Hyatt is buying Apple Leisure Group (ALG) for $2.7 billion in a move that accelerates its transition to an asset-light business.
The deal doubles Hyatt’s global resorts footprint adding a host of hospitality brands as well as travel distribution business ALG Vacations.
Hyatt is buying the business from its private equity owners, KKR and KSL Capital Partners.
ALG’s business will continue to be led by current CEO Alejandro Reynal — who will report to Hyatt CEO Mark Hoplamazian — and the current 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 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.
ALG’s hotel portfolio consists of over 33,000 rooms operating in 10 countries. The portfolio has grown from nine resorts in 2007 to approximately 100 properties by the end of 2021 and has a pipeline of 24 executed deals with a large number of additional hotels in the development process.