Hyatt Hotels Corp. is acquiring Apple Leisure Group, which offers travel, hospitality and luxury-resort management services. The management of AMResorts properties, which includes the Dreams, Secrets, Breathless and Zoëtry brands, are part of the agreement. The $2.7 billion cash deal is expected to close in the fourth quarter of this year.
AMResorts provides management services to the largest portfolio of luxury all-inclusive resorts in the Americas, according to Hyatt, under the AMR Collection brand portfolio. In addition to the brands above, which are popular in Mexico and the Caribbean resort destinations, the newer Alua Hotels & Resorts, which have been expanding in Europe, are part of the deal.
ALG's Unlimited Vacation Club membership offering, ALG Vacations travel distribution, and destination management services and travel technology assets are included in the agreement, as well. Apple Leisure Group CEO Alejandro Reynal and the current leadership team will continue to run the business following the acquisition, and Reynal will become part of Hyatt's executive leadership team, reporting directly to Hyatt president and 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.”
Apple Leisure Group's hotel portfolio currently consists of more than 33,000 rooms across 10 countries. The collection has grown from nine resorts in 2007 to approximately 100 properties by the end of this year. There are 24 signed deals in the pipeline, and many more in the works.
In addition to providing Hyatt with a significantly larger international footprint in the luxury all-inclusive resort category, the purchase accelerates Hyatt's strategy of reducing hotel ownership. Because AMResorts doesn't own any real estate, the deal significantly increasing the percentage of revenue and earnings the hospitality giant will generate from fees.