Interval Leisure Profit Falls; To Acquire Hyatt Residential Group For $190 Mln

(RTTNews) - Interval Leisure Group Inc (IILG) Wednesday reported first-quarter net earnings to stockholders of $23.7 million or $0.41 per share compared with $25 million or $0.44 per share last year. Results were mainly impacted by lower margins.

Miami, Florida-based Interval Leisure provides membership and leisure services to the vacation industry.

The company's revenues for the quarter were up 16.4% at $157 million compared with $135 million in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.45 per share on revenues of $146.52 million for the quarter. Analysts' estimates typically exclude special items.

Separately, Interval Leisure agreed to acquire Hyatt Residential Group from Hyatt Hotels Corp (H) for about $190 million.

Also, Interval Leisure will acquire Hyatt's interest in a joint venture that owns and is developing a 131-unit vacation ownership property in Maui, and will reimburse Hyatt an additional about $35 million, representing Hyatt's contributions to the joint venture through the transaction's anticipated closing date.

In connection with the agreement, Hyatt has selected Interval Leisure as Hyatt's exclusive licensee in vacation ownership.