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Blackstone marketing $171M timeshare securitization for LV resort

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Timeshare loans for the luxury Elara vacation resort in Las Vegas will back notes being marketed in a $172.1 million, single-site securitization, according to presale reports.

Elara HGV Timeshare Issuer 2019-A will initially include 6,617 loans with a total balance of approximately $151.6 million. The loans have a weighted average seasoning of 13 months, but newer loans may be added via the deal’s prefunding account that could fund an additional collateral up to 15% of the closing note balance.

The deal is the fourth overall single-site securitization of loans for rooms in the 52-story resort operating as Elara by Hilton Grand Vacations. The property is 75% owned by Blackstone Real Estate Partners, and managed and marketed through Hilton Resort Corp., an HGV affiliate. It is the first Elara securitization since 2017, according to reports from S&P Global Ratings and Fitch Ratings.

The timeshare loans in the transaction are prime quality loans, with a weighted average FICO score of 740, which is higher than the 2017-A deal. The pool’s loans have an average balance of $22,910.

The loans will back three classes of notes, including a $113.4 million Class A notes tranche with expected triple-A ratings from Fitch and S&P. The senior notes benefit from a 37.40% credit enhancement – this available CE is sufficient to support Fitch’s projection of gross default rates of 14.40%.

All of the loans were originated by LV Tower 52 LLC under a sales and marketing agreement with Hilton Resorts Corp. (HRC).

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Vacation timeshare Securitization Blackstone