By: Hadassa Kalatizadeh
A new deal in the works signifies confidence in the ailing travel industry.
As reported by the Wall Street Journal, Hyatt Hotels Corp. plans to purchase Apple Leisure Group for $2.7 billion. The resort company is currently owned by private equity groups KKR & Co. and KSL Capital Partners LLC.
The travel industry has taken a hard hit due to the pandemic, with vacations and travel still limited. Apple Leisure’s group was no exception, troubled over the past year with all the travel bans, but it has bounced back as the restrictions have been largely lifted. The deal indicates optimism in a comeback for the industry.
The transaction announced on Sunday, would bolster Hyatt— already one of the world’s largest hospitality companies. It would enlarge its resort-management portfolio and give it one of the largest U.S. providers of charter flights and vacation packages for travel to Mexico, the Dominican Republic, Jamaica and the Caribbean, also adding 33,000 hotel rooms in all-inclusive resorts. The purchase would also fast-track Hyatt’s asset-light transformation, helping it produce more steady, predictable fees. “We are thrilled to bring a highly desirable independent resort management platform into the Hyatt family,” said Hyatt, led by Chief Executive Officer Mark Hoplamazian. Apple Leisure’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.”
As per the WSJ, Apple Leisure sells vacation packages under the CheapCaribbean.com, Apple Vacations brands, and others. It also does tours, excursions, airport transfers, and corporate-event planning in various locations including Mexico and the Caribbean.
KKR and KSL had purchased the company in 2017 from Bain Capital for an unnamed price. It has completed several of its own acquisitions, including a merger with Funjet Vacations owner The Mark Travel Corp. and in 2018 purchased a majority share in Alua Hotels & Resorts in Spain.
KKR is a NY-based company which manages $429 billion of private equity, in numerous fields including credit, infrastructure, insurance and real estate. KSL Capital Partners LLC is a travel-and-leisure specialist, which focuses on hospitality, recreation, clubs, real estate and travel services. Founded in 2005, KSL has raised a total of more than $15 billion of capital for debt and equity funds.
