50.7 F
San Diego
Monday, Jan 30, 2023
-Advertisement-

Marriott Vacations to Buy Welk Resorts for $430M

Marriott Vacations Worldwide has agreed to buy Welk Resorts for approximately $430 million. The buyer made the announcement on Jan. 26. It plans to rebrand all Welk resorts as Hyatt Residence Club resorts.

Orlando, Florida-based Marriott Vacations Worldwide (NYSE: VAC) plans to pay for the transaction in part with approximately 1.4 million shares of its stock. Shares of VAC closed Jan. 27 at $122.15. At that price, 1.4 million shares is worth $171 million.

Welk Resorts is one of the largest independent timeshare companies in North America. Its properties include the 450-acre Welk Resorts San Diego in the hills north of Escondido. In all, the business owns eight upscale vacation ownership reports, located mostly on the West Coast of the United States, with nearly 1,400 keys, 55,000 owners and more than three years of built inventory. The properties have co-located land available for future expansion.

“Welk’s premier resorts are in highly desirable vacation markets, including San Diego, Breckenridge, Lake Tahoe and Cabo San Lucas, Mexico, and will be a nice addition to our footprint,” said Stephen P. Weisz, chief executive officer of Marriott Vacations Worldwide, in a statement issued by the company. “The acquisition will expand Hyatt Residence Club’s geographic presence while providing substantial future growth opportunities. By leveraging our high-value marketing and sales channels and leveraging more efficient rental distribution channels, we expect to be able to drive higher contract sales and expand margins.”

- Advertisement -

“We couldn’t be more excited for our Welk Resorts owners and team members to have MVW take us to this next chapter. They share the same values of excellence which makes this the perfect pairing to build on the foundation laid by the Welk team and generations of the Welk family,” said Jon Fredricks, president and CEO of Welk Resorts.

The transaction is expected to close during the second quarter.

BofA Securities is acting as exclusive financial adviser to Welk. Hogan Lovells is acting as legal adviser to Welk. J.P. Morgan is acting as exclusive financial adviser to MVW. BakerHostetler is acting as legal adviser to MVW.

-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-
-Advertisement-