Apple Leisure Group, a Newtown Square-based luxury vacation and resort management firm, has been acquired by Hyatt Hotels Corporation in a $2.7 billion cash deal, doubling Hyatt's global resorts footprint.

The acquisition gives Hyatt more than 33,000 new hotel rooms in 10 countries and accelerates the brand's shift to more luxury properties and travel packages. Hyatt has been selling off some of its real estate assets in order to increase the percentage of revenue it derives from fees.

Apple Leisure Group extends back to the 1960s and has specialized in selling package holidays, but also manages luxury resorts in locations around the world, including in the Caribbean, Mexico and Europe.

The company's brand management platform, AMResorts, provides management services to the largest portfolio of luxury all-inclusive resorts in the Americas, with well-known brands such as Secrets Resorts & Spa, Dreams Resorts & Spas, Breathless Resorts & Spas and Alua Hotels & Resorts.

Apple Leisure Group was acquired from Bain Capital four years ago by New York-based KKR and Denver-based KSL Capital Partners LLC at an undisclosed price. For Hyatt, the acquisition is a major expenditure compared to its purchase of Two Roads Hospitality for $480 million in 2018. The cash deal for Apple Leisure Group was completed with affiliates of each of KKR and KSL Capital Partners and the transaction is expected to close before the end of the year. 

"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," Hyatt CEO Mark Hoplamazian said. "Importantly, the combination of this value-creating acquisition and the $2 billion increase in our asset sale commitment will transform our earnings profile, and we expect Hyatt to reach 80% fee-based earnings by the end of 2024."

Apple Leisure Group has expanded rapidly over the last 15 years, growing from nine resorts in 2007 to approximately 100 properties. It also has a pipeline of 24 executed deals with a large number of additional hotels in the development process.
 

Its Unlimited Vacation Club, an exclusive travel club offering preferred rates and other benefits at AMR Collection properties, boasts more than 110,000 members. Hyatt hopes to leverage this program with more end-to-end leisure travel offerings around the world.

"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," Apple Leisure Group CEO Alejandro Reynal said. "On behalf of everyone at ALG, I am grateful to our partners at KKR and KSL who supported us in building the platform into what it is today. I am excited to have our team join the Hyatt family and 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."