Hyatt to Buy Parent Company of AMR Collection for USD $2.7 Billion

Hyatt to acquire Apple Leisure Group, expanding global brand presence in luxury leisure travel.
Hyatt to acquire Apple Leisure Group, expanding global brand presence in luxury leisure travel.

Hyatt Hotels Corporation announced 16AUG it is paying USD $2.7 billion in cash to acquire Apple Leisure Group. The deal is expected to close in the fourth quarter this year.

Under the AMR Collection brand, Apple Leisure Group (ALG) provides management services to what they call “the largest portfolio of luxury all-inclusive resorts in the Americas.”

ALG’s hotel portfolio consists of over 33,000 rooms operating in 10 countries. That includes well-known brands Secrets Resorts & Spa, Dreams Resorts & Spas, Breathless Resorts & Spas and Zoëtry Wellness & Spa Resorts as well as the fast-growing Alua Hotels & Resorts brand, which is expanding in European leisure destinations. The acquisition also includes ALG’s membership offering, Unlimited Vacation Club, travel distribution business ALG Vacations, as well as destination management services and travel technology assets.

The deal will expand Hyatt’s global brand presence in luxury leisure travel, especially in Europe.

“With the asset-light acquisition of Apple Leisure Group, we are thrilled to bring a highly desirable independent resort management platform into the Hyatt family,” said Mark Hoplamazian, president and chief executive officer, Hyatt.

“The addition of ALG’s properties will immediately double Hyatt’s global resorts footprint. ALG’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.”

ALG’s Unlimited Vacation Club® is an exclusive travel club whose participants enjoy preferred rates and other benefits at AMR™ Collection properties. With over 110,000 members, Unlimited Vacation Club® membership has grown at a compounded annual growth rate of 18% over the last five years.

“Combining Hyatt’s deep expertise and global brand footprint with ALG’s strong resort brands, operating capabilities and robust development plans will elevate our differentiated position and create a leader in luxury leisure travel,” said Alejandro Reynal, chief executive officer, Apple Leisure Group. “I anticipate a robust growth journey ahead as the industry expands and we are able to provide a best-in-class leisure offering to an even larger group of travelers around the world.”

Hyatt says it has several motivations for the deal including:

  • expanding its footprint in luxury and resort travel immediately by 100 properties, and increase its presence in Europe by 60 per cent, in 11 new European markets critical for global growth in leisure travel; and
  • increasing choice and experiences for guests, as ALG’s loyalty program Unlimited Vacation Club will bring more than 100,000 travelers closer to the Hyatt brand.

Reaction from the travel industry was swift, with analysts at Skift pointing out the deal, “is also a shot across the bow to competitors like Marriott and Hilton as well as smaller brands. The battle is on to expand into the high-end leisure travel and all-inclusive resort sector.”

 

Lynn Elmhirst

Editor

With a background in broadcast news and travel lifestyles TV production, Lynn is just as comfortable behind or in front of the camera as she is slinging words into compelling stories at her laptop. Having been called a multi-media ‘content charmer’, Lynn’s other claim to fame is the ability to work 24/7, forgoing sleep until the job is done. Documented proof exists in a picture of Lynn at the closing celebrations of an intense week, standing, champagne in hand - sound asleep. That’s our kind of gal.

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