What is the estimated return on investment (ROI) for the LasâŻVegas Grand Prix partnership and associated clubhouse events?
Answer
The press release you shared does not contain any quantitative information about the financial performance of Hilton Grand Vacationsâ (HGV) partnership with the FormulaâŻ1âŻHeineken LasâŻVegas Grand Prix or the associated âHGV Clubhouseâ eventsâsuch as the investment amount, incremental revenue, cost savings, or other metrics that would allow a concrete calculation of the partnershipâs return on investment (ROI).
Because ROI is defined as:
[
\text{ROI} = \frac{\text{Net Gain (or Benefit) from the Investment}}{\text{Cost of the Investment}} \times 100\%
]
we would need at least two pieces of data to compute it:
- Total cost of the partnership and clubhouse operations (e.g., sponsorship fees, venue setup, staffing, marketing, talent for the concert lineup, etc.).
- Measured financial benefit attributable to the partnership (e.g., incremental vacation ownership sales, hotel bookings, brandâawarenessâdriven revenue, media value, or any other monetizable outcome).
Since none of those figures are disclosed in the article, an exact ROI cannot be derived from the information provided.
How Companies Typically Estimate ROI for Events Like This
Even though the press release does not give the numbers, here is a framework that Hilton Grand Vacations (or any company) would normally follow to estimate ROI for a highâprofile sportsâandâentertainment partnership:
| Step | Description | Typical Data Sources |
|---|---|---|
| 1. Define Goals & KPIs | Identify what the partnership is meant to achieve (e.g., brand exposure, lead generation, sales, loyalty enrollment). | Marketing brief, corporate strategy documents. |
| 2. Allocate Costs | Sum all direct and indirect expenses: sponsorship fee, clubhouse construction & operation, entertainment talent, staffing, logistics, promotion, ancillary hospitality, etc. | Finance & budgeting systems, contracts. |
| 3. Track Revenue & Leads | Capture sales that can be directly attributed to the event (e.g., bookings made onâsite, promo code usage, postâevent followâup conversions). | CRM, POS, eâcommerce analytics. |
| 4. Assign Media Value | Quantify earned media (press coverage, social impressions) using advertisingâequivalent values (AVEs) or costâperâthousandâimpressions (CPM) benchmarks. | Media monitoring services, social listening tools. |
| 5. Estimate BrandâEquity Impact | Use surveys, brandâtracking studies, or lift studies to gauge changes in brand awareness, perception, or intent to purchase. Convert lift into an estimated monetary value (e.g., future lifetime value of new customers). | Brand research firms, internal panels. |
| 6. Calculate Net Benefit | Net Benefit = (Revenue + Assigned Media Value + Estimated BrandâEquity Value) â Total Cost. | Summation of the above. |
| 7. Compute ROI | ROI = (Net Benefit Ă· Total Cost) Ă 100âŻ%. | Simple arithmetic. |
Example (illustrative only)
| Item | Hypothetical Figure |
|---|---|
| Sponsorship fee (3âyear partnership) | âŻ$5âŻM |
| Clubhouse buildâout & operation (per race) | âŻ$2âŻM |
| Concert talent & production | âŻ$1âŻM |
| Marketing & staff | âŻ$0.5âŻM |
| Total Cost (per event) | âŻ$8.5âŻM |
| Onâsite vacationâownership sales (attributable) | âŻ$6âŻM |
| Incremental hotel bookings (postâevent) | âŻ$2âŻM |
| Assigned media value (earned coverage + social) | âŻ$3âŻM |
| Brandâequity lift (estimated future CLV) | âŻ$1âŻM |
| Total Benefit | âŻ$12âŻM |
| Net Benefit | âŻ$3.5âŻM |
| ROI | âŻ(3.5âŻ/âŻ8.5)âŻĂâŻ100âŻââŻ41âŻ% |
Note: The numbers above are purely hypothetical and meant to illustrate the calculation methodology. The actual ROI for HGVâs LasâŻVegas Grand Prix partnership could be higher or lower depending on the real cost structure and realized benefits.
What You Can Do Next
Request Detailed Financials â If you have access to internal reports, ask the finance or marketing team for:
- Total sponsorship and eventârelated spend for the LasâŻVegas Grand Prix.
- Sales, leads, or bookings generated during and after the event that are directly linked to the partnership (e.g., through promo codes, onâsite registrations).
Gather MediaâValue Data â Use a mediaâmonitoring service (e.g., Cision, Meltwater) to quantify earned impressions and assign an advertisingâequivalent value.
Conduct BrandâLift Surveys â Partner with a research firm to measure preâ and postâevent shifts in brand awareness, favorability, and purchase intent among target audiences.
Build an ROI Dashboard â Populate the framework above in a spreadsheet or BI tool so you can update the ROI calculation each year and compare it against other sponsorships.
Bottom Line
- The press release does not disclose any ROI figure for the LasâŻVegas Grand Prix partnership or the HGV Clubhouse events.
- To estimate ROI, youâll need cost data (sponsorship fees, event execution expenses) and benefit data (incremental revenue, media value, brandâequity uplift). Applying the standard ROI formula once those numbers are gathered will give you a concrete percentage.
- Until those data points are available, any ROI estimate would be speculative. If you obtain the required figures, you can follow the stepâbyâstep methodology outlined above to calculate a reliable ROI for this partnership.