Hyatt has agreed to acquire travel and hospitality group Apple Leisure Group (ALG). The hotel chain will pay $2.7 billion to KKR and KSL Capital Partners, LLC for the acquisition.
ALG portfolio includes many travel brands such as AMResorts, AMR Collection, Secrets Resorts & Spa, Dreams Resorts & Spas, Breathless Resorts & Spas and Zoëtry Wellness & Spa Resorts, Alua Hotels, Unlimited Vacation Club, ALG Vacations.
The transaction will contribute to Hyatt’s expansion in Europe and its expected to be completed in the last quarter of the year.
Mark Hoplamazian, president and chief executive officer, Hyatt said:
“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 $2 billion 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.”
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.
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