Hyatt Hotels Corp has announced plans to buy resort company Apple Leisure Group (ALG) from its private-equity owner KKR & Co and travel-and-leisure specialist KSL Capital Partners for $2.7 billion in cash, the company announced on Sunday (Aug. 15) via news release.
The transaction is anticipated to close in the fourth quarter of 2021, subject to customary closing conditions.
ALG’s brand management platform, AMResorts, manages the AMR Collection portfolio, which includes Secrets, Dreams and Breathless Resorts & Spas, Zoëtry Wellness & Spa Resorts as well as Alua Hotels & Resorts brand, which is expanding in Europe.
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 current ALG leadership team.
Mr. Reynal will become a member of Hyatt’s executive leadership team and report to Hyatt CEO Mark Hoplamazian, Hyatt said.
“With the asset-light acquisition of Apple Leisure Group, we are thrilled to bring a highly desirable independent resort management platform into the Hyatt family,” said Mark Hoplamazian, president and chief executive officer at Hyatt, in a statement. “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.”
The combination of the value-creating acquisition and the $2 billion increase in the company’s asset sale commitment will transform Hyatt’s earnings profile, he said.
“We expect Hyatt to reach 80 per cent fee-based earnings by the end of 2024,” Hoplamazian said.
ALG’s hotel portfolio consists of more than 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 additional hotels in the development process.
“Combining Hyatt’s deep expertise and global brand footprint with ALG’s strong resort brands, operating capabilities and robust development plans will elevate our differentiated position and create a leader in luxury leisure travel,” said Alejandro Reynal, chief executive officer, Apple Leisure Group.
The AMR Collection, AMResort’s official master brand, is a new concept that launched earlier this month, bringing together six resort brands, each designed for every lifestyle and stage of life, under one name.
The company recently expanded into new locales such as St. Martin (Secrets St. Martin Resort & Spa, the only all-inclusive on the French side of the island) and Macao Beach in the Dominican Republic (Dreams Macao Beach Punta Cana Resort & Spa).
There was the recent opening of the new Secrets Bahia Mita Surf & Spa Resort and Dreams Bahia Mita Surf & Spa Resort in an exclusive area near Punta de Mita in Nayarit.
AMResorts has also announced its newest Secrets-branded properties in Playa del Carmen: Secrets Moxché Playa del Carmen and Secrets Impression Moxché Playa del Carmen, which are also scheduled to open this December.
The Zoëtry brand will also soon expand into Los Cabos and Saint Lucia.
Doubling the footprint
After the completion of its $2.7-billion deal, Hyatt will double its global resort footprint, the company said.
The acquisition will expand Hyatt’s presence in luxury leisure travel and add around 100 hotels and a pipeline of 24 executed deals in Europe and the Americas to its portfolio, the company said.
The combined resources of ALG and Hyatt will also open up expanded offerings and experiences “for the benefit of the combined companies' high-end guest and customer base.”
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