Hilton Grand Vacations Inc.HGV
Hilton Grand Vacations Inc. Revenue Disclosure
REVENUE FROM CONTRACTS WITH CUSTOMERS
Disaggregation of Revenue
The following tables show our disaggregated revenues by product and segment from contracts with customers. We operate our business in the following two reportable segments: (i) Real estate sales and financing and (ii) Resort operations and club management. See Note 22: Business Segments for more information related to our segments.
| ($ in millions) | Year Ended December 31, | ||||||||||||||||
| Real Estate Sales and Financing Segment | 2025 | 2024 | 2023 | ||||||||||||||
| Sales of VOIs, net | $ | 1,812 | $ | 1,909 | $ | 1,416 | |||||||||||
Fee-for-service commissions, package sales and other fees | 664 | 637 | 634 | ||||||||||||||
| Interest income | 473 | 425 | 273 | ||||||||||||||
| Other financing revenue | 40 | 39 | 34 | ||||||||||||||
| Real estate sales and financing segment revenues | $ | 2,989 | $ | 3,010 | $ | 2,357 | |||||||||||
| ($ in millions) | Year Ended December 31, | ||||||||||||||||
| Resort Operations and Club Management Segment | 2025 | 2024 | 2023 | ||||||||||||||
| Club management | $ | 321 | $ | 303 | $ | 240 | |||||||||||
| Resort management | 457 | 419 | 329 | ||||||||||||||
Rental(1) | 692 | 682 | 623 | ||||||||||||||
| Ancillary services | 54 | 51 | 43 | ||||||||||||||
| Resort operations and club management segment revenues | $ | 1,524 | $ | 1,455 | $ | 1,235 | |||||||||||
(1)Excludes intersegment eliminations. See Note 22: Business Segments for additional information.
Receivables from Contracts with Customers and Contract Liabilities
Our accounts receivable that relates to our contracts with customers includes amounts associated with our contractual right to consideration for completed performance obligations and are settled when the related cash is received. Accounts receivable are recorded when the right to consideration becomes unconditional and is only contingent on the passage of time. Our timeshare financing receivables consist of loans related to our financing of VOI sales that are secured by the underlying timeshare properties. See Note 7: Timeshare financing receivables for additional information.
The following table provides information on our contracts with customers which are included in Accounts Receivable, net and Timeshare financing receivables, net on our consolidated balance sheets:
| ($ in millions) | December 31, | ||||||||||
Receivables from contracts with customers: | 2025 | 2024 | |||||||||
| Accounts receivable, net | $ | 200 | $ | 219 | |||||||
Timeshare financing receivables, net(1) | 3,115 | 3,006 | |||||||||
Total | $ | 3,315 | $ | 3,225 | |||||||
(1) Includes $528 million and $878 million of acquired timeshare financing receivables, net, as of December 31, 2025 and 2024.
Contract liabilities include payments received or due in advance of satisfying our performance obligations. Such contract liabilities include advance deposits received on prepaid vacation packages for future stays at our resorts, deferred revenues related to sales of VOIs of projects under construction, Club activation fees and annual dues, the liability for bonus points awarded to our customers for purchase of VOIs at our properties or properties under our fee-for-service arrangements that may be redeemed in the future and other deferred revenue.
The following table presents the composition of our contract liabilities:
| ($ in millions) | December 31, | ||||||||||
| Contract liabilities: | 2025 | 2024 | |||||||||
| Advanced deposits | $ | 228 | $ | 226 | |||||||
| Deferred sales of VOIs of projects under construction | 460 | 92 | |||||||||
Club activation fees and annual dues | 74 | 70 | |||||||||
Bonus Point incentive liability(1) | 113 | 104 | |||||||||
Other | 42 | 38 | |||||||||
(1)This balance includes $52 million of bonus point incentive liabilities included in Accounts payable, accrued expenses and other on our consolidated balance sheets as of both December 31, 2025 and 2024. This liability is for incentives from VOI sales and sales and marketing expenses in conjunction with our fee-for-service arrangements.
Revenue earned for the year ended December 31, 2025, that was included in the contract liabilities balance at December 31, 2024 was $242 million. Revenue earned for the year ended December 31, 2024, that was included in the contract liabilities balance at December 31, 2023 was $194 million.
Transaction Price Allocated to Remaining Performance Obligations
Transaction price allocated to remaining performance obligations represents contract revenue that has not yet been recognized.
Deferred VOI sales primarily include the deferred revenues of sales associated with projects under construction. The following table presents the deferred revenue, deferred cost of VOI sales and deferred direct selling costs from sales of VOIs related to projects under construction:
December 31, | ||||||||||||||
| ($ in millions) | 2025 | 2024 | ||||||||||||
| Sales of VOIs, net | $ | 460 | $ | 92 | ||||||||||
| Cost of VOI sales | 133 | 28 | ||||||||||||
| Sales and marketing expense | 74 | 13 | ||||||||||||
During the year ended December 31, 2025, we deferred $368 million of Sales of VOI, net related to projects under construction. We expect to recognize the revenue, costs of VOI sales and direct selling costs related to the projects under construction as of December 31, 2025, upon their completion in 2026.
The following table includes the remaining transaction price related to our contract liabilities as of December 31, 2025:
| ($ in millions) | Remaining Transaction Price | Recognition Period | Recognition Method | |||||||||||||||||
| Advanced deposits | $ | 228 | 18 months | Upon customer stays | ||||||||||||||||
| Club activation fees | 73 | 7 years | Straight-line basis over average inventory holding period | |||||||||||||||||
Bonus Points incentive liability | 113 | 18 - 30 months | Upon redemption | |||||||||||||||||
Annual club dues | 1 | 1 year | Straight-line basis | |||||||||||||||||
Other | 42 | 1 year | Straight-line basis | |||||||||||||||||
Revenue allocated to remaining performance obligations for HOA management fees, which includes unearned revenue and amounts expected to be invoiced and recognized as revenue over the next 12 months, was $306 million as of December 31, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 1, 2018 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.