What: Hyatt Acquires Apple Leisure Group for $2.7 Billion
Hyatt Hotels Corporation has acquired Apple Leisure Group (ALG), doubling its global footprint with the addition of AMResorts brands such as Secrets Resorts & Spas, Dreams Resorts & Spas, Breathless Resorts & Spas, Zoetry Wellness & Spa Resorts and Alua Hotels & Resorts.
The acquisition also includes Unlimited Vacation Club and ALG Vacations, which includes packaged travel brands such as Apple Vacations, Travel Impressions, Funjet Vacations, United Vacations and more.
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.
The $2.7 billion cash transaction is expected to close in the fourth quarter of 2021.
Why It Matters: The Acquisition Will Lead to a Massive Expansion for Hyatt
The acquisition will increase Hyatt’s European footprint by 60% and puts the company into 11 new European countries, including Spain, the Canary Islands, the Balearic Islands and Greece.
In Mexico and the Caribbean, Hyatt will now be the largest operator of luxury hotels, adding more than 33,000 rooms in 10 countries to its portfolio. The deal also reinforces Hyatt’s asset-light strategy, increasing the percentage of revenues and earnings the company will generate from fees.
What They Are Saying: The Merger Will Transform Hyatt’s Earnings Profile
"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 CEO of 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.”
"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, CEO of Apple Leisure Group.
The Details
Apple Leisure Group
Hyatt Hotels Corporation
