Hyatt to acquire Apple Leisure Group for $2.7B

Hyatt Hotels Corp. is set to buy Apple Leisure Group from affiliates of each of KKR and KSL Capital Partners for $2.7 billion in a move that accelerates its transition to an asset-light business. The deal doubles Hyatt’s global resorts footprint, adding a range of hospitality brands as well as travel distribution business ALG Vacations.

ALG’s business will continue to be led by current CEO Alejandro Reynal, who will will become a member of Hyatt’s executive leadership team  and report to Hyatt CEO Mark Hoplamazian, and the current ALG 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 Hoplamazian. “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.


ALG’s hotel portfolio consists of more than 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.

Related: Hyatt reports RevPAR gains in Q2

The acquisition will expand Hyatt’s presence in luxury leisure travel and immediately add approximately 100 hotels and a pipeline of 24 executed deals in Europe and the Americas to its portfolio. Following completion of the transaction, Hyatt will double its global resort footprint, will be the largest operator of luxury hotels in Mexico and the Caribbean and will expand its European footprint by 60 percent. The acquisition will extend Hyatt’s brand footprint into 11 new European markets, a critical region for global growth in leisure travel. Hyatt also plans to expand beyond ALG’s current pipeline in new geographies in which ALG does not currently have hotels.    

Hyatt anticipates fulfilling its current commitment to sell $1.5 billion of hotel real estate in 2021, resulting in a total of more than $3 billion of proceeds realized since the asset-sale strategy was announced in 2017 at a combined multiple of over 17x earnings before interest, taxes, depreciation and amortization compared to Hyatt’s original estimate of 13x to 15x. Hyatt is further committing to an additional $2 billion in proceeds from the sale of hotel real estate by the end of 2024.  

ALG’s resort brand management platform AMResorts provides management services to a portfolio of all-inclusive resorts in the Americas under the AMR Collection brand portfolio, including Secrets Resorts & Spas, Dreams Resorts & Spas, Breathless Resorts & Spas and Zoëtry Wellness & Spa Resorts as well as the Alua Hotels & Resorts brand, which is expanding in European leisure destinations. The acquisition also includes ALG’s membership offering, Unlimited Vacation Club, travel distribution business ALG Vacations as well as destination management services and travel technology assets. 

Hyatt opened 100 properties over the past 12 months and has a pipeline representing more than 40 percent of the company’s existing rooms. The company expects net rooms growth to be greater than 6 percent for the remainder of the year.

The transaction is anticipated to close in the fourth quarter of 2021, subject to customary closing conditions.  

A version of this story appeared on Hotel Management’s sister site, Hospitality Insights.