Travel, Tourism & Hospitality
Hyatt to acquire Apple Leisure Group for $2.7bn
Hyatt Hotels Corporation, a leading global hospitality company, has announced that it has entered into an agreement to acquire Apple Leisure Group (ALG) from affiliates of each of KKR and KSL Capital Partners, LLC for $2.7 billion in cash.
Hyatt Hotels Corporation, a leading global hospitality company, has announced that it has entered into an agreement to acquire Apple Leisure Group (ALG), a leading luxury resort-management services, travel and hospitality group, from affiliates of each of KKR and KSL Capital Partners, LLC for $2.7 billion in cash.
The transaction is anticipated to close in the fourth quarter of 2021, subject to customary closing conditions.
ALG’s resort brand management platform AMResorts provides management services to resorts in the Americas under the AMR TM Collection brand portfolio. The acquisition also includes ALG’s membership offering, Unlimited Vacation Club, travel distribution business ALG Vacations, as well as destination management services and travel technology assets.
Following the completion of the transaction, ALG’s business will continue to be led by current ALG CEO Alejandro Reynal and the leadership team. Reynal will become a member of Hyatt’s executive leadership team and report to Hyatt CEO Mark Hoplamazian.
Hoplamazian said: “The addition of ALG’s properties will immediately double Hyatt’s global resorts footprint. ALG’s portfolio of luxury brands, leadership in the all-inclusive segment and large pipeline of new resorts will extend our reach in existing and new markets, including in Europe, and further accelerate our industry-leading net rooms growth.
"Importantly, the combination of this acquisition and the $2 billion increase in our asset sale commitment will transform our earnings profile, and we expect Hyatt to reach 80% fee-based earnings by the end of 2024.”
ALG’s hotel portfolio consists of over 33,000 rooms operating in 10 countries. The portfolio has grown from nine resorts in 2007 to approximately 100 properties by the end of 2021 and has a pipeline of 24 executed deals with a large number of additional hotels in the development process.
Reynal said: “Combining Hyatt’s expertise and global brand footprint with ALG’s strong resort brands, operating capabilities and development plans will elevate our differentiated position and create a leader in luxury leisure travel.
“On behalf of everyone at ALG, I am grateful to our partners at KKR and KSL who supported us in building the platform into what it is today. I am excited to have our team join the Hyatt family and I anticipate a robust growth journey as the industry expands and we are able to provide a best-in-class leisure offering to an even larger group of travellers.”
“Today is a great milestone in what has been a story of growth, resilience, and dedication to world-class leisure experiences by an outstanding team at Apple Leisure Group,” said Chris Harrington and Rich Weissman, partners at KKR and KSL Capital Partners, respectively.
“There is simply no better home for ALG to continue on its growth trajectory than being part of Hyatt.”-TradeArabia News Service