Hotel giant Hyatt will spend $2.7 billion in cash on acquiring Apple Leisure Group from its private equity ownership.
Apple Leisure Group is a major seller of tickets, packages and hotels across multiple brands.
Hyatt's move comes in a bid to become the largest operator of all-inclusive resorts worldwide and expand its luxury hotel footprint in Europe by 60%, as well as becoming the biggest brand in the space in Mexico and the Caribbean.
Included in the deal are all of ALG's subsidiaries, including the Trisept Solutions travel technology wing that provides tools for leisure travel operators.
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Distribution brands in the deal for Hyatt include Apple Vacations, Funjet Vacations and Travel Impressions, as well as the packaging services provided to airlines such as United and Southwest.
The structure of the deal will be made in part via a $1 billion cash basis and debt financing for Hyatt and a further $500 million in equity financing.
The company was formed by way of a number of mergers and acquisitions, including most recently a deal to combine with the Mark Travel Corporation.
ALG CEO Alejandro Reynal, who will remain in post as head of the unit, says: "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."
Hyatt says the deal will give it the opportunity to sell an additional $2 billion in hotel assets by the end of 2024.
* Check out with interview with Alex Zozaya, CEO of Apple Leisure Group until 2019 when he moved aside to become executive chairman, recorded for the How I Got Here podcast in April 2021.
How I Got Here, episode 60 - Alex Zozaya of Apple Leisure Group