Travel Industry News at TravelNewsAsia.com since 1997. Interviews, podcasts, videos, pictures and more
Tue, 17 August 2021

Hyatt to Acquire ALG; Additional Properties will Double Hyatts Portfolio of Resorts

Hyatt has entered into a definitive agreement to acquire Apple Leisure Group (ALG), a luxury resort-management services, travel and hospitality group, from affiliates of each of KKR and KSL Capital Partners, LLC for $2.7 billion in cash.

The transaction is anticipated to close in Q4 2021, subject to customary closing conditions.

ALGs resort brand management platform, AMResorts, provides management services to the largest portfolio of luxury all-inclusive resorts in the Americas under the AMR Collection brand portfolio, including Secrets Resorts & Spa, Dreams Resorts & Spas, Breathless Resorts & Spas and Zotry Wellness & Spa Resorts as well as the fast-growing Alua Hotels & Resorts brand, which is expanding in European leisure destinations.

The acquisition also includes ALGs membership offering, Unlimited Vacation Club, travel distribution business ALG Vacations, as well as destination management services and travel technology assets.

Room at Secrets St. Martin. Click to enlarge.

Following the completion of the transaction, ALGs business will continue to be led by current ALG CEO Alejandro Reynal and the current ALG leadership team. Mr. Reynal will become a member of Hyatts executive leadership team and report to Hyatt CEO Mark Hoplamazian.

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 ALGs properties will immediately double Hyatts global resorts footprint. ALGs 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.

ALGs hotel portfolio consists of over 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.

ALGs Unlimited Vacation Club is an exclusive travel club whose participants enjoy preferred rates and other benefits at AMR Collection properties. With over 110,000 members, Unlimited Vacation Club membership has grown at a compounded annual growth rate of 18% over the last five years.

Combining Hyatts deep expertise and global brand footprint with ALGs 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, chief executive officer, Apple Leisure Group. On behalf of everyone at ALG, I am grateful to our partners at KKR and KSL who supported us in building the platform into what it is today. I am excited to have our team join the Hyatt family and I anticipate a robust growth journey ahead as the industry expands and we are able to provide a best-in-class leisure offering to an even larger group of travelers around the world.

The acquisition will expand Hyatts 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 offer one of the largest portfolios of luxury all-inclusive resorts in the world, 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 Hyatts brand footprint into 11 new European markets, greatly enhancing Hyatts growth potential in Europe, a critical region for global growth in leisure travel.

ALGs strong developer and owner base will expand Hyatts relationships in key complementary geographies. Hyatt plans to apply the combined strength of the teams to expand beyond ALGs current pipeline in new geographies in which ALG does not currently have hotels.

The acquisition of ALGs asset-light business will meaningfully increase the percentage of revenues and earnings Hyatt will generate from fees. Additionally, Hyatt anticipates fulfilling its current commitment to sell $1.5 billion of hotel real estate in 2021, resulting in a total of over $3 billion of proceeds realized since the asset-sale strategy was announced in 2017 at a combined multiple of over 17x EBITDA as compared to Hyatts 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.

At closing, Hyatt expects to fund more than 80 percent of the purchase with a combination of $1.0 billion of cash on hand and new debt financings, and the remainder with approximately $500 million from equity financing. Hyatt has secured a $1.7 billion financing commitment from J.P. Morgan. Cash proceeds from the $2 billion asset sale program are expected to be used to pay down debt, including debt incurred to fund the acquisition.

See also: How's Business in Koh Samui? Interview with Adrian Pulido, GM of Hyatt Regency.

See latest Travel Industry News, Video Interviews, Podcasts and other news regarding: Hyatt, Apple.

