Hyatt buys Apple Leisure Group and its 100 hotels for $2.7 billion
Hyatt Hotels (NYSE: H) agreed to buy resort operator Apple Leisure Group from KKR and KSL Capital Partners for $2.7 billion in cash.
Why it matters: The vacation travel market remains optimistic about future growth, despite the resurgent coronavirus pandemic.
Details: Pennsylvania-based ALG operates around 100 hotels, most of which are all-inclusive luxury resorts in the Americas and Europe. It was acquired by KKR and KSL in 2017 from Bain Capital for an undisclosed amount.
The bottom line: "The deal would bolster [Hyatt's] already considerable resort-management portfolio and give it one of the biggest U.S. providers of charter flights and vacation packages for travel to Mexico, the Dominican Republic, Jamaica and the Caribbean. It also would accelerate Hyatt’s transformation, long under way, to a more asset-light business model, focusing on generating an ongoing stream of steady and predictable fees." — Miriam Gottfried, WSJ