Hilton Grand Vacations Inc. (NYSE:HGV) today reported its first quarter 2020 results.

“The COVID-19 pandemic has had unprecedented impacts on our business, and we continue to take decisive action to navigate the current environment and mitigate the challenges it presents,” said Mark Wang, president and CEO of Hilton Grand Vacations. “We have a strong balance sheet, and we have made critical decisions to defend our cash flow and enhance our financial flexibility, including adjustments to our cost structure and spending plans. I remain confident in the resilience of our business model and look forward to welcoming back our owners and guests as the pandemic subsides.”

KEY HIGHLIGHTS

First Quarter 2020 Results¹

Total revenues for the first quarter were $351 million compared to $450 million for the same period in 2019.
- Total revenues were affected by a deferral of $47 million in the current period. There were no deferrals or recognitions in the same period in 2019.
Net income for the first quarter was $8 million compared to $55 million for the same period in 2019.
- Net income was affected by a net deferral of $27 million in the current period. There were no deferrals or recognitions in the same period in 2019.
Diluted EPS for the first quarter was $0.09 compared to $0.58 for the same period in 2019.
- Diluted EPS was affected by a net deferral of $27 million or $0.31 per share in the current period. There were no deferrals or recognitions in the same period in 2019.
Adjusted EBITDA for the first quarter was $33 million compared to $102 million for the same period in 2019.
- Adjusted EBITDA was affected by a net deferral of $27 million in the current period. There were no deferrals or recognitions in the same period in 2019.
In addition to the adverse impact from the closure of our sales centers and resort operations, the COVID-19 pandemic had the following impacts on total revenues, net income, diluted EPS and Adjusted EBITDA:
- $37 million provision for financing receivables of which $23 million or $0.26 per share is related to changes in estimates primarily driven by economic factors surrounding the COVID-19 pandemic.
- $11 million or $0.12 per share of one-time payroll related expenses incurred primarily related to payments made to team members as a result of operational closures caused by the COVID-19 pandemic.
- $2 million or $0.03 per share related to the refunding of club transaction fees to accommodate guests impacted by the COVID-19 pandemic.
Contract sales in the first quarter were $244 million, a decrease of 24% from the same period in 2019.
Net Owner Growth (NOG) for the 12 months ended March. 31, 2020, was 5.3%.

_________________

¹The Company’s current period results and prior year results include impacts related to deferrals of revenues and direct expenses related to the Sales of VOIs under construction that are recognized when construction is complete. These impacts are reflected in the sub-bullets.

COVID-19 Update

As disclosed in our press release dated March 16, 2020, the Company has withdrawn its prior Full Year 2020 Guidance due to the increased uncertainty created by the impact of COVID-19.

The Company continues to be impacted by the pandemic and the various government mandates in nearly all of the locations in which it operates. It is unknown how long these adverse conditions and restrictions will continue. To optimize HGV’s liquidity and access to capital in light of the adverse impact of the pandemic, particularly as substantially most of the Company’s properties have temporarily suspended operations and substantially all of its sales, operations and other activities have been suspended, the Company has taken significant steps in an effort to decrease its expenses. These efforts include the recently announced furlough of over 6,100 of its team members, and the temporary reductions of all team members’ base salaries and directors’ annual cash retainers, among other actions.

The Company will share additional details during its conference call scheduled for later today.

Overview – First Quarter 2020

For the quarter ended March 31, 2020, diluted EPS was $0.09 compared to $0.58 for the quarter ended March 31, 2019. Net income and Adjusted EBITDA were $8 million and $33 million, respectively, for the quarter ended March 31, 2020, compared to $55 million and $102 million, respectively, for the quarter ended March 31, 2019. Total revenues for the quarter ended March 31, 2020, were $351 million compared to $450 million for the quarter ended March 31, 2019.

Net income and Adjusted EBITDA for the quarter ended March 31, 2020, included a net deferral of $27 million relating to sales made at The Central at 5^th by Hilton Club and Ocean Tower at Hilton Grand Vacations Club Phase II projects, which were under construction during the period. The Company anticipates recognizing these revenues and related expenses in 2021 when it expects to complete these projects and recognize the deferrals.

