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TIMESHARE FINANCING RECEIVABLES | 3 Months Ended
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Mar. 31, 2026
Receivables [Abstract] |
TIMESHARE FINANCING RECEIVABLES | TIMESHARE FINANCING RECEIVABLES We define our timeshare financing receivables portfolio as (i) originated and (ii) acquired. Our originated portfolio represents timeshare financing receivables that originated by the business that we acquired from Diamond Resorts International (“Diamond”), the business that we acquired from BRE Grand Islander Parent LLC (“Grand Islander”), and the business that we acquired from Bluegreen subsequent to each respective acquisition date and all HGV timeshare financing receivables. Our acquired portfolio includes all timeshare financing receivables acquired from Diamond (“Legacy-Diamond”), Grand Islander (“Legacy-Grand Islander”) and Bluegreen (“Legacy-Bluegreen”) that existed as of the respective acquisition dates. The following table presents the components of each portfolio by class of timeshare financing receivables:
| Originated |  | Acquired
($ in millions) | March 31, 2026 |  | December 31, 2025 |  | March 31, 2026 |  | December 31, 2025
Securitized | $ | 1,564 |  |  | $ | 1,734 |  |  | $ | 339 |  |  | $ | 373 |
Unsecuritized(1) | 2,200 |  |  | 1,931 |  |  | 255 |  |  | 276 |
Timeshare financing receivables, gross | 3,764 |  |  | 3,665 |  |  | 594 |  |  | 649 |
Unamortized non-credit acquisition premium | — |  |  | — |  |  | 32 |  |  | 34 |
Less: allowance for financing receivables losses | (1,116) |  |  | (1,078) |  |  | (144) |  |  | (155) |
Timeshare financing receivables, net | $ | 2,648 |  |  | $ | 2,587 |  |  | $ | 482 |  |  | $ | 528 |
(1)Includes amounts used as collateral to secure a non-recourse revolving timeshare receivable credit facility (“Timeshare Facility”) as well as amounts held as future collateral for securitization activities. As of March 31, 2026 and December 31, 2025, we had timeshare financing receivables of $945 million and $710 million securing the Timeshare Facility. We recognize interest income on our timeshare financing receivables as earned. As of March 31, 2026 and December 31, 2025, we had interest receivable outstanding of $26 million for both periods on our originated timeshare financing receivables. As of March 31, 2026 and December 31, 2025, we had interest receivable outstanding of $4 million for both periods on our acquired timeshare financing receivables. Interest receivable is included in Other Assets within our condensed consolidated balance sheets. The interest rate charged on the notes correlates to the risk profile of the customer at the time of purchase and the percentage of the purchase that is financed, among other factors. As of March 31, 2026, our originated timeshare financing receivables had interest rates ranging from 1.5% to 25.8%, a weighted-average interest rate of 14.5%, a weighted-average remaining term of 9.0 years and maturities through 2041. Our acquired timeshare financing receivables had interest rates ranging from 2.0% to 25.0%, a weighted-average interest rate of 15.1%, a weighted-average remaining term of 5.9 years and maturities through 2036. We apply payments we receive for loans, including those in non-accrual status, to amounts due in the following order: servicing fees; interest; principal; and late charges. Once a loan is 91 days past due, we cease accruing interest and reverse the accrued interest recognized up to that point. We resume interest accrual for loans for which we had previously ceased accruing interest once the loan is less than 91 days past due. We fully reserve for a timeshare financing receivable in the month following the date that the loan is 121 days past due and, subsequently, we write off the uncollectible