In a bit of a surprise, Hyatt Hotels Corporation over the weekend announced it has entered into a definitive agreement to acquire Apple Leisure Group(ALG) 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, according to Hyatt, provides management services to the largest portfolio of luxury all-inclusive resorts in the Americas under the AMR Collection brand portfolio, including Secrets Resorts & Spa, Dreams Resorts & Spas, Breathless Resorts & Spas and Zoëtry Wellness & Spa Resorts, as well as the fast-growing Alua Hotels & Resorts brand. The acquisition also includes ALG’s membership offering, Unlimited Vacation Club, travel distribution business ALG Vacations, along with 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. Reynal will become a member of Hyatt’s executive leadership team and report to Hyatt CEO Mark Hoplamazian.
According to Hoplamazian, the addition of ALG’s properties will double Hyatt’s global resorts footprint.
ALG’s hotel portfolio consists of over 33,000 rooms in 10 countries. The portfolio has grown from nine resorts in 2007 to nearly 100 properties by the end of 2021 and has a pipeline of 24 additional hotels in the development process. ALG’s Unlimited Vacation Club has roughly 110,000 members who receive preferred rates and other benefits at AMR Collection properties.
Strategic Rationale
Expand footprint in luxury and resort travel: Following completion of the transaction, Hyatt says it will offer the largest portfolio of luxury all-inclusive resorts in the world, will double its global resort footprint, will be the largest operator of luxury hotels in Mexico and the Caribbean, and will expand its European footprint by 60 percent. The acquisition will extend Hyatt’s brand footprint into 11 new European markets, greatly enhances its growth potential in Europe, a region the company says is critical for global growth in leisure travel.
Expand platform for growth: Hyatt’s global network of developers and its operational expertise is expected to further accelerate growth of ALG brands. Hyatt plans to expand beyond ALG’s current pipeline in new geographies in which ALG does not currently have hotels.
Increase choice and experiences for guests: The combined resources of ALG and Hyatt will open up expanded offerings and experiences for the benefit of the combined companies' customer base.
Enhance end-to-end leisure travel offerings through: ALG Vacations as one of the largest packaged tour providers and leisure travel distribution platforms in North America serving Mexico and the Caribbean; Amstar, a leading destination services management company in Mexico and the Caribbean, and its Hawaii-focused counterpart Worldstar; and Trisept Solutions, its leisure travel technology platform.
Visit www.hyatt.com.
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