPGs were $3,575. For legacy business, VPG was about 6% ahead of 2019 levels, roughly in line with the trend that we saw in the fourth quarter. As Mark mentioned, our expectation is that as we move through this year, we'll see an improvement in our VPG that will help to support low single-digit growth in VPG for the full year.

Daniel J. Mathewes: Reported <unk> for the quarter was $3600, assuming a full quarter of Blue Green ownership <unk> for $3575 for our legacy business TPG was about 6% ahead of 2019 levels roughly in line with the trend that we saw in the fourth quarter.

Daniel J. Mathewes: Assuming a full quarter of blue-green ownership, VPGs were $3,575. For a legacy business, VPG was about 6% ahead of 2019 levels, roughly in line with the trend that we saw in the fourth quarter. As Mark mentioned, our expectation is that as we move through this year, we'll see an improvement in our VPG that will help to support low single-digit growth in VPG for the full year. Reported cost of product was 11% of net VOI sales for the quarter, and our provision for BATDAT as a percentage of own contract sales was 12% in the quarter.

Daniel J. Mathewes: As Mark mentioned, our expectation is that we move through this year, we'll see an improvement in our V. P. G that will help to support low single digit growth in <unk> for the full year.

Daniel J. Mathewes: Reported cost of product was 11% of net DOI sales for the quarter, and our provision for bad debt as a percentage of own contract sales was 12% in the quarter. Real estate sales and marketing expense was $320 million for this quarter, or 51% of contract sales. Sales and marketing dollars and percentage were elevated in the quarter owing to seasonality along with the addition of blue-green, but we expect to see operating leverage on this expense as we begin to recognize additional cost synergies through this year. Real estate profit for the quarter was $131 million, with margins of 26%.

Daniel J. Mathewes: Reported cost of product was 11% of net VOI sales for the quarter and our provision for bad debt as a percentage of owned contract sales was 12% in the quarter.

Daniel J. Mathewes: Real estate sales and marketing expense was $320 million for this quarter, or 51% of contract sales. Sales and marketing dollars and percentage were elevated in the quarter owing to seasonality along with the addition of blue-green, but we expect to see operating leverage on this expense as we begin to recognize additional cost synergies through this year. Real estate profit for the quarter was $131 million, with margins of 26%.

Daniel J. Mathewes: Real estate sales and marketing expense was $320 million for this quarter or 51% of contract sales.

Daniel J. Mathewes: The marketing dollars and percentage were elevated in the quarter, owing to seasonality along with the addition of Blue Green, but we expect to see operating leverage on this expense as we begin to recognize additional cost synergies through this year.

Daniel J. Mathewes: Real estate profit for the quarter was 131 million with margins of 26%.

Daniel J. Mathewes: And our financing business's first quarter revenue was $104 million, and segment profit was $65 million, with margins of 63%. Interest income and segment profit for the quarter were impacted by a $10 million contra revenue for the amortization of a non-cash premium associated with the portfolio of receivables that we acquired from Blue Green in the acquisition, in addition to the premium still being amortized for the diamond transaction. Excluding this non-cash amortization, interest income was $112 million, and margins were 69%. The bond gross receivables for the quarter were $3.8 billion, or $2.9 billion net as allowance.

Daniel J. Mathewes: And our financing business first quarter revenue was $104 million in segment profit was 65 million with margins of 63%.

Daniel J. Mathewes: Interest income and segment profit for the quarter were impacted by a $10 million Contra revenue for the amortization of noncash premium associated with the portfolio of receivables that we acquired from Blue Green and the acquisition. In addition to the premium is still being amortized for the diamond transaction excluding.

Daniel J. Mathewes: Excluding this noncash amortization interest income was $112 million and margins were 69%.

Daniel J. Mathewes: The bond gross receivables for the quarter were $3.8 billion, or $2.9 billion net as allowance. Our originated portfolio weighted average interest rate was 15.1%. For context, our diamond-acquired portfolio had a weighted average interest rate of 15.7%, while our acquired blue-green portfolio had an average interest rate of 15.2%.

Daniel J. Mathewes: Combined gross receivables for the quarter were $3 8 billion or $2 9 billion and that is allowance.

Daniel J. Mathewes: Our originated portfolio had an average interest rate of 15.1%. For context, our diamond-acquired portfolio had a weighted average interest rate of 15.7%, while our acquired blue-green portfolio had an average interest rate of 15.2%. Our total allowance for bad debt was $900 million on that $3.8 billion receivables balance, or 23.6% of the portfolio. We continue to evaluate the blue-green allowance through our purchase accounting process, and any additional changes to the allowance we expect to flow through the balance sheet as an opening balance sheet item. Our annualized default rate for our consolidated portfolios, inclusive of blue-green, stood at 9.7% for the quarter.

Daniel J. Mathewes: Originated portfolio weighted average interest rate was 15, 1% for context, our diamond acquired portfolio had a weighted average interest rate of 15, 7%, while our acquired Blue Green portfolio had an average interest rate of 15, 2%.

Daniel J. Mathewes: Our total allowance for bad debt was $900 million on that $3.8 billion receivables balance, or 23.6% of the portfolio. We continue to evaluate the blue-green allowance through our purchase accounting process, and any additional changes to the allowance we expect to flow through the balance sheet as an opening balance sheet item. Our annualized default rate for our consolidated portfolios, inclusive of blue-green, stood at 9.7% for the quarter.

Daniel J. Mathewes: Our total allowance for bad debt was $900 million on that $3 8 billion in receivables balance or 23, 6% of the portfolio.

Daniel J. Mathewes: We continue to evaluate the delivering allowance through our purchase accounting process and any additional changes to the arm. So we expect to flow through the balance sheet as an opening balance sheet item.

Daniel J. Mathewes: Our annualized default rate for our consolidated portfolio inclusive of Blue Green stood at nine 7% for the quarter.

Daniel J. Mathewes: As previously discussed, we continue to see normalizing credit trends with the termination of certain government stimulus plans, but we believe our current loan loss provision is adequate. Going forward, we expect our provision to migrate towards a mid-teens percentage of contract sales on a normalized basis. I also want to highlight our strong capital markets execution with our recent $240 million ABS deal of Blue Green Legacy Collateral. The deal highlights the strength of our brand and market position as we nearly quadrupled Blue Green Vacation's historical investor base on HCV's first securitization of Blue Green Vacations Collateral. The total coupon was 6.42%.

Daniel J. Mathewes: As previously discussed, we continue to see normalizing credit trends with the termination of certain government stimulus plans, but we believe our current loan loss provision is adequate. Going forward, we expect our provision to migrate towards a mid-teens percentage of contract sales on a normalized basis. I also want to highlight our strong capital markets execution with our recent $240 million ABS deal of Blue Green Legacy Collateral. The deal highlights the strength of our brand and market position as we nearly quadrupled Blue Green Vacation's historical investor base on HTV's first securitization of Blue Green Vacations Collateral. The total coupon was 6.42%.

Daniel J. Mathewes: As previously discussed we continue to see normalizing credit trends with the termination of certain government stimulus plans, but we believe our current loan loss provision is adequate.

Daniel J. Mathewes: Going forward, we expect our provision to migrate towards a mid teens percentage of contract sales on a normalized basis.

Daniel J. Mathewes: I also want to highlight our strong capital markets execution with our recent $240 million ABS deal blue-green legacy collateral.

Daniel J. Mathewes: Deal highlights the strength of our brand and market position as we nearly quadrupled blue-green vacations historical investor base on Hcv's first securitization of blue-green vacation collateral the total coupon was 642%.

Daniel J. Mathewes: In our resort and club business, our consolidated member count was 718,000, and our legacy NOG was 2% at the end of the first quarter. Revenue was $166 million for the quarter, and segment profit was $112 million with margins of 68%. Rental and ancillary revenues were $181 million in the quarter, with segment profits of $8 million and margins of 4%, slightly ahead of last year.

Daniel J. Mathewes: In our resort and club business, our consolidated member Count was 718000 in our legacy NOG was 2% at the end of the first quarter revenue was $166 million for the quarter and segment profit was $112 million with margins of 68%.

Daniel J. Mathewes: Rental and ancillary revenues were $181 million in the quarter with segment profit of $8 million and margins of 4% slightly ahead of last year.

