Diamond Resorts International Expands East Coast Vacation Destinations Through Gold Key Resorts Acquisition
August 17 2015 - 8:30AM
Business Wire
Adds Six Resorts to Diamond Resorts Network
Acquiring Company with Strong Operating
Performance and Market Position in Virginia Beach
Diamond Resorts International, Inc. (NYSE:DRII), announced today
that it has executed an agreement to purchase the vacation
ownership business of Gold Key Resorts, which manages five vacation
ownership resorts in Virginia Beach, VA and one in the Outer Banks,
NC, for $167.5 million.
“This is an exciting acquisition that provides us with a
platform to expand into a new, complementary geography and owner
base,” said David Palmer, President and Chief Executive Officer,
Diamond Resorts International. “We are purchasing a business with a
history of a strong operating performance, and we believe that we
can leverage our successful track record of growth through
acquisitions, achieving synergies and value creation through sales
innovation and cost savings. Giving effect to expected synergies,
we are acquiring this business at a very attractive multiple of pro
forma Adjusted EBITDA and cash flow. We are confident this
transaction is a smart allocation of capital and a strong catalyst
to create long-term shareholder value.”
With a strong presence in Virginia Beach, Gold Key Resorts is a
hospitality leader in the region. This popular vacation destination
boasts the Virginia Beach Boardwalk, a three mile, 28-foot wide
icon dating back to 1888, which has been named in the top “Best
American Boardwalks” by USA Today Weekend, Discovery Channel,
Southern Living and Coastal Living. With proximity to the
boardwalk, Gold Key's properties offer easy access to all the
entertainment and recreation offerings in Virginia Beach. The
property in Kitty Hawk, NC was purchased in 2014 and is undergoing
extensive improvements to reposition it as a world-class
four-season resort destination in the Outer Banks.
Gold Key has resorts in the following locations:
- Beach Quarters Resort in
Virginia Beach, VA
- Turtle Cay Resort in Virginia
Beach, VA
- Boardwalk Resort and Villas in
Virginia Beach, VA
- Ocean Beach Club Resort in
Virginia Beach, VA
- Oceanaire Resort Hotel in
Virginia Beach, VA
- Beachwoods in Kitty Hawk,
NC
“We are excited to enter into this agreement,” said Bruce
Thompson, Chief Executive Officer, Gold Key Resorts. “I look
forward to working with Diamond Resorts during the transition phase
and on an ongoing basis. The company was attracted to our
world-class resorts on the East Coast and the professional team who
have managed these properties. It is anticipated the team will be
part of Diamond Resorts presence on the East Coast. This
acquisition positions these properties for future growth within a
very prestigious international portfolio with extensive offerings.
Our owners will benefit from this tremendously.”
For more information on the transaction, please refer to a
presentation that was posted on the Company’s investor relations
website at http://investors.DiamondResorts.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements,
including statements related to the closing of the transaction
discussed in this release and the performance of the acquired
business. These forward-looking statements are covered by the “Safe
Harbor for Forward-Looking Statements” provided by the Private
Securities Litigation Reform Act of 1995. These statements can be
identified by terminology such as “will,” “expects,” “anticipates,”
“future,” “intends,” “plans,” “believes,” “estimates” or other
similar statements, but these words are not the exclusive means for
identifying such statements. Forward-looking statements involve
known and unknown risks, uncertainties and other factors which may
cause actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Factors
that could cause actual results to differ materially from those in
the forward-looking statements include: general economic
conditions, the economic environment for the hospitality industry,
our ability to maintain an optimal inventory of vacation ownership
interests, and risks associated with this acquisition, including
any difficulty in integrating operations and personnel, disruption
of ongoing business and increased expenses, as well as the risks
described in Diamond’s filings with the United States Securities
and Exchange Commission including Diamond’s Annual Report on Form
10-K and subsequent reports on Form 10-Q and Form 8-K. Given the
risks and uncertainties, you are cautioned not to place undue
reliance on these forward-looking statements. These forward-looking
statements are made only as of the date hereof. Except as expressly
required by the federal securities laws, we undertake no obligation
to update or revise any forward-looking statements, whether as a
result of new information, changed circumstances or future events
or for any other reason.
About Gold Key Resorts
Gold Key Resorts was established in 1989 to provide an
unforgettable East Coast vacation experience. The company
specializes in development, sales and operation of unique vacation
ownership properties. Gold Key Resorts has also been awarded
Interval International’s Superior Service and Chairman’s Club
awards. Gold Key | PHR Hotels & Resorts, its parent company,
manages the Ramada Virginia Beach Oceanfront, Hilton Virginia Beach
Oceanfront and Hilton Garden Inn Virginia Beach Oceanfront along
with restaurants, retail and residential developments.
Additionally, Gold Key | PHR Hotels & Resorts purchased and is
renovating the historic Cavalier Hotel in Virginia Beach and is
currently developing The Main, downtown Norfolk’s newest
restaurant, meeting and hotel destination. For more information,
visit www.goldkeyphr.com.
About Diamond Resorts International®
Diamond Resorts International® (NYSE: DRII), with its network of
more than 330 vacation destinations located in 34 countries
throughout the continental United States, Hawaii, Canada, Mexico,
the Caribbean, South America, Central America, Europe, Asia,
Australasia and Africa, provides guests with choice and flexibility
to let them create their dream vacation, whether they are traveling
an hour away or around the world. Our relaxing vacations have the
power to give guests an increased sense of happiness and
satisfaction in their lives, while feeling healthier and more
fulfilled in their relationships, by enjoying memorable and
meaningful experiences that let them Stay Vacationed.™
Diamond Resorts International® manages vacation ownership
resorts and sells vacation ownership points that provide members
and owners with Vacations for Life® at over 330 managed and
affiliated properties and cruise itineraries.
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version on businesswire.com: http://www.businesswire.com/news/home/20150817005327/en/
Media :Diamond Resorts CorporationStevi Wara, 702-823-7069Fax:
702-684-8705media@diamondresorts.comorInvestors:Sloane &
CompanyErica Bartsch, 212-446-1875ebartsch@sloanepr.com
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