According to a recent announcement, Hyatt Hotels have made plans to acquire luxury resort
operator, Apple Leisure Group. The acquisition is billed to happen within the fourth quarter of
2021.
Mark Hoplamazian, Hyatt CEO explained that leisure has shown to be a more sustainable and
malleable option.
The deal worth $2.7 billion will be locked in within the final quarter of 2021.
In acquiring Apple Leisure Group from KKR and KSL Capital Partners, Hyatt Hotels aims to
expand its luxury hotels and resorts. This move takes place even as concerns rage high
regarding the very contagious Delta variant.
Hyatt Hotels are confident that leisure travel would be able to improve its revenue from the
current segment which sits at 45% to over 50%. Business travel is expected to complete the
revenue stream.
Mark Hopalmazian, CEO and President of Hyatt Hotels speaking in an interview on CNBC’s
“Closing Bell” on Monday said; “Vacation was the first segment to come back and recover after most of the downturn in the past 20 years. We’ve seen a strong recovery.” “This is not a change in strategy, it is a recognition that leisure is sustainable and has been resilient.”
The deal worth $2.7 billion ought to be completed within the final quarter of 2021.
33, 000 rooms will be added across 100 hotels owned by Hyatt Hotels when the company
completes the acquisition of Leisure travel and resort brand management company.
“We are underwriting this transaction not on what happens in the next four weeks or four
months, but rather on what happens next in the future,” Hopalmazian said. “We think this is
going to be a growing segment.”
Hopalmazian states that this deal raises the company’s European presence to an enviable 60%. After the acquisition, Alejandro Renal will continue in his position as CEO of Apple Leisure Group, but he will join Hyatt’s executive leadership team and operate under Hopalmazian. Currently, Hyatt Hotels shares are down 2.28% with a market cap of $7.4 billion.