Daniel J. Mathewes: Revenue growth was driven by higher available room nights and revenue per available room night growth, underpinned by continued travel demand. As Mark mentioned, we continue to see strong arrivals through the rest of the year, which should support a continuation of trends. Expenses on our legacy business continue to be elevated due to the inclusion of developer maintenance fees on unsold inventory, along with the inclusion of Blue Green's much lower-margin rental business. As you can see from the financial information we uploaded to the IR website last quarter, Blue Green's rental business ran at a loss, but we believe this provides us an opportunity for improvement over time as we integrate them into the Hilton system.

Daniel J. Mathewes: Revenue growth was driven by higher available room nights and Revpar growth underpinned by continued travel demand.

Daniel J. Mathewes: As Mark mentioned, we continue to see strong arrivals through the rest of the year, which should support a continuation of trends. However, expenses on our legacy business continue to be elevated due to the inclusion of developer maintenance fees on unsold inventory, along with the inclusion of Blue Green's much lower margin rental business. As you can see from the financial information we uploaded to the IR website last quarter, Blue Green's rental business ran at a loss, but we believe this provides us with an opportunity for improvement over time as we integrate them into the Hilton system.

Daniel J. Mathewes: As Mark mentioned, we continue to see strong arrivals through the rest of the year, which should support the continuation of trends.

Daniel J. Mathewes: Expenses on our legacy business continued to be elevated due to the inclusion of developer maintenance fees on unsold inventory along with the inclusion of Blue Greens much lower margin rental business as.

Daniel J. Mathewes: As you can see from the financial information that we uploaded to the IR website last quarter Blue Greens rental business ran at a loss, but we believe this provides us an opportunity for improvement over time as we integrate them into the Hilton system.

Daniel J. Mathewes: Bridging the gap between segment-adjusted EBITDA and total-adjusted EBITDA, corporate G&A was $35 million, license fees were $35 million, EBITDA from unconsolidated affiliates was $5 million, and EBITDA attributable to non-controlling interest was $3 million. Our adjusted free cash flow in the quarter was a use of $374 million, which included inventory spending of $105 million. I'd note that the cash flow usage this quarter was entirely the result of timing as we paid down the balances on our warehouse facility ahead of our most recent securitization, as well as to capture capital market synergies by closing multiple ABS facilities associated with the acquisition.

Daniel J. Mathewes: Bridging the gap between segment adjusted EBITDA and total adjusted EBITDA corporate G&A was $35 million license fees were $35 million EBITDA from unconsolidated affiliates was $5 million in EBITDA attributable to Noncontrolling interest was $3 million.

Daniel J. Mathewes: Our adjusted free cash flow in the quarter was a use of 374 million, which included inventory spending of $105 million.

Daniel J. Mathewes: I'd note that the cash flow usage this quarter was entirely the result of timing as we paid down the balances on our warehouse facility ahead of our most recent securitization, as well as to capture capital market synergies by closing multiple ABS facilities associated with the acquisition. With the successful completion of that offering a few weeks ago and another one planned during the summer, we expect to see a cash flow benefit in the quarters ahead. And we're still expecting an EBITDA conversion rate slightly ahead of last year's 52%. During the quarter, the company repurchased 2.3 million shares of common stock for $99 million.

Daniel J. Mathewes: I would note that the cash flow usage. This quarter was entirely the result of timing as we pay down the balances on our warehouse facility ahead of our most recent securitization as well as to capture capital market synergies by closing multiple ABS facilities associated with the acquisition with the successful completion of that offering a few weeks ago and another one plan during the summer we expect to see a <unk>.

Daniel J. Mathewes: With the successful completion of that offering a few weeks ago and another one planned during the summer, we expect to see a cash flow benefit in the quarters ahead. And we're still expecting an EBITDA conversion rate slightly ahead of last year's 52%. During the quarter, the company repurchased 2.3 million shares of common stock for $99 million. And through April 30th, we repurchased an additional 1 million shares for $47 million, leaving us with $213 million of remaining availability under the 2023 repurchase plan.

Daniel J. Mathewes: Hello benefit in the quarter and the quarters ahead, and we're still expecting an EBITDA conversion rates slightly ahead of last year's 52%.

Daniel J. Mathewes: During the quarter the company repurchased two 3 million shares of common stock for $99 million and through April 30th we repurchased an additional 1 million shares for $47 million, leaving us with $213 million in remaining availability under the 2023 repurchase plan we have.

Daniel J. Mathewes: And through April 30th, we repurchased an additional 1 million shares for $47 million, leaving us with $213 million of remaining availability under the 2023 repurchase plan. We expect to continue our current trend of approximately $100 million in share repurchases per quarter. Turning to our outlook, we are reiterating our guidance for full-year adjustability of $1.2 to $1.26 billion. As of March 31st, our liquidity position consisted of $355 million of unrestricted cash and $293 million of availability under our revolving credit facility. Our debt balance at quarter end was comprised of corporate debt of $5.1 billion and a non-recourse debt balance of approximately $1.5 billion.

Daniel J. Mathewes: We expect to continue our current trend of approximately $100 million in share repurchases per quarter. Turning to our outlook, we are reiterating our guidance for full-year adjusted EBITDA of $1.2 to $1.26 billion. As of March 31st, our liquidity position consisted of $355 million of unrestricted cash and $293 million of availability under our revolving credit facility. Our debt balance at quarter end was comprised of corporate debt of $5.1 billion and a non-recourse debt balance of approximately $1.5 billion.

Daniel J. Mathewes: Expect to continue our current trend of approximately $100 million in share repurchases per quarter.

Daniel J. Mathewes: Turning to our outlook, we are reiterating our guidance for full year adjusted EBITDA of one two to $1 $2 6 billion.

Daniel J. Mathewes: As of March 31, our liquidity position consisted of $355 million of unrestricted cash and $293 million of availability under our revolving credit facility.

Daniel J. Mathewes: Debt balance at quarter end was comprised of corporate debt of $5 1 billion.

Daniel J. Mathewes: Nonrecourse debt balance of approximately one 5 billion.

Daniel J. Mathewes: At quarter end, our legacy business had $460 million of remaining capacity in our warehouse facility, of which we had $455 million of notes available to securitize, and another $321 million of mortgage notes we anticipate being eligible following certain customary milestones such as first payment, deeding, and recording. From a timing perspective, we expect to bring another deal to the market in the summer. Turning to our credit metrics, at the end of Q1, and inclusive of all anticipated cost synergies, the company's total net leverage on a TTM basis was 3.74 times.

Daniel J. Mathewes: At quarter end, our legacy business had $460 million of remaining capacity in our warehouse facility, of which we had $455 million of notes available to securitize and another $321 million of mortgage notes we anticipate being eligible following certain customary milestones such as first payment, deeding, and recording. From a timing perspective, we expect to bring another deal to the market in the summer. Turning to our credit metrics, at the end of Q1, and inclusive of all anticipated cost synergies, the company's total net leverage on a TTM basis was 3.74 times. We are also recommitting to our long-term leverage target of two to three times total net leverage. We will now turn the call over to the operator and look forward to your questions.

Daniel J. Mathewes: At quarter end, our legacy business had $460 million of the remaining capacity in our warehouse facility of which we had $455 million of notes available to securitize and another $321 million of mortgage notes, we anticipate being eligible following certain customary milestones such as first payment needing and recording.

Daniel J. Mathewes: From a timing perspective, we expect to bring another deal to the market in the summer.

Daniel J. Mathewes: Turning to our credit metrics at the end of Q1 and inclusive of all anticipated cost synergies Companys total net leverage on a TTM basis was 374 times.

Operator: We are also recommitting to our long-term leverage target of two to three times total net leverage. We will now turn the call over to the operator and look forward to your questions.

Daniel J. Mathewes: We are also recommitting to our long term leverage target of two to three times total net leverage.

Operator: We will now turn the call over to the operator and look forward to your questions operator.

Operator: Thank you. Once again, if you'd like to ask a question, please press star one on your telephone keypad. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start button. Our first question comes from the line of Patrick Scholes with Truist Securities. Please proceed with your question.

Operator: Thank you. Once again, if you'd like to ask a question, please press star one on your telephone keypad. You may press star 2 if you'd like to remove your question from the queue.

Speaker Change: Thank you once again, if you'd like to ask a question. Please press star one on your telephone keypad.

Operator: You May press Star two if you would like to remove your question from the queue.

Operator: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star key. Our first question comes from the line of Patrick Scholes with Truist Securities. Please proceed with your question. Good morning, Mark and Dan.

