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MARIA: ALL RIGHT THAT WAS
ROADLESS TRAVEL BY COUNTRY SUPER
STAR ELENA, NEWEST SIGNED ON AS
AMBASSADOR OF DIAMOND RESORTS,
SUMMER IPO WE ARE TOLD, JOINING
US DIAMOND RESORTS CEO MIKE.
HOW IS BUSINESS GOING, CONGRATS
ON NEW AMBASSADOR.
>> WE ARE EXCITED TO HAVE LAUREN
AS PART OF AMBASSADOR TEAM.
IT'S A GREAT TIME TO BE A
DIAMOND RESORTS AND WE HAVE
EXCITING EXPERIENCES GOING ON.
MUSIC IS A BIG PART OF IT.
MARIA: TIMESHARE BUSINESS HAS
PICKED UP AND YOU ARE TRYING TO
APPEAL TO YOUNGER AUDIENCE TO
GET TIMESHARES.
>> WE ARE.
WE HAVE COMPLETELY SHIFTED OUR
PRODUCT DESIGN AND R&D FOLKS
HAVE COME UP WITH SHORT-TERM
PRODUCT THAT ALLOWS MILLENNIALS
TO ENGAGE SOMETHING THAT'S NOT
OWNERSHIP AND ADDED EXPERIENCES,
WHAT WE LEARNED IS THEY WANT TO
COME IN AND IT'S NOT JUST ABOUT
THE REAL ESTATE, IT'S ABOUT THE
EXPERIENCES THAT GO WITH IT.
WE HAVE LAUREN ELENA ALONG WITH
OTHER 15 AMBASSADORS, LEE BRICE
AND THEY PUT ON SHOWS AT
RESORTS, WE WILL DO 3,000
SPECIAL EVENT THIS IS YEAR IN
RESORTS AROUND NORTH AMERICA.
MARIA: WHAT ARE THE EXPERIENCE
THAT IS YOU'RE TALKING ABOUT?
>> WELL, FOR EXAMPLE, WE WILL
INVITE POTENTIAL MEMBERS AND
OWNERS TO COME IN AND WILL DO
PRIVATE CONCERT, 100 PRIVATE
CONCERTS OF RESORTS, OUT ON
POOL, COME ON VACATION AND
TYPICALLY THEY WOULD GO IN AND
BUY A TICKET IN FRONT OF 15 OR
20,000 PEOPLE BUT THEY GET
EXPERIENCE OF COUPLE HUNDRED
PEOPLE AND INTIMATE SETTING IN
RESORT AND CREATES TONE OF A
WONDERFUL VACATION.
MARIA: TERRIFIC.
WHY WOULD SOMEBODY WANT TO DO A
TIMESHARE VERSUS JUST GOING TO A
HOTEL AND HAVING A WEEK WITH
THEIR FAMILY THERE THAT WAY?
>> YEAH, THE BASIC ECONOMICS ARE
RENT VERSUS OWN.
AT THE END OF THE DAY YOU CAN
STAYS 200 TO 1500 TWO-BED CONDO
VERSUS TRADITIONAL HOTEL ROOM.
YOU RENT HOTEL ROOM AND GET
RENTAL RECEIPT BACK WHEREAS ONCE
YOU PAY THE PRODUCT YOU OWN IT
FOREVER.
BUY IT ONE TIME AND OWN IT FOR
THE REST OF YOUR LIFE OR IN THE
CASE OF NEW TERM PRODUCT, WE
TALKED ABOUT THE MILLENNIALS CAN
WALK AWAY FROM IT AT THE END OF
10 YEARS.
MARIA: REASON TO DO IT AND YOU
ALSO KNOW WHERE YOU'RE GOING,
YOU HAVE THIS APARTMENT AND WILL
YOU ALWAYS GO IN THE SAME RENTAL
PROPERTY BECAUSE YOU OWN THAT?
>> NO, ACTUALLY, WE HAVE A
POINT-BASE CURRENCY THAT'S TIE
TODAY OURS, OUR MEMBERS CAN GO
ON CRUISES, THEY CAN STAY.
IT ENABLES THEM TO HAVE
FLEXIBILITY TO TRAVEL THE WORLD
AND DO OTHER THINGS, YOU KNOW.
MARIA: YOU CAN GO ANYWHERE.
YOU CLOSED ON THE PURCHASE OF
THE MODERN HONOLULU IN HAWAII.
IS THIS NEAR THE VOLCANO THAT
HAS ERUPTED?
>> NO, THANK GOODNESS IT'S NOT.
WE ARE ON THE BIG ISLAND AND HAD
BIG ISSUES, FORTUNATELY WE ARE
ON THE OTHER SIDE OF THE ISLAND.
IT'S A BEAUTIFUL 357-ROOM HOTEL
THAT WE ACQUIRED RIGHT IN THE
HEART OF LAHU, OCEAN FRONT, AND
THAT MARKET WE SEE A
100 MILLION-DOLLAR PLUS MARKET
AND WE ARE EXCITED ABOUT THAT.
MARIA: WOW, 100 MILLION-DOLLAR
MARKET IN TERMS OF THAT AREA OF
HAWAII?
>> YES.
HAWAII IS SECOND LARGEST TO
NEVADA.
MARIA: YOU'VE USED TECHNOLOGY
AND NEW DATA, BIG DATA IN TERMS
OF CREATING AN ATMOSPHERE FOR
THE CONSUMER, TELL ME HOW YOU
USED DATA AND TECHNOLOGY?
>> YEAH, WE USE BIG DATA AND AI
IN EVERYTHING WE DO.
I COME FROM ADVANCEED PROGRAM
AND IT'S IN THREE AREAS, NUMBER
ONE IN CUSTOMER ACQUISITION,
NUMBER TWO IN THE JOURNEY TO
MAKE SURE THAT WE TARGET WHAT
OUR OWNERS WANT TO DO WHILE THEY
ARE ON VACATION AND THEN THE
FINAL PIECE IS IN THE LOYALTY
AND HOPING THAT WE ACQUIRE A
CUSTOMER FOR LIFE.
COMPANY PUBLIC THIS SUMMER?
>> WELL, I WILL SAY THIS, YOU
KNOW, APOLLO BOUGHT THE BUSINESS
IN JULY, SEPTEMBER OF 2016, WE
KNOW WHAT THE PRIVATE EQUITY
MODEL IS, BUT UNFORTUNATELY, YOU
KNOW, I CAN'T COMMENT ON ANY OF
OUR FUNDRAISING ACTIVITIES PER
COMPANY POLICIES.
MARIA: I UNDERSTAND THAT.
GETTING AN IPO DONE WOULD GIVE
YOU MUCH MORE MONEY TO WORK WITH
TO EXPAND THE PORTFOLIO, IS THAT
WHAT YOU WANT TO DO RIGHT NOW,
GROW THIS PORTFOLIO OF
PROPERTIES?
>> WE ABSOLUTELY WANT TO
CONTINUE TO GROW, IN FACT, WE'VE
BEEN THE INDUSTRY LEADER IN
AGGREGATING, WE'VE ACTUALLY
ACQUIRED 10 BUSINESSES IN 7
SHORT YEARS AND WE SEE
CONSOLIDATION AS AN OPPORTUNITY
TO CONTINUE TO GROW OUR BUSINESS
AND WE BELIEVE THAT THAT IS
SOMETHING THAT OUR M&A TEAM WILL
CONTINUE TO FOCUS ON.
MARIA: MIKE, GREAT TO HAVE YOU