Well Positioned to Capture Significant and
Growing Leisure Travel Demand with Enhanced End-to-End Offerings
and an Increasingly Diversified Portfolio
Reaffirms Expanded Asset Sale Commitment to
Generate an Additional $2 Billion of Proceeds by End of 2024; Fully
Completes Existing Commitment
Hyatt Hotels Corporation (NYSE: H) today announced that Hyatt
has completed the previously announced acquisition of Apple Leisure
Group® (ALG), a leading luxury resort-management services, travel
and hospitality group, from affiliates of each of KKR and KSL
Capital Partners, LLC.
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the full release here:
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Dreams Las Mareas Resort and Spa (Photo:
Business Wire)
Hyatt is doubling its global resorts footprint through the
addition of ALG’s AMR™ Collection brand portfolio, which
comprises approximately 100 hotels and resorts operating in 10
countries, as well as a pipeline of 24 executed deals in the
Americas and Europe. As a result, Hyatt now offers one of the
largest collections of luxury all-inclusive resorts in the world,
including new destinations for Hyatt such as Acapulco, Curaçao, the
Canary Islands, Menorca and St. Martin. Through this acquisition,
Hyatt has added properties in 11 new European markets and expanded
its European brand footprint by 60%, strengthening Hyatt’s growth
potential in a critical region for global leisure travel
demand.
In addition, Hyatt is offering even more options and experiences
for its high-end guest and customer base and enhancing the
end-to-end leisure travel experience through:
- Unlimited Vacation Club® by AMR™ Collection, an
exclusive membership club whose members enjoy preferred rates and
other benefits at participating AMR™ Collection properties
- ALG Vacations®, one of the largest packaged vacation
providers and leisure travel distribution platforms in North
America serving the United States, Mexico and the Caribbean
- Amstar, a leading destination services management
company
- Trisept Solutions®, a unique leisure travel technology
platform
Hyatt is determining ways in which the World of Hyatt® loyalty
program and ALG’s Unlimited Vacation Club® can bring added value
and unique loyalty benefits to their respective member bases. Hyatt
plans to integrate the AMR™ Collection into World of Hyatt in 2022
so that members can earn and redeem World of Hyatt points at more
than 100 AMR™ Collection hotels and resorts.
“Hyatt’s acquisition of ALG represents a brand-defining moment
in our more than 60-year history and builds on our legacy as a
hospitality leader,” said Mark Hoplamazian, president and chief
executive officer, Hyatt. “Hyatt and ALG have highly complementary
brand portfolios and share a deep commitment to colleague and guest
experiences focused on care. Having first entered the fast-growing
luxury all-inclusive space in 2013, we are ideally positioned to
capture the significant and rising demand for leisure travel and
extend the world-class hospitality we provide to a wide range of
new travelers. We are excited to welcome the ALG team to the Hyatt
family, and look forward to working together to achieve new levels
of growth and value creation for all stakeholders – including our
shareholders, owners, customers, guests, members and
colleagues.”
“Today marks the beginning of ALG’s next chapter, in which we
will continue to build on the strong loyalty and reputation we have
established through our luxury travel brands and services, now as
part of Hyatt,” said Alejandro Reynal, chief executive officer and
president, Apple Leisure Group. “We strongly believe we can achieve
more together and are excited by the opportunities ahead for our
expanded family, including our ALG team members, who are excited to
join a larger global organization. With Hyatt’s added expertise, we
expect to accelerate our expansion as we welcome more travelers and
turn vacation dreams into life-long memories.”
ALG’s business will continue to be led by Alejandro Reynal and
the current ALG leadership team. ALG will operate as a distinct
business unit within Hyatt. Mr. Reynal has joined Hyatt’s executive
leadership team and reports to Mr. Hoplamazian.
In September of 2021, Hyatt fulfilled its asset disposition
commitment announced in 2019 of $1.5 billion resulting in a total
of more than $3 billion of proceeds realized since its
asset-disposition strategy was launched in 2017, at a combined
multiple of over 17x EBITDA. Hyatt also reaffirms its commitment to
generate an additional $2 billion in proceeds from asset
dispositions by the end of 2024.
Advisors In connection with the transaction, BDT &
Company, LLC and J.P. Morgan served as financial advisors to Hyatt,
and Latham & Watkins LLP acted as its legal advisor. PJT
Partners served as financial advisor to ALG, and Simpson Thacher
& Bartlett LLP acted as its legal advisor. Credit Suisse and
Deutsche Bank Securities Inc. served as financial advisors to KKR
and KSL Capital Partners.
The term “Hyatt” is used in this release for convenience to
refer to Hyatt Hotels Corporation and/or one or more of its
affiliates.
About Hyatt Hotels Corporation Hyatt Hotels Corporation,
headquartered in Chicago, is a leading global hospitality company
offering 20 premier brands. As of June 30, 2021, the Company's
portfolio included more than 1,000 hotel and all-inclusive
properties in 68 countries across six continents. 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 attract
and retain top employees, build relationships with guests and
create value for shareholders. The Company's subsidiaries operate,
manage, franchise, own, lease, develop, license, or provide
services to hotels, resorts, branded residences, and vacation
ownership properties, including under the Park Hyatt®, Miraval®,
Grand Hyatt®, Alila®, Andaz®, The Unbound Collection by Hyatt®,
Destination by Hyatt™, Hyatt Regency®, Hyatt®, Hyatt Ziva™, Hyatt
Zilara™, Thompson Hotels®, Hyatt Centric®, Caption by Hyatt, JdV by
Hyatt™, Hyatt House®, Hyatt Place®, tommie™, UrCove, and Hyatt
Residence Club® brand names, and operates the World of Hyatt®
loyalty program that provides distinct benefits and exclusive
experiences to its valued members. For more information, please
visit www.hyatt.com.
About Apple Leisure Group® Apple Leisure Group® (ALG) is
a leading North American resort brand-management, leisure travel
and hospitality group with a unique business model serving
travelers and destinations worldwide. ALG, through its group of
affiliated companies, consistently delivers exceptional value to
travelers and strong performance to resort owners and partners by
strategically leveraging its portfolio of brands including:
AMResorts LP, or one or more of its affiliates which collectively
provide sales, marketing, and brand management services to resort
and hotel brands under the AMR™ Collection including 5-star and
4-star luxury award-winning brands including Secrets® Resorts &
Spas, Dreams® Resorts & Spas, Breathless® Resorts & Spas,
Zoëtry® Wellness & Spa Resorts, Alua® Hotels & Resorts, and
Sunscape® Resorts & Spas; ALG Vacations®, one of the largest
sellers of vacation packages and charter flights in the U.S. for
travel to Mexico and the Caribbean, with well-established brands:
Apple Vacations®, Funjet Vacations®, Travel Impressions®,
CheapCaribbean.com®, BeachBound®, Blue Sky Tours®, Southwest
Vacations®, and United Vacations®; the exclusive membership program
Unlimited Vacation Club®; best-in-class destination management
services provided by Amstar DMC; and the innovative technology
solutions provider Trisept Solutions®, connecting over 88,000
travel agents with leading travel suppliers. To learn more about
the Apple Leisure Group® advantage, visit
www.appleleisuregroup.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 the Company’s acquisition of Apple Leisure Group®,
including expected financial and operational benefits resulting
from the acquisition, guest and owner advantages arising from the
acquisition, the amount and timing of future asset dispositions and
projected sales multiples of such asset dispositions, the expected
growth of global luxury travel and the Company’s system-wide
leisure room revenue mix, the projected future fee based earnings
of the combined company, expected benefits and added value from the
World of Hyatt loyalty program and Apple Leisure Group’s membership
offering, the Company’s plans, strategies, outlook, financial
performance, projections, financing proposals, prospects or future
events and involve known and unknown risks that are difficult to
predict. As a result, our actual results, performance or
achievements may differ materially from those expressed or implied
by these forward-looking statements. 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 by us
and our management, are inherently uncertain. Factors that may
cause actual results to differ materially from current expectations
include, among others, risks associated with the consummation of
the acquisition of Apple Leisure Group®, including the related
incurrence of material additional indebtedness; the Company’s
ability to successfully integrate Apple Leisure Group’s employees
and operations into the Company; the ability to realize the
anticipated benefits and synergies of the acquisition of Apple
Leisure Group® as rapidly or to the extent anticipated; the
duration of the COVID-19 pandemic and the pace of recovery
following the pandemic, any additional resurgence, or COVID-19
variants; the short and longer-term effects of the COVID-19
pandemic, including the demand for travel, transient and group
business, and levels of consumer confidence; the impact of the
COVID-19 pandemic, any additional resurgence, or COVID-19 variants,
and the impact of actions that governments, businesses, and
individuals take in response, on global and regional economies,
travel limitations or bans, and economic activity, including the
duration and magnitude of its impact on unemployment rates and
consumer discretionary spending; the broad distribution and
efficacy of COVID-19 vaccines and wide acceptance by the general
population of such vaccines; the ability of third-party owners,
franchisees, or hospitality venture partners to successfully
navigate the impacts of the COVID-19 pandemic, any additional
resurgence, or COVID-19 variants; general economic uncertainty in
key global markets and a worsening of global economic conditions or
low levels of economic growth; the rate and the pace of economic
recovery following economic downturns; global supply chain
constraints and interruptions; risks affecting the luxury, resort,
and all-inclusive lodging segments; levels of spending in business,
leisure, and all-inclusive segments as well as consumer confidence;
declines in occupancy and average daily rate; limited visibility
with respect to future bookings; loss of key personnel; domestic
and international political and geo-political conditions, including
political or civil unrest or changes in trade policy; hostilities,
or fear of hostilities, including future terrorist attacks, that
affect travel; travel-related accidents; natural or man-made
disasters such as earthquakes, tsunamis, tornadoes, hurricanes,
floods, wildfires, oil spills, nuclear incidents, and global
outbreaks of pandemics or contagious diseases, such as the COVID-19
pandemic, or fear of such outbreaks; our ability to successfully
achieve certain levels of operating profits at hotels that have
performance tests or guarantees in favor of our third-party owners;
the impact of hotel renovations and redevelopments; risks
associated with our capital allocation plans, share repurchase
program, and dividend payments, including a reduction in, or
elimination or suspension of, repurchase activity or dividend
payments; the seasonal and cyclical nature of the real estate and
hospitality businesses; changes in distribution arrangements, such
as through internet travel intermediaries; changes in the tastes
and preferences of our customers; relationships with colleagues and
labor unions and changes in labor laws; the financial condition of,
and our relationships with, third-party property owners,
franchisees, and hospitality venture partners; the possible
inability of third-party owners, franchisees, or development
partners to access capital necessary to fund current operations or
implement our plans for growth; risks associated with potential
acquisitions and dispositions and the introduction of new brand
concepts; the timing of acquisitions and dispositions and our
ability to successfully integrate completed acquisitions with
existing operations; failure to successfully complete proposed
transactions (including the failure to satisfy closing conditions
or obtain required approvals); our ability to successfully execute
on our strategy to expand our management and franchising business
while at the same time reducing our real estate asset base within
targeted timeframes and at expected values; declines in the value
of our real estate assets; unforeseen terminations of our
management or franchise agreements; changes in federal, state,
local, or foreign tax law; increases in interest rates and
operating costs; foreign exchange rate fluctuations or currency
restructurings; lack of acceptance of new brands or innovation;
general volatility of the capital markets and our ability to access
such markets; changes in the competitive environment in our
industry, including as a result of the COVID-19 pandemic, industry
consolidation, and the markets where we operate; our ability to
successfully grow the World of Hyatt loyalty program and Apple
Leisure Group’s membership offering; cyber incidents and
information technology failures; outcomes of legal or
administrative proceedings; and violations of regulations or laws
related to our franchising business; and other risks discussed in
the Company’s filings with the SEC, including our annual report on
Form 10-K and quarterly reports on Form 10-Q, which filings are
available from the SEC. We caution you not to place undue reliance
on any forward-looking statements, which are made only as of the
date of this press release. We do not undertake or assume any
obligation to update publicly any of these forward-looking
statements to reflect actual results, new information or future
events, changes in assumptions or changes in other factors
affecting forward-looking statements, except to the extent required
by applicable law. If we update one or more forward-looking
statements, no inference should be drawn that we will make
additional updates with respect to those or other forward-looking
statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211102005724/en/
Media Contact: Franziska Weber +1 312 780 6106
franziska.weber@hyatt.com
Investor Contact: Noah Hoppe +1 312 780 5991
noah.hoppe@hyatt.com
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