Operator: For participants using speaker equipment and may be necessary to pick up your handset before pressing the star keys.

Operator: Our first question comes from the line of Patrick Scholes with Jewish Securities. Please proceed with your question.

Charles Patrick Scholes: Hi, good morning, Mark and Dan. Good morning.

Charles Patrick Scholes: Hi, Yes, good morning, Mark and Dan.

Operator: Okay.

Charles Patrick Scholes: Good morning.

Charles Patrick Scholes: The first question concerns the Blue-green acquisition. You have about four months under your belt now. Now, how would you say that's tracking versus your underwriting? And then, related to that, you initially had expected about $100 million of expected cost synergies and then expected $75 to $100 million of future revenue synergies. Now, do those seem realistic at this point? Conservative, how are you tracking on all of those? Thank you.

Charles Patrick Scholes: The first question concerns the blue-green acquisition. You have about four months under your belt now. Now, how would you say that's tracking versus your underwriting? And then, related to that, you initially had, [inaudible] Conservative. How are you tracking with all of those?

Charles Patrick Scholes: My first question concerns the.

Charles Patrick Scholes: Do you agree and acquisition you're about four months.

Charles Patrick Scholes: Now how would you say that's tracking bases.

Charles Patrick Scholes: Underwriting and then related to that.

Charles Patrick Scholes: You initially had.

Charles Patrick Scholes: We expected about 100.

Charles Patrick Scholes: The expected cost synergies.

Charles Patrick Scholes: Our expected 75 to 100 million of future revenue synergies.

Charles Patrick Scholes: It doesn't seem realistic at this point.

Charles Patrick Scholes: It may be too conservative.

Charles Patrick Scholes: Tracking.

Speaker Change: Thank you.

Mark D. Wang: Yeah, sure, Patrick. So first of all, you know, we close quickly, right? We close in January. So we've spent the last or the first couple months really refining our plans, and we're really pleased with the progress and remain excited about the opportunities ahead. The main elements of the integration will be similar to the Diamond Deal, cost savings, rebranding of our sales centers and properties, and integrating them into the overall HEV system.

Mark D. Wang: Thank you. Yeah, sure, Patrick. First of all, we close quickly, right? We close in January. So, we've spent the first couple months really refining our plans, and we're really pleased with the progress and remain excited about the opportunities ahead. The main elements of the integration will be similar to the Diamond Deal, cost savings, rebranding of our sales centers and properties, and integrating them into the overall HEV system.

Charles Patrick Scholes: Yes sure Patrick.

Charles Patrick Scholes: So first of all you know we close quickly right. We closed in January. So we've spent the last or the first couple of months really refining our plans and we're really pleased with the progress.

Mark D. Wang: And remain excited about the opportunities ahead.

Mark D. Wang: Main elements of the integration will be similar to the diamond deal cost savings a rebranding of our sale centers and properties in.

Mark D. Wang: And integrating them into the overall HCV system in and then there's the partnership piece, which is really a new element of the deal that.

Mark D. Wang: And then there's the partnership piece, which is really a new element of the deal that, you know, that Diamond didn't bring. So on the cost side, we've moved to the execution phase beginning in March, and, and we're sitting here today, we've achieved nearly half of the 100 million cost target on a run rate basis. So we feel really confident there. The rebranding of the sales centers will come first, followed by the properties over the next number of years.

Mark D. Wang: And then there's the partnership piece, which is really a new element of the deal that Diamond didn't bring. On the cost side, we've moved to the execution phase beginning in March, and we're sitting here today. We've achieved nearly half of the $100 million cost target on a run rate basis, so we feel really confident there. The rebranding of the sales centers will come first, followed by the properties over the next number of years, and remember, we're still rebranding Diamond Properties with, I mentioned it in prepared remarks, but I think we have more than...

Mark D. Wang: The diamond didn't bring so.

Mark D. Wang: On the cost side, we've we've moved to execution phase beginning in March and we're sitting here today, we've achieved nearly half of the $100 million cost target on a run rate basis. So we feel really confident there.

Mark D. Wang: The rebranding of the sales centers will come first followed by the properties over the next number of years.

Mark D. Wang: And remember, we're still rebranding Diamond Properties with, I mentioned it in my prepared remarks, I think we have more than 10 planned for this year. And similar to what we did with DRI, it's going to take some time for us to design the rollout for HEV Max, which is, as you recall, our membership program. So we're excited about that, but it will take some time. We have the ultimate access, and it's really about working through some of the technological developments and legal requirements there.

Mark D. Wang: And.

Mark D. Wang: Remember, we're still rebranding diamond properties with I mentioned it in the prepared remarks, where I think we have more than 10 planned for this year.

Mark D. Wang: Ten planned for this year, and similar to what we did with DRI, it's going to take some time for us to design the rollout for HEV Max, which is, The call is our membership program. We're excited about that, but it will take some time. We have the ultimate access.

Mark D. Wang: And similar to what we did with <unk>.

Mark D. Wang: It takes some time for us to design the rollout for HCV, Max which as you recall is our membership program. We're excited about that but it will take some time, we have the ultimate access.

Mark D. Wang: And it's really around working through some of the technology developments and legal requirements there. So we made great progress on the partnership front. Very, very excited about the opportunity with Bass Pro. We had our board up there yesterday.

Mark D. Wang: And it's really around working through some of the technology development and legal requirements. There. So made great progress on the partnership front.

Mark D. Wang: So we've made great progress on the partnership front, and we are very, very excited about the opportunity with Bass Pro. We had our board up there yesterday, and we had our board meeting up there, and we had a chance to meet with the founder and the Bass Pro management team. And we're very engaged and very aligned to growing that relationship. So anyway, so taken together, I think, you know, the Blue Green membership, the new distribution, and the significant pipeline, you know, we're very excited about the revenue opportunities ahead. So all in all, I feel really good. And I'll just add one last thing: you know, we've been very pleased with the team members.

Mark D. Wang: Very very excited about the opportunity with SaaS.

Mark D. Wang: We had our board up there yesterday.

Mark D. Wang: We had our board meeting up there, and we had a chance to meet with the founder and the Bass Pro management. They're very engaged, and we're very engaged and very aligned to growing that relationship. So anyway, so taken together, I think the Blue-Green membership, the new distribution, and the significant pipeline, we're very excited about the revenue opportunities ahead. So all in all, I feel really good.

Mark D. Wang: We had our board meeting up there and we had a chance to meet with their founder in.

Mark D. Wang: The vast part of management team.

Mark D. Wang: They are very very engaged and we're very engaged and very aligned to growing that relationship. So.

Mark D. Wang: But anyway, so taken together I think you know that.

Mark D. Wang: The blue Green membership, but the new distribution significant pipeline.

Mark D. Wang: We're very excited about the revenue opportunities ahead. So all in all feel really good and I'll just add one last thing.

Mark D. Wang: And I'll just add one last thing. We've been very pleased with... The team members that we've inherited or we've brought on board from Blue Green have got a great culture, and we've seen that across. And I think, Patrick, the only thing to add there is just getting back to one of your initial questions. With the diamond transaction, we, you know, when we announced it, we said, hey, cost synergies of Plus. So we always thought there was a little bit more room for them there.

Mark D. Wang: We've been very pleased with the the team members that we've inherited a week brought onboard from Blue Green Dot they've got a great culture and we've.

Mark D. Wang: And we've seen that across the business.

Daniel J. Mathewes: And I think, Patrick, the only thing to add there, just getting back to one of your initial questions... With the Diamond transaction, when we announced it, we said, hey, cost synergies of $125 million plus. So we always thought there was a little bit more room there. The contrast that just from a context perspective for Blue Green, we've always said, hey, run rate target of $100 million. It's a smaller organization.

Mark D. Wang: And I think Patrick the only thing to add just getting back to one of your initial questions.

Mark D. Wang: With the Diamond transaction, we you know when we announced it we said hey cost synergies of $125 million plus so we always thought there was a little bit more room there.

Daniel J. Mathewes: You know, to contrast that just from a context perspective for blue-green, we've always had a run rate target of 100. It's a smaller organization. To Mark's earlier point, we are at a run rate even through Q1 of just over, or just about half of that run rate. And embedded in our guidance is realized synergies with the year within 2024, 50 to 55 million. So we're definitely on the right track. We're very confident we're going to get to 100 million, but we're also doing, you know, a full evaluation of the talent and making sure that we have the right people in the right places to execute everything we need to execute. So I would say we're comfortable with 100 million.

