Hyatt, the US hotel group, has entered into an agreement to acquire Apple Leisure Group (ALG), a leading luxury resort-management services, travel and hospitality group, for $2.7 billion in cash.
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The transaction is due to be completed in the fourth quarter of the year.
ALG’s hotel portfolio consists of over 33,000 rooms operating in ten countries, helping expand Hyatt’s reach in Europe. 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.
ALG's business will continue to be led by current ALG CEO Alejandro Reynal and its leadership team. Reynal will become a member of Hyatt’s executive leadership team and report to Hyatt CEO Mark Hoplamazian.
ALG’s resort brand management platform AMResorts provides management services to portfolio of luxury all-inclusive resorts in the Americas under the AMR Collection brand, including Secrets Resorts & Spa, Dreams Resorts & Spas, Breathless Resorts & Spas and Zoëtry Wellness & Spa Resorts as well as the fast-growing Alua Hotels & Resorts brand, which is expanding in European leisure destinations.
Hoplamazian said: “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 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.”
Reynal added: “Combining Hyatt’s deep expertise and global brand footprint with ALG’s strong resort brands, operating capabilities and robust development plans will elevate our differentiated position and create a leader in luxury leisure travel.”