Segment Highlights – First Quarter 2020

Real Estate Sales and Financing

For the quarter ended March 31, 2020, Real Estate Sales and Financing segment revenues were $206 million, a decrease of 32.9% compared to the quarter ended March 31, 2019. Real Estate Sales and Financing segment Adjusted EBITDA and Adjusted EBITDA margin as a percentage of Real Estate Sales and Financing segment revenues were $15 million and 7.3%, respectively, for the quarter ended March 31, 2020, compared to $80 million and 26.1%, respectively, for the quarter ended March 31, 2019. Real Estate Sales and Financing results in first quarter 2020 weakened due to decrease in contract sales as a result of the temporary suspension of the Company’s operations as a result of COVID-19 and an increase in construction-related deferrals.

Real Estate Sales and Financing segment Adjusted EBITDA reflect the $27 million of net deferrals related to The Central at 5^th and Ocean Tower Phase II projects for the quarter ended March 31, 2020.

Contract sales for the quarter ended March 31, 2020, decreased 24.2% to $244 million compared to the quarter ended March 31, 2019. For the quarter ended March 31, 2020, tours decreased 19% and VPG decreased 4.7% compared to the quarter ended March 31, 2019. For the quarter ended March 31, 2020, fee-for-service contract sales represented 53.3% of contract sales compared to 59% for the quarter ended March 31, 2019.

Financing revenues were $44 million for the quarter ended March 31, 2020, an increase of 7.3% compared to the quarter ended March 31, 2019. This reflects a 5.6% increase in interest income, which was driven by a 2.3% increase in the net timeshare financing receivables portfolio and a 21 bps increase in the weighted average interest rate the Company receives on the portfolio. It also reflects a $1 million increase in other financing revenue related to growth in servicing revenues related to the Company’s third-party loan portfolios.

Resort Operations and Club Management

For the quarter ended March 31, 2020, Resort Operations and Club Management segment revenue was $104 million, a decrease of 5.5% compared to the quarter ended March 31, 2019. Resort Operations and Club Management segment Adjusted EBITDA and Adjusted EBITDA margin as a percentage of Resort Operations and Club Management segment revenue was $55 million and 52.9%, respectively, for the quarter ended March 31, 2020, compared to $65 million and 59.1%, respectively, for the quarter ended March 31, 2019. Compared to the prior-year period, Resort Operations and Club Management results in the first quarter of 2020 decreased primarily due to a decrease in rental and ancillary services revenue related to the temporary suspension of operations due to COVID-19.

Inventory

The estimated contract sales value of HGV’s total pipeline is approximately $9.4 billion at current pricing, which represents approximately seven years of sales at the current trailing 12-month sales pace.

The total pipeline includes approximately 2.6 years of sales relating to inventory that is currently available for sale at open or soon-to-open projects. The remaining 4.4 years of sales is inventory at new or existing projects that will become available for sale in the future upon registration, delivery or construction.

Owned inventory represents 79% of HGV’s total pipeline. Approximately 32% of the owned inventory pipeline is currently available for sale.

Fee-for-service inventory represents 21% of HGV’s total pipeline. Approximately 58% of the fee-for-service inventory pipeline is currently available for sale.

With 31% of the pipeline consisting of just-in-time inventory and 21% consisting of fee-for-service inventory, capital-efficient inventory represents 52% of HGV’s total pipeline.

Balance Sheet and Liquidity

Total cash and cash equivalents were $759 million as of March 31, 2020, including $90 million of restricted cash.

As of March 31, 2020, HGV had $1.266 billion of corporate debt, net outstanding with a weighted average interest rate of 3.54% and $885 million of non-recourse debt, net outstanding with a weighted average interest rate of 2.65%.

As of March 31, 2020, the Company’s liquidity position consisted of $669 million of unrestricted cash and available capacity of $39 million on the revolving credit facility and $255 million on the warehouse facility.

