Hyatt Residential Group acquired by INTERVAL LEISURE GROUP

Interval Leisure Group acquired Hyatt Residential Group, the shared ownership arm of Hyatt Hotels, from affiliates of the Chicago hotel group, in a transaction completed on 1 October 2014 at an enterprise value of $100–350M. The perimeter covered Hyatt’s vacation ownership development, sales, marketing and management operations, together with its interest in a joint venture developing Hyatt Ka’anapali Beach, a 131-unit shared ownership property in Maui. Alongside the share purchase, a subsidiary of Interval Leisure Group entered into a global master licence agreement giving it the exclusive right to use the Hyatt brand in shared ownership, in exchange for annual licence fees paid to Hyatt. The Hyatt Residence Club and its 16 existing resorts kept their branding, and the club’s roughly 30,000 owners retained the benefits attached to their memberships, including their status in Hyatt’s loyalty programme. For Interval Leisure Group, the purchase extended its activity beyond exchange and management into the development, sale and marketing of shared ownership, adding the revenue streams attached to those stages. Holland & Knight advised Interval Leisure Group on the transaction.