Zoëtry Paraiso de la Bonita near Cancún
Hyatt Hotels Corporation has agreed to buy another hospitality giant Apple Leisure Group in a successful deal that will double its global presence in resorts and grow its list of development.
The eye-catching acquisition of Apple Leisure Group (ALG) is a striking statement of intent following the upheaval caused by Covid19.
ALG will change hands
Hyatt Hotels Corporation has entered into a definitive agreement to purchase vertically integrated travel and hospitality company ALG from KKR and KSL Capital Partners for US $ 2.7 billion in cash. Some of the key ALG brands included in the deal include the resort brand management platform AMResorts, travel distribution business ALG Vacations and the Unlimited Vacation Club guest loyalty program.
AMResorts provides management services to the largest collection of all-inclusive luxury resorts across the Americas as part of the AMR Collection portfolio, including Secrets Resorts & Spas, Dreams Resorts & Spas, Breathless Resorts & Spas and Zoëtry Wellness & Spa Resorts, as well as Alua Hotels & Resorts in Europe.
Retain Reynal and his team
Following the conclusion of the agreement, which is expected to be finalized in the fourth quarter of 2021, ALG’s business will continue to be led by current CEO Alejandro Reynal and his team. Reynal will also become a member of Hyatt’s management team and report to its President and CEO, Mark Hoplamazian.
“With the acquisition of the asset-reducing Apple Leisure Group, we are delighted to bring a highly desirable independent resort management platform to the Hyatt family,” said Hoplamazian. “The addition of the ALG properties will immediately double the global footprint of Hyatt resorts. ALG’s portfolio of luxury brands, leadership in the all-inclusive segment and broad portfolio of new resorts will expand our reach into existing and new markets, including Europe, and further accelerate our net growth of leading rooms. Of the industry.
“The combination of Hyatt’s deep expertise and the brand’s global footprint with ALG’s strong resort brands, operating capabilities and robust development plans will strengthen our differentiated position and create a travel leader. luxury amenities, ”added Reynal. “On behalf of everyone at ALG, I am grateful to our partners at KKR and KSL who have supported us in building the platform as it is today. I am delighted that our team is joining the Hyatt family and I anticipate solid growth as the industry develops and we are able to provide a premier leisure offering to an even larger group of travelers across the region. world.
ALG’s impressive global presence
ALG’s portfolio spans more than 33,000 hotel rooms in ten countries, with 100 properties by the end of 2021, and a pipeline of 24 transactions executed across the Americas and Europe in the pipeline . The proposed transaction means Hyatt will double its global presence in resorts, becoming the largest operator of luxury hotels in Mexico and the Caribbean, and expanding its European presence by 60%. He will also introduce the company to 11 new European markets.
Hyatt plans to fund more than 80% of the purchase with a mix of $ 1 billion in cash and new debt financing, and the rest with $ 500 million in equity financing. The group has already obtained a financing commitment of 1.7 billion dollars from JP Morgan.
Meanwhile, Hyatt has announced that it is on track to fulfill its current pledge to sell $ 1.5 billion in hotel real estate in 2021, and has now pledged to sell an additional $ 2 billion by end of 2024. Proceeds from the $ 2 billion program will be used to repay debt, including debt incurred to finance the purchase of ALG.
BDT & Company and JP Morgan acted as financial advisers to Hyatt, Latham & Watkins as legal counsel. PJT Partners worked as financial advisor to ALG, and Simpson Thacher & Bartlett acted as legal advisor. Deutsche Bank Securities acted as financial advisor to KKR and KSL Capital Partners.