Free cash flow was $45 million for the quarter ended March 31, 2020, compared to $4 million in the prior period. Adjusted free cash flow was $182 million for the period ended March 31, 2020, compared to ($36) million in the prior period.

As of March 31, 2020, our net leverage ratio was 1.45x and our interest coverage ratio was 9.56x.

Given the uncertainties related to the duration and the extent of the impact that COVID-19 and related conditions may have in the future, the Company is currently engaged in discussions with its lenders under the credit facility to amend certain financial covenants and believes it will reach an agreement.

Share Repurchase

On March 13, 2020, the Company announced that its Board of Directors had approved a share repurchase program authorizing the Company to repurchase up to an aggregate of $200 million of its outstanding shares of common stock. Due to the then-still developing significant adverse impact on global economy, capital markets, travel industry, and various government mandates regarding closures of businesses, all due to COVID-19 and various uncertainties related to it, the Company previously announced on March 31, 2020, that it had suspended the repurchase program.

During the quarter ended March 31, 2020, the Company repurchased 0.8 million shares for $9.7 million at an average price of $11.92.

Subsequent Events

On April 16, 2020, the Company announced it adopted a shareholder rights plan.
On April 22, the Company entered into Amendment No. 14 to its Timeshare Facility, which amended certain key definitions related to delinquency level calculations of underlying timeshare loans that are used as collateral for borrowings under its Timeshare Facility. Additionally, it provides the Company with the added flexibility to manage any potential increase in the rate of delinquency that may result from the impact of the COVID-19 pandemic. All other terms and borrowing capacity remained unchanged.
In April 2020, the Company furloughed approximately 6,100 out of its 9,100 team members.

Total Construction Deferrals and/or Recognitions Included in Results Reported Under Accounting Standards Codification Topic 606 (“ASC 606”)

The Company’s Adjusted EBITDA as reported under ASC 606 includes construction-related recognitions and deferrals of revenues and related expenses as detailed in Table T-1. Under ASC 606, the Company defers revenues and related expenses pertaining to sales at projects that occur during periods when that project is under construction until the period when construction is completed.

T-1
Total Construction Recognitions (Deferrals)

	Three Months Ended March 31,
*($ in millions)*	2020 ⁽¹⁾
Sales of VOIs (deferrals)	$	(47	)
Sales of VOIs recognitions		—
Net Sales of VOIs (deferrals) recognitions		(47	)
Cost of VOI sales (deferrals)⁽¹⁾		(13	)
Cost of VOI sales recognitions		—
Net Cost of VOI sales (deferrals) recognitions⁽¹⁾		(13	)
Sales and marketing expense (deferrals)		(7	)
Sales and marketing expense recognitions		—
Net Sales and marketing expense (deferrals) recognitions		(7	)
Net construction (deferrals) recognitions	$	(27	)

	2020
	First Quarter			Second Quarter		Third Quarter		Fourth Quarter		Full Year
Net income	$	8		$	—	$	—	$	—	$	8
Interest expense		10			—		—		—		10
Income tax expense		1			—		—		—		1
Depreciation and amortization		12			—		—		—		12
Interest expense and depreciation and amortization included in equity in earnings (losses) from unconsolidated affiliates		1			—		—		—		1
EBITDA		32			—		—		—		32
Other (gain) loss, net		(2	)		—		—		—		(2	)
Share-based compensation expense⁽²⁾		(2	)		—		—		—		(2	)
Other adjustment items⁽³⁾		5			—		—		—		5
Adjusted EBITDA	$	33		$	—	$	—	$	—	$	33

NET CONSTRUCTION DEFERRAL ACTIVITY
Sales of VOIs, net	$	(47	)	$	—	$	—	$	—	$	(47	)
Cost of VOI sales⁽⁴⁾		(13	)		—		—		—		(13	)
Sales, marketing, general and administrative expense		(7	)		—		—		—		(7	)
Net construction deferrals	$	(27	)	$	—	$	—	$	—	$	(27	)

