Hyatt has announced plans to acquire the Apple Leisure Group to expand their global presence.
Hyatt has entered into a definitive agreement to acquire the leading luxury resort-management service provider, the Apple Leisure Group (ALG) from the KKR and KSL Capital Partners LLC for $2.7bn.
The ALG management platform, AMResorts provides management services to many resorts under the AMR Collection brand portfolio, including but not limited to the likes of Dreams Resorts and Spas, Secrets Resorts and Spas, Zoetry Welless and Spa Resorts and many more.
Under this acquisition, Hyatt will also gain ALG’s membership offering, including the Unlimited Vacation Club and its travel distribution arm, ALG Vacations.
Despite the acquisition, Alejandro Reynal will continue to lead ALG once it is completed alongside his leadership team.
“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,” said Mark Hoplamazian, president and chief executive officer, Hyatt.
“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 portfolio has grown significantly over the years, from nine resorts in 2007 to over 100 locations by the end of 2021, with 24 more locations in the pipeline ready for development.
ALG’s Unlimited Vacation Club offers participants lower rates and number of benefits, and has accrued over 110,000 members. The club has been growing at a compounded annual rate of 18 per cent over the last five years.
“Combining Hyatt’s deep expertise and global brand footprint with ALG’s strong resort brands, operating capabilities and robust development plans will elevate our differentiated position and create a leader in luxury leisure travel,” said Alejandro Reynal, chief executive officer, Apple Leisure Group.
“On behalf of everyone at ALG, I am grateful to our partners at KKR and KSL who supported us in building the platform into what it is today.
“I am excited to have our team join the Hyatt family and I anticipate a robust growth journey ahead as the industry expands and we are able to provide a best-in-class leisure offering to an even larger group of travelers around the world.”
“Today is a great milestone in what has been a story of growth, resilience, and dedication to world-class leisure experiences by an outstanding team at Apple Leisure Group,” said Chris Harrington and Rich Weissman, partners at KKR and KSL Capital Partners, respectively. “There is simply no better home for ALG to continue on its growth trajectory than being part of Hyatt.”