Financial Analysis

ACQUISITION On April 29, 2026 (Elara Acquisition Date), we completed the acquisition of the remaining 75% ownership interest in BRE Ace LLC (Elara), which owns the Elara timeshare resort, from BRE Ace Holdings LLC (the Elara Acquisition) for a total cash consideration of $131 million of which $3 million was accrued for within Accounts payable, accrued expenses and other as of June 30, 2026. The transaction resulted in a controlling 100% ownership interest in Elara. Costs related to the Elara Acquisition for the three and six months ended June 30, 2026 were $2 million, which were expensed as incurred, and reflected as Acquisition and integration-related expense in our unaudited condensed consolidated statements of income. The Elara Acquisition expands our resort portfolio and increases our timeshare financing receivable base. Prior to obtaining a controlling financial interest, we accounted for our 25% investment in Elara as an equity method investment. In accordance with the accounting for step-acquisitions, we recognized a loss of $1 million which was included in Other gain (loss), net in our unaudited condensed consolidated statements of income for the three and six months ended June 30, 2026. The acquisition-date fair value of the previously held interest was based upon the grossed-up value of the cash consideration for the incremental 75% interest. The following table presents the preliminary fair value of each class of consideration transferred in relation to the Elara A …

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COMMITMENTS AND CONTINGENCIES Bass Pro Shops Marketing Agreement Commitments In November 2023, we entered into a 10-year exclusive marketing agreement with Bass Pro Shops (Bass Pro), a nationally-recognized retailer of fishing, marine, hunting, camping and sports gear, that provides us with the right to market and sell vacation packages at kiosks in Bass Pros and Cabelas retail locations and through other means. This agreement became effective on the Bluegreen Acquisition Date. As a part of this agreement, we are required to make certain minimum annual payments and certain variable payments based upon the number of travel packages sold during the year or the number of Bass Pro and Cabelas retail locations HGV maintains during the year. As of June 30, 2026, HGV had sales and marketing operations at a total of 145 Bass Pro Shops and Cabelas Stores, including 7 virtual kiosks. Other Commitments We have certain arrangements with developers where we are committed to purchase vacation ownership units or other real estate at a future date to be marketed and sold under our Hilton Grand Vacations brand. As of June 30, 2026, we were committed to purchase approximately $212 million of inventory over a period of 9 years and $43 million of other commitments in the normal course of business. The actual amount and timing of the acquisitions are subject to change pursuant to the terms of the respective arrangements, which could also allow for cancellation in certain circumstances. During the …

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DEBT AND NON-RECOURSE DEBT Debt The following table details our outstanding debt balance and its associated interest rates: ($ in millions) Interest Rate June 30, 2026 December 31, 2025 Debt (1) Senior secured credit facility Term loan A due 2028 5.294 % $ 400 $ 400 Term loan B due 2028 5.644 % 847 851 Term loan B due 2031 5.644 % 882 887 Revolver due 2030 (2) 5.275 % 465 130 Senior notes due 2029 5.000 % 850 850 Senior notes due 2031 4.875 % 500 500 Senior notes due 2032 6.625 % 900 900 Other debt 82 85 Total debt, gross 4,926 4,603 Less: unamortized deferred financing costs and discounts (3) (50) (58) Total debt, net $ 4,876 $ 4,545 (1) As of June 30, 2026 and December 31, 2025, weighted-average interest rates were 5.626% and 5.691%. (2) Unamortized deferred financing costs of $2 million and $3 million as of June 30, 2026 and December 31, 2025 related to our revolving facility are included in Other assets in our condensed consolidated balance sheets. (3) Amount includes unamortized deferred financing costs of $46 million and $53 million as of June 30, 2026 and December 31, 2025. This amount also includes unamortized original issuance discounts of $4 million and $5 million as of June 30, 2026 and December 31, 2025. Senior secured credit facility As of June 30, 2026, we had $72 million of letters of credit outstanding under the revolving credit facility and $1 million outstanding backed by cash collateral. We were in compliance with all applicable maintenance and financial co …

