Hilton Grand Vacations Raises Revenue Amid Contract Sales Decline
The vacation ownership company reported total revenues of $1.358 billion for the second quarter.
Hilton Grand Vacations (HGV) reported total revenues of $1.358 billion for the second quarter.
The results showed a divergence between top-line growth and sales volume. While total revenue rose from $1.266 billion in the same period last year, contract sales fell by $24 million to $810 million.
Adjusted EBITDA attributable to stockholders rose to $265 million from $233 million in the second quarter of 2024. This figure represented a sequential decrease from the $269 million reported in the first quarter of 2025.
Sales performance was impacted by a shift in guest productivity. Tours increased 6.1% compared to the prior year, but volume per guest decreased 8.6%. Additionally, fee-for-service contract sales as a percentage of total contract sales dropped to 12.8% from 17.0%.
Profitability varied across business lines. The Real Estate Sales and Financing segment saw its Adjusted EBITDA profit margin expand to 26.1% from 23.2% a year earlier, though it compressed from 28.0% in the first quarter. The Resort Operations and Club Management segment margin compressed slightly to 35.8% from 36.8%.
Adjusted free cash flow increased to $180 million from $135 million in the second quarter of 2024. Net construction deferrals affecting Adjusted EBITDA were $28 million, compared to $45 million in the prior year's second quarter and $18 million in the first quarter of 2025.
Hilton Grand Vacations reiterated its full-year 2025 Adjusted EBITDA guidance of $1.225 billion to $1.265 billion. This range follows a prior-quarter increase from a guide of $1.185 billion to $1.225 billion.
On July 17, 2025, the company refinanced its Term Loan B due 2028 with an amended $850 million Term Loan B due 2033, maintaining pricing at SOFR plus 2.00%.