Just today, Hyatt announced that it has entered into a definitive agreement to acquire Apple Leisure Group, a top-rated luxury resort-management service, travel, and hospitality group. This agreement came from affiliates of each of KKR and KSL Capital Partners, LLC for $2.7 billion in cash. The transaction is expected to close in the fourth quarter of 2021.
Apple Leisure Group’s resort brand management platform AMResorts® provides management services to the largest portfolio of high-end all-inclusive resorts in the Americas under the AMR
Collection brand portfolio.
This acquisition also includes Apple Leisure Group’s other membership offerings including Unlimited Vacation Club®, travel distribution business ALG Vacations®, destination management services, and travel technology assets.
Following the transaction’s completion, Apple Leisure Group’s business will continue to be led by CEO Alejandro Reynal and the current ALG leadership team. Alejandro Reynal will also become a member of Hyatt’s executive leadership team, reporting to Hyatt CEO, Mark Hoplamazian.
“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, Hyatt. “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 value-creating 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.”
Apple Leisure Group has a hotel portfolio that features more than 33,000 rooms across 10 countries. The portfolio has grown from just nine resorts in 2007 to nearly 100 properties by the end of 2021. There are also 24 executed deals lined up and numerous hotels in the development process.
The company’s Unlimited Vacation Club® is an exclusive travel club that provides its members with preferred rates and other benefits at AMR Collection properties. The club has more than 110,000 members, with a compounded annual growth rate of 18-percent over the last 5 years.
“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. “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 ahead as the industry expands and we are able to provide a best-in-class leisure offering to an even larger group of travelers around the world.”
This acquisition with greatly benefit Hyatt and its members by:
- Expanding Hyatt’s presence within the luxury and resort travel footprint
- Expand the platform for growth
- Benefit owners through more travel options and additional member services
- Enhance end-to-end leisure travel offerings through ALG Vacations®, Amstar, and Trisept Solutions®
Learn more about Hyatt and their extensive portfolio of properties by visiting the brand’s website.
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