Hyatt Hotels Corporation announced that Hyatt has entered into a definitive agreement to acquire Apple Leisure Group (ALG), a 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 a portfolio of luxury all-inclusive resorts in the Americas under the AMRTM Collection brand portfolio, including brands Secrets® Resorts & Spa, Dreams® Resorts & Spas, Breathless® Resorts & Spas and Zoëtry® Wellness & Spa Resorts as well as the fast-growing Alua® Hotels & Resorts brand, which is expanding in European leisure destinations. 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.
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. Following completion of the transaction, Hyatt will double its global resort footprint and will expand its European footprint by 60 percent. The acquisition will extend Hyatt’s brand footprint into 11 new European markets.
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.
Photo, Zoëtry Agua Punta Cana: Courtesy of AMResorts