_________________
⁽¹⁾		The table represents deferrals and recognitions of Sales of VOI revenue and direct costs for properties under construction for the three months ended March 31, 2020. There were no construction deferrals or recognitions for the three months ended March 31, 2019.
⁽²⁾		As of March 31, 2020, we determined that the performance conditions for our 2018, 2019, and 2020 Performance RSUs are improbable of achievement therefore we reversed $8 million of share-based compensation expense recognized in prior years and ceased accruing expenses related to Performance RSUs granted in 2018, 2019, and 2020, during the three months ended March 31, 2020.
⁽³⁾		For the three months ended March 31, 2020, and 2019, this amount includes costs associated with restructuring and other non-cash and one-time charges.
⁽⁴⁾		Includes anticipated Costs of VOI sales related to inventory associated with Sales of VOIs under construction that will be acquired under a just-in-time arrangement once construction is complete.

	2019
	First Quarter		Second Quarter			Third Quarter			Fourth Quarter			Full Year
Net income	$	55	$	39		$	50		$	72		$	216
Interest expense		10		11			12			10			43
Income tax expense		20		15			20			2			57
Depreciation and amortization		8		12			12			12			44
Interest expense and depreciation and amortization included in equity in earnings (losses) from unconsolidated affiliates		1		1			—			1			3
EBITDA		94		78			94			97			363
Other (gain) loss, net		1		1			1			—			3
Share-based compensation expense		5		7			6			4			22
Other adjustment items		2		4			10			4			20
Adjusted EBITDA	$	102	$	90		$	111		$	105		$	408

NET CONSTRUCTION DEFERRAL ACTIVITY
Sales of VOIs, net	$	—	$	(34	)	$	(15	)	$	(35	)	$	(84	)
Cost of VOI sales		—		(11	)		(5	)		(11	)		(27	)
Sales, marketing, general and administrative expense		—		(5	)		(2	)		(5	)		(12	)
Net construction (deferrals) recognitions	$	—	$	(18	)	$	(8	)	$	(19	)	$	(45	)

About Hilton Grand Vacations Inc.

Hilton Grand Vacations Inc. (NYSE:HGV) is recognized as a leading global timeshare company. With headquarters in Orlando, Florida, Hilton Grand Vacations develops, markets and operates a system of brand-name, high-quality vacation ownership resorts in select vacation destinations. The Company also manages and operates two innovative club membership programs: Hilton Grand Vacations Club^® and The Hilton Club^®, providing exclusive exchange, leisure travel and reservation services for over 325,000 club members.


HILTON GRAND VACATIONS INC.
FINANCIAL TABLES

CONDENSED CONSOLIDATED BALANCE SHEETS		T-2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS		T-3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS		T-4
FREE CASH FLOWS RECONCILIATION		T-5
SEGMENT REVENUE RECONCILIATION		T-6
SEGMENT EBITDA AND ADJUSTED EBITDA TO NET INCOME		T-7
REAL ESTATE SALES MARGIN DETAIL SCHEDULE		T-8
CONTRACT SALES MIX BY TYPE SCHEDULE		T-9
FINANCING MARGIN DETAIL SCHEDULE		T-10
RESORT AND CLUB MARGIN DETAIL SCHEDULE		T-11
RENTAL AND ANCILLARY MARGIN DETAIL SCHEDULE		T-12
REAL ESTATE SALES AND FINANCING SEGMENT ADJUSTED EBITDA		T-13
RESORT AND CLUB MANAGEMENT SEGMENT ADJUSTED EBITDA		T-14

T-2
HILTON GRAND VACATIONS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except share data)