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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 17: Business Segments for more information related to our segments. ($ in millions) Three Months Ended June 30, Six Months Ended June 30, Real Estate Sales and Financing Segment 2026 2025 2026 2025 Sales of VOIs, net $ 507 $ 469 $ 962 $ 847 Fee-for-service commissions, package sales and other fees 158 165 319 307 Interest income 133 114 258 229 Other financing revenue 11 12 24 22 Real estate sales and financing segment revenues $ 809 $ 760 $ 1,563 $ 1,405 ($ in millions) Three Months Ended June 30, Six Months Ended June 30, Resort Operations and Club Management Segment 2026 2025 2026 2025 Club management $ 72 $ 70 $ 142 $ 142 Resort management 117 113 232 224 Rental (1) 194 180 377 354 Ancillary services 16 15 30 28 Resort operations and club management segment revenues $ 399 $ 378 $ 781 $ 748 (1) Excludes intersegment eliminations. See Note 17: Business Segments for additional information.

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SHARE-BASED COMPENSATION Stock Plan The 2023 Omnibus Incentive Plan (2023 Plan) authorizes the issuance of restricted stock units (Service RSUs or RSUs), nonqualified stock options (Options), and time and performance-vesting restricted stock units (Performance RSUs or PSUs) to certain employees and directors. On May 6, 2026, our stockholders approved an amendment (the Amendment) to the 2023 Plan. The Amendment added 1,250,000 shares of our common stock to the number of shares reserved for issuance under the 2023 Plan. As of June 30, 2026, there were 2,433,942 shares of common stock available for future issuance under the 2023 Plan. We recognized share-based compensation expense of $25 million and $22 million for the three months ended June 30, 2026 and 2025 and $35 million and $34 million for the six months ended June 30, 2026 and 2025. As of June 30, 2026, unrecognized compensation cost for unvested awards was approximately $94 million, which is expected to be recognized over a weighted average period of 1.9 years. Service RSUs During the six months ended June 30, 2026, we issued 1,093,806 Service RSUs with a weighted-average grant date fair value of $42.76, which generally vest in annual installments over three years from the date of grant, subject to the individuals continued employment through the applicable vesting date. Options During the six months ended June 30, 2026 , we did not grant any Options. As of June 30, 2026, we had 1,604,764 Options outstanding that were ex …

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FAIR VALUE MEASUREMENTS The carrying amounts and estimated fair values of our financial assets and liabilities were as follows: June 30, 2026 Fair Value ($ in millions) Carrying Amount Level 1 Level 3 Assets: Timeshare financing receivables, net $ 3,591 $ $ 3,943 Liabilities: Debt, net 4,876 4,340 566 Non-recourse debt, net 2,896 2,674 263 December 31, 2025 Fair Value ($ in millions) Carrying Amount Level 1 Level 3 Assets: Timeshare financing receivables, net $ 3,115 $ $ 3,419 Liabilities: Debt, net 4,545 4,352 233 Non-recourse debt, net 2,716 2,128 640 Our estimates of the fair values were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop the estimated fair values. The table above excludes interest rate swaps discussed below and cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued expenses and other and advanced deposits, all of which had fair values approximating their carrying amounts due to the short maturities and liquidity of these instruments. The estimated fair values of our Level 3 originated and acquired timeshare financing receivables were determined using a discounted cash flow model. Our model incorporates default rates, coupon rates, credit quality and loan terms respective to the portfolio based on current market assumptions for similar types of arrangements. The estimated fair values of our Level 2 derivative financial in …

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INCOME TAXES The effective tax rate for the three months ended June 30, 2026 and 2025 was approximately 40% and 38%. The effective tax rate for the six months ended June 30, 2026 and 2025 was approximately 15% and 72%. The effective tax rate increase quarter over quarter is primarily due to the overall change in earnings. The effective tax rate decrease year over year is primarily due to the impact of discrete items relative to the change in overall earnings. The difference between our effective tax rate as compared to the U.S. statutory federal tax rate of 21% is primarily due to discrete tax benefits, partially offset by state and foreign income taxes. Our discrete items are primarily related to unrecognized tax benefits. Cash paid for income taxes, net of refunds, was $47 million and $130 million for the six months ended June 30, 2026 and 2025.

