CHICAGO — Hyatt Hotels Corporation is set to double its global resorts footprint with the acquisition of Apple Leisure Group (ALG).
Hyatt has entered into a definitive agreement to acquire ALG for $2.7 billion in cash. The transaction is anticipated to close in the fourth quarter of 2021.
ALG’s 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, which includes the brands Secrets Resorts & Spas, Dreams Resorts & Spas, Breathless Resorts & Spas, Zoëtry Wellness & Spa Resorts and Alua Hotels & Resorts.
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.
Following the deal’s completion, ALG will continue to be led by current EO Alejandro Reynal and the current ALG leadership team. Reynal will also become a member of Hyatt’s 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 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.”
Hoplamazian also added that the combination of the acquisition and the $2 billion increase in Hyatt’s asset sale commitment will transform its earnings profile, and that the company expects to reach 80% fee-based earnings by the end of 2024.
ALG’s hotel portfolio consists of over 33,000 rooms in 10 countries, growing from nine resorts in 2007 to approximately 100 properties by the end of 2021. It has a pipeline of 24 executive deals with a large number of additional hotels in development.
Following the transaction, Hyatt will offer the largest portfolio of luxury all-inclusive resorts in the world and will be the largest operator of luxury hotels in Mexico and the Caribbean. It will also expand its European footprint by 60%.