	March 31,		December 31,
	2020		2019
	(unaudited)
ASSETS
Cash and cash equivalents	$	669	$	67
Restricted cash		90		85
Accounts receivable, net		158		174
Timeshare financing receivables, net		1,122		1,156
Inventory		885		558
Property and equipment, net		473		778
Operating lease right-of-use assets, net		62		60
Investments in unconsolidated affiliates		47		44
Intangible assets, net		78		77
Other assets		120		80
TOTAL ASSETS	$	3,704	$	3,079
LIABILITIES AND EQUITY
Liabilities:
Accounts payable, accrued expenses and other	$	268	$	298
Advanced deposits		117		115
Debt, net		1,266		828
Non-recourse debt, net		885		747
Operating lease liabilities		77		76
Deferred revenues		277		186
Deferred income tax liabilities		251		259
Total liabilities		3,141		2,509
Commitments and contingencies
Equity:
Preferred stock, $0.01 par value; 300,000,000 authorized shares, none issued or outstanding as of March 31, 2020 and December 31, 2019		—		—
Common stock, $0.01 par value; 3,000,000,000 authorized shares, 84,987,241 shares issued and outstanding as of March 31, 2020 and 85,535,501 shares issued and outstanding as of December 31, 2019		1		1
Additional paid-in capital		172		179
Accumulated retained earnings		390		390
Total equity		563		570
TOTAL LIABILITIES AND EQUITY	$	3,704	$	3,079

T-3
HILTON GRAND VACATIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except share data)

	Three Months Ended March 31,
	2020			2019
Revenues
Sales of VOIs, net	$	56		$	125
Sales, marketing, brand and other fees		106			141
Financing		44			41
Resort and club management		44			42
Rental and ancillary services		52			59
Cost reimbursements		49			42
Total revenues		351			450
Expenses
Cost of VOI sales		14			36
Sales and marketing		157			170
Financing		13			13
Resort and club management		12			11
Rental and ancillary services		37			35
General and administrative		21			27
Depreciation and amortization		12			8
License fee expense		22			23
Cost reimbursements		49			42
Total operating expenses		337			365
Interest expense		(10	)		(10	)
Equity in earnings from unconsolidated affiliates		3			1
Other gain (loss), net		2			(1	)
Income before income taxes		9			75
Income tax expense		(1	)		(20	)
Net income	$	8		$	55
Earnings per share:
Basic	$	0.09		$	0.59
Diluted	$	0.09		$	0.58

T-4
HILTON GRAND VACATIONS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)

	Three Months Ended March 31,
	2020			2019
Operating Activities
Net income	$	8		$	55
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		12			8
Amortization of deferred financing costs, contract costs and other		4			4
Provision for financing receivables losses		37			14
Other (gain) loss, net		(2	)		1
Share-based compensation		(2	)		5
Deferred income tax (benefit) expense		(8	)		5
Equity in earnings from unconsolidated affiliates		(3	)		(1	)
Net changes in assets and liabilities:
Accounts receivable, net		16			7
Timeshare financing receivables, net		(3	)		(5	)
Inventory		(10	)		(3	)
Purchases and development of real estate for future conversion to inventory		(5	)		(63	)
Other assets		(42	)		(33	)
Accounts payable, accrued expenses and other		(42	)		(27	)
Advanced deposits		2			5
Deferred revenues		91			41
Other		—			1
Net cash provided by operating activities		53			14
Investing Activities
Capital expenditures for property and equipment		(3	)		(6	)
Software capitalization costs		(5	)		(4	)
Net cash used in investing activities		(8	)		(10	)
Financing Activities
Issuance of debt		495			195
Issuance of non-recourse debt		195			—
Repayment of debt		(57	)		(23	)
Repayment of non-recourse debt		(58	)		(40	)
Repurchase and retirement of common stock		(10	)		(92	)
Payment of withholding taxes on vesting of restricted stock units		(2	)		(2	)
Other financing activity		(1	)		—
Net cash provided by financing activities		562			38
Net increase in cash, cash equivalents and restricted cash		607			42
Cash, cash equivalents and restricted cash, beginning of period		152			180
Cash, cash equivalents and restricted cash, end of period	$	759		$	222

