Hilton Grand Vacations sees $20M-$25M Maui wildfire impact on contract sales

The company states: “Hilton Grand Vacations provided an update on its business in Hawaii following the recent wildfires on Maui. The Company has 13 properties in the Hawaiian Islands, including two properties and sales centers in Maui: K’anapali Beach Club in K’anapali, and the recently opened Maui Bay Villas in Khei. Neither Maui property sustained physical damage, and the Company maintains business interruption insurance at both properties. In the trailing 12 months ended June 30, 2023, contract sales in all of HGV‘s Hawaii sales centers represented approximately 16% of total contract sales. In that same period, the Company’s two Maui properties contributed over 20% of Hawaii’s contract sales. Our most recent guidance contemplated that Hawaii, and Maui in particular, would be larger contributors to growth in the second half of this year versus the first half, owing to the expected continuing market recovery. Currently, we estimate that the impact to Q3 2023 will be $20 to $25 million in contract sales and $12 to $15 million in Adjusted EBITDA.”