Diamond Resorts
| File:Diamond Resorts logo.png | |
| Company type | Subsidiary |
|---|---|
| Industry | Vacation ownership, timeshare |
| Founded | 1992 |
| Founder | Stephen J. Cloobeck |
| Headquarters | Las Vegas, Nevada, U.S. |
Number of locations | 56 resorts (several rebranded under Hilton brands) |
Area served | Worldwide |
Key people | Michael Flaskey (CEO) |
| Products | Vacation ownership, timeshare |
| Revenue | $230.7 million (EBITDA, 2013) |
| Parent | Hilton Grand Vacations |
| Website | diamondresorts |
Diamond Resorts operates as a fully owned subsidiary of Hilton Grand Vacations. Once an independent entity until its acquisition by HGV in 2021, many of Diamond’s resorts have since been integrated into Hilton Vacation Club branding, although some continue to carry the Diamond name.
History
The company launched the Diamond Resorts Invitational golf event in 2013, successfully raising more than $3.1 million for Florida Hospital for Children. In 2018, it introduced the Diamond Resorts Tournament of Champions, which became an official event on the LPGA tour.
In October 2015, Diamond expanded by acquiring Gold Key Resorts for $167.5 million, incorporating six vacation ownership properties located in Virginia Beach and the Outer Banks. That same year, through its foundation, it committed to matching donations up to $1 million to support Hurricane Irma relief efforts.
Later in 2015, Diamond further grew by purchasing the Intrawest Resort Club Group, adding nine resorts and approximately 22,000 members under the rebranded Embarc Resorts name.
Apollo Global Management completed its acquisition of Diamond Resorts for $2.2 billion in June 2016.
In December 2016, Diamond resolved an $800,000 dispute with Arizona regulators concerning sales practices; this settlement allowed customers affected by these practices to surrender their timeshares.
Michael Flaskey assumed the role of CEO in March 2017.
By January 2018, the company updated its branding by removing "International" from its corporate name.
Diamond continued its expansion through acquisitions such as Amber Vacation Club in March 2018—adding resorts in Tennessee and Florida—and The Modern Honolulu boutique hotel in April 2018.
In January 2020, the company collaborated with Highgate to lease units at two properties located in New York City.
Apollo agreed to divest Diamond Resorts to Hilton Grand Vacations for $1.4 billion in March 2021; this transaction was finalized on August 2, 2021. The deal enhanced Hilton's presence and market share within the global vacation ownership sector.
Undercover Boss
Founder and CEO Stephen J. Cloobeck appeared on the premiere episode of the fourth season of the American reality series Undercover Boss aired on January 15, 2012. This marked a unique occurrence as Cloobeck became the first executive featured twice on the program, demonstrating his strategic leadership and dedication to gaining insight into frontline operations.
Properties
Villas de Santa Fe Santa Fe Beachwoods Resort Kitty Hawk Fairway Forest Resort Sapphire Sunrise Ridge Resort Pigeon Forge Cedar Breaks Lodge & Spa Brian Head Beach Quarters Resort Virginia Beach Boardwalk Resort and Villas Virginia Beach Greensprings Vacation resort Williamsburg Turtle Cay Resort Virginia Beach |}| Property | Location |
|---|---|
| Bell Rock Inn | Sedona, Arizona |
| Kohls Ranch Lodge | Payson, Arizona |
| Los Abrigados Resort & Spa | Sedona, Arizona |
| PVC at The Roundhouse Resort | Pinetop, Arizona |
| Varsity Clubs of America - Tucson | Tucson, Arizona |
| Desert Isle of Palm Springs | Palm Springs, California |
| Palm Canyon Resort | Palm Springs, California |
| Rivera Beach Resort | Capistrano Beach, California |
| Rivera Oaks Resort & Racquet Club | Ramona, California |
| Rivera Shores Resort | Capistrano Beach, California |
| The Historic Crags Lodge | Estes Park, Colorado |
| Alhambra Villas | Kissimmee, Florida |
| Barefoot'n Resort | Kissimmee, Florida |
| Bryan's Spanish Cove | Orlando, Florida |
| Charter Club resort of Naples Bay | Naples, Florida |
| Cypress Pointe Resort | Orlando, Florida |
| Grand Beach | Orlando, Florida |
| Liki Tiki Village | Winter Garden, Florida |
| Orbit One Vacation Villas | Kissimmee, Florida |
| Parkway International Resort | Kissimmee, Florida |
| Polynesian Isles Resort | Kissimmee, Florida |
| Varsity Clubs of America - South Bend | Mishawaka, Indiana |
| 'The Suites at Fall Creek' |
| Property !Location |
|---|
Sales strategies
Diamond Resorts has been scrutinized for employing assertive sales techniques designed to finalize agreements and increase fee revenues. Members of the club are responsible for paying yearly maintenance charges, which include management fees determined by Diamond Resorts—fees that the FTC cautions are prone to annual hikes. According to the company's 2014 SEC disclosure, membership termination is generally not permitted unless state legislation offers specific protections. Comparisons with competitors such as Marriott and Westin suggest that Diamond Resorts utilizes more forceful sales methods.
Industry commentator and timeshare owner Jeff Weir characterized Diamond's sales presentations as particularly forceful. In reaction, CEO Mike Flaskey has highlighted initiatives aimed at overhauling the company’s sales and marketing approach to better meet traveler expectations and stimulate business expansion.
Legal challenges
In December 2016, Arizona Attorney General Mark Brnovich reached an $800,000 settlement with Diamond Resorts concerning alleged breaches of the Arizona Consumer Fraud Act. Of this sum, $650,000 was designated for customer reimbursements. The agreement permitted Arizona timeshare purchasers from 2011 through 2017 to rescind contracts if they could demonstrate deceptive sales conduct by Diamond Resorts representatives.
The accusations centered on misleading claims about maintenance fee escalations (reportedly up to 25% annually), limitations on resale options, buy-back schemes, rental availability, and travel discount offers.
Comparable programs
- Bluegreen Corporation
- Disney Vacation Club
- Hilton Grand Vacations Company
- Marriott Vacation Club International
- Westgate Resorts
- WorldMark by Wyndham
- Wyndham Vacation Resorts Asia-Pacific
See also
External links
- Pages with broken file links
- Timeshare chains
- Hospitality companies established in 1992
- Hospitality companies of the United States
- Companies formerly listed on the New York Stock Exchange
- Companies based in Las Vegas
- American companies established in 1992
- 2021 mergers and acquisitions
- 5
- Companies of the United States by year of establishment