Mark D. Wang: The contrast that just from a context perspective for Blue Green, We've always had a run rate target of $100 million.

Daniel J. Mathewes: We, to Mark's earlier point, we are at a run rate even through Q1 of just over or just about half of that run rate. And embedded in our guidance is realized synergies with the year within 2024, 50 to 55 million. So we're definitely on the right track. We're very confident we're going to get to the $100 million, but we're also doing a full evaluation of the talent and making sure that we have the right people in the right places to execute everything we need to execute on.

Daniel J. Mathewes: Mahler organization to Mark's earlier point, we are at a run rate even through Q1 of just over just about half of that run rate.

Daniel J. Mathewes: And then bedded in our guidance is realized synergies with a year within 2024 50 call. It 50.

Daniel J. Mathewes: $55 million. So we're definitely on the right track, we're very confident we're going to get to the $100 million, but we're also doing well.

Daniel J. Mathewes: Full evaluation in the talent and making sure that we have the right people in the right places to execute everything we need to execute on so I would say, we're comfortable with the $100 million. We're confident we're going to get there, but it's not the same element that diamond wise, So I wouldn't look for us in the.

Daniel J. Mathewes: Next couple of quarters ago, Oh, it's going to move from a $100 million to 110 at where we are right now very much focused on achieving the $100 million target.

Mark D. Wang: We're confident we're going to get there, but it's not the same element that Diamond was. So I wouldn't look for us, you know, in the next couple of quarters to go, oh, it's going to move from 100 million to 110. We're right now very much focused on achieving the $100 million. Okay, great. My follow-up question is about Maui.

Speaker Change: Okay, Great. My follow up question is on Maui.

Mark D. Wang: Mark, could you give us an update on how things are progressing there, and did you mention if there was an earnings impact in the quarter, and also, if you could again talk about how you see the rest of the year progressing for you. Thank you. Yeah, sure. Good. We're very fortunate neither of our properties sustained any physical damage. Our Maui Bay Villa property is up on the, and South Maui on the other side of the island. Operating normally.

Mark D. Wang: Mark can you give us an update on how.

Mark D. Wang: Things are progressing there.

Mark D. Wang: And did you mentioned that there was an earnings impact in the quarter and also if you could.

Mark D. Wang: Again talk about how you see you guys.

Mark D. Wang: Sure.

Speaker Change: Progressing for you folks.

Speaker Change: Yes sure.

Speaker Change: Thanks, Paul.

Mark D. Wang: We were very fortunate neither neither of our property sustained any physical damage.

Mark D. Wang: Our Maui Bay villas properties up on this is is in south Maui. So that is on the other side of the island, we're operating on.

Mark D. Wang: Trends are continuing to improve. The kind of poly beach property, which is on the west side, the epicenter of the worst damage, you know, operations are still impacted. We have some team members, FEMA, and aid workers still staying within the property. So, you know, we said previously we think occupancy will come back by the end of this year, but sales recovery will lag, and sales recovery is less about occupancy because occupancy now in Maui is around 90%, slightly below our historical average. Historical Levels, which are usually in the mid-to-upper, are the headwinds.

Mark D. Wang: Operating normal trends are continuing to prove out the kind of Palm Beach property, which is which is on the west side near the epicenter of the worst damage.

Mark D. Wang: Operations are still impacted we have some team members FEMA and aid workers still staying within the property. So we said previously we think occupancy will come back by the end of this year, but sales recovery will lag in and sales recovery, it's less about occupancy because occupancy now and values.

Mark D. Wang: Around 90%, so slightly below our historical.

Mark D. Wang: Mid <unk>.

Mark D. Wang: Historical levels, which are usually in the mid to upper 90%. Despite the headwinds so.

Mark D. Wang: So, you know, X the impact of the wildfire, Maui would have been around $90 million in sales in 2023, and we're still down almost 15% versus the prior year in Q1, so we expect roughly the same in Q2. We're expecting that, you know, the recovery of the build... Rift is really going to build in the second half of the year, but still below our trajectory pre-fire, so we expect to be fully back. Okay, great.

Mark D. Wang: You know ex the impact of the wildfire, Maui, which would have been around $90 million in sales in 'twenty three and.

Mark D. Wang: And we're still down almost 15% versus prior year in Q1, So we expect roughly the same in Q2.

Speaker Change: Are we expecting the recovery to build.

Mark D. Wang: There's really going to build in the second half of the year, but still below our trajectory pre fire. So we expect to be fully back in in 2025.

Speaker Change: Okay, great. Thank you.

Mark D. Wang: Sure.

Operator: Thank you. Our next question comes from the line of Brandt Montour with Barclays. Please proceed with your question. Good morning, everybody.

Mark D. Wang: The next question comes from the line of Brent <unk> with Barclays. Please proceed with your question.

Brandt Antoine Montour: Good morning, everybody. Thanks for taking my question. So Mark I was hoping you could elaborate a little bit more on sort of the consumer right and sort of what you saw improved throughout the first quarter in terms of close rates it sounds like.

Brandt Antoine Montour: Thanks for taking my question. So, Mark, I was hoping you could elaborate a little bit more on sort of the consumer, right, and sort of what you saw improve throughout the first quarter in terms of close rates. It sounds like, you know, there were some tweaks that you made.

Brandt Antoine Montour: There were some tweaks that you made there might've been a little bit of mix shift benefits.

Mark D. Wang: There might have been a little bit of a mixed benefit from new owner tours to repeat owner tours. But if you strip all that out, you know, what's the sort of sequential movement in hesitancy at the sales table? We all know that interest rates and inflation are high and dragging on some consumers. So maybe you could opine on that, please.

Mark D. Wang: New owner tours to repeat owner tours, but if you strip all that out what's the sort of sequential movement.

Mark D. Wang: Has it been hesitant see the sales table Cal we all know that interest rates and inflation are high and dragging on.

Mark D. Wang: Some consumer so maybe you could opine on that please.

Mark D. Wang: But the positive news is we've seen stabilization, right? And when you look at the traffic, traffic continues to be good in its building. So, you know, all in all, I think around the consumer, there's some uncertainty around the margin, but it isn't trending negatively, and the behavior isn't really any different from what we've seen through previous sites. New buyers have pulled back more than owners, and that makes sense, right? Owners have lived by a value proposition. They've made a commitment, and they've been committed for a number of years. I'd say across the entire segment.

Mark D. Wang: But the positive news is we've seen stabilization right.

Mark D. Wang: And.

Mark D. Wang: When you when you look at the <unk>.

Mark D. Wang: Traffic traffic continues to be good and its building.

Mark D. Wang: So all in all I think around the consumer there there is some uncertainty around the margin.

Mark D. Wang: But it isn't trending negatively and the behavior isn't really any different than what we've seen through previous cycles are new.

Mark D. Wang: New buyers had pulled back more than owners and that makes sense right owners have led to value proposition that made a commitment and they've been committed for a number of years and I.

Mark D. Wang: I would say across this segment.

Mark D. Wang: You know, with the type of quality a customer engages with, it's less about income; it's more really about, you know, uncertainty. They're reading the news every day, as we are, and that's pushed up a bit of hesitancy for this type of purchase, but on the other side, the good news is we have a lot of visibility on the traffic in our sales. Troll over at Tour Plus.

Mark D. Wang: You know with the type of the quality of customer engagements, it's less about income and its more really about you know.

Mark D. Wang: The uncertainty they're reading the news every day as we are in and that's pushed out a bit of hesitancy.

Mark D. Wang: For this type of purchase but but on the other side. The good news is we have a lot of visibility on the traffic and our sales centers and control over tour flow. So that's a lever that we.

Mark D. Wang: That's a lever that we opened up and we're growing tours while maintaining the quality of the consumer, you know, based on, you know, FICO and income and net worth. So I think we're also much better positioned today Brandt with our broader portfolio including all the drive-to destinations and a much more affordable entry point. So, you know, all in all, we're very focused on continuing to promote the value proposition of the product and the experiential aspect of our club to our members. So, basically, we're seeing stabilization, we're seeing some improvement, and we'll ramp up tour flow as we go. That's helpful.

Mark D. Wang: Opened up in and we're growing tours, while maintaining the quality of the consumer based on FICO and income and net worth. So I think we're also much better positioned today, Brad with our broader portfolio, including all of our drive to destinations and.

