Hyatt Hotels CEO Mark Hoplamazian and Apple Leisure Group Chairman Alex Zozaya (Hyatt, Apple Leisure Group)
Hyatt Hotels is to acquire Apple Leisure Group, a small asset operator, from two private equity firms to increase the percentage of revenue and fee income.
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 approximately $ 2.2 billion of the purchase to be funded by new debt and $ 1 billion in cash. The remainder, around $ 500 million, is to be financed through equity.
The $ 1.7 billion funding comes from JPMorgan. The deal is expected to close by the end of the year and double the company’s resort presence.
Apple Leisure Group has been owned by KKR and KSL since 2017, when the company was bought by Bain Capital, another private equity firm, at an undisclosed price.
Apple Leisure Group services include a membership program and technology solutions. But the company is known for its resort management. AMResorts manages brands in Mexico, the Caribbean, Europe and Central America.
The company also offers charter flights and vacation packages to destinations around the world, with Hyatt hotels focusing on the Vacation industry recovery.
Hyatt Hotels seems to be trying to diversify its portfolio as the Forecast for hotels remains uncertain. The company is committed to selling $ 1.5 billion in hotel properties by the end of the year.
[Reuters] – Holden Walter-Warner
Contact Holden Walter Warner