Headlines: Jumeirah Opens Luxury Resort in Bali, Indonesia  Marriott Opens First AC Hotel in Australia  Star Alliance to Launch Co-Branded Regional Credit Card; Enable Paid Access to Lounges  Cathay Pacific Reports Increase in Cargo and Passenger Traffic  Fly Dhaka Partners AirAsia Consulting  Int. Travel Forecast to Fully Recover by 2025; Asia Pacific Lagging  CWT Appoints Interim CFO and Chief Partnership Officer  Host Countries of Next Five Rugby World Cups Confirmed  Langham Gold Coast to Open in June  SIA Appoints Leslie Thng as CEO of Scoot  Virgin Limited Edition to Open 28-Room Luxury Hotel in Mallorca  Pitak 'Chin' Norathepkitti Appointed GM of Anantara Chiang Mai Resort  ITA Airways Takes Delivery of First Airbus A350  Singapore Airlines Extends Sponsorship of Formula 1 Grand Prix  All Nippon Airways Joins airasia SuperApp's OTA Platform  Air Astana Celebrates 20th Anniversary of First Commercial Flight  Accor to Convert QE2 Cruise Ship into Floating MGallery Hotel  Lufthansa Orders 16 Boeing Cargo and Passenger Aircraft  Sabre Completes Acquisition of Nuvola  NAC to Become Launch Lessor of Embraer’s P2F Conversions  Qatar’s Hamad Int. Airport Reports 162% Increase in Passengers  Grand Hyatt Kuwait to Celebrate Grand Opening in Autumn  JAC Takes Delivery of 9th ATR 42-600  Etihad Unveils New Economy Class Furnishings and Tableware  Marriott Signs Second JW Hotel in Japan  Jetstar to Launch Canberra Flights from Melbourne and Gold Coast  Four Seasons Signs Luxury Hotel and Residences in Muscat, Oman  Airbus Establishes Air Mobility Initiative in Bavaria  Qantas Launches Promotion on 1,700+ Points Planes  Etihad Completes Sustainable Flight Tests Operating 42 EcoFlights Over 5 Days  Embraer Concludes Series of Experimental Flights in Rio de Janeiro, Brazil  Swiss-Belhotel Aiming to Double Portfolio by 2030  Four Seasons Partners Bryte to Bring AI Technology to Sleep Experience  The Slate Phuket Becomes Dog-Friendly; Charges 1,500 Baht Per Dog, Per Night  Lee Kelly to Join 45 Park Lane in London as GM  China Airlines Participates in SkyTeam's Sustainable Flight Challenge  Boeing to Establish Research & Technology Hub; Names Arlington Office as Global HQ  Emirates to Showcase Premium Economy Class Cabin at Arabian Travel Market 2022  It’s a Penalty Publishes Impact Report from Super Bowl LVI Campaign  EGNOS V3 to Enhance Navigation and Security for More Destinations in Europe  Qantas Unveils Plan to Buy Alliance Aviation Services  Mapping Travel's New Normal - Sabre Study Highlights Prominent Shifts  Aviation: International RPKs Increase 285.3%  Emirates Celebrates Museum of the Future with Custom A380 Livery  Thai Airways Resumes Bali Flights; Launches Chatbot  China Airlines Operates Songshan - Tokyo Haneda Flights with A321neo  Cebu Pacific Resumes Jet Operations at Bicol Int. Airport  SHVO, Rosewood and Peter Marino to Renovate The Raleigh, Miami Beach  Growing Challenges for Air Cargo as Demand Falls  Pullman Cairns Appoints Mark Burns as General Manager  Accelya Establishes Center of Excellence in Pune, India  IHG Appoints Danny Ha as Development Representative - Korea  Emirates Resumes Flights to Bali, Indonesia  Yotel Signs WTC Hotel in Lisbon, Portugal  airBaltic Wet Leases Boeing 737-900ER from Ukraine Int. Airlines  TSA Adds Smiths Detection's Hi-Speed HI-SCAN 100100V-2is to ACSTL  Qantas Launches New Distribution Platform in UK, US and South Africa  United Airlines to Resume San Francisco - Melbourne Flights in June  Airbus Deploys airBaltic A220-300 on Demo Flight to Sydney, Singapore, Hanoi and Tokyo  Qantas Board Approves