Diamond Resorts International Inc (NYSE:DRII) announced an agreement with China Travel International Investment to create a joint venture between the two companies. The team will create market, sell and service packages and benefits for vacationers and travelers in Asia. This includes time shares and ownership opportunities. The companies will offer customized packages and attractive bundles that cover the whole range of potential vacation options.
Both companies have strong and established track records in the region and should complement each other well. Demand for packages to China and the region and gaining steam. The venture has good timing and should benefit both sides equally. The agreement gives China Travel 40% of the deal and Diamond Resorts International Inc (NYSE:DRII) and its affiliate, Dorsett Hospitality, 30% each. Each party will have equal representation however on the joint venture’s board of directors. The deal is ion the development phase and the launch date was not announced. Vacation rentals were strong for the company and as economic conditions improve demand increases also.
Diamond resorts have a network of over 300 vacation destinations that reach 34 countries. This includes the mainland US, Hawaii, Canada and Mexico. They offer flexibility for their clients and customize packages to fit any needs. They also manage vacation ownership resorts and also sell them. They have 93 resorts and 210affiliated properties within their network. Diamond Resorts International Inc (NYSE:DRII) recently released earnings and revenue for the fourth quarter was $21.5 million, a change of 10% over the same period in 2013. For the year-end 2014 revenue came in at $114.8 million, a 15% rise over fiscal 2013. They also secured a Senior Credit Facility Agreement for $445 million. The agreement includes a $25 million revolving line of credit. They also authorized a stock repurchase program for $16 million.
The stock has made new highs and technically it is sound. The move upwards has been very organized and is a solid trail of higher highs and higher lows. Volume has been consistent and momentum is strong.