Hyatt Hotels To Acquire Resort Management Company Apple Leisure Group For $2.7B

Hospitality company Hyatt Hotels Corp H has agreed to acquire Apple Leisure Group (ALG), a luxury resort-management services, travel, and hospitality group, from affiliates of each of KKR and KSL Capital Partners LLC, for $2.7 billion in cash.
Hyatt expects the transaction to close in the fourth quarter of 2021.
ALG's resort brand management platform AMResorts provides management services to luxury resorts in the Americas under the AMR Collection brand portfolio.
The acquisition includes ALG's membership offering, Unlimited Vacation Club, travel distribution business ALG Vacations, destination management services, and travel technology assets.
After the transaction, ALG's business will continue to be led by ALG CEO Alejandro Reynal and the ALG leadership team.
"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 CEO Mark Hoplamazian.
ALG's hotel portfolio consists of over 33,000 rooms operating in 10 countries.
Hyatt expects to fund more than 80% of the purchase with a combination of cash on hand and new debt financings, and the remainder with $500 million from equity financing.
Hyatt held $1.1 billion in cash and equivalents as of June 30, 2021.
Price Action: H shares closed lower by 0.50% at $72.14 on Friday.