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: British Airways to Resume Double Daily Flights to Singapore in November  Four Seasons to Launch Fleet of Luxury Yachts  China Airlines Signs Firm Order for 16 Boeing 787-9 Dreamliners  Virgin Atlantic Updates Gender Identity Policy  ESV Uses Digital Bridge Forum to Showcase Experimental Space Module  WestJet Orders 42 Boeing 737-10s  Bombardier Celebrates Grand Opening of Melbourne Service Centre  Huawei and Emirates Explore Ways to Expand Partnership  Worldwide Flight Services to Become Wholly Owned Subsidiary of SATS  China Airlines Unveils A321neo Pikachu Jet  Virgin Atlantic to Join SkyTeam in 2023  Royal Thai Navy Orders Hermes 900 Maritime Unmanned Aircraft  British Airways to Launch Wine Flyer in October  Eviation Alice Completes Maiden Flight  Clarins and Groupe GM Relaunch Eau Dynamisante Hotel Line  Boeing Partners Red 6 to Advance Fighter Pilot Training with Augmented Reality  Minor Signs Tivoli Resort in Tenerife  Boeing Delivers 100th 737-800 BCF to AerCap  Middle East Airlines Enhances Operations at BEY with SITA's Cloud-Based Technology  Onyx Hospitality Appoints Sukamal Mondal as Area General Manager  Oana Savu Joins Dophop as Chief Strategy Officer  MotoGP Stars Learn Muay Thai Ahead of Thailand Grand Prix in Buriram (บุรีรัมย์)  Hertz and bp to Develop Network of EV Charging Stations in USA  IATA and Etihad to Trial CO2 Emissions Calculator for Cargo Flights  British and Qatar Airways Add 42 Countries to Shared Network  Cross Signs Riverfront Property in Bangkok, Thailand  Mandarin Oriental Palace Opens in Luzern, Switzerland  Anantara Adds 400-Metre Zipline to Layan Active Zone in Phuket  easyJet to Upgrade Operations with DPO and CDA  Air Canada Welcomes Decision to Lift Mask, Testing and ArriveCan Requirements  Rolls-Royce Delivers 1,000th BR725 Engine to Gulfstream  IHG Refreshes Restaurant and Integrated Wellness Experience of Even Hotels Brand  Hotels: ADR, OR and RevPAR Trending Higher in All Asia Pacific Markets  Xiamen Airlines Orders 40 Airbus A320neo Family Aircraft  New Japanese Airline Signs 10-Year GMA with ATR  Thai Airways Unveils Winter 22/23 Flight Plan  Marriott Unveils Plan to Add 5,000+ Rooms in Middle East by End-2023  DoubleTree by Hilton Phuket Banthai Appoints Christoph Weidemann as GM  Embraer and GMV Sign MOU for A-29 Super Tucano Aircraft  French Navy Takes Delivery of First of Six H160s in SAR Configuration  IHG Signs Second Hotel Indigo in Jeddah, Saudi Arabia  CTG Hotel Appoints James Kim as COO  Ascott to Refresh and Expand Citadines Aparthotel Brand  Martin Becquart Joins Phnom Penh's Raffles Hotel Le Royal as Executive Chef  Sihot Appoints Diogo Llorente as COO and Michael Wernet as Head of Operations  Royal Huisman Unveils Wing 100 Megayacht  WTTC Publishes Report: Nature Positive Travel & Tourism  Airbus Tests New Outsized Cargo Loading System and Jig; Verification Imminent  Dusit Central Park Bangkok to Feature 11,200-sqm Roof Park Sky Garden  ANA Confirmed as Launch Customer for Boeing's Insight Accelerator  Premium Seating on American's Long-Haul Fleet to Grow 45+% by 2026  Embraer Buying Minority Stake in XMobots  Boeing Forecasts Airlines in Middle East to Need 2,980 New Airplanes Through 2041  SITA Launches Innovative Partnership Program  Airbus and Ecocopter to Work Together on UAM Market in Latin America  Bombardier's Challenger 3500 Business Jet Enters into Service  US-Bangla Airlines Signs Distribution Agreement with Sabre  Qatar Airways to Reintroduce A380 on Flights to Perth, Australia  China Airlines to Increase Flights to Philippines and Thailand  Emirates Partners United Airlines  Vakkaru Maldives Resort Appoints Diana Vergara as Resident Marine Biologist  Doha Hosting Global Aviation Industry World Financial Symposium  AirAsia Launches 'Biggest Ever Free Seats Promotion'  CWT Joins Global Sustainable Tourism Council  The Food School Bangkok to Open in October  IHG Signs Holiday Inn's First Urban Beachfront Resort in Indonesia  Singapore Tourism Board Starts Issuing Travel Agent Licences Electronically  Qatar Airways Enhances Premium Travel Experience at London Heathrow T4  Emma Raducanu to Host Tennis Clinic in Maldives  Emirates Appoints APG as GSA for Argentina  Shell Appoints Wael Sawan as CEO  