APPLE LEISURE GROUP acquired by HYATT
Context
Hyatt Hotels agreed on 15 August 2021 to acquire Apple Leisure Group from affiliates of KKR and KSL Capital Partners at an enterprise value of $2.7bn in cash, and completed the transaction on 1 November 2021. The purchase doubled Hyatt’s global resort footprint, made it the largest operator of luxury hotels in Mexico and the Caribbean and extended its European presence by 60% into 11 new markets. The acquired portfolio covered around 100 properties and more than 33,000 rooms in 10 countries, against nine resorts in 2007, with 24 further deals signed. Its membership club counted over 110,000 members. Beyond the resorts themselves, the deal brought Hyatt a holiday package distribution business, destination management services and a technology platform, extending it well beyond hotel operation. It also moved the group further towards fee-based earnings, which it aimed to bring to 80% of the total by the end of 2024. Chief executive Alejandro Reynal and his team stayed at the head of Apple Leisure Group, with Reynal joining Hyatt’s executive leadership team and reporting to chief executive Mark Hoplamazian. Hyatt funded more than 80% of the purchase with $1.0 billion of cash on hand and new debt, and the balance with around $500 million of equity financing, backed by a $1.7 billion commitment from J.P. Morgan. It planned to repay part of that debt with the proceeds of a programme to sell a further $2 billion of hotel real estate by the end of 2024. BDT & Company and J.P. Morgan acted as financial advisers to Hyatt, with Latham & Watkins as legal counsel, while PJT Partners and Deutsche Bank Securities advised Apple Leisure Group and its shareholders, with Simpson Thacher & Bartlett as legal counsel.
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Target
Apple Leisure Group operates in the all-inclusive resort business across three activities. Through AMResorts it manages resorts and provides their owners with brand management, sales and marketing services, under a portfolio of luxury all-inclusive brands. Through ALG Vacations it sells holiday packages combining flights, transfers and resort stays to Mexico, the Caribbean and other leisure destinations, partly on charter flights, through travel agents and its own websites. It also runs a paid membership club giving its members preferential rates at its resorts, destination management services handling transfers and excursions on arrival, and a technology platform connecting travel agents to suppliers. Its customers are travellers, resort owners and destination partners, and it is headquartered in Chicago.
Ent. Value
FREE VIEW$2.7bn
Equity Value
[members only]
Multiples
EV / Revenue
1x–3x
EV / EBITDA
[members only]
EV / EBIT
[members only]
Historical Financials (USD)
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Other operations with HYATT
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|---|---|---|---|---|
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| 11/2018 | HYATT | TWO ROADS HOSPITALITY | UNITED STATES | Hotels & Accommodation |
REFERENCES
Valuation range: EV $1–10bn
Revenue range: $1–10bn
EV/Revenue range: 1x - 3x
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Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.
Press release: view release
Target: apple leisure group
Acquirer: hyatt