HGV forms joint venture for Charleston Resort
Hilton Grand Vacations (HGV) has formed a joint venture with Strand Capital Group, LLC, to develop new resort Liberty Place Charleston by Hilton Club.
The downtown resort will be the RCI affiliate’s first property in the historic Charleston, South Carolina, market as well as HGV and Strand’s first joint venture as development partners.
HGV’s $10 million investment in the capital-efficient joint venture structure allows the company to generate strong business results, while maintaining flexibility with cash flow for additional growth opportunities.
Mark Wang, president and CEO of Hilton Grand Vacations, said: “Charleston is a highly desirable market, and adding this property to our portfolio advances all of our strategic priorities, especially growing our member base and expanding our brand presence.
“HGV continues to deploy resources and add new destinations, which is a key driver of Net Owner Growth as it attracts new owners and increases product options for our existing owners.”
Liberty Place Charleston, HGV’s fifth property developed in collaboration with Strand in South Carolina, will offer 100 units, including studios and one- and two-bedroom suites. Resort amenities are planned to include a fitness centre, lobby bar and owners’ lounge. The property is within walking distance of The Battery, South Carolina Aquarium, dining, shopping and entertainment.
Construction on the project, located at 475 E. Bay St., is anticipated to begin in the fourth quarter of 2018, with completion in the second quarter of 2020. Sales for the property are expected to begin in early 2019.
In addition to an ownership stake in this project, HGV will market, sell and manage the property under a fee-for-service agreement with the HGV/Strand joint venture.
As the oldest and largest city in South Carolina, Charleston is well-known for its rich history, and the new property also has historical significance as it is home to the approximate location of the iconic Liberty Tree. The tree was a meeting place for the citizens of Charleston and where the Declaration of Independence was first read to them.