LAS VEGAS–August 17, 2015–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.
