Miraval to continue standalone operation of
resorts and spas, while expanding unique brand of wellness
experiences across Hyatt portfolio
Hyatt Hotels Corporation (NYSE: H) today announced that Hyatt
has acquired Miraval Group, the renowned provider of wellness and
mindfulness experiences, from an affiliate of KSL Capital Partners,
LLC.
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For over 20 years, Miraval’s flagship property in Tucson, Ariz.
has been considered one of the nation’s leading wellness resorts,
offering a comprehensive program of imaginative, authentic and
meaningful activities, experiences and personal treatments designed
to help guests live life in balance. Along with acquiring the
flagship Miraval Arizona Resort & Spa, Hyatt will continue
Miraval’s plans to redevelop the recently acquired 220-acre
Travaasa Resort in Austin, Texas and pursue the acquisition and
redevelopment of the 380-acre Cranwell Spa & Golf Resort in
Lenox, Mass. The transaction also includes the acquisition of the
Miraval Life in Balance Spa brand, which opened its first location
in Dana Point, Calif. last year.
“The Miraval acquisition reflects our commitment to super
serving the high-end traveler and finding new ways to understand
and care for them,” said Mark Hoplamazian, president and chief
executive officer, Hyatt Hotels Corporation. “We know that wellness
is an area that is becoming increasingly important to our guests
and we share Miraval’s belief that wellness is more than fitness
and nutrition – it’s a lifestyle. Adding Miraval to the Hyatt
family creates a great opportunity to advance the Miraval brand
expansion while building a greater depth of expertise in wellness
and mindfulness.”
The acquisition includes an initial investment of $215 million
for the Miraval brand and the resorts in Tucson and Austin. Hyatt
expects to invest an additional $160 million over the next two to
three years to fund the expansion of the Tucson resort, the
redevelopment of the Austin resort and the acquisition and
redevelopment of the Lenox resort. Hyatt will fund the investment
with current operating cash flows and proceeds from the sale of
existing assets, consistent with Hyatt’s asset recycling program.
The company expects these investments to be marginally accretive to
Adjusted EBITDA in 2017 and 2018, achieving a cash-on-cash yield in
the high single digits within four to five years.
Miraval will form a distinct new wellness category within the
Hyatt portfolio of brands. Steven Rudnitsky, president and chief
executive officer of Miraval Group, will continue to drive the
brand’s growth strategy, reporting to Mark Hoplamazian and working
with the existing Miraval leadership team and associates.
“Importantly, the acquisition also extends the Hyatt brand into
adjacent spaces beyond traditional hotel stays, which is core to
Hyatt’s global growth strategy,” said Hoplamazian. “We recognize
the business opportunity within the $420 billion wellness-tourism
category and understand the rising demand for wellness offerings
among our targeted high-end travelers.”
Today’s announcement continues Hyatt’s commitment to a holistic
health and wellness strategy as an extension of its purpose, to
care for people so they can be their best. For example, since 2014,
Hyatt chefs around the globe have been championing Food.
Thoughtfully Sourced, Carefully Served, a program featuring menus
evolved with an eye on sustainable health. This includes options
such as grass-fed meats, sustainable seafood and organic fruits and
vegetables. Additionally, many Hyatt hotels worldwide are offering
more options for travelers to maintain a healthier routine,
including healthy refreshments at arrival, curated in-room
amenities, increased fitness offerings, expanded menus and
nutritious to-go alternatives.
“Our shared purpose makes Hyatt the ideal acquisition partner,”
said Rudnitsky. “This transaction will unlock Miraval’s full
potential by joining us with one of the foremost global hospitality
companies fully committed to wellness. Consistent with Hyatt’s
strategy, Miraval offers destinations for guests who take an active
role in seeking inspiration and self-improvement for a life in
balance.”
The term “Hyatt” is used in this release for convenience to
refer to Hyatt Hotels Corporation and/or one or more of its
affiliates. Hyatt is working to include the referenced properties
in its loyalty program, but the properties are not currently
participating.
About Hyatt Hotels Corporation
Hyatt Hotels Corporation (NYSE: H), headquartered in Chicago, is
a leading global hospitality company with a portfolio of 12 premier
brands and 679 properties in 54 countries, as of September 30,
2016. The Company's purpose to care for people so they can be their
best informs its business decisions and growth strategy and is
intended to create value for shareholders, build relationships with
guests and attract the best colleagues in the industry. The
Company's subsidiaries develop, own, operate, manage, franchise,
license or provide services to hotels, resorts, branded residences
and vacation ownership properties, including under the Park
Hyatt®, Grand Hyatt®, Hyatt Regency®,
Hyatt®, Andaz®, Hyatt Centric®, The Unbound
Collection by Hyatt™, Hyatt Place®, Hyatt House®,
Hyatt Ziva™, Hyatt Zilara™ and Hyatt Residence
Club® brand names and have locations on six continents. For
more information, please visit www.hyatt.com.
About Miraval Group
New York-based Miraval Group is a global leader in wellness
resorts and spas. Miraval Arizona Resort & Spa in Tucson
pioneered the destination wellness spa resort category with its
comprehensive program of activities, experiences and personal
treatments. In April 2016, Miraval opened the Life in Balance Spa
at Monarch Beach Resort in Dana Point, CA.
The company is developing Miraval Life in Balance Spas and
Miraval destination wellness resorts concurrently in key national
markets and has recently announced plans for new resort
developments in Lenox, MA and Austin, TX.
About KSL Capital Partners, LLC
KSL Capital Partners, LLC is a private equity firm specializing
in travel and leisure enterprises in five primary sectors:
hospitality, recreation, clubs, real estate and travel services.
KSL has offices in Denver, CO; Stamford, CT; and London. Since
2005, KSL has raised approximately $7.4 billion in equity capital
commitments. KSL's current portfolio includes some of the premier
properties in travel and leisure. For more information, please
visit www.kslcapital.com.
Forward-Looking Statements
Forward-Looking Statements in this press release, which are not
historical facts, are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These
statements include statements about Hyatt’s acquisition of Miraval
Group, growth strategy, and introduction of new brand concepts and
involve known and unknown risks that are difficult to predict. In
some cases, you can identify forward-looking statements by the use
of words such as “may,” “could,” “expect,” “intend,” “plan,”
“seek,” “anticipate,” “believe,” “estimate,” “predict,”
“potential,” “continue,” “likely,” “will,” “would” and variations
of these terms and similar expressions, or the negative of these
terms or similar expressions. Such forward-looking statements are
necessarily based upon estimates and assumptions that, while
considered reasonable when made, are inherently uncertain, and are
subject to numerous assumptions and uncertainties, many of which
are outside of Hyatt’s, Miraval Group’s or KSL Capital’s control,
which could cause actual results, performance or achievements to
differ materially from those expressed in or implied by such
statements. Forward-looking statements made in this press release
are made only as of the date of their initial publication and no
party undertakes any obligation to publicly update any of these
forward looking statements as actual events unfold, except to the
extent required by applicable law. If one or more forward-looking
statements is updated, no inference should be drawn that any
additional updates will be made with respect to those or other
forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20170118005906/en/
HyattStephanie
Sheppard312.780.5399Stephanie.Sheppard@hyatt.comorNike
CommunicationsKimberly Hanson978.821.4886khanson@nikecomm.com
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