Hyatt Hotels buys Apple Leisure Group for $2.7B

KKR and KSL have owned the resort company since 2017

National /
Aug.August 16, 2021 09:18 AM
Hyatt Hotels CEO Mark Hoplamazian and Apple Leisure Group Chairman Alex Zozaya (Hyatt, Apple Leisure Group)

Hyatt Hotels CEO Mark Hoplamazian and Apple Leisure Group Chairman Alex Zozaya (Hyatt, Apple Leisure Group)

Hyatt Hotels is buying Apple Leisure Group, an asset-light resort operator, from two private equity firms, with an eye toward increasing the percentage of revenues and earnings generated from fees.

The hotel operator agreed to buy the company from KKR & Co and KSL Capital Partners for $2.7 billion in cash, Reuters reported. Hyatt expects about $2.2 billion of the purchase to be funded by new debt and $1 billion in cash. The rest, around $500 million, will come from equity financing.

The $1.7 billion in financing will come from JPMorgan. The deal is expected to close by the end of the year and double the resort footprint of the company.

Apple Leisure Group had been under the ownership of KKR and KSL since 2017, when the company was purchased from Bain Capital, another private equity firm, for an unknown price.

Apple Leisure Group’s services include a membership program and technology solutions. But the company is known for resort management. AMResorts manages brands in Mexico, the Caribbean, Europe and Central America.

The company also runs charter flights and offers vacation packages for destinations across the world, with Hyatt Hotels betting on the recovery of the vacation industry.

Hyatt Hotels appears to be attempting to diversify its portfolio as the forecast for hotels remains uncertain. The company committed to selling $1.5 billion in hotel real estate by the end of the year.

[Reuters] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    WeWork CEO Sandeep Mathrani (Getty Images, WeWork)
    WeWork stock has taken a WeDive. Will it resurface?
    WeWork stock has taken a WeDive. Will it resurface?
    Cartier's Cyrille Vigneron and 653 Fifth Avenue (Cartier, Linkedin, Getty)
    Cartier betting on appetite for luxury with US retail expansion
    Cartier betting on appetite for luxury with US retail expansion
    Gale Brewer (Getty, Gale Brewer)
    City takes aim at landlords’ empty retail space
    City takes aim at landlords’ empty retail space
    SL Green chairman Marc Holliday and One Madison Avenue (Getty Images, SL Green Realty Corp)
    Franklin Templeton takes 347K sf at SL Green’s One Madison Avenue
    Franklin Templeton takes 347K sf at SL Green’s One Madison Avenue
    Leslie Alexander with 1117 Main Road in Riverhead (top) and 2045 Sound Avenue in Mattituck (Getty, Compass)
    Leslie Alexander lists pair of North Fork properties with development rights
    Leslie Alexander lists pair of North Fork properties with development rights
    (Photo Illustration by The Real Deal with Getty Images)
    Office occupancy stalls after Labor Day push
    Office occupancy stalls after Labor Day push
    A photo illustration of 1776 Nostrand Avenue (Getty Images, Google Maps)
    Flatbush landlord sentenced in deadly space heater fire
    Flatbush landlord sentenced in deadly space heater fire
    Tankhouse’s Sam Alison-Mayne with 452 Union Street (Facades Plus, Google Maps, Getty)
    Multifamily deals dominate strong week of NYC i-sales
    Multifamily deals dominate strong week of NYC i-sales
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...