Hospitality giant Hyatt Hotels Corporation has successfully snapped up counterpart Apple Leisure Group, adding 24 executed deals across the Americas and Europe to its pipeline.

This eye-catching swoop demonstrates that interest in the luxury travel market remains strong despite the pandemic.

The long-awaited ALG deal completes

Hyatt Hotels Corporation first signalled its intention to acquire Apple Leisure Group (ALG), the luxury resort-management services, travel and hospitality group, from KKR and KSL Capital Partners for US$2.7 billion in cash in August 2021. Now it’s finally completed the deal, doubling its global resorts footprint with the addition of ALG’s AMR Collection portfolio, which comprises around 100 hotels and resorts operating in ten countries plus a pipeline of 24 executed deals across the Americas and Europe.

AMR Collection’s brands include Secrets, Dreams, Breathless, Zoëtry, Alua, Sunscape and Now.

Hyatt expands global footprint

The transaction means that Hyatt now has a presence in destinations like Curaçao, Acapulco, Menorca, the Canary Islands and St Martin; has gained properties in 11 new European markets; and has grown its European brand footprint by 60%. Moreover, the company can provide a broader offering through membership programme Unlimited Vacation Club, travel distribution business ALG Vacations, destination services management business Amstar and leisure travel technology platform Trisept Solutions.

Hyatt’s currently assessing opportunities to bring added value to members of Unlimited Vacation Club and its own World of Hyatt loyalty scheme. The group will integrate the AMR Collection into World of Hyatt next year, enabling travellers to earn and redeem points at over 100 AMR Collection hotels and resorts.

A warm reception to the deal

The transaction has been hailed by the leaders of both Hyatt and ALG.

Mark Hoplamazian, president and chief executive officer of Hyatt Hotels Corporation, said: “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. 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 travellers.”

Alejandro Reynal, chief executive officer and president of Apple Leisure Group, added: “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.

“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 organisation. With Hyatt’s added expertise, we expect to accelerate our expansion as we welcome more travellers and turn vacation dreams into lifelong memories.”

Reynal remains at the helm

Following the deal, ALG will continue to be led by Reynal and his leadership team, operating as a distinct business unit within Hyatt. Reynal has also joined the Chicago-headquartered company’s executive leadership team, reporting to Hoplamazian.

BDT & Company and JP Morgan acted as financial advisors to Hyatt, while Latham & Watkins served as legal advisor. PJT Partners represented ALG as financial advisor, with Simpson Thacher & Bartlett taking on the role of legal advisor.

Credit Suisse and Deutsche Bank Securities worked as financial advisors to KKR and KSL Capital Partners.

Earlier this week, TOPHOTELNEWS exclusively revealed how Hyatt’s development pipeline has held firm over the last 18 months, despite the challenges caused by Covid19.

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