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August 16, 2021

Hyatt agrees to buy Apple Leisure Group for $2.7bn in cash

ALG’s portfolio now has around 100 properties, up from nine resorts in 2007.

Hyatt has reached an agreement with the affiliates of KKR and KSL Capital Partners to purchase luxury resort-management services provider Apple Leisure Group (ALG) for $2.7bn in cash.

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The transaction will expand Hyatt’s presence in luxury and resort travel, enhance leisure travel offerings, accelerate its asset-light strategy, increase choice and experiences for guests and provide significant opportunities for its existing resorts.

ALG owns a hotel portfolio comprising of more than 33,000 rooms in ten countries.

The company through its brand management platform, AMResorts, delivers management services to luxury resorts in the Americas under the AMR Collection master brand.

AMR Collection was introduced earlier this month and brings together six resort brands, namely Secrets, Dreams, Breathless and Sunscape Resorts & Spas, Zoëtry Wellness & Spa Resorts and Alua Hotels & Resorts.

In addition to these properties, Hyatt takes over ALG’s membership offering, Unlimited Vacation Club, travel distribution business ALG Vacations and other assets.

Hyatt president and chief executive officer Mark Hoplamazian 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.

“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 $2bn 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.”

The deal is subject to customary closing condition and expected to complete in the fourth quarter of 2021.

Upon completion of the deal, the new owner will retain the company’s current management team including CEO Alejandro Reynal.

He will join as a member of Hyatt’s executive leadership team and report to Hyatt CEO Mark Hoplamazian.

Earlier this month, Hyatt opened Thompson Savannah in Georgia, the US. It features 193 guestrooms including 21 suites.

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

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