Hyatt spends $2.7 billion to acquire Apple Leisure Group


The acquisition of Apple Leisure Group will increase the percentage of revenue and profit Hyatt derives from fees.

Hyatt will buy Apple Leisure Group for $2.7 billion. Photo: Jamaica Observer

Hyatt Hotels Corp (USA) announced on August 15 that it will buy resort management group Apple Leisure Group from private securities company KKR & Co and private securities company specializing in tourism. travel and entertainment KSL Capital Partners with the US for $2.7 billion in cash.

In 2017, KKR and KSL purchased Pennsylvania-based resort manager Apple Leisure Group from the world’s leading investment firm Bain Capital, but did not disclose the price.

Hyatt said the acquisition of Apple Leisure Group will increase the percentage of revenue and profit Hyatt derives from fees.

Hyatt plans to pay more than 80% of the deal value with $1 billion in available cash and new borrowing while the rest with about $500 million from the share issue. Hyatt has received a funding commitment of $1.7 billion from JP Morgan (USA).

The $2 billion raised from the asset sale program is expected to be used to repay debt, including money borrowed to make the acquisition.

Hyatt said the deal could be completed in the fourth quarter of 2021.