By Will Feuer
Shares of Bluegreen Vacations more than doubled after Hilton Grand Vacations agreed to buy the smaller, rival timeshare operator for $1.5 billion, including debt.
Bluegreen stock rose 106% to $73.10 in premarket trading. Shares were already up about 42% this year.
Shares of Hilton Grand Vacations slipped about 6%, extending a decline of roughly 3% so far this year.
Hilton Grand Vacations agreed to pay $75 a share in cash for Bluegreen, which has more than 200,000 customers who pay for vacation-ownership interests at various resorts across Orlando, Fla., Panama City Beach, the Smoky Mountains and more.
The timeshare industry has struggled this year. It mostly caters to domestic travelers, leaving timeshare operators poorly positioned for this past summer’s flood of intercontinental travel. Concerns over big discretionary purchases and the health of consumers have also weighed on the sector.
Shares of Marriott Vacations Worldwide, an industry heavyweight, are down almost 39% this year.
Write to Will Feuer at [email protected]
Read the full article here
