Travel + Leisure Acquires Vacation Resorts for $343M

Travel + Leisure Co. is significantly bolstering its vacation ownership footprint through a dual acquisition strategy, agreeing to purchase Yes& Vacations and Spinnaker Resorts for a combined upfront sum of $343 million. This move is designed to inject high-quality resort inventory into sought-after leisure markets, particularly those where new construction is challenging, such as Maui and Hilton Head Island.

The transaction, which includes up to an additional $10 million in performance-based incentives, is expected to see the Spinnaker Resorts deal finalized by the third quarter of 2026. Travel + Leisure Co. is financing these acquisitions using a combination of cash reserves and its existing debt facilities. The company anticipates maintaining a leverage ratio of approximately 3.2x by year-end, while continuing its share repurchase program at levels consistent with 2025.

Collectively, these acquisitions will integrate 23 new resorts and welcome over 100,000 new vacation ownership members into the Travel + Leisure Co. network, representing a more than 10% expansion of its owner base. Yes& Vacations brings seven properties in Maui and a distinctive island-themed resort on the Las Vegas Strip. Spinnaker Resorts will contribute six properties in Hilton Head, South Carolina, alongside locations in Ormond Beach, Florida; Branson, Missouri; and Williamsburg, Virginia, adding popular drive-to destinations that align with the company's strategic growth objectives.

The net capital outlay is projected to be around $263 million, after accounting for the securitization of approximately $80 million in consumer financing receivables. These acquisitions are projected to be immediately accretive to Adjusted EBITDA, Adjusted Diluted Earnings Per Share, and Adjusted Free Cash Flow, contributing an estimated $50 million in Adjusted EBITDA on a full-year basis, inclusive of anticipated synergies. This financial performance underscores the strategic value derived from expanding the recurring revenue streams generated by management fees and consumer financing.

The core strategic driver behind these acquisitions is to secure prime vacation inventory in desirable leisure locales, thereby enhancing the Travel + Leisure Co. ecosystem. By expanding its owner base, the company anticipates increased opportunities for owner monetization, receivables optimization, and incremental vacation purchases across its diverse portfolio, which includes brands like Club Wyndham, WorldMark, RCI, Sports Illustrated Resorts, Eddie Bauer Adventure Club, Margaritaville Vacation Club, and Accor Vacation Club. Michael D. Brown, President and CEO of Travel + Leisure Co., highlighted the expansion into premier destinations and the creation of meaningful revenue opportunities. Erik Hoag, CFO, emphasized the capital allocation strategy focused on long-term returns and shareholder value.

PJT Partners served as the exclusive financial advisor to Travel + Leisure Co., while BofA Securities advised Yes& Companies, and J.P. Morgan advised Spinnaker Resorts. The integration of Yes& Vacations, as noted by its CEO Anthony Twist, is expected to unlock significant opportunities for its people, owners, and resorts, leveraging Travel + Leisure Co.'s scale and expertise in the vacation ownership sector.