(Reuters) – U.S. timeshare operator Hilton Grand Holidays Inc claimed on Wednesday it would invest in Diamond Resorts Worldwide Inc for about $1.4 billion, as the hospitality industry readies for a recovery from the COVID-19 pandemic blow.

Bookings have bounced back from April 2020 lows on a relative easing of lockdowns, though a broader rollout of COVID-19 vaccines is expected to guidance a rebound in leisure vacation.

Timeshare operators this sort of as HGV and Diamond Resorts, alongside with getaway rentals companies such as Airbnb Inc and Vrbo, stand to profit from an uptick in leisure travel.

In the meantime, small business vacation-reliant hotel chains including Marriott and smaller rival Hilton Globally are noticed as getting a extended path to restoration.

HGV, spun out of Hilton Worldwide in 2017, will purchase the Las Vegas-based Diamond Resorts from cash managed by affiliates of Apollo Global Management Inc, Reverence Funds Associates and others in an all-stock offer.

Orlando-based mostly HGV, which develops, marketplaces and operates holiday vacation ownership resorts in locations this kind of as the Hawaiian Islands, New York Town and Las Vegas, reported the blended company will have 720,000 entrepreneurs and 154 resorts.

Apollo Resources and other Diamond stockholders will get 34.5 million shares of Hilton Grand Vacations’ widespread stock, subject matter to customary adjustments, as per the deal.

The transaction is anticipated to near in the summer of this yr, the business explained.

Diamond Resorts experienced been bought by Apollo Worldwide Administration for about $2.2 billion in 2016.

BofA Securities is the exceptional money adviser for HGV, when Credit rating Suisse is the guide monetary adviser and Goldman Sachs the fiscal adviser for Diamond.

Reporting by Subrat Patnaik, Akanksha Rana and Arathy S Nair in Bengaluru Enhancing by Shailesh Kuber and Sriraj Kalluvila