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Recently Issued Accounting Pronouncements Accounting Standards Not Yet Adopted In November 2024, the FASB issued Accounting Standards Update 2024-03 (ASU 2024-03), Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses . ASU 2024-03 provides amendments to improve disclosure requirements of specified information about certain costs and expenses, both on an interim and annual basis. The guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The guidance should be applied either (1) prospectively or (2) retrospectively to any or all prior periods presented. The adoption of ASU 2024-03 is expected to impact disclosures only and not have an impact on our consolidated balance sheet and consolidated statement of income. In September 2025, the FASB issued Accounting Standards Update 2025-06 (ASU 2025-06), IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. ASU 2025-06 provides amendments to modernize the accounting for software costs. The guidance may be applied either (1) prospectively, (2) retrospectively, or (3) using a modified transition approach with early adoption permitted. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, and interim periods within those fiscal years. We are currently …

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RELATED PARTY TRANSACTIONS 1776 Holding, LLC and Elara We hold an ownership interest in 1776 Holding, LLC, a VIE, which owns the Liberty Place Charleston timeshare resort property located in Charleston, South Carolina. We previously held a minority ownership interest in Elara, a VIE, which owns the Elara timeshare resort property located in Las Vegas, Nevada. On April 29, 2026, Elara ceased to be a related party as a result of the Elara Acquisition. See Note 3: Acquisition for additional information. We record Equity in earnings from our unconsolidated affiliates in our unaudited condensed consolidated statements of income. See Note 9: Investments in Unconsolidated Affiliates for additional information. Additionally, we earn commissions and other fees related to fee-for-service agreements with the investees to sell VOIs at Liberty Place Charleston timeshare resort and at Elara prior to acquisition. These amounts are summarized in the following table and are included in Fee-for-service commissions, package sales and other fees on our unaudited condensed consolidated statements of income as of the date they became related parties. Three Months Ended June 30, Six Months Ended June 30, ($ in millions) 2026 2025 2026 2025 Equity in earnings from unconsolidated affiliates $ 2 $ 6 $ 7 $ 11 Commissions and other fees 14 39 50 78 We also had $2 million and $3 million of outstanding receivables related to these fee-for-service agreements included in Accounts receivable, net on our cond …

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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 17: Business Segments for more information related to our segments. ($ in millions) Three Months Ended June 30, Six Months Ended June 30, Real Estate Sales and Financing Segment 2026 2025 2026 2025 Sales of VOIs, net $ 507 $ 469 $ 962 $ 847 Fee-for-service commissions, package sales and other fees 158 165 319 307 Interest income 133 114 258 229 Other financing revenue 11 12 24 22 Real estate sales and financing segment revenues $ 809 $ 760 $ 1,563 $ 1,405 ($ in millions) Three Months Ended June 30, Six Months Ended June 30, Resort Operations and Club Management Segment 2026 2025 2026 2025 Club management $ 72 $ 70 $ 142 $ 142 Resort management 117 113 232 224 Rental (1) 194 180 377 354 Ancillary services 16 15 30 28 Resort operations and club management segment revenues $ 399 $ 378 $ 781 $ 748 (1) Excludes intersegment eliminations. See Note 17: Business Segments for additional information. Receivables from Contracts with Customers and Contract Liabilities Our accounts receivable that relate to our contracts with customers include amounts associated with our contractual right to consideration for completed performance obligations and are settled when …

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BUSINESS SEGMENTS We operate our business through the following two reportable segments based on the nature of the products and services provided: Real estate sales and financing We market and sell VOIs that we own. We also source VOIs through fee-for-service agreements with third-party developers. Related to the sales of the VOIs that we own, we provide consumer financing, which includes interest income generated from the origination of consumer loans to customers to finance their purchase of VOIs and revenue from servicing the loans. We also generate fee revenue from servicing the loans provided by third-party developers to purchasers of their VOIs. Resort operations and club management We manage the clubs and earn activation fees, annual dues and transaction fees from member exchanges for other vacation products. We also earn fees for managing the timeshare properties. We generate rental revenue from unit rentals of unsold inventory and inventory made available due to ownership exchanges under our club programs. We also earn revenue from food and beverage, retail and spa outlets at our timeshare properties. Our chief operating decision maker CODM is our Chief Executive Officer. The CODM is our primary decision maker and is responsible for allocating resources to the components of the company and assessing company performance. The CODM uses Adjusted EBITDA to allocate resources (including employees and financial or capital resources) in the budgeting and forecasting process …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing