Hyatt Hotels Corporation has announced the acquisition of wellness travel provider Miraval Group, from an affiliate of KSL Capital Partners, LLC.
For over 20 years Miraval has operated its flagship wellness property in Tuscon, AZ. Along with acquiring the flagship Miraval Arizona Resort & Spa, Hyatt will continue Miraval’s plans to redevelop the recently acquired 220-acre Travaasa Resort in Austin, Texas, and pursue the acquisition and redevelopment of the 380-acre Cranwell Spa & Golf Resort in Lenox, MA. The transaction also includes the acquisition of the Miraval Life in Balance Spa brand, which opened its first location in Dana Point, CA, last year.
The acquisition includes an initial investment of $215 million for the Miraval brand and the resorts in Tucson and Austin. Hyatt expects to invest an additional $160 million over the next two to three years to fund the expansion of the Tucson resort, the redevelopment of the Austin resort and the acquisition and redevelopment of the Lenox resort. Hyatt will fund the investment with current operating cash flows and proceeds from the sale of existing assets, consistent with Hyatt’s asset recycling program. The company expects these investments to be marginally accretive to Adjusted EBITDA in 2017 and 2018, achieving a cash-on-cash yield in the high single digits within four to five years.
Miraval will form a distinct new wellness category within the Hyatt portfolio of brands. Steven Rudnitsky, president and chief executive officer of Miraval Group, will continue to drive the brand’s growth strategy, reporting to Mark Hoplamazian and working with the existing Miraval leadership team and associates.
Today’s announcement continues Hyatt’s holistic health and wellness strategy. For example, since 2014, Hyatt chefs have been highlighting Food. Thoughtfully Sourced, Carefully Served, a program with menus created with an eye on sustainable health. This includes options such as grass-fed meats, sustainable seafood and organic fruits and vegetables. Additionally, many Hyatt hotels worldwide are offering more options for travelers to maintain a healthier routine, including healthy refreshments at arrival, curated in-room amenities, increased fitness offerings, expanded menus and nutritious to-go alternatives.
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