Hyatt Hotels Corp. has completed the previously announced acquisition of Apple Leisure Group, a resort-management services, travel and hospitality group, from affiliates of KKR and KSL Capital Partners.
Hyatt is doubling its global resorts footprint through the addition of ALG’s AMR Collection brand portfolio, which includes approximately 100 hotels and resorts operating in 10 countries, as well as a pipeline of 24 executed deals in the Americas and Europe.
The deal also will add new markets to Hyatt’s portfolio including Acapulco, Mexico; 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 60 percent.
Related: Hyatt to acquire Apple Leisure Group for $2.7B
“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 CEO of 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, CEO 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 Reynal and the current ALG leadership team. ALG will operate as a distinct business unit within Hyatt. Reynal has joined Hyatt’s executive leadership team and reports to Hoplamazian.
Hyatt is determining ways in which the World of Hyatt loyalty program and ALG’s Unlimited Vacation Club can bring added value and 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.
In September, 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 17 times earnings before interest, taxes, depreciation and amortization. Hyatt also reaffirms its commitment to generate an additional $2 billion in proceeds from asset dispositions by the end of 2024.