Diamond Resorts International was recently bought by Apollo Global Management LLC for $2.2bn. If you are a Diamond Resorts customer, this may have implications for you.
Apollo have bet heavily in the hospitality market in the past. They own large stakes in Caesars Entertainment Corp. and Norwegian Cruise Line Holdings. They also sold Great Wolf Resorts to Centerbridge Partners LP, meaning that they could possibly intend to do the same with Diamond Resorts.
Diamond Resorts were also recently at the centre of a scandal involving Shawbrook Bank. Shawbrook had provided finance to Diamond Resorts timeshare owners without doing due diligence. They were ordered to set aside £13m in order to pay damages.
This means that if you are a Diamond Resorts customer and were given finance from Shawbrook, you may be entitled to compensation and possibly be able to terminate your timeshare contract.