note against the reserve once the foreclosure process, which is governed by product type and local law, is complete. Allowance for Financing Receivables Losses For our originated portfolio, we record an estimate of variable consideration for defaults as a reduction of revenue from financed VOI sales at the time revenue is recognized. We record the difference between the timeshare financing receivable and the variable consideration included in the transaction price for the sale of the related VOI as an allowance for financing receivables and record the receivable net of the allowance. For our acquired portfolio, any changes to the estimates of our allowance are recorded within Financing expense on our unaudited condensed consolidated statements of income in the period in which the change occurs. The changes in our allowance for financing receivables losses were as follows:
($ in millions) | Originated |  | Acquired
Balance as of December 31, 2025 | $ | 1,078 |  |  | $ | 155 |
Provision for financing receivables losses(1) | 90 |  |  | — |
Write-offs | (55) |  |  | (15) |
Inventory recoveries | — |  |  | 7 |
Upgrades(2) | 3 |  |  | (3) |
Balance as of March 31, 2026 | $ | 1,116 |  |  | $ | 144 |
($ in millions) | Originated |  | Acquired
Balance as of December 31, 2024 | $ | 804 |  |  | $ | 268 |
Provision for financing receivables losses(1) | 72 |  |  | 7 |
Write-offs | (20) |  |  | (63) |
Inventory recoveries | — |  |  | 29 |
Upgrades(2) | 9 |  |  | (9) |
Balance as of March 31, 2025 | $ | 865 |  |  | $ | 232 |
(1)For the Originated portfolio, this amount includes incremental provision for financing receivables losses, net of activity related to the repurchase of defaulted and upgraded timeshare financing receivables. For the Acquired portfolio, this amount includes incremental provision for credit loss expense from Acquired loans. (2)Represents the initial change in allowance resulting from upgrades of Acquired receivables. Upgraded Acquired receivables and their related allowance are included in the Originated portfolio. Originated Timeshare Financing Receivables Our originated timeshare financing receivables as of March 31, 2026 mature as follows:
| Originated Timeshare Financing Receivables
($ in millions) | Securitized |  | Unsecuritized |  | Total
Year |  |  |  |  |
2026 (remaining) | $ | 99 |  |  | $ | 108 |  |  | $ | 207 |
2027 | 142 |  |  | 151 |  |  | 293 |
2028 | 153 |  |  | 166 |  |  | 319 |
2029 | 164 |  |  | 183 |  |  | 347 |
2030 | 177 |  |  | 204 |  |  | 381 |
Thereafter | 829 |  |  | 1,388 |  |  | 2,217 |
Total | $ | 1,564 |  |  | $ | 2,200 |  |  | $ | 3,764 |
Acquired Timeshare Financing Receivables with Credit Deterioration Our acquired timeshare financing receivables were deemed to be purchased credit deteriorated (“PCD”) assets. These notes receivable were initially recognized at their purchase price, represented by the acquisition date fair value, and subsequently “grossed-up” by our acquisition date assessment of the allowance for credit losses. The difference over which par value of the acquired PCD assets exceeds the purchase price plus the initial allowance for financing receivable losses is reflected as a non-credit premium and is amortized as a reduction to interest income under the effective interest method. The fair value of our acquired timeshare financing receivables as of each respective acquisition date was determined using a discounted cash flow method, which calculated a present value of expected future risk-adjusted cash flows over the remaining term of the respective timeshare financing receivables. Consequently, the fair value of the acquired timeshare financing receivables recorded on our unaudited condensed consolidated balance sheet as of the respective acquisition date included an estimate of expected