Largest Aircraft Order in Australian Aviation  Somerset Ekamai Bangkok Appoints DOBD and GM  Cebu Pacific Operates First Domestic Flight to Clark's New Terminal  Air New Zealand Added to airasia Super App’s OTA Platform  JW Marriott Hotel Opens in São Paulo, Brazil  First AC Hotel by Marriott in South Korea Opens in Seoul  Dusit Thani Hua Hin Opens Nómada  easyJet Partners GKN Aerospace on Development of Zero Carbon Emission Technologies  Hamburg Becomes 4th Airport to Install Star Alliance Biometrics  Hyatt Expands UK Portfolio with Two More Hotels in London  Yotel to Use Urban Jungle's Bathroom Amenities Globally  Ten Trinity Square Private Club in London Appoints Alex Tzatzos as Head Chef  Boeing Unveils First T-7A Red Hawk Advanced Trainer Jet  Jumeirah Opens Luxury Resort in Pecatu Region of Bali, Indonesia  Asia Pacific Airlines Report 205.4% Increase in RPK  Marriott Soft Opens W Dubai - Mina Seyahi  Air New Zealand Unveils Details of Four-Year Investment Plan for Auckland Airport  Tokyo Int. Airport Upgrades Security with 12 HI-SCAN 6040 CTiX Scanners  Hawaiian Airlines Partners Starlink for High-Speed Inflight Internet Access  Emirates to Operate 23 Extra Flights for Eid  ITA Airways and Airbus to Explore Development of UAM Solutions in Italy  Thai AirAsia X Transfers Operations to Suvarnabhumi; Plans to Resume ICN and NRT Flights  Air Astana to Launch Almaty - Aktau - London and Almaty - Bodrum Flights  Three Senior Appointments at CWT  Accor Partners Reckitt’s Dettol Pro Solutions  United Airlines Begins Largest Transatlantic Expansion in its History  Pratt & Whitney Becomes First OEM in U.S. to Join SITA's e-Aircraft DataHub  Executive Appointments at Two Hilton Hotels in Bengaluru, India  SAS Becomes Launch Customer of SPM Alliance  Singapore and United Airlines Expand Codeshare Agreement  AirAsia Resumes Flights Between Kuala Lumpur and Siem Reap, Cambodia  CWT Appoints Patrick Andersen as President and CEO  Liverpool to Play Crystal Palace in Standard Chartered Singapore Trophy on 15 July  Alda Mendes Joins Four Seasons Seychelles as Resort Manager  Jetstar Asia Resumes Singapore - Surabaya Flights  Air France Creates New Amenity Kit for La Première Customers  Air Canada Promotes Use of Sustainable Aviation Fuel  Cebu Pacific to Resume Bali, Hanoi and Sydney Flights  Virgin Australia to Upgrade Retailing Strategy with Sabre's Revenue Optimizer  Cathay Pacific Cargo Launches New Options for Time-Sensitive Shipments  Amilla Maldives Joins Small Luxury Hotels of the World  Sino Jet Takes Delivery of First Dassault Falcon 7X Business Jet  Etihad Airways Publishes Sustainability Report 2020-2021  Porsche Becomes Exclusive Vehicle Supplier of Air Canada Chauffeur Service  Saudi Arabia to Host WTTC's 22nd Global Summit  Travel Industry Interview with Kurt Ekert, President of Sabre  HD Videos and Interviews  Podcasts from HD Video Interviews  RSS Feed - Travel Industry News  Ticker - Travel Industry News  Travel Industry News Archives  Travel Trade Shows  High-Res Picture Galleries  Travel News Asia - Latest Travel Industry News 

Subscribe to our Travel Industry News RSS Feed Travel Industry News RSS Feed from TravelNewsAsia.com. To do that in Outlook, right-click the RSS Feeds folder, select Add a New RSS Feed, enter the URL of our RSS Feed which is: https://www.travelnewsasia.com/travelnews.xml and click Add. The feed can also be used to add the headlines to your website or channel via a customisable applet. Have questions? Please read our Travel News FAQ. Thank you.

     
Advertising
Advertising
Copyright © 1997-2022 TravelNewsAsia.com