Apollo Funds Commit Up To US$1.5 Billion To Embraer Customer Financing Agreement  Passenger Volume Continues to Rise at Hong Kong Airport  Marriott Opens Adults-Only, All-Inclusive Luxury Resort in Dominican Republic  Minor Rebrands Luxury Hotel in Amsterdam  Emirates Investing Over US$350m on Inflight Entertainment System for A350s  Asia Pacific Airlines Report 528.8% Rise in July Traffic  U.S. Air Force Takes Delivery of Bombardier Global 6000 Aircraft  Brazilian Armed Forces to Acquire 27 Airbus H125 Helicopters  Boeing Completes Construction of Advanced Composite Fabrication Center in Arizona  Marriott Signs First Property in Papua New Guinea  Emirates Offers First Class Passengers Dom Pérignon 2003 Plénitude 2 on Select Flights  Hyatt Opens Second Thompson Hotel in Europe  Aeroflot Signs Agreement of Intent with UAC for 339 Aircraft  Saudia Celebrates Ambitious Neom Project with Aircraft Livery  Accor Partners SHe Travel Club  Air France Introduces New Amenity Kits on Long-Haul Flights  Etihad to Increase Flights to JFK; Expand Partnership with JetBlue  Fiji Crowned Rugby World Cup Sevens 2022 Champions; Australia Women Secure Hat-Trick  AirAsia X Resumes Flights Between Kuala Lumpur and Sydney, Australia  HeliDax Becomes First to Sign Airbus' New HCare Classics Support Contract  United Airlines Signs CPA for 200 4-Seat eVTOL with Options for Further 200  Qatar Airways and Virgin Australia Commence Strategic Partnership  Key Hotel Markets in Europe Surpass 2019 Profitability Levels  Poland Selects Boeing's AH-64 Apache for its Kruk Attack Helicopter Program  Airbus to Provide UHF Milsatcom Services to Czech Republic and Netherlands  IATA Reports Global Air Cargo Statistics for July 2022  40 Teams to Compete in Rugby World Cup Sevens 2022 in Cape Town, South Africa  Pan Pacific Appoints Margaret Paul as VP of Pre-Opening and Operations - Oceania  Airbnb Publishes Report on Dispersal of Tourism  Embraer Forecasts Malaysia to Need 150 New Aircraft Under 150 Seats  Air Canada Donates Lockheed L-10A Electra to Royal Aviation Museum  Airbus Partners Hiratagakuen for eVTOL Flight Tests in Japan  Three Different US Navy Aircraft Control Unmanned MQ-25  Cathay Pacific Partners PolyU on New Cadet Pilot Training Course  Hamad Int. Airport Opens Second Transit Hotel  Duetto Appoints Jeff Nicholson as Chief Marketing Officer  Pan Pacific Appoints Richard Tan as VP Operations for Dhaka, Indo-China, Malaysia and Nairobi  Conrad Centennial Singapore Appoints Pranjal Walawalkar as Commercial Director  Jamaica to Adopt SITA's Digital Travel Declaration Solution  Hahn Air to Plant 150,000 Mangrove Trees in Kenya and Madagascar  Smiths Detection's HI-SCAN 6040 CTiX X-ray Scanner Added to TSA's Mid-Sized QPL  Firefly Resumes Penang - Phuket Flights with Boeing 737 Aircraft  Hilton Opens Hotel in Hiroshima, Japan  American Express Global Business Travel to Upgrade to Travelport+  Marcel Holman Joins Pan Pacific as VP Operations - China, Indonesia and Japan  Su Zie Chew Joins Conrad Centennial Singapore as Director of Operations  Saudia Launches Direct Flights from Jeddah to Tunis and Kuala Lumpur  Aeroflot Publishes Sustainable Development Policy  Smiths Detection to Upgrade Cargo Inspection Systems at Honmoku and Sendai, Japan  Emirates to Expand A380 Services to 42 Destinations by April 2023  Air New Zealand Unveils A321neo with Special Star Alliance Livery  PPHG Appoints Anne Golden as VP Operations - UK and North America  Cebu Pacific to Upgrade Crew Scheduling with iFlight  Hilton Opens 608-Room Hotel on Palm Jumeirah, Dubai  Rolls-Royce and Air China to Establish JV MRO Facility in Beijing, China  Smiths Detection India Signs MOU with Navratna Defence PSU Bharat Electronics  Boeing Orders Advanced Training Aircraft Fuselage Systems from Saab  Thai AirAsia X to Launch Flights Between Bangkok and Tbilisi, Georgia  HMD Asia Signs First Shinta Mani Hotel Outside of Cambodia  Airports, Biometrics and Travel - Interview with Sumesh Patel, SITA President APAC  Pictures from Miss International Queen 2022 in Pattaya, Thailand  HD Video Interviews from Miss International Queen 2022 in Pattaya, Thailand  Is Siam Seaplane Ready for Take Off? Interview with Dennis Keller, Chief Business Officer  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