Marriott Holidays Globally to Purchase Welk Resorts

ORLANDO, FL—Marriott Vacations Around the world (MVW) has entered into a definitive arrangement to purchase Welk Resorts, a single of the largest independent timeshare corporations in North America, for approximately $430 million, together with roughly 1.4 million MVW popular shares. The acquisition is expected to near early in the 2nd quarter of 2021.

Welk opened its first holiday vacation ownership vacation resort in 1984 and right now operates a portfolio of eight upper-upscale holiday vacation possession resorts situated mainly in West Coast U.S. holiday vacation marketplaces, with practically 1,400 keys, 55,000 entrepreneurs and far more than three years of built stock. MVW intends to rebrand all Welk resorts as Hyatt Home Club resorts as soon as getting all important approvals, drastically growing Hyatt Residence Club’s footprint whilst supplying the firm sizeable long run progress alternatives.

“Welk’s leading resorts are in really attractive vacation markets, including San Diego, Breckenridge [CO] Lake Tahoe and Cabo San Lucas, Mexico, and will be a wonderful addition to our footprint,” reported Stephen P. Weisz, CEO of MVW. “The acquisition will expand Hyatt Home Club’s geographic existence when delivering sizeable upcoming expansion opportunities. By leveraging our superior-worth internet marketing and sales channels and leveraging additional economical rental distribution channels, we hope to be able to generate bigger contract income and expand margins.”

Powerful Growth Chance and Margin Improvement

• Expands Hyatt Residence Club company dramatically: On rebranding of the Welk resorts, the acquisition will increase the amount of Hyatt Residence Club resorts by 50{56ef4555b1160ba09e855af6afd9aff20ca1ee0c32187e33609ae0a92f439672}, enhance the amount of keys by virtually 90{56ef4555b1160ba09e855af6afd9aff20ca1ee0c32187e33609ae0a92f439672} and improve the whole number of house owners from about 33,000 currently to nearly 90,000.
• Supports long run progress possible: Welk has additional than 3 years of developed stock to aid potential growth, as perfectly as co-situated land offered for long term advancement.
• Major margin improvement possibility: When built-in, the transaction will allow the corporation to strengthen margins for the Welk enterprise by changing large-price tag advertising with far more efficient branded channels, as properly as leveraging other a lot more productive tour channels. In addition, the business also expects to accomplish value savings and other earnings enhancements, which include improved rental margins by leveraging Hyatt’s international distribution.

“We couldn’t be much more excited for our Welk Resorts homeowners and team associates to have MVW consider us to this next chapter,” claimed Jon Fredricks, president/CEO of Welk Resorts, grandson of the late Lawrence Welk, the beloved tv bandleader who begun the Welk hospitality enterprise. “They share the similar values of excellence which helps make this the perfect pairing to establish on the basis laid by the Welk staff and generations of the Welk spouse and children.”

The transaction is issue to the satisfaction of customary closing situations, like regulatory approvals. Rebranding the resorts to the Hyatt Residence Club brand is subject to last approval from Hyatt Hotels Corporation or its affiliate.

J.P. Morgan is performing as exclusive monetary advisor to MVW. BakerHostetler is performing as legal advisor to MVW. BofA Securities is acting as unique fiscal advisor to Welk. Hogan Lovells is performing as legal advisor to Welk.

The Hogan Lovells team was led by M&A associate Carine Stoick, with essential assist from company senior associate Michael Rogers, company affiliate Stephen Truban, tax companion Jasper Howard, tax affiliate Caitlin Piper, securities lover Kevin Greenslade, securities associate Christine Bocknek, serious estate lover Lee Berner, senior serious estate affiliate Leslie Graham and employee benefits counsel Laura Szarmach, personnel gains companion Kurt Lawson, antitrust spouse Michele Harrington, intellectual residence companion Audrey Haroz Reed, mental assets counsel Cameron Robinson and funds markets senior associate Liz Graffeo.