Apple Leisure Group

Apple Leisure Group is an American travel and hospitality conglomerate specializing in comprehensive travel and resort/brand management in Mexico, the Caribbean, Latin America, Europe and the Middle East.

History

2021: Global Hyatt bought Apple Leisure Group for $2.7 billion

On August 15, 2021, the American hotel operator Hyatt Hotels announced the purchase of Apple Leisure Group (ALG) from investment companies KKR & Co and KSL Capital Partners for $2.7 billion.

Thanks to the acquisition of Apple Leisure Group, which does not require large assets, we will gladly include in the Hyatt family a very popular platform for managing independent resorts - said Hyatt President and Chief Executive Officer Mark Hoplamazyan.

The hotel operator said it expects to fulfill its current obligation to sell hotel real estate in the amount of $1.5 billion in 2021, and by the end of 2024 it undertakes to raise another $2 billion from the sale of hotel real estate.

Global Hyatt acquired Apple Leisure Group for $2.7 billion

Hyatt said it expects to finance more than 80% of the purchase through a combination of $1 billion of its funds and new debt financing, and the remainder through equity financing worth about $500 million. The company added that Hyatt secured a $1.7 billion funding commitment from JP Morgan.

Cash proceeds from the $2 billion asset sale program are expected to be used to pay off debt, including debt incurred to finance the acquisition, Hyatt said, adding that the deal is expected to close in the fourth quarter of 2021.

The ALG hotel portfolio by August 2021 has more than 33 thousand rooms operating in 10 countries and has grown from nine resorts in 2007 to about 100 facilities by the end of 2021. There are 24 deals in the portfolio and a large number of additional hotels in the process of further development.

2017: KKR and KSL bought Apple Leisure Group

In 2017, KKR and KSL bought Apple Leisure Group from Bain Capital for an undisclosed cost.^[1]

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