financing receivable losses which became the historical cost basis for that portfolio going forward. The allowance for financing receivable losses for our acquired timeshare financing receivables is remeasured at each period end and takes into consideration an estimated measure of anticipated defaults and early repayments. We consider historical timeshare financing receivables performance and the current economic environment in the re-measurement of the allowance for financing receivable losses for our acquired timeshare financing receivables. Subsequent changes to the allowance for acquired financing receivable losses are recorded within Financing expense on our unaudited condensed consolidated statements of income in the period in which the change occurs. Our acquired timeshare financing receivables as of March 31, 2026 mature as follows:
| Acquired Timeshare Financing Receivables
($ in millions) | Securitized |  | Unsecuritized |  | Total
Year |  |  |  |  |
2026 (remaining) | $ | 44 |  |  | $ | 25 |  |  | $ | 69 |
2027 | 60 |  |  | 34 |  |  | 94 |
2028 | 56 |  |  | 36 |  |  | 92 |
2029 | 50 |  |  | 36 |  |  | 86 |
2030 | 44 |  |  | 33 |  |  | 77 |
Thereafter | 85 |  |  | 91 |  |  | 176 |
Total | $ | 339 |  |  | $ | 255 |  |  | $ | 594 |
Credit Quality of Timeshare Financing Receivables We evaluate each portfolio collectively for purposes of estimating variable consideration, since each holds a large group of homogeneous timeshare financing receivables which are individually immaterial. We monitor the collectability of our receivables on an ongoing basis. There are no significant concentrations of credit risk with any individual counterparty or groups of counterparties. We use a technique referred to as static pool analysis as the basis for estimating expected defaults and determining our allowance for financing receivables losses on our timeshare financing receivables. The static pool analysis includes several years of default data through which we stratify our portfolio using certain key dimensions such as FICO scores and equity percentage at the time of sale. The adequacy of the related allowance is determined by management through analysis of the specific risk characteristics of the portfolio including assumed default rates, aging and historical write-offs of these receivables. Originated Timeshare Financing Receivables Our originated gross balances by FICO score of our originated timeshare financing receivables are below:
| Originated
| March 31, 2026
($ in millions) | HGV |  | Diamond |  | Grand Islander |  | Bluegreen |  | Total
FICO score(1) |  |  |  |  |  |  |  |  |
700+ | $ | 1,150 |  |  | $ | 724 |  |  | $ | 51 |  |  | $ | 625 |  |  | $ | 2,550 |
600-699 | 293 |  |  | 292 |  |  | 9 |  |  | 189 |  |  | 783 |
<600 | 32 |  |  | 33 |  |  | 1 |  |  | 15 |  |  | 81 |
No score(2) | 279 |  |  | 24 |  |  | 42 |  |  | 5 |  |  | 350 |
Total | $ | 1,754 |  |  | $ | 1,073 |  |  | $ | 103 |  |  | $ | 834 |  |  | $ | 3,764 |
| Originated
| December 31, 2025
($ in millions) | HGV |  | Diamond |  | Grand Islander |  | Bluegreen |  | Total
FICO score(1) |  |  |  |  |  |  |  |  |
700+ | $ | 1,162 |  |  | $ | 691 |  |  | $ | 46 |  |  | $ | 593 |  |  | $ | 2,492 |
600-699 | 297 |  |  | 275 |  |  | 8 |  |  | 176 |  |  | 756 |
<600 | 32 |  |  | 29 |  |  | 1 |  |  | 12 |  |  | 74 |
No score(2) | 279 |  |  | 23 |  |  | 37 |  |  | 4 |  |  | 343 |
Total | $ | 1,770 |  |  | $ | 1,018 |  |  | $ | 92 |  |  | $ | 785 |  |  | $ | 3,665 |
(1)During the first quarter of 2026, we updated our credit quality indicator disclosures to the use of a single FICO score from average FICO score, which is reflected in the tables above. (2)Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. The following table details our gross originated timeshare financing receivables by the origination year and FICO score as of March 31, 2026:
| Originated Timeshare Financing Receivables
($ in millions) | 2026 |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | Prior |  | Total
FICO score |  |  |  |  |  |  |  |  |  |  |  |  |
700+ | $ | 343 |  |  | $ | 1,096 |  |  | $ | 559 |  |  | $ | 239 |  |  | $ | 172 |  |  | $ | 141 |  |  | $ | 2,550 |
600-699 | 91 |  |  | 322 |  |  | 186 |  |  | 84 |  |  | 57 |  |  | 43 |  |  | 783 |
<600 | 13 |  |  | 34 |  |  | 14 |  |  | 9 |  |  | 6 |  |  | 5 |  |  | 81 |
No score(1) | 43 |  |  | 132 |  |  | 91 |  |  | 36 |  |  | 18 |  |  | 30 |  |  | 350 |
Total | $ | 490 |  |  | $ | 1,584 |  |  | $ | 850 |  |  | $ | 368 |  |  | $ | 253 |  |  | $ | 219 |  |  | $ | 3,764 |
Current period gross write-offs | $ | — |  |  | $ | 1 |  |  | $ | 6 |  |  | $ | 19 |  |  | $ | 15 |  |  | $ | 14 |  |  | $ | 55 |
(1)Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. As of March 31, 2026 and December 31, 2025, we had ceased accruing interest on originated timeshare financing receivables with an aggregate principal balance of $462 million and $430 million. The following tables detail an aged analysis of our gross timeshare receivables balance:
| Originated - Securitized
| March 31, 2026
($ in millions) | HGV |  | Diamond |  | Grand Islander |  | Bluegreen |  | Total
Current | $ | 756 |  |  | $ | 431 |  |  | $ | 13 |  |  | $ | 281 |  |  | $ | 1,481 |
31 - 90 days past due | 20 |  |  | 19 |  |  | 1 |  |  | 13 |  |  | 53 |
91 - 120 days past due | 7 |  |  | 6 |  |  | — |  |  | 4 |  |  | 17 |
121 days and greater past due | 6 |  |  | 1 |  |  | 1 |  |  | 5 |  |  | 13 |
Total | $ | 789 |  |  | $ | 457 |  |  | $ | 15 |  |  | $ | 303 |  |  | $ | 1,564 |
| Originated - Unsecuritized
| March 31, 2026
($ in millions) | HGV |  | Diamond |  | Grand Islander |  | Bluegreen |  | Total
Current | $ | 752 |  |  | $ | 432 |  |  | $ | 80 |  |  | $ | 453 |  |  | $ | 1,717 |
31 - 90 days past due | 18 |  |  | 18 |  |  | 1 |  |  | 14 |  |  | 51 |
91 - 120 days past due | 6 |  |  | 7 |  |  | 1 |  |  | 6 |  |  | 20 |
121 days and greater past due | 189 |  |  | 159 |  |  | 6 |  |  | 58 |  |  | 412 |
Total | $ | 965 |  |  | $ | 616 |  |  | $ | 88 |  |  | $ | 531 |  |  | $ | 2,200 |
| Originated - Securitized
| December 31, 2025
($ in millions) | HGV |  | Diamond |  | Grand Islander |  | Bluegreen |  | Total
Current | $ | 860 |  |  | $ | 478 |  |  | $ | 16 |  |  | $ | 313 |  |  | $ | 1,667 |
31 - 90 days past due | 18 |  |  | 15 |  |  | 1 |  |  | 11 |  |  | 45 |
91 - 120 days past due | 7 |  |  | 5 |  |  | — |  |  | 4 |  |  | 16 |
121 days and greater past due | 5 |  |  | 1 |  |  | — |  |  | — |  |  | 6 |
Total | $ | 890 |  |  | $ | 499 |  |  | $ | 17 |  |  | $ | 328 |  |  | $ | 1,734 |
| Originated - Unsecuritized
| December 31, 2025
($ in millions) | HGV |  | Diamond |  | Grand Islander |  | Bluegreen |  | Total
Current | $ | 655 |  |  | $ | 357 |  |  | $ | 68 |  |  | $ | 402 |  |  | $ | 1,482 |
31 - 90 days past due | 14 |  |  | 14 |  |  | 2 |  |  | 11 |  |  | 41 |
91 - 120 days past due | 5 |  |  | 6 |  |  | — |  |  | 5 |  |  | 16 |
121 days and greater past due | 206 |  |  | 142 |  |  | 5 |  |  | 39 |  |  | 392 |
Total | $ | 880 |  |  | $ | 519 |  |  | $ | 75 |  |  | $ | 457 |  |  | $ | 1,931 |
Acquired Timeshare Financing Receivables Our gross balances by FICO score of our acquired timeshare financing receivables are below:
| Acquired
| March 31, 2026
($ in millions) | Legacy-Diamond |  | Legacy-Grand Islander |  | Legacy-Bluegreen |  | Total
FICO score(1) |  |  |  |  |  |  |
700+ | $ | 92 |  |  | $ | 26 |  |  | $ | 217 |  |  | $ | 335 |
600-699 | 49 |  |  | 6 |  |  | 121 |  |  | 176 |
<600 | 8 |  |  | — |  |  | 5 |  |  | 13 |
No score(2) | 1 |  |  | 68 |  |  | 1 |  |  | 70 |
Total | $ | 150 |  |  | $ | 100 |  |  | $ | 344 |  |  | $ | 594 |
| Acquired
