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HYATT COMPLETES ACQUISITION OF APPLE LEISURE GROUP, CREATING GLOBAL LEADER IN LEISURE AND LUXURY ALL-INCLUSIVE TRAVEL

Well Positioned to Capture Significant and Growing Leisure Travel Demand with Enhanced End-to-End Offerings and an Increasingly Diversified Portfolio; Reaffirms Expanded Asset Sale Commitment to Generate an Additional $2 Billion of Proceeds by End of 2024; Fully Completes Existing Commitment

HYATT COMPLETES ACQUISITION OF APPLE LEISURE GROUP, CREATING GLOBAL LEADER IN LEISURE AND LUXURY ALL-INCLUSIVE TRAVEL

Well Positioned to Capture Significant and Growing Leisure Travel Demand with Enhanced End-to-End Offerings and an Increasingly Diversified Portfolio; Reaffirms Expanded Asset Sale Commitment to Generate an Additional $2 Billion of Proceeds by End of 2024; Fully Completes Existing Commitment

Category: Worldwide - Industry economy - Group or hotel buyout
This is a press release selected by our editorial committee and published online for free on 2021-11-03


Dreams Las Mareas Resort and Spa

Dreams Las Mareas Resort and Spa
Photo credit © Hyatt Hotels & Resorts

Hyatt Hotels Corporation (NYSE: H) today announced that Hyatt has completed the previously announced acquisition of Apple Leisure Group (ALG), a leading luxury resort-management services, travel and hospitality group, from affiliates of each of KKR and KSL Capital Partners, LLC.

Hyatt is doubling its global resorts footprint through the addition of ALG’s AMR Collection brand portfolio, which comprises approximately 100 hotels and resorts operating in 10 countries, as well as a pipeline of 24 executed deals in the Americas and Europe.

As a result, Hyatt now offers one of the largest collections of luxury all-inclusive resorts in the world, including new destinations for Hyatt such as Acapulco, Curaçao, the Canary Islands, Menorca and St. Martin.

Through this acquisition, Hyatt has added properties in 11 new European markets and expanded its European brand footprint by 60%, strengthening Hyatt’s growth potential in a critical region for global leisure travel demand.

In addition, Hyatt is offering even more options and experiences for its high-end guest and customer base and enhancing the end-to-end leisure travel experience through:
  • Unlimited Vacation Club by AMR Collection, an exclusive membership club whose members enjoy preferred rates and other benefits at participating AMR Collection properties
  • ALG Vacations, one of the largest packaged vacation providers and leisure travel distribution platforms in North America serving the United States, Mexico and the Caribbean
  • Amstar, a leading destination services management company
  • Trisept Solutions, a unique leisure travel technology platform
Hyatt is determining ways in which the World of Hyatt loyalty program and ALG’s Unlimited Vacation Club can bring added value and unique loyalty benefits to their respective member bases.

Hyatt plans to integrate the AMR Collection into World of Hyatt in 2022 so that members can earn and redeem World of Hyatt points at more than 100 AMR Collection hotels and resorts.

“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,” said Mark Hoplamazian, president and chief executive officer, Hyatt.

“Hyatt and ALG have highly complementary brand portfolios and share a deep commitment to colleague and guest experiences focused on care. Having first entered the fast-growing luxury all-inclusive space in 2013, we are ideally positioned to capture the significant and rising demand for leisure travel and extend the world-class hospitality we provide to a wide range of new travelers. 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.”

“Today marks the beginning of ALG’s next chapter, in which we will continue to build on the strong loyalty and reputation we have established through our luxury travel brands and services, now as part of Hyatt,” said Alejandro Reynal, chief executive officer and president, Apple Leisure Group.

“We strongly believe we can achieve more together and are excited by the opportunities ahead for our expanded family, including our ALG team members, who are excited to join a larger global organization. With Hyatt’s added expertise, we expect to accelerate our expansion as we welcome more travelers and turn vacation dreams into life-long memories.”

ALG’s business will continue to be led by Alejandro Reynal and the current ALG leadership team. ALG will operate as a distinct business unit within Hyatt. Mr. Reynal has joined Hyatt’s executive leadership team and reports to Mr. Hoplamazian.

In September of 2021, Hyatt fulfilled its asset disposition commitment announced in 2019 of $1.5 billion resulting in a total of more than $3 billion of proceeds realized since its asset-disposition strategy was launched in 2017, at a combined multiple of over 17x EBITDA.

Hyatt also reaffirms its commitment to generate an additional $2 billion in proceeds from asset dispositions by the end of 2024.

Advisors

In connection with the transaction, BDT & Company, LLC and J.P. Morgan served as financial advisors to Hyatt, and Latham & Watkins LLP acted as its legal advisor.

PJT Partners served as financial advisor to ALG, and Simpson Thacher & Bartlett LLP acted as its legal advisor. Credit Suisse and Deutsche Bank Securities Inc. served as financial advisors to KKR and KSL Capital Partners.

The term “Hyatt” is used in this release for convenience to refer to Hyatt Hotels Corporation and/or one or more of its affiliates.

About Hyatt Hotels Corporation

Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company offering 20 premier brands. As of June 30, 2021, the Company's portfolio included more than 1,000 hotel and all-inclusive properties in 68 countries across six continents.

The Company's purpose to care for people so they can be their best informs its business decisions and growth strategy and is intended to attract and retain top employees, build relationships with guests and create value for shareholders.

The Company's subsidiaries operate, manage, franchise, own, lease, develop, license, or provide services to hotels, resorts, branded residences, and vacation ownership properties, including under the Park Hyatt, Miraval, Grand Hyatt, Alila, Andaz, The Unbound Collection by Hyatt, Destination by Hyatt, Hyatt Regency, Hyatt, Hyatt Ziva, Hyatt Zilara, Thompson Hotels, Hyatt Centric, Caption by Hyatt, JdV by Hyatt, Hyatt House, Hyatt Place, tommie, UrCove, and Hyatt Residence Club brand names, and operates the World of Hyatt loyalty program that provides distinct benefits and exclusive experiences to its valued members.

About Apple Leisure Group

Apple Leisure Group (ALG) is a leading North American resort brand-management, leisure travel and hospitality group with a unique business model serving travelers and destinations worldwide.

ALG, through its group of affiliated companies, consistently delivers exceptional value to travelers and strong performance to resort owners and partners by strategically leveraging its portfolio of brands including: AMResorts LP, or one or more of its affiliates which collectively provide sales, marketing, and brand management services to resort and hotel brands under the AMR Collection including 5-star and 4-star luxury award-winning brands including Secrets Resorts & Spas, Dreams Resorts & Spas, Breathless Resorts & Spas, Zoëtry Wellness & Spa Resorts, Alua Hotels & Resorts, and Sunscape Resorts & Spas; ALG Vacations, one of the largest sellers of vacation packages and charter flights in the U.S. for travel to Mexico and the Caribbean, with well-established brands: Apple Vacations, Funjet Vacations, Travel Impressions, CheapCaribbean.com, BeachBound, Blue Sky Tours, Southwest Vacations, and United Vacations; the exclusive membership program Unlimited Vacation Club; best-in-class destination management services provided by Amstar DMC; and the innovative technology solutions provider Trisept Solutions, connecting over 88,000 travel agents with leading travel suppliers.

Secrets Mallorca Villamil Resort and Spa

Secrets Mallorca Villamil Resort and Spa
Photo credit © Hyatt Hotels & Resorts




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