T-5
HILTON GRAND VACATIONS INC.
FREE CASH FLOWS RECONCILIATION
(in millions)
	Three Months Ended March 31,
	2020			2019
Net cash provided by operating activities	$	53		$	14
Capital expenditures for property and equipment		(3	)		(6	)
Software capitalization costs		(5	)		(4	)
Free Cash Flow		45			4
Non-recourse debt activity, net		137			(40	)
Adjusted Free Cash Flow	$	182		$	(36	)

T-6
HILTON GRAND VACATIONS INC.
SEGMENT REVENUE RECONCILIATION
(in millions)
	Three Months Ended March 31,
	2020			2019
Revenues:
Real estate sales and financing	$	206		$	307
Resort operations and club management		104			110
Total Segment revenues		310			417
Cost reimbursements		49			42
Intersegment eliminations		(8	)		(9	)
Total revenues	$	351		$	450

T-7
HILTON GRAND VACATIONS INC.
SEGMENT EBITDA AND ADJUSTED EBITDA TO NET INCOME
(in millions)

	Three Months Ended March 31,
	2020			2019
Net Income	$	8		$	55
Interest expense		10			10
Income tax expense		1			20
Depreciation and amortization		12			8
Interest expense, depreciation and amortization included in equity in earnings from unconsolidated affiliates		1			1
EBITDA		32			94
Other (gain) loss, net		(2	)		1
Share-based compensation expense⁽¹⁾		(2	)		5
Other adjustment items⁽²⁾		5			2
Adjusted EBITDA	$	33		$	102

Adjusted EBITDA:
Real estate sales and financing⁽³⁾	$	15		$	80
Resort operations and club management⁽³⁾		55			65
Segment Adjusted EBITDA		70			145
Adjustments:
Adjusted EBITDA from unconsolidated affiliates		4			2
License fee expense		(22	)		(23	)
General and administrative⁽⁴⁾		(19	)		(22	)
Adjusted EBITDA	$	33		$	102
Adjusted EBITDA margin %		9.4	%		22.7	%
EBITDA margin %		9.1	%		20.9	%

_________________
⁽¹⁾		As of March 31, 2020, we determined that the performance conditions for our 2018, 2019, and 2020 Performance RSUs are improbable of achievement therefore we reversed $8 million of share-based compensation expense recognized in prior years and ceased accruing expenses related to Performance RSUs granted in 2018, 2019, and 2020, during the three months ended March 31, 2020.
⁽²⁾		For the three months ended March 31, 2020 and 2019, this amount includes costs associated with restructuring and other non-cash and one-time charges.
⁽³⁾		Includes intersegment transactions, share-based compensation, depreciation and other adjustments attributable to the segments.
⁽⁴⁾		Excludes share-based compensation, depreciation and other adjustment items attributable to the segments.

T-8
HILTON GRAND VACATIONS INC.
REAL ESTATE SALES MARGIN DETAIL SCHEDULE
(in millions, except Tour Flow and VPG)

	Three Months Ended March 31,
	2020			2019
Contract sales	$	244		$	322
Tour flow		66,965			82,644
VPG	$	3,506		$	3,677
Owned contract sales mix		46.7	%		41.0	%
Fee-for-service contract sales mix		53.3	%		59.0	%

Sales of VOIs, net	$	56		$	125
Adjustments:
Fee-for-service sales⁽¹⁾		130			190
Provision for financing receivables losses		37			14
Reportability and other:
Net deferral (recognition) of sales of VOIs under construction⁽²⁾		47			—
Fee-for-service sale upgrades, net		(8	)		(14	)
Other⁽³⁾		(18	)		7
Contract sales	$	244		$	322

Sales, marketing, brand and other fees	$	106		$	141
Less:
Marketing revenue and other fees		25			30
Commissions and brand fees		81			111
Sales of VOIs, net		56			125
Sales revenue		137			236
Less:
Cost of VOI sales		14			36
Sales and marketing expense, net⁽⁴⁾		125			131
Real estate margin	$	(2	)	$	69
Real estate margin percentage		(1.5	)%		29.2	%

_________________
⁽¹⁾		Represents contract sales from fee-for-service properties on which the Company earns commissions and brand fees.
⁽²⁾		Represents the net impact of deferred revenues related to the Sales of VOIs under construction that are recognized when construction is complete.
⁽³⁾		Includes adjustments for revenue recognition, including amounts in rescission and sales incentives.
⁽⁴⁾		Includes revenue recognized through our marketing programs for existing owners and prospective first-time buyers and revenue associated with sales incentives and document compliance.

