Hyatt Hotels has announced plans to acquire Apple Leisure Group (ALG). The $2.7 billion deal is slated to close in the fourth quarter of 2021, and will expand the Hyatt footprint with ALG’s sprawling portfolio—comprising more than 33,000 guestrooms in operation in 10 countries—of luxury all-inclusive resorts in the Americas across brands like AMR Collections, Secrets Resorts & Spa, Dreams Resorts & Spas, Breathless Resorts & Spas, and Zoëtry Wellness & Spa Resorts. ALG’s membership offering, Unlimited Vacation Club, and its ALG Vacations distribution business will also be included in the transaction.
“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,” says Hyatt president and CEO Mark 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. Importantly, the combination of this value-creating acquisition and the $2 billion increase in our asset sale commitment will transform our earnings profile, and we expect Hyatt to reach 80 percent fee-based earnings by the end of 2024.”
“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,” adds ALG CEO Alejandro Reynal, who will remain in his role and begin serving as a member of Hyatt’s executive leadership as well. “I am excited to have our team join the Hyatt family and I anticipate a robust growth journey ahead as the industry expands and we are able to provide a best-in-class leisure offering to an even larger group of travelers around the world.”
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