Diamond_Resorts

Diamond Resorts

Diamond Resorts

Add article description

Diamond Resorts is a wholly owned subsidiary of Hilton Grand Vacations. Diamond Resorts was an independent timeshare and vacation ownership company until it was purchased by HGV in 2021. Following the purchase, Diamond's resorts became part of HGV's resort portfolio, and Diamond itself became a brand and subsidiary of HGV. The majority of Diamond Resorts have been or will be rebranded as Hilton vacation Club properties, however the original brand will continue to exist as some resorts are slated to retain the Diamond Resorts name.

Quick Facts Company type, Industry ...

History

The Polo Towers in Las Vegas, which is owned by Diamond Resorts

Diamond Resorts launched the Diamond Resorts Invitational in 2013 to benefit Florida Hospital for Children.[4] Through the golf tournament, the company has raised a total of more than $3.1 million to the children's hospital.[5] In March 2018, the company announced it was sponsoring a new golf tournament, the Diamond Resorts Tournament of Champions, with the LPGA as an official season event.[citation needed]

In October 2015, DRI bought out Gold Key Resorts for $167.5 million.[6] This acquisition added five vacation ownership resorts in Virginia Beach, Virginia, and one in the Outer Banks, North Carolina.[6] That same month, Diamond Resorts pledged to match all new donations made to the Diamond Resorts International Foundation, a recognized 501(c)(3) organization, in 2017 up to $1 million to support Hurricane Irma relief efforts.[7]

Diamond Resorts acquired Intrawest Resort Club Group in November 2015, adding nine resorts and 22,000 members. After the acquisition, Diamond Resorts re-branded the Intrawest Resort Club Group as Embarc Resorts.[8]

On June 29, 2016, Apollo Global Management made a successful offer to purchase Diamond Resorts International.[9]

On December 23, 2016 Arizona Attorney General Mark Brnovich announced a settlement of $800,000 with Diamond Resorts. As part of the settlement, customers who bought their timeshares under false pretenses could relinquish them.[10]

Michael Flaskey was named chief executive officer of the company in March 2017.[11]

On January 18, 2018, the company underwent a brand refresh, updating its logo and officially dropping International from its name to be known as Diamond Resorts.[12]

Diamond Resorts announced in March 2018 that the company was partnering with the LPGA to launch the Diamond Resorts Tournament of Champions.[13] The tournament begins the LPGA's 2019 season and features tournament winners from the previous two LPGA seasons, along with celebrity participants.[14] The Diamond Resorts Tournament of Champions replaces the golf tournament the company previously sponsored, the Diamond Resorts Invitational.[citation needed] That same month, acquired Amber Vacation Club in March 2018 and will assume operations at Amber's managed resorts, Sunrise Ridge Resort in Pigeon Forge, Tennessee and Alhambra Villas and Alhambra at Poinciana in Kissimmee, Florida.[15]

In April 2018, Diamond Resorts announced it had acquired The Modern Honolulu, a boutique hotel in Honolulu, Hawaii.[16]

In January 2020, Diamond Resorts partnered with Highgate to rent units in two properties in New York City.[17]

In March 2021, Apollo Global agreed to sell Diamond Resorts to Hilton Grand Vacations[18] for $1.4 billion.[19][20] The acquisition was completed on August 2, 2021.[21][22]

Undercover Boss

The company's founder, Stephen J. Cloobeck, was featured in the fourth season premiere of the American reality television series Undercover Boss on January 15, 2012, marking the first time the head of a company previously featured in an earlier episode went undercover a second time.[23][24][25]

Properties

More information Property, Location ...

Criticism and controversy

Sales tactics

Diamond Resorts is notable for high-pressure sales tactics used to close sales and generate fees for consumers.[26][27] Club members are charged yearly maintenance fees (including management fees), which are set by Diamond Resorts and which the FTC warns are likely to rise every year.[28][29] Diamond Resorts's official 2014 SEC filing states that club members do not have the right to terminate membership, except in certain areas where consumers are protected by state law.[27][30][31] Jeff Weir, a Diamond timeshare owner and journalist covering the timeshare industry, told The New York Times, "In my experience, Diamond is much more ambitious, aggressive and downright nasty in their sales presentations compared to Marriott and Westin. Diamond just has an amazing reputation of being tough on people."[27]

Mike Flaskey, the company's current chief executive officer, spoke on Fox Business about how the company is shaking up its sales and marketing model to better meet traveler's desires.[32]

On December 23, 2016, Arizona Attorney General Mark Brnovich announced a settlement of $800,000 with Diamond Resorts over accusations that Diamond Resorts had violated the Arizona Consumer Fraud Act. Of the settlement funds, $650,000 were used for customer restitution.[10] Under the settlement, customers who had purchased timeshares in Arizona between January 1, 2011, and July 23, 2017, could be released from their timeshare, provided they gave a detailed description of deceptive statements or false promises made by Diamond Resorts employees during the sale.[33]

The Attorney General's website states that alleged misrepresentations were related to:[34]

  • The amounts maintenance fees could increase annually (in some cases up to 25% each year);
  • Consumers' ability to resell timeshares to the public;
  • The existence of Diamond buy-back programs;
  • Consumers' ability to rent out their timeshares for a profit; and
  • Discounts on other travel needs.
    — Attorney General Press Release

Similar programs

See also

References

  1. [1]
    "Diamond Resorts Holdings, LLC". businessweek.com. Archived from the original on June 10, 2013.
  2. [2]
    "DRII Board of Directors". diamondresorts.com. Archived from the original on 2015-03-09.
  3. [3]
    "Diamond Resorts International's CEO Discusses Q4 2013 Results - Earnings Call Transcript". www.nasdaq.com.
  4. [4]
    "Third Annual Diamond Resorts Invitational™ Reunites PGA Tour Champions Players, LPGA Stars, Sports/Entertainment Celebrities in Golf's Most Unique Competition, January 12–14". diamondresorts.com. 10 October 2017.
  5. [5]
    "Diamond Resorts Invitational Raises $570,000 for Florida Hospital for Children". diamondresorts.com. 1 March 2017.
  6. [6]
    Parker, John Holland, Stacy. "Diamond Resorts buys 6 resorts from Gold Key for $168 million". pilotonline.com. Retrieved 2019-12-05.{{cite web}}: CS1 maint: multiple names: authors list (link)
  7. [7]
    "Diamond Resorts Pledges to Match Donations Up to $1M for Victims of Las Vegas Massacre, Recent Hurricanes". Business Wire.
  8. [8]
    "Diamond Resorts International to Acquire Intrawest Resort Club Group". Business Wire.
  9. [9]
    Jarzemsky, Matt; Mattioli, Dana (29 June 2016). "Apollo Global to Buy Diamond Resorts for $2.2 Billion". The Wall Street Journal.
  10. [10]
    Anderson, Ryan. "Attorney General Brnovich Announces $800,000 Settlement with Diamond Resorts". Arizona Attorney General. State of Arizona. Retrieved 29 March 2018.
  11. [11]
    "Diamond Resorts Announces Senior Management Promotions". diamondresorts.com. 3 March 2017.
  12. [12]
    "Breaking from the Routine: Diamond Resorts Announces Brand Refresh". PR Newswire. Retrieved 1 February 2018.
  13. [13]
    "LPGA introducing Diamond Resorts Tournament of Champions as its season-opener in 2019 - Golf Channel". golfchannel.com.
  14. [14]
    "Diamond Resorts Tournament of Champions to Kick Off 2019 LPGA Season - LPGA - Ladies Professional Golf Association". lpga.com.
  15. [15]
    "Diamond Resorts Acquires Amber Vacation Club - Hotel Business". hotelbusiness.com. 4 April 2018.
  16. [16]
    Murar, Katie (19 April 2018). "Diamond Resorts closes purchase of The Modern, prepares to launch sales". Biz Journals. Retrieved 2019-12-05.
  17. [17]
    Clark, Patrick (10 January 2020). "Apollo's Diamond Resorts Enters Manhattan With Timeshare Deal". Bloomberg. Archived from the original on 2020-01-11. Retrieved 2020-05-14.
  18. [18]
    Hilton Grand Vacations to Acquire Diamond Resorts, Creating the Premier Leisure Operator With the Broadest Offering in the Vacation Ownership Industry PRESS RELEASE
  19. [19]
    Sperance, Cameron (19 July 2021). "How Hilton Grand Vacations Digests a $1.4 Billion Takeover Will Test Hot Timeshare Market". Skift. Retrieved 12 August 2021.
  20. [20]
    Leonard, Mike. "Hilton Grand Vacations Board Sued Over $1.4 Billion Diamond Deal". news.bloomberglaw.com. Retrieved 12 August 2021.
  21. [21]
    "Hilton Grand Vacations Completes Acquisition of Diamond Resorts". Retrieved 12 August 2021.
  22. [22]
    "Closing Release". Hilton Grand Vacations. Retrieved 12 August 2021.
  23. [23]
    "Undercover Boss Features Cloobeck of Diamond Resorts and Brand USA". uptake.com. Archived from the original on 2012-10-12. Retrieved 2012-01-16.
  24. [24]
    Undercover Boss. Diamond Resorts International: Stephen J. Cloobeck Archived 2012-01-18 at the Wayback Machine
  25. [25]
    Undercover Boss Season 3 Sneak Peak: Premiere Shares the Softer Side of Diamond Resorts International's Stephen Cloobeck Archived 2012-01-13 at the Wayback Machine
  26. [26]
    Hoium, Travis. "Why Diamond Resorts International Inc.'s Stock Plunged 11% Today". The Motley Fool. Retrieved 28 February 2016.
  27. [27]
    Morgenson, Gretchen. "The Timeshare Hard Sell Comes Roaring Back". The New York Times. Retrieved 28 February 2016.
  28. [28]
    O'Donnell, Jayne. "What smart buyers should know about time shares". USA Today. Retrieved 28 February 2016.
  29. [29]
    "Timeshares and Vacation Plans". Federal Trade Commission. Retrieved 28 February 2016.
  30. [30]
    "FORM 10-K". U.S. Securities and Exchange Commission. Retrieved 28 February 2016.
  31. [31]
    Penman, Andrew; Greenwood, Michael. "Diamond Resorts sends in debt collectors as the fee strike spreads". The Daily Mirror. Retrieved 28 February 2016.
  32. [32]
    "Lauren Alaina attracting millennials to Diamond Resorts' time share business". Fox Business. 15 May 2018.
  33. [33]
    Frank, BrieAnna. "Arizona settlement releases time-share owners from contracts with Diamond Resorts". The Arizona Republic. Retrieved 29 March 2018.
  34. [34]
    Garcia, Mia. "Deadline to Get Out of Timeshare Agreement Approaching". Arizona Attorney General. State of Arizona. Retrieved 29 March 2018.
Share this article:

This article uses material from the Wikipedia article Diamond_Resorts, and is written by contributors. Text is available under a CC BY-SA 4.0 International License; additional terms may apply. Images, videos and audio are available under their respective licenses.