Hyatt has completed the purchase of Apple Leisure Group (ALG), a North American luxury resort-management services, travel and hospitality firm.

Initially announced in August this year, the deal is valued at $2.7bn in cash. It was acquired from affiliates of KKR and KSL Capital Partners.

The acquisition better positions Hyatt to address the increase in leisure travel demand with more diversified offerings and experiences for its guest and customer base.

With the addition of ALG, Hyatt expands its presence with properties in 11 new European markets. It also takes its European brand footprint to 60%.

ALG’s AMR Collection brand portfolio includes nearly 100 hotels and resorts that are operational in ten countries. It has a pipeline of 24 executed deals in the Americas and Europe in its pipeline.

Plans are in place to integrate the AMR Collection into World of Hyatt next year.

Hyatt president and chief executive officer Mark Hoplamazian said: “Hyatt’s acquisition of ALG represents a brand-defining moment in our more than 60-year history and builds on our legacy as a hospitality leader.

“Hyatt and ALG have highly complementary brand portfolios and share a deep commitment to colleague and guest experiences focused on care.

“We are excited to welcome the ALG team to the Hyatt family, and look forward to working together to achieve new levels of growth and value creation for all stakeholders – including our shareholders, owners, customers, guests, members and colleagues.”

Following the acquisition, ALG will operate as a separate business unit under Hyatt. It will continue to be led by chief executive officer and president Alejandro Reynal and its current ALG leadership team.

BDT & Company and JP Morgan acted as the financial advisors and Latham & Watkins served as legal advisor for Hyatt in connection with the transaction.

PJT Partners and Simpson Thacher & Bartlett served as financial advisor and legal advisor to ALG.