| December 31, 2025
($ in millions) | Legacy-Diamond |  | Legacy-Grand Islander |  | Legacy-Bluegreen |  | Total
FICO score(1) |  |  |  |  |  |  |
700+ | $ | 99 |  |  | $ | 32 |  |  | $ | 235 |  |  | $ | 366 |
600-699 | 52 |  |  | 7 |  |  | 128 |  |  | 187 |
<600 | 7 |  |  | — |  |  | 5 |  |  | 12 |
No score(2) | 1 |  |  | 81 |  |  | 2 |  |  | 84 |
Total | $ | 159 |  |  | $ | 120 |  |  | $ | 370 |  |  | $ | 649 |
(1)During the first quarter of 2026, we updated our credit quality indicator disclosures to the use of a single FICO score from average FICO score, which is reflected in the tables above. (2)Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. The following tables detail our gross acquired timeshare financing receivables by the origination year and FICO score as of March 31, 2026:
| Acquired Timeshare Financing Receivables
($ in millions) | 2026 |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | Prior |  | Total
FICO score |  |  |  |  |  |  |  |  |  |  |  |  |
700+ | $ | — |  |  | $ | — |  |  | $ | 7 |  |  | $ | 114 |  |  | $ | 77 |  |  | $ | 137 |  |  | $ | 335 |
600-699 | — |  |  | — |  |  | 3 |  |  | 50 |  |  | 42 |  |  | 81 |  |  | 176 |
<600 | — |  |  | — |  |  | — |  |  | 1 |  |  | 2 |  |  | 10 |  |  | 13 |
No score(1) | — |  |  | — |  |  | — |  |  | 17 |  |  | 12 |  |  | 41 |  |  | 70 |
Total | $ | — |  |  | $ | — |  |  | $ | 10 |  |  | $ | 182 |  |  | $ | 133 |  |  | $ | 269 |  |  | $ | 594 |
Current period gross write-offs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 5 |  |  | $ | 3 |  |  | $ | 7 |  |  | $ | 15 |
(1)Timeshare financing receivables without a FICO score are primarily related to foreign borrowers. As of March 31, 2026 and December 31, 2025, we had ceased accruing interest on acquired timeshare financing receivables with an aggregate principal balance of $153 million and $152 million. The following tables detail an aged analysis of our gross timeshare receivables balance:
| Acquired - Securitized
| March 31, 2026
($ in millions) | Legacy-Diamond |  | Legacy-Grand Islander |  | Legacy-Bluegreen |  | Total
Current | $ | 51 |  |  | $ | 60 |  |  | $ | 213 |  |  | $ | 324 |
31 - 90 days past due | 2 |  |  | — |  |  | 7 |  |  | 9 |
91 - 120 days past due | 1 |  |  | — |  |  | 4 |  |  | 5 |
121 days and greater past due | — |  |  | — |  |  | 1 |  |  | 1 |
Total | $ | 54 |  |  | $ | 60 |  |  | $ | 225 |  |  | $ | 339 |
| Acquired - Unsecuritized
| March 31, 2026
($ in millions) | Legacy-Diamond |  | Legacy-Grand Islander |  | Legacy-Bluegreen |  | Total
Current | $ | 24 |  |  | $ | 27 |  |  | $ | 52 |  |  | $ | 103 |
31 - 90 days past due | 2 |  |  | 1 |  |  | 2 |  |  | 5 |
91 - 120 days past due | — |  |  | — |  |  | 1 |  |  | 1 |
121 days and greater past due | 70 |  |  | 12 |  |  | 64 |  |  | 146 |
Total | $ | 96 |  |  | $ | 40 |  |  | $ | 119 |  |  | $ | 255 |
| Acquired - Securitized
| December 31, 2025
($ in millions) | Legacy-Diamond |  | Legacy-Grand Islander |  | Legacy-Bluegreen |  | Total
Current | $ | 49 |  |  | $ | 66 |  |  | $ | 242 |  |  | $ | 357 |
31 - 90 days past due | 1 |  |  | — |  |  | 8 |  |  | 9 |
91 - 120 days past due | — |  |  | — |  |  | 6 |  |  | 6 |
121 days and greater past due | 1 |  |  | — |  |  | — |  |  | 1 |
Total | $ | 51 |  |  | $ | 66 |  |  | $ | 256 |  |  | $ | 373 |
| Acquired - Unsecuritized
| December 31, 2025
($ in millions) | Legacy-Diamond |  | Legacy-Grand Islander |  | Legacy-Bluegreen |  | Total
Current | $ | 36 |  |  | $ | 31 |  |  | $ | 58 |  |  | $ | 125 |
31 - 90 days past due | 2 |  |  | 1 |  |  | 3 |  |  | 6 |
91 - 120 days past due | 1 |  |  | — |  |  | 1 |  |  | 2 |
121 days and greater past due | 69 |  |  | 22 |  |  | 52 |  |  | 143 |
Total | $ | 108 |  |  | $ | 54 |  |  | $ | 114 |  |  | $ | 276 |

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