ORLANDO, FL—Capitalizing on the 100-year extension of its strategic alliance with IHG, Orange Lake Resorts, home to the Holiday Inn Club Vacations brand, is making moves for the future. KSL Capital Partners LLC has made a significant minority investment in the company. Financial terms of the transaction were not disclosed. Additionally, the brand has revealed a new five-year, $500 million revolving credit facility that will provide additional flexibility to support the company’s future growth strategy. SunTrust Bank is the lead bank.
“KSL has been a leading investor in the travel and leisure industry. We are excited about how this partnership will expand the horizons of our company and the Holiday Inn Club Vacations brand,” said Tom Nelson, president/CEO of Orange Lake Resorts. “Our company has experienced tremendous growth, and we are making bold moves to position ourselves for the future… Adding KSL, with their expertise in financial markets and travel and leisure, complements our growing capabilities and is another great step toward a bright future for our company and brand.”
Kemmons Wilson founded both Holiday Inn hotels and then Orange Lake Resorts, establishing a hospitality legacy that has thrived for more than half a century. The Wilson family continues to own and operate Orange Lake Resorts privately. This is the first time the Wilson family has taken on an outside equity partner for the company.
Greenberg Traurig LLP acted as legal counsel to Orange Lake Resorts, while J.P. Morgan Securities LLC acted as financial advisor and Simpson Thacher & Bartlett LLP acted as legal counsel to KSL.
With regard to SunTrust Bank, Nelson said, “Our long-term relationship with SunTrust and our bank group has helped fuel our tremendous growth. We are excited to expand this important relationship, as the enhanced credit facility will provide the funding and flexibility to continue expanding our business well into the future.”
In the last decade, Orange Lake Resorts has expanded from four to 28 resort properties, while growing its number of owners and Club members from 120,000 to 350,000.
SunTrust Robinson Humphrey, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, JP Morgan Chase Bank, N.A., Regions Bank and Citizens Bank, N.A., acted as Joint Lead Arrangers for the new revolving credit facility. SunTrust Bank will serve as the Administrative Agent. The law firm Greenberg Traurig, LLP represented Orange Lake Resorts in this transaction.