Mark D. Wang: In a much more affordable entry point so.

Mark D. Wang: All in all we're.

Mark D. Wang: Gary focused on continuing to promote the value proposition of the product and the experiential aspect of our clubs to our members. So.

Mark D. Wang: So basically we're seeing stabilization, we're seeing some improvement and and will ramp tour flow as we go through the year.

Daniel J. Mathewes: Thank you for that. And then maybe for Dan, and I apologize it's in your prepared remarks, you might have answered this to some extent, but in loan loss provisions, you know, I think I asked this question last quarter. We were sort of waiting for this loan loss revision to move up toward this, you know, more punitive level of long-term targets. And it looks like in the first quarter, they may have taken a step back a little bit quarter over quarter.

Mark D. Wang: Okay. That's helpful. Thanks. Thank you for that and then maybe for Dan and I apologize if it's in your prepared remarks, you might have answered this to some extent, but in loan loss provisions.

Daniel J. Mathewes: You know I think we I think I've asked this question last quarter. We you know we've been sort of waiting for the loan loss provision to move up toward this.

Daniel J. Mathewes: No more punitive level of long term target and it looks like in the first quarter. It made it maybe taking a step back a little bit quarter over quarter and I know this is now including Blue Green for a couple of months. So I guess, yes, I think it we thought blue-green would've again pressed push that number higher and so and so what's the <unk>.

Daniel J. Mathewes: And I know this is now including Blue Green for a couple months. So I guess, yeah, and again, we thought Blue Green would have again pressed, pushed that number higher. And so, and so what's the reason for that?

Dan: Even for that and sort of how should we think about that line going forward.

Daniel J. Mathewes: And sort of how should we think about that line going forward? Yeah, thanks, Brandt. I mean, it seems like I've been talking about this for a couple years now, right? Ultimately, we do anticipate it to escalate to that mid-teen. But if you look year over year, you know, there's a lot of factors that come into play with the absolute dollar amount. You know, how many people, what's the propensity to borrow, how many people, how much are they actually mortgaging, etc.

Speaker Change: Yeah, Thanks, Brian I mean, it seems.

Daniel J. Mathewes: I've been talking about this for a couple of years now right.

Daniel J. Mathewes: Ultimately, we do anticipate it to escalate.

Daniel J. Mathewes: Escalate to that mid teens range. If you look year over year, you know theres a lot of factors that come into play with the absolute dollar amount you know how many people what is the propensity bar of how many people how much are they actually mortgaging et cetera. If you look from a pure rate perspective year over year. It was detrimental for the quarter it probably cost us around circa 10.

Daniel J. Mathewes: If you look from a pure rate perspective, year over year, it was detrimental. For the quarter, it probably cost us around, roughly $10 million. So we are seeing some level of elevation; I mean, it was 12% of contractors. We talked about it going from an average last year of 10 to an average this year of 13, and I think we're seeing some of that escalation, and we're kind of right on track with that.

Daniel J. Mathewes: <unk>.

Daniel J. Mathewes: So we are seeing some level of elevation I mean, it was 12% of contract tours.

Daniel J. Mathewes: We talked about it going from an average last year of 10, two and average this year of 2014 and I think we're seeing some of that escalation and we're kind of right on track with that so it's pretty consistent with the headwinds we talked about last quarter.

Daniel J. Mathewes: So it's pretty consistent with the headwind we talked about last quarter when we were thinking about headwinds hitting us this year, that $100 million number. A big chunk of that was associated with bad debt, the balance of COP, and some other nuances with license fees, et cetera.

Daniel J. Mathewes: When we were thinking about headwinds hitting us this year that $100 million number a big chunk of that was associated with bad debt. The balance was C. O P and some other nuances with license fees etcetera, but.

Daniel J. Mathewes: The majority was bad debt, and we are seeing some of that. Now, that being said, some items are still performing far better than what they were pre-acquisition, and most notably, it's still the diamond on the paper.

Daniel J. Mathewes: The majority was the bad debt and we are seeing some of that movement.

Daniel J. Mathewes: Now that being said some items are still performing.

Daniel J. Mathewes: Far better than what.

Daniel J. Mathewes: What they were pre acquisition and most notably its still the diamond paper of the Diamond paper had an annualized default rate close to depending on the quarter that youre looking at but back in 19. It was between 17 and 19% and that is still holding very strong from.

Daniel J. Mathewes: The Diamond Paper had an annualized default rate close to, depending on the quarter that you're looking at, but back in 19, it was between 17 and 19 percent. And that is still holding very strong from an improvement standpoint at sub-19. Depending on the quarter, it's between 11% and 12%.

Daniel J. Mathewes: From an improvement standpoint.

Daniel J. Mathewes: But depending on the quarter, it's between 11 and 12% so cigna.

Daniel J. Mathewes: So, significant improvement over pre-acquisition. And then when you look at the HEV side, it's fairly consistent, slightly higher than 2019 levels. So all in all, we feel pretty good, and we're pretty confident that Altant, you know, as we run the business, it will land in that circa. [inaudible] That's perfect.

Daniel J. Mathewes: Significant improvement over pre acquisition levels and then when you look at the TV side, it's fairly consistent to slightly higher than 2019 levels.

Daniel J. Mathewes: So all in all we feel pretty good and we're pretty confident that ultimately.

Daniel J. Mathewes: No.

Daniel J. Mathewes: As we run the business it will land in that circa 15% of contract of owned contract sales level.

Speaker Change: That's perfect. Thanks, everyone.

Operator: Thanks, everyone. Our next question comes from the line of Ryan Lambert with J.P. Morgan. Please proceed with your question. Hi, thanks for taking my question. I just wanted to tease out the impact of blue-green a little bit more. Did the weather have any sort of impact during the quarter, just given that that owner base is a little bit more drive-to in nature?

Daniel J. Mathewes: Our next question comes from the line of Brian Lambert with J P. Morgan. Please proceed with your question.

Ryan Douglas Lambert: Hi, Thanks for taking my question.

Ryan Douglas Lambert: Just wanted to tease out of the impacted blue-green a little bit more did the weather have any sort of impact during the quarter, just given that that owner base is a little bit more drive to in nature.

Mark D. Wang: Yeah, I, you know, there was a little bit of impact, I think, really, and bigger. Impact probably is, first of all, a lot of excitement from the Blue Green members and the team members around the acquisition of Hilton. And I think what we're seeing, though, very much like what we saw with DRI, we are seeing some, You know, we're seeing some maybe hesitation or anticipation of what the rollout of Hilton and what the combination of Hilton means to the Blue Green Memo.

Ryan Douglas Lambert: Yes, there was there was a little bit of impact I think.

Mark D. Wang: <unk>.

Mark D. Wang: Really the bigger.

Mark D. Wang: <unk>.

Mark D. Wang: Impact probably is as you know first of all a lot of excitement from the Blue Green members Anne and the team members.

Mark D. Wang: Around the acquisition of Hilton and.

Mark D. Wang: I think what we're seeing though.

Mark D. Wang: Very much like what we saw with <unk>, we are seeing some.

Mark D. Wang: <unk>.

Mark D. Wang: We're seeing some maybe hesitation or anticipation of.

Mark D. Wang: What the roll out of and what the combination of Hilton means to the Blue Green members.

Mark D. Wang: And.

Mark D. Wang: You know, so they're excited, they love our brand, but right now, we're not introducing any of the Hilton Vacations or H-E-V Max, LMS. The program right now, so there's that anticipation right now, and so that I think is going to cause a little bit of a delay until we work through that, and that's really more technology-driven and legal-driven, and we expect that we're going to be able to announce that connection probably in the fourth quarter. I'm Daniel Mathewes.

Mark D. Wang: So they're there they're excited they love our brand.

Mark D. Wang: But right now we're not we're.

Mark D. Wang: We're not introducing any of the Hilton Hilton Grand vacations of our HCV Max elements to the to the program right now so there's that anticipation right now and so that I think is going to cause a little bit of hesitancy until we work through that and that's really more.

Mark D. Wang: More technology, driven and legal driven and are we.

Mark D. Wang: We expect that we're going to be able to announce that connection probably as we move into the fourth quarter of this year.

Daniel J. Mathewes: Great, thank you. And if we can switch gears real quick to the fee for service business, I think it came in a bit lower than we expected, and I think the street was what we were modeling. So how should we think about that business for the balance of the year? That's all for me.

