“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.”
Hyatt Hotels Corp, an American multinational hospitality company, acquires Apple Leisure Group and KSL Capital Partners (travel-and-leisure specialist) for $2.7 billion in cash, Reuters reported. The deal was announced on Sunday.
Hyatt Hotels buys Apple Leisure Group, a resort company, from its private-equity owner KKR & Co. Hyatt Hotels, in a statement, mentioned that the acquisition of the resort company’s asset-light (ALG) business will increase the percentage of revenues.
“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 chief executive officer, 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 percent fee-based earnings by the end of 2024.”
Mr. Hoplamazian was quoted as saying.
The hospitality company, according to the report, expects to sell $1.5 billion worth of hotel real estate in 2021.
Hyatt, headquartered in Chicago, manages luxury and business hotels, resorts, and vacation properties. With this acquisition, the hospitality company clearly plans to expand global brand presence in luxury leisure travel.