T-9
HILTON GRAND VACATIONS INC.
CONTRACT SALES MIX BY TYPE SCHEDULE

	March 31,			March 31,
	2020			2019
Owned, Just-in-time Contract Sales Mix		25	%		16	%
Fee-For-Service Contract Sales Mix		53	%		59	%
Total Capital-Efficient Contract Sales Mix		78	%		75	%

T-10
HILTON GRAND VACATIONS INC.
FINANCING MARGIN DETAIL SCHEDULE
(in millions)

	Three Months Ended March 31,
	2020			2019
Interest income	$	38		$	36
Other financing revenue		6			5
Financing revenue		44			41
Consumer financing interest expense		7			7
Other financing expense		6			6
Financing expense		13			13
Financing margin	$	31		$	28
Financing margin percentage		70.5	%		68.3	%

T-11
HILTON GRAND VACATIONS INC.
RESORT AND CLUB MARGIN DETAIL SCHEDULE
(in millions, except for Members and Net Owner Growth)

	Twelve Months Ended March 31,
	2020			2019
Total members		328,217			311,614
Net Owner Growth (NOG)		16,603			19,494
Net Owner Growth % (NOG%)		5.3	%		6.7	%

	Three Months Ended March 31,
	2020			2019
Club management revenue	$	25		$	26
Resort management revenue		19			16
Resort and club management revenues		44			42
Club management expense		7			7
Resort management expense		5			4
Resort and club management expenses		12			11
Resort and club management margin	$	32		$	31
Resort and club management margin percentage		72.7	%		73.8	%

T-12
HILTON GRAND VACATIONS INC.
RENTAL AND ANCILLARY MARGIN DETAIL SCHEDULE
(in millions)

	Three Months Ended March 31,
	2020			2019
Rental revenues	$	47		$	52
Ancillary services revenues		5			7
Rental and ancillary services revenues		52			59
Rental expenses		32			29
Ancillary services expense		5			6
Rental and ancillary services expenses		37			35
Rental and ancillary services margin	$	15		$	24
Rental and ancillary services margin percentage		28.8	%		40.7	%

T-13
HILTON GRAND VACATIONS INC.
REAL ESTATE SALES AND FINANCING SEGMENT ADJUSTED EBITDA
(in millions)

	Three Months Ended March 31,
	2020			2019
Sales of VOIs, net	$	56		$	125
Sales, marketing, brand and other fees		106			141
Financing		44			41
Real estate sales and financing segment revenues		206			307
Cost of VOI sales		(14	)		(36	)
Sales and marketing		(157	)		(170	)
Financing		(13	)		(13	)
Marketing package stays		(8	)		(9	)
Share-based compensation		1			1
Real estate sales and financing segment adjusted EBITDA		15			80
Real estate sales and financing segment adjusted EBITDA margin percentage		7.3	%		26.1	%

T-14
HILTON GRAND VACATIONS INC.
RESORT AND CLUB MANAGEMENT SEGMENT ADJUSTED EBITDA
(in millions)

	Three Months Ended March 31,
	2020			2019
Resort and club management	$	44		$	42
Rental and ancillary services		52			59
Marketing package stays		8			9
Resort and club management segment revenue		104			110
Resort and club management		(12	)		(11	)
Rental and ancillary services		(37	)		(35	)
Share-based compensation		—			1
Resort and club segment adjusted EBITDA		55			65
Resort and club management segment adjusted EBITDA margin percentage		52.9	%		59.1	%

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Hilton Grand Vacations Results

Hilton Grand Vacations Reports First Quarter 2020 Results