Speaker Change: Great. Thank you and if it if we can switch gears real quick to the fee for service business I think it came in a bit lower than we and I think the street was we're modeling so how should we think about that business for the balance of the year. That's all for me. Thanks.

Daniel J. Mathewes: Thanks. Sure, on a pro forma basis, if you were to look at 2023, because there is a little bit of a fee-for-service business at Blue Green already, but on a pro forma basis for 2023, fee-for-service accounted for about 24% annualized, and the Contract Sales Perspective. It's down to 16% in Q1, and what I would tell you is to assume the same level. Just given the mix of the product that we have available to us, there shouldn't be a lot of movement in that throughout. And our next question comes from the line of Ben Chaykin with Mizuho.

Speaker Change: Sure on a pro forma basis. If you were to look at 2023, because there is a little bit of fee for service business at Blue Green already but on a pro forma basis for 2023 fee for service accounted for about 24% annualized from.

Daniel J. Mathewes: From a contract sales perspective, it's down to 16% in Q1, and what I would tell you is that assumed the same level for the balance of the year just given the mix of the product that we have available to us there shouldnt be a lot of movement in that throughout 2024.

Benjamin Nicolas Chaiken: And our next question comes from the line of Ben Chaiken with Mizuho. Please proceed with your question.

Operator: Please proceed with my question. Hey, thanks for taking my questions regarding Blue Green. Just back to one of the previous comments. I think you mentioned there was some anticipation slash hesitation from Blue Green owners. Just to confirm, I think you were saying prior to introducing Macs, there were some technical and legal items. Did I catch that right?

Operator: Hey, Thanks for taking my questions regarding Bulgaria, just back to one of the previous comments I think you mentioned there was some anticipation slash hesitation from blue-green owners.

Operator:

Operator: Just to confirm are you.

Operator: I think you were saying prior to introducing Max.

Operator: Some technical and legal items did I catch that right, maybe just explain maybe a little bit if possible what those are and then what.

Ben Chaykin: Maybe just explain maybe a little bit, if possible, what those are, and then once connected in 4Q, assuming I've caught all that right, will there be an active outreach, or can you help us think about when you may start to see some of that sales leverage? I'm not sure if there's a delay, and then, kind of related to that on Bass Pro, any color on how you may change or improve that experience from an Then I have one quick follow-up. Thanks. Yeah, sure, Ben.

Speaker Change: Once connected into <unk>, assuming I caught all of that right will there be an active outreach or can you can you help us think about when you may start to see some of that sales leverage I'm not sure if there's a delay.

Speaker Change: And then kind of related to that on bass pro any color on how you may change or improve that experience from an in store perspective to better leverage that the Max product now available then I have one quick follow up thanks.

Mark D. Wang: I'll try to make this a little clearer. First of all, I am very excited about the opportunity with Blue Green and their members. They were very excited about the announcement. And historically, Blue Green has not upgraded its members to the same degree as HGV or the industry more broadly.

Speaker Change: Yes sure Ben.

Mark D. Wang: I'll try to make this a little clearer so.

Mark D. Wang: First of all very excited about the opportunity with Blue Green and their members. They are very excited about the announcement.

Mark D. Wang: And historically <unk> has not upgraded their members to the same degree as HCV or the industry more broadly and when we launched HCV Max with D. R. I, we now have nearly 160000 Max members now.

Mark D. Wang: And when we launched HGV Max with DRI, we now have nearly 160,000 Max members now. We're confident that the brand, the Hilton benefits, expanded portfolio, and new experiences are going to resonate really well with the Blue Green members. We saw that with DRI, and we saw it with our HEV members.

Mark D. Wang: We're confident that the brand Hilton benefits expanded portfolio than your experience or is there going to resonate really well with the blue Green members, we saw that with DIY and we saw it with our our HGV members and we're working hard on designing a program and getting it ready for launch, but it will take.

Mark D. Wang: And we're working hard on designing the program and getting it ready for launch, but it will take some time before we can offer it to the Blue Green owner base. And, you know, as we saw with Diamond, we know there's a lot of demand, and Blue Green Base is excited about it. So we have some technology work that we have to do. And more importantly, we have some legal work and some legal structuring work we have to do. The same thing happened with Diamond.

Mark D. Wang: Some time before we can offer it to the blue-green owner base and.

Mark D. Wang: As we saw with Diamond, we know Theres, a lot of demand and Blue Green base is excited about it. So we have some technology.

Mark D. Wang: The work that we have to do and more importantly, we have some legal work and some legal structuring work. We had to do same thing happen with Diamond. It took a number of quarters to get there our expectations right. Now is a is a rollout.

Mark D. Wang: It took a number of quarters to get there, but our expectations right now are for a rollout, you know, beginning of the fourth quarter. May come a little earlier, may come a little later. We're not 100% sure. But I can assure you that all the teams are working toward that, and our expectations are that we'll see a nice bump up in activity and transactions, similar to the way we saw with DRI when that occurred. Yeah, and Ben, just the only thing I would add is, as you would imagine, and as Mark alluded to just now, we've seen this before. This is exactly how we walked through it with Diamond.

Mark D. Wang: You know at the beginning of the fourth quarter May come a little earlier it may come a little later, we're not 100% sure.

Mark D. Wang: But all I can assure you that all the teams are working toward that and our expectations with this we'll see at <unk>.

Mark D. Wang: Nice bump up in activity and transactions similar to the way we saw with.

Mark D. Wang: D R I when that occurs.

Speaker Change: Ben just the only thing I would add is.

Mark D. Wang: As you would imagine and as Mark alluded to just now we've seen this before this is exactly how we walked through with Diamond. So as you would expect this was all built into our underwriting when we acquired Blue Green. So Q4 is not a delay. It's you know where we actually expect it to start rolling this out right around that timeframe anyway, it actually might have been.

Daniel J. Mathewes: So, as you would expect, this was all built into our underwriting when we acquired Blue Green. So Q4 is not a delay. It's, you know, where we actually expected to start rolling this out right around that timeframe. Anyway, it actually might start a hair later, but in any case, it was all included in our underwriting. That's very helpful.

Daniel J. Mathewes: I hear later, but in any case. It was all included in our underwriting the deal.

Ben Chaykin: Then on the Bass Pro side, do you have any plans or can you share anything with us about how you may improve that, or change or improve that experience, just because you've now got a much broader product to introduce? Thanks. No, yeah, I'm super excited about Bass Pro. I think I mentioned this a minute ago.

Speaker Change: That's very helpful. And then on the bass Pro side do you have any plans or anything with us about how you may improve that or change or improve that experience just because you've now got.

Speaker Change: A much broader.

Ben Chaykin: Product.

Ben Chaykin: Thanks.

Ben Chaykin: No yeah Super excited about that probably I think I mentioned, just a minute ago.

Speaker Change: Had our board meeting up there yesterday and.

Mark D. Wang: We had our board meeting up there yesterday, and a good part of our board was up there. We had an opportunity to meet with Johnny Morris, the founder, and his management team, and you know Bass Pro is more than a retail store; it's really a destination unto itself. We were looking at some of the data that Bass Pro was showing us yesterday, 200 million visitors there a year, and it's not like they're going to a normal retail outlet, in and out, buying something quickly; they explore the store, and it's designed to really keep you engaged while you're there. We are working right now with Bass Pro, and we brought in some outside consultants to think about how we can reimagine how we put the Hilton Grand Vacation brand in the store.

Ben Chaykin: A good part of our board up there we had an opportunity to meet with Johnny Morris the founder his management team.

Mark D. Wang: And bass pro is more than a retail store, it's really a destination unto itself.

Mark D. Wang: We're looking at some of the data that bass pro is showing US yesterday 200 million visitors every year and it's not like they're going to a normal retail outlet.

Mark D. Wang: In our buy something quickly they explore other store and its designed to really keep you engage while you're there.

Mark D. Wang: We are working right now.

Mark D. Wang: With with bass pro and we brought in some outside.

Mark D. Wang: Consultants to think about how we can re imagine how.

Mark D. Wang: How we put the Hilton Grand vacation brand in the store Blue Green did a nice job with what they were doing and.

Mark D. Wang: Blue Green did a nice job with what they were doing over the years, but we think we can elevate that partnership and expand the opportunities to benefit our combined customers, and you know it's a great source of customers when you look at really what's embedded in that Blue Green member base. Close to 50% of those members have been sourced, you know, through Bass Pro, either through new buyers or... Owners Upgrading. And we think, you know, we're going to be able to expand and use different, different channels, you know, beyond the in-store. We think there are digital opportunities. And we love the diversification of the customers. So we're super excited.

Mark D. Wang: Now over that over the years, but we think we can elevate that.

Mark D. Wang: Partnership and expand the opportunities to benefit our combined customers and.

Mark D. Wang: It's a great source of customer when you look at really what's embedded in that Blue Green our member base.

Mark D. Wang: Close to 50% of those members have been sourced through <unk>.

Mark D. Wang: Bass pro either through new buyers or.

Mark D. Wang: Owners upgrading and we think we.

Mark D. Wang: We're going to be able to expand and use different.

Mark D. Wang: Different channels.

Mark D. Wang: Beyond the in store.

Mark D. Wang: We think there's digital opportunities.

Mark D. Wang: We loved the diversification of the customer so.

Mark D. Wang: And, and I know Bass Pro is very, very excited, too. So we'll, we'll provide more information as we, and many others, roll out new programs. Got it.

Mark D. Wang: Super excited and and I know I know bass pro is very very excited too. So Bob will provide more information as we as we rollout new programs there.

Daniel J. Mathewes: And then just a very quick follow-up. On the sales and marketing side, you mentioned getting some more operating leverage moving forward. Understanding that Bull Green has higher sales and marketing, could you maybe just dig into what maybe drove it higher in the 1Q? And then why would you get more operating leverage going forward?

Speaker Change: Got it and then just a very quick follow up on the sales and marketing side, you mentioned getting some more operating leverage moving forward understanding the Bulgarian has higher sales and marketing could you maybe just dig into what maybe drove it higher in.

Daniel J. Mathewes: In the <unk>.

Daniel J. Mathewes: And then why you would get more operating leverage going forward. Thanks.

Daniel J. Mathewes: Sure.

Daniel J. Mathewes: Thanks. Sure. Actually, if you look at it on a pro forma basis, the sales and marketing percent year over year was relatively flat, right?

Daniel J. Mathewes: Actually if you look at it on a pro forma basis, the sales and marketing percent year over year was relatively flat at 51.

Daniel J. Mathewes: Some of the operating leverage you're going to see is, as we expect, the back half of, not only from the seasonality perspective, but some of the initiatives we've talked about with Grooving, you'll get a little bit of scale that obviously offers some leverage and some benefits, from a P&L perspective, and then also from a percentage-based. We basically, and I'm going to oversimplify this. For some of the team members listening on the phone, I mean, they're doing a lot of work with regard to... all of those types of items. And It's a bit of a heavy lift.

Daniel J. Mathewes: Percent.

Daniel J. Mathewes: Some of some of the operating leverage Youre going to see is as we expect in the back half of the year, you're going to see not only from a seasonality perspective, but some of the initiatives. We've talked about with BTG is improving you'll get a little bit of scale that are obviously offer some leverage and some benefit from.

Daniel J. Mathewes: From a P&L perspective.

Daniel J. Mathewes: And then also from a percentage basis.

Daniel J. Mathewes: We basically and I'm going to oversimplify it just because there's.

Daniel J. Mathewes: For for some of the team members listening on the phone I mean, they're doing a lot of work with regards to.

Daniel J. Mathewes: Cost synergies and all of those type of items and it's a bit of a heavy lift so over simplification, though there's basically two tracks track one was focused primarily on G&A, which we started to execute on and you can see that is reflected in our numbers and track two is really looking at the sales and marketing side and as I alluded to earlier and making sure.

Daniel J. Mathewes: So basically, though, there are basically two tracks. Track one was focused primarily on GNA, which we started to execute on, and you can see that in the numbers. And track two is really looking at the sales and marketing side, and as I alluded to earlier, making sure that we have the right talent, the adequate level of talent to make sure that we can execute on everything that we need to get done.

Daniel J. Mathewes: We have the right talent ample level of talent to make sure we can execute on everything.

Daniel J. Mathewes: That we need to get done one other element that you see that specific to Q1 now year over year would be the same but we do have a large ultimate access.

Daniel J. Mathewes: One other element that you see that's specific to Q1, year over year would be the same, but we do have a large ultimate access event in Q1, and it's our LPGA event that's held in January, so that also elevates costs in Q1 relative to other events.

Daniel J. Mathewes: [noise] event in Q1, and it's our LPGA event, that's how did January so thats also elevates cost in Q1 relative to other quarters.

Speaker Change: Thank you very much.

Daniel J. Mathewes: Thank you very much. Thank you. And our next question comes from the line of David Katz with Jeffreys. Please proceed with your question. Hi everyone.

Daniel J. Mathewes: Thank you and our next question comes from the line of David Katz with Jefferies. Please proceed with your question.

David Brian Katz: Thanks for taking my question. Just that you've covered a lot of details, but I'm just curious, when we look at the two acquisitions that you've added to your system in the past few years and the sort of corporate orientation that includes a meaningful amount of Hawaii, just curious, of those two, you know, owner groups that have added to your system, how inclined are they? And, you know, are they participants in the Hawaii market? And to what degree relative to their sort of activities, kind of on the main line? Yeah, so, well, Diamond had three properties. I think it was three properties.

David Brian Katz: Hi, everyone. Thanks for taking my question.

David Brian Katz: Just just covered a lot of details, but I'm just curious when we look at the two acquisitions you've added to your system.

David Brian Katz: You know in the past few years.

David Brian Katz: And the corporate orientation that includes a meaningful amount of Hawaii, just curious of those two.

David Brian Katz: Owner groups that have added to your system.

David Brian Katz: How inclined are they and are they participants.

David Brian Katz: The Hawaii market.

David Brian Katz: And to what degree relative to there.

David Brian Katz: Activities kind of on the mainland.

David Brian Katz: Yeah, so well diamond.

David Brian Katz: Diamond had a oh I think three properties yeah. It was three properties, we have a total of 12 properties now in Maui.

Mark D. Wang: We have a total of 12 properties now in Maui or Hawaii, soon to be 13. They had three properties there, so the Diamond members were already participating in Hawaii, and so, and occupancy in Hawaii, overall Hawaii occupancy, I think, right around 90%. Yeah, while we're in the Big Islander in the mid 90s and in line, 2019, and I mentioned Maui. Low 90s right now, and still below historical levels back in 19.

Mark D. Wang: Our Hawaii soon to be 13. They had three properties are so diamond members were already participating in Hawaii, and so and occupancy in Hawaii overall, Hawaii occupancy I think is right around 90% yeah.

Mark D. Wang: While her on the Big Island area in the mid nineties and in line with what we did in 2019 and I mentioned malaise.

Mark D. Wang: Low ninety's right now and are still below historical levels back in 19, so great participation participation in Hawaii from that Diamond member base, but I think the blue Green.

Mark D. Wang: So great participation in Hawaii from that Diamond member base. But I think Blue Green, when I looked at Blue Green, and we looked at Blue Green for a number of years, we coveted that business, especially around some of their great partnerships and the organic growth they've had with their membership program. The one missing element for Blue Green, I always felt, was Hawaii.

Mark D. Wang: When I looked at Blue Green and we looked at the Leerink for you know a number of years.

Mark D. Wang: You know, we coveted that business and especially around some of their great partnerships in and their organic growth they've had with their membership program. The one missing element for Blue Green I always felt was Hawaii.

Mark D. Wang: And I can tell you that the teams and the members at Blue Green are super excited about the opportunity now to be able to experience Hawaii. Now that won't occur until we get HCV Max rolled out, and that won't occur until the latter part of this year. To the same degree as the rest of the broader industry, we think Hawaii is going to help move that upgrade along, as well as the H-E-B Max and all the Hilton benefits.

Mark D. Wang: And I can tell you that the teams and in members at Blue Green are Super excited about the opportunity now to be able to experience right now that wont occur until we get HCV Max rolled out and that wont occur until the latter part of this year, but.

Mark D. Wang: We think you know as I talked about historically hasn't upgraded at the same degree as the rest of it or the broader industry. We think our Hawaii is going to help move that upgrade along as well as the HEV match and all the Hilton benefits. So yeah.

Mark D. Wang: So, yep, Blue Green, I know the team members are super excited to be able to talk about Hawaii in their presentation going forward. Excellent. And if I can just follow up on the interesting Bass Pro commentary.

Mark D. Wang: Blue Green I know the team members are super excited to be able to talk about Hawaii and their presentation going forward.

Mark D. Wang: Excellent and if I can just follow up on the interesting bass pro commentary.

David Brian Katz: Obviously, not fishing for details we can't have, but when we think about Bass Pro, you know, as a partner and, you know, potential sort of new structure for a deal, is that something that's a this year dynamic or this year conversation where we might get some more detail? Yeah, we'll, we'll provide more detail as we move forward. I mean, we, we, we have a JV. There's two parts to the Bass Pro deal, right?

Speaker Change: Obviously not fishing for details we can't have but when we think about bass pro as a partner and potential sort of new structure of the deal is that something thats. A this year dynamic or this year conversation, where we might get some more detail.

David Brian Katz: Yeah, well will provide more detail as we move forward I mean, we we have.

David Brian Katz: We have a JV there is two parts of the bass pro deal right. We have the marketing agreement and we have the JV agreement.

Mark D. Wang: We have the marketing agreement, and we have the JV agreement, and uh... we were looking at a number of opportunities uh... from a JV standpoint uh... really creating this you know experiential uh... outdoor type of uh... uh... enthusiast brand and and so uh... we we have some plans and uh... it's too early to discuss them at this point but uh... as we move through the year into next year uh... we're going to be excited to announce uh... some of these new JV and also, as I talked about on a previous webinar, When I'm speaking to Ben, you know, we're going to talk more about some of the program developments that we're going to be doing within. Got it.

David Brian Katz: And we.

David Brian Katz: We were looking at a number of opportunities from a JV standpoint.

Mark D. Wang: Really creating this you know experiential outdoor type of enthusiast brand and so.

Mark D. Wang: We have some plants and it's too early to discuss them at this point, but as we move through the year and into next year.

Mark D. Wang: We're gonna be excited to announce some of these new JV properties.

Mark D. Wang: And also as I talked about on our previous Ah.

Mark D. Wang: Oh, when I when I was speaking to.

Mark D. Wang: And we're.

Mark D. Wang: We're going to talk more about some of the program developments that we're gonna be doing within the stores.

Speaker Change: Got it okay. Thank you.

Speaker Change: Thank you.

Mark D. Wang: Okay. Thank you. And our next question comes from the line of Patrick Scholes with Truist Securities. Please proceed with your question. Thank you. Mark, a follow-up question not dissimilar to what I asked last quarter about the Park Hotel.

Mark D. Wang: And our next question comes from the line of Patrick Scholes with curious Securities. Please proceed with your question.

Charles Patrick Scholes: Thank you.

Mark D. Wang: Mark.

Charles Patrick Scholes: Oh up question not dissimilar to what I asked.

Charles Patrick Scholes: Last quarter.

Charles Patrick Scholes: The Park hotel.

Charles Patrick Scholes: Earnings Call. They really came out quite optimistic on the return of the Japanese customer again. And I think when I asked a similar question last quarter, I think you were a bit more, I would characterize it as subdued, about the return of the Japanese customer. What are your latest thoughts on that, and certainly we've seen, and Chris.

Charles Patrick Scholes: Earnings call.

Charles Patrick Scholes: He came out quite optimistic.

Charles Patrick Scholes: Japanese.

Charles Patrick Scholes: Turning to the Japanese customer and I think when I asked a similar question last quarter.

Charles Patrick Scholes: I think you were a bit more I would characterize it's subdued about can we turn to the Japanese customer.

Charles Patrick Scholes: What are your what are your latest thoughts.

Charles Patrick Scholes: Certainly we've seen.

Charles Patrick Scholes: Sizable.

Charles Patrick Scholes: In clean coal.

Charles Patrick Scholes: No.

Charles Patrick Scholes: Every year.

Speaker Change: Oh, I'm, sorry, with Japanese customers.

Charles Patrick Scholes: Awesome.

Mark D. Wang: Thank you. [inaudible] Yeah, so look, I think there's a couple pieces for us, right? When you look at the Japan business, the good news for us is our owners are coming back, and they are pretty much back to 19 below. The other good news is if you look at the owners that are going to Sasoko, our new property in Japan, Combine that with those arrivals in Hawaii and the arrivals in Japan, they're well over what we saw in 19.

Chris: Yeah, So look I.

Mark D. Wang: I think theres a couple of pieces for US right. When you look at the Japan business.

Mark D. Wang: The good news for us as our owners are coming back in and they are back pretty much back to 2019. The levels are the other good news is if you look at the owners that are going to soco, our new property in Japan, when you combine that those arrivals in.

Mark D. Wang: Why in the arrivals in Japan, there are well over what we saw in 19. So our members are traveling at a very good right now.

Mark D. Wang: So our members are traveling at a very good rate. Now, when you think about new buyers, Japanese new buyers, you know, we're still down. When you look at the data today, I think, and 23 arrivals from Japan were 63% below 19. Now, year to date, they're 53% below 19.

Mark D. Wang: Now when you think about new buyers.

Mark D. Wang: Japanese new buyers.

Mark D. Wang: We're still down when you look at the data today I think in 'twenty, three arrivals from Japan, where 63% below 19 now year to date, there are 53% below 19, so it's getting better.

Mark D. Wang: So it's getting better. Now, our New Buyer Japan tours within Japan, because we have 13 offices over there, those are back almost to the 19th level. So the good news is our Japanese members are traveling, they're staying at our properties. The good news is that New Buyer Japanese are back in Japan. We're still waiting for those new buyers to come back to Hawaii from the general transient business, and our expectations right now are that it's still gonna take a number of years, but it's moving in the right direction.

Mark D. Wang: Now, our new buyer, Japan tours with in Japan, because we have 13 offices over there those are back almost to 19th levels. So the good news.

Mark D. Wang: Our Japanese members are traveling they're staying at our properties are the good news is the new by our Japanese our trials are back in Japan, We're still waiting for those new buyers to come back to Hawaii from the general transient business.

Mark D. Wang: And our expectations right now.

Mark D. Wang: That it's still going to take a number of years, but it's moving in the right direction.

Speaker Change: Okay. Thank you for the update.

Mark D. Wang: Sure.

Charles Patrick Scholes: Good. Thank you for the update. Thank you. Before we end, I will turn the call back over to Mark Wang for any closing remarks. Mr. Wang.

Mark D. Wang: Thank you before we end I will turn the call back over to Mark Wang for any closing remarks, Mr. Wang.

Mark D. Wang: Yeah, before we wrap up, I'd like to thank all of our team members for their continued service and dedication to our owners and guests to create memorable vacation experiences. Thank you for joining us today, and we look forward to speaking with you again soon. Have a great day. Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Mark D. Wang: Yeah before we wrap up I'd like to thank all of our team members for their continued service and dedication to our owners and guests to create memorable vacation experiences. Thank.

Mark D. Wang: Thank you for joining us today, and we look forward to speaking with you again soon.

Mark D. Wang: Have a great day.

Mark D. Wang: Thank you. This concludes today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation.

Mark D. Wang: Okay.

Mark D. Wang: Yeah.

Mark D. Wang: Okay.

Mark D. Wang: Yeah.

Mark D. Wang: Okay.

Mark D. Wang: Hum.

Mark D. Wang: Yeah.

Mark D. Wang: Okay.

Mark D. Wang: Yeah.

Mark D. Wang: Hmm.

Mark D. Wang: [music].

Mark D. Wang: Yeah.

Mark D. Wang: Okay.

Mark D. Wang: Hum.

Mark D. Wang: [music].

Mark D. Wang: Uh-huh Oh.

Mark D. Wang: [music].

Mark D. Wang: Okay.

Mark D. Wang: [music].

Mark D. Wang: Hum.

Mark D. Wang: [music].

Mark D. Wang: Hum.

Mark D. Wang: [music].

Mark D. Wang: Yeah.

Mark D. Wang: Right.

Mark D. Wang: [music].

Mark D. Wang: Oh.

Mark D. Wang: [music].

Mark D. Wang: Okay.

Mark D. Wang: [music].

Mark D. Wang: Okay.

Mark D. Wang:

Mark D. Wang: [music].

Mark D. Wang: Hum.

Mark D. Wang: Mhm.

Mark D. Wang: Hum.

Mark D. Wang: Mhm.

Mark D. Wang: [music].

Q1 2024 Hilton Grand